Tag: European Union

  • PMQT – 21 November 1995

    Below is the text of Prime Minister’s Question Time from 21st November 1995.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Matthew Taylor: To ask the Prime Minister if he will list his official engagements for Tuesday 21 November.

    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. Taylor: Can the Prime Minister confirm that despite the Government’s policy of not issuing entry visas to senior representatives of the Nigerian Government, on Sunday, the Nigerian Attorney-General, no less, and a senior legal adviser to the leader of the Nigerian military Government were admitted into this country? What signal does that send about this Government’s determination to address the killing of Ken Saro-Wiwa and his colleagues?

    The Prime Minister: The action taken at the Commonwealth conference has made it clear how we feel about the matter. On the specific point, I was not aware that the two people concerned were granted visas, and they did not see me. I will, however, make inquiries about the hon. Gentleman’s remarks.

    Sir Donald Thompson: At the risk of sounding disloyal, does my right hon. Friend realise that, despite pressure from both sides of the House, he completely failed to make it rain in Yorkshire this summer? Will he therefore ensure that he and his Cabinet colleagues see to it that there is no impediment to prevent Yorkshire Water from filling the reservoirs by any means possible?

    The Prime Minister: I know that Yorkshire Water is making great efforts to ensure an adequacy of water. My right hon. Friend the Minister for the Environment and Countryside is taking a close interest in the practical action that is under way.

    Mr. Blair: Will the Prime Minister confirm that, as a result of the 21 different tax rises introduced by him since the general election, which he fought on the platform of cutting tax year by year, the average family tax bill has risen by £800 a year or by at least 7p on the standard rate of income tax? Is that figure of 7p on the basic rate of income tax correct or not?

    The Prime Minister: As the right hon. Gentleman knows, for I have said it in the House before, we increased taxes in the recession and we did so to protect people who were vulnerable. [Interruption.] I am bound to say that, if the decision to raise taxes to protect people who were vulnerable in the recession–I believe that that was the right decision–had not been taken, we would not have been able to get interest rates down from 15 per cent. to around 7 per cent. and we would not be in our present position this year, when people on average earnings will see an extra £250 a year in net disposable income.

    Mr. Blair: As the right hon. Gentleman said that the purpose was to protect the vulnerable, will he confirm that, in the 10 years from 1985 to 1995, with all the Tory tax changes, those on incomes of more than £100,000 a year have gained massively, whereas the vast majority of families on average income have either gained little or lost money? Does not that show that the real divide is not between high and low tax, but between fair and unfair tax, and that the Tories are the party of unfair taxation?

    The Prime Minister: The right hon. Gentleman may try very hard, but he will never convince the people of this country that his party–[Interruption.] Hon. Members would be wise to wait. He will never convince the people of this country that his party will not spend more and tax more than the Conservative party. Alas, the deputy leader of the Labour party is not with us this afternoon, but a year or so ago he admitted:

    “There’s . . . going to be a higher top rate than we have . . . High income levels are going to pay considerably more”.

    That is not, I may say, what the leader of the Labour party told the Confederation of British Industry last week.

    Mr. Blair: If the Prime Minister wants to prove that he wants fair taxes, why does he not abandon his long-term objective of abolishing capital gains tax and inheritance tax, which would benefit only a few people at the top, who have already benefited greatly, and agree with us that the money could better be used to help lower and middle-income families through a lower starting rate of tax?

    The Prime Minister: We have widened the band dramatically, and people start at 20p. Many people in this country pay tax only at 20p in the pound. But

    “Britain needs successful people in business who can become rich by their success through the money they earn”– [Interruption.] I am surprised to hear some comments from the Opposition, because I was quoting what the leader of the Labour party said a few days ago.

    It is not credible for Opposition Members to ask day after day, in intervention after intervention, for more spending–in their speeches 40 per cent. of them ask for more spending–and then to pretend that Labour would even hold taxes steady, let alone reduce them. Labour is the high-tax party, and always has been–and it would be the high-spending, high-tax party in the future, if it ever had the chance.

    Mr. Whittingdale: Will my right hon. Friend join me in expressing the sympathy of the whole House to my constituents, Mr. and Mrs. Paul Betts, whose daughter Leah died last week? Will he confirm that the war against drugs remains the Government’s highest priority, and does he share the hope of Leah’s parents that her death may serve as a warning, and may help to save the lives of other young people?

    The Prime Minister: I am sure that the whole House will join me in sending sympathy to Mr. and Mrs. Betts for the appalling loss that they face. There are those who believe that Ecstasy in particular, but also other soft drugs, are harmless. I do not share that view. The vast majority of people who move on to hard drugs do so through the medium of soft drugs, and it is important that people up and down the country, especially young people, understand that. I hope that, as a result of Leah’s tragic death, that matter will get the publicity that it deserves, and that young people will realise that there is nothing glamorous whatever about soft drugs. They are dangerous, not only in themselves but because they can lead on to hard drugs, which are potential killers time and time again.

     

    Q2. Mr. Purchase: To ask the Prime Minister if he will list his official engagements for Tuesday 21 November.

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

    Mr. Purchase: The Prime Minister will know that the figures released yesterday for the third quarter show that the amount of unsold goods in industry is rising, that imports are growing faster than exports and that, unfortunately, unemployment has plateaued. The level of activity in the economy is slowing down, and construction figures are falling. Does the right hon. Gentleman realise that those facts illustrate clearly an economy running out of steam? Or does he believe that those figures represent merely a state of mind, just as the Secretary of State for Trade and Industry believes that unemployment and the fear of unemployment are simply a state of mind?

    The Prime Minister: The hon. Gentleman knows that the economy grew by 4 per cent. last year, faster than any other western European country; the economy is growing again this year, and it is forecast to grow faster than the others next year. Manufacturing investment is rising, export volumes are up by more than 6 per cent. and unemployment has fallen by more than 700,000. There are more people in work in this country than in any other major country in Europe, and we have a lower rate of unemployment than any major country in Europe.

    That has been achieved while underlying inflation is at low levels never dreamed of by the Labour party. The reality is that we have a platform for prosperity for the future that has been hard to achieve. We propose to sustain that platform, which offers an opportunity for long-term prosperity for all the people in this country.

    Sir Peter Hordern: If this or any future Government were to sign up to the social chapter, would not this country be bound by majority vote within the Council of Ministers? Would not that make it impossible to pick and choose the directives that should apply to this country? Does not that make total nonsense of the claims made by the Leader of the Opposition last week?

    The Prime Minister: My right hon. Friend is entirely right. I fought for–and won–the right to opt out because I wanted to put British jobs and British business first. For that reason, I will not sign the social chapter. The social chapter is not just a set of principles. It is not something that one can pick and mix, by deciding to have the bits one likes but not the bits one does not like. Most of the measures may be decided by qualified majority voting, and the British vote on its own would not be sufficient to block matters that the British Government may not like. It is for that reason that we are right not to sign the social chapter. Were we to do so, we would be creating unemployment for a lot of people who have jobs at present.

     

    Q3. Mr. Canavan: To ask the Prime Minister if he will list his official engagements for Tuesday 21 November.

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

    Mr. Canavan: If the Prime Minister refuses to disown the President of the Board of Trade for his insulting comment that job insecurity is just a state of mind, will he be hiring a team of psychiatrists for himself and the Cabinet when we come to the next general election?

    The Prime Minister: I can assure the hon. Gentleman that my right hon. Friend the President of the Board of Trade is determined, as I am, to continue with our policies to bring unemployment down and to ensure that people are in work, as they are in higher numbers not only in Scotland but right across the United Kingdom because of the policies that we have followed, and not the policies advocated by the hon. Gentleman.

     

    Q4. Mr. Robert Banks: To ask the Prime Minister if he will list his official engagements for Tuesday 21 November.

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

    Mr. Banks: Does my right hon. Friend agree that Britain’s international status and prosperity depends upon our having a powerful and constructive role within the European Union? Does he further agree that the development of the Union must be based on control over Brussels bureaucracy, and that the synchronisation of economies–which may take years to achieve–is essential before a single currency can be contemplated or made workable by the leading members of the Community?

    The Prime Minister: I want to see a strong Britain in a strong Europe, and I believe that that means looking at the values in Europe that create jobs. We must ensure that Europe is competitive, and increase the existing job total. There are at the moment more than 20 million people unemployed in Europe, and we need to get that figure down dramatically. We must look at any proposal for a single currency in the light of Britain’s own national economic self-interest. Last night, I spelled out some of the fundamental questions that underlie the implications of a single currency. Those issues must be answered within the EU before the decisions are made on whether anyone should proceed with a single currency or not. The price of error if those questions are not answered is very high for Europe collectively, and for each country individually.

    Mr. Trimble: Will the Prime Minister confirm that it is and will continue to be the policy of the Government that, before Sinn Fein-IRA can move fully into dialogue, it must establish its commitment to exclusively peaceful methods by beginning a credible process of actual decommissioning?

    The Prime Minister: My right hon. and learned Friend the Northern Ireland Secretary spelt that out in his speech at Washington. The hon. Gentleman is clearly referring to the Washington three conditions. That remains the Government’s position.

     

    Q5. Mr. Rathbone: To ask the Prime Minister if he will list his official engagements for Tuesday 21 November.

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

    Mr. Rathbone: As First Lord of the Treasury, will my right hon. Friend bang a few heads together there in order to stop the bureaucratic interference in the private finance initiative, so that more customers, clients and patients can benefit from it?

    The Prime Minister: I will certainly be happy to continue doing as my hon. Friend has said. The private finance initiative is central to the plans for improving the country’s infrastructure. My hon. Friend should be in no doubt about our determination to succeed. Later on this afternoon, my right hon. Friend the Secretary of State for Health will make a speech on the PFI. I welcome his determination to increase the amount of contribution to the health service from private finance. I think a similar contribution can come from the PFI across the Government’s programme.

  • Mr Major’s Speech at the Lord Mayor’s Banquet – 20 November 1995

    Below is the text of Mr Major’s speech at the Lord Mayor’s Banquet, held in London on Monday 20th November 1995.


    PRIME MINISTER:

    First of all this evening, Lord Mayor, may I thank you and the Sheriffs for agreeing to move your banquet from its traditional date. I greatly appreciate your courtesy in doing so but I must tell you I spent most of last Monday evening hoping that none of you turned up here to an empty Guildhall!

    This evening, I want to talk about some aspects of our nation’s future. I shall not this evening talk of Northern Ireland though I hope very soon to do so with the Irish Prime Minister and the mainstream political parties in Northern Ireland. Tonight, I want to talk about some of the ways in which the United Kingdom as we meet here this evening stands at a crossroads. In the next few years, we, must make choices, choices that may shape our country for generations. So far, debate on these has been limited, too often trivial stories dominate the news, too often the truth gets in the way of a good story. I believe the British public deserves better than that; they need to be told about the prospects and the problems that lie ahead; they need to have the options set out before them plain and unvarnished with common sense answers and in some aspects I will seek to do that this evening.

    First, jobs and competitiveness. Today, the greatest challenge to our competitiveness comes from Asia and from China. The centre of gravity in world trade is shifting, shifting I think perhaps more rapidly than many people realise. Practically half the world’s people are emerging into vigorous industrial economies, they can offer new markets to us, they can offer new opportunities to us provided we are prepared to go out and claim them. But there is downside to those new opportunities because these new countries will also threaten to relegate an uncompetitive Europe to a far lesser role than it is privileged to play today.

    My Lord Mayor, we have no automatic right to prosperity. We must earn it or we will lose it in the years that lie ahead. That is why it is my aim to turn Britain into the unrivalled enterprise centre of Europe. Let me discuss some of the wars we might make that aim a reality.

    The heart of the matter is that there must be a limit to the share of national income that Government spend on behalf of the nation and there must be a limit to what they take from the nation in tax. Today’s fastest-growing economies have a very clear lesson for us: by keeping spending down, they have kept taxes down and low taxes are the best incentives for business to invest and this is our aim, the less we take in tax the more we can encourage enterprise. Enterprise means that employers can afford to employ people and effort is rewarded. That enterprise creates the living standards and funds the public services that we all care about.

    In the mid-1970s, Government spent around 50% of our national income. We have brought that down to around 42% today, 10% below the average for the rest of the European Union. Because of the steps that we have taken to reform welfare and to encourage people to save themselves for their pensions, I expect that gap to widen further over the coming years. So we are doing quite well but not well enough. We cannot afford to compare ourselves with our European neighbours alone. Both America and Japan, crucial world competitors of this country, spend less and tax less proportionately than we do.

    Our aim is to go further still and get public spending below 40% of national income and keep it there and if we are to do that we have to make tough choices between competing priorities. The State cannot – and in my judgement the State should not – try and do everything. We need to find new, more efficient ways of delivering public services and capital investment.

    When the private sector takes responsibility and bears the risk, it is generally more efficient than the public sector. That, of course, is the underlying reason behind the Private Finance Initiative in which the City of London had such a vital role to play. Private finance already is a significant reality. By the end of this financial year, we shall have signed contracts under the Private Finance Initiative worth over £5,000 million. We are applying new ideas of private finance to one area of Government spending after another. It is already, of course, My Lord Mayor, well established in the Health Service for example where 25 schemes of over £25 million each are already in the pipeline.

    Transport, crucial for the City and crucial for the country, is another rich area for private finance. I can tell you we have passed another critical milestone today. Subject to contract, we have selected the winning bid to design, build, finance and operate the upgrade between Newcastle and Carlisle. Another three major new road projects will follow, making a first tranche of £400 million and we have encouraging bids for a further four on top of that.

    So private finance is not a passing fancy, private finance is here to stay; it will play an increasing part in capital investment in the future and I am determined to break down the barriers that currently have existed within Government for too long and enable the City to play the role that it has been denied from playing for far too long.

    My Lord Mayor, an international enterprise economy is the only way we can offer lasting security and prosperity to our people. Free trade is in our blood, it is in the City’s blood and I believe that gives us a unique advantage as we look to the future. To make Britain the enterprise centre of Europe means pursuing our historic role as a global trading nation and that is why developing North Atlantic free trade and strengthening our links with Asia and Latin America are so crucially important to our own future but the market on our doorstep is Europe. Our task is to persuade the rest of Europe to take the enterprise road as well.

    From next spring until probably the summer of 1997, the European Union will again be reviewing the treaties in an intergovernmental conference. Many of you feel, I am sure, that it is too soon after Maastricht for yet another conference. You might say that but I couldn’t possibly comment! So I don’t expect the intergovernmental conference to be a very wide-ranging review. I would like it to focus on specific areas where some modest improvements are attainable. We are already mapping out common ground with like-minded countries. Last month, President Chirac and I identified some areas where the conference should focus: a more effective common foreign and security policy; the reinforcement of subsidiarity, the right to have more decided domestically in host nations rather than at the European level; strengthening of the role of national parliaments and intergovernmental cooperation in the fight against crime and against drugs. These are areas where Britain and France aim to work together and where we also share much common ground with Germany.

    These issues are important but they are not the great issues facing Europe at next month’ s summit in Madrid and thereafter I see three great issues: how to be competitive and to work; how to enlarge the European Union further across the Continent of Europe; and, of course, the implications for us and Europe of a single currency.

    Let me turn first to competitiveness. Britain used to be seen by many as the poor performer. Today we have some of the most successful companies in Europe in steel, cars, electronics and we are attracting by far the bulk of foreign investment beyond Europe into Europe and from Europe into the United Kingdom. Britain leads the world in telecoms and media, we are in the vanguard of information technology and as we meet here this evening, we now have more of our people in jobs and fewer unemployed than any major European country, better than Germany and far ahead of other countries where employers are dragged down by high social costs.

    The Social Chapter is not simply a set of principles, it is a set of policies which, whatever else their supporter may claim for them, add to costs and cost people their jobs. Nor is it a pick-and-mix option. The great bulk is decided by qualified majority voting; that means Britain cannot block proposals on our own even if we are opposed to them, there is no national veto and it is for those reasons that the Government oppose the Social Chapter.

    We need here a climate where business – and perhaps especially small business – can prosper to create new jobs and to help business grow. If Europe competes it can prosper. It will be immensely damaging if Europe ignores the competition from the Far East. That competition is real. We cannot just pretend that it isn’t out there waiting to take our markets from us. To do so would be folly and if we were to do so, then Europe would surely get left behind.

    So My Lord Mayor, if others in Europe bind themselves into uncompetitive economic and social structures, Britain will not join them. We are not going to put our economic success at risk and I shall take that message clearly and concisely to the conference in Madrid next month.

    My Lord Mayor, too often and too simplistically that sort of message is taken as anti-European, nationalistic, seeing Europe as a trading area and no more. I say to you, My Lord Mayor, it is none of those things. I want Europe to succeed. We have gained greatly by being part of the European Union and there is a great deal more for this country to gain as a member of that great Union but I believe to maximise the benefits for us and for the rest of Europe it is right to set out the difficulties and to set out what needs to be done.

    That brings me to the second question, enlargement of the European Union. I believe that we must spread stability and democracy across a wider Europe. Eastern and Central Europe have been the cockpit of war throughout the centuries but now we have an historic opportunity to bind them into a single market and the democratic embrace of Western Europe and if we are able in this generation of politicians to achieve that, we will bring for our children and our grandchildren a security and prosperity that our fathers and our grandfathers could only have dreamed of. That is the possibility that lies ahead of us and that is why enlargement of the European Union remains a vital objective. Europe has agreed this in principle, now it must face up to what it means in practice.

    The problems are formidable. As Europe enlarges, the Common Agricultural Policy as it stands will be increasingly unaffordable. I put it mildly, reform will not be easy in the European Union of the Common Agricultural Policy but it is essential. The fledgling economies of Eastern Europe have already come a long way in a very few short years yet they will still need help to develop, still need help to survive alongside the competitive aspect of a free market in the single market of Western Europe but if help is to go to these newcomers, where will the help come from? How will it be accepted if some existing member countries of the Union are told there is less help for them or if other Members are asked for larger contributions to assist the new members? These issues must be addressed, they must be addressed if Europe is serious in its promises to Poland, the Czech Republic, Hungary, Malta, Cyprus and the other aspirant nations waiting to join the European Union.

    Enlargement is complex enough on its own but at the same time we must grapple with an even more complex and politically-charged debate – the question of a single currency. Some are passionate about this, others have profound doubts. Britain, I am glad to say, has a choice. We can decide whether to stay out or opt in but whatever choice we make – in or out – one thing is certain: if there is to be a single currency, it will affect Britain and it will change Europe fundamentally. Not all members will join or could join. Only a minority could meet the criteria on the present timetable – a point I think that is now accepted right across Europe – but if some went ahead while others did not, the Union would be divided between those countries which adopted the single currency and those which remained outside it. In some areas of policy, such variable geometry may be sensible, indeed inevitable, but it needs to be thought through and so do its implications.

    For instance, how would a single currency and the currencies or the rest of the Union co-exist? How would Europe’s institutions serve the interests of those countries which adopted the single currency and of those who did not? What would it mean for the Community budget? What would its implications be for the single market that has been of such benefit to every member of the European Union?

    Attentive listeners will notice I did not ask what will be the name of the single currency; I left that question out because it is, to be frank, a convenient distraction from the issues that matter most and those issues must be answered before a single currency goes ahead. The price of error would be too high for Europe individually and collectively. This is something all of us, even the most enthusiastic advocates, need to consider. The time has come to answer these questions so that the Union can expand and reform successfully, so that stability and democracy are extended to millions more Europeans who are desperate to move from Central and Eastern Europe into the embrace of the European Union and to whom we have made a promise that in due time they will be welcome and they need to be answered so that Europe can compete with the rest of the world and win because our living standards today and our children’ s living standards tomorrow depend upon us successfully meeting that challenge.

    Europe must not become an economic museum; it must and it can become a power-house and that is the purpose to which we must drive our policy and European policy as a whole. There is no point standing on the sidelines carping and moaning about things we don’t like. When I said we needed to be in the heart of Europe, I meant it for this reason: if we are in the Heart of Europe we can influence Europe, from the sidelines of Europe we cannot and we need that influence in Europe in the interests of every single member of this country.

    My Lord Mayor, I said there were choices to be made. They must be made on the basis of a cool assessment and clear facts. Emotion is heady stuff but it often makes for poor policy. A cool assessment and clear facts is what we must look at and that is the basis upon which the Government will approach European policy, the only basis that is undeniably in the British interest.

    These challenges are real, complex and often uncomfortable but they are at the centre of the choices that we face about our nation’s future; they must be addressed and they must be at the centre of our national debate and I, My Lord Mayor, intend to ensure that they are.

  • Mr Major’s Speech During 1995 Queen’s Speech Debate – 15 November 1995

    Below is the transcript of Mr Major’s Commons speech during the 1995 Debate on the Queen’s Speech, on 15th November 1995.


    Mr. Tony Blair (Sedgefield) It is traditional at the beginning of our debate, before commending the right hon. and hon. Members who have just spoken, to note the deaths of hon. Members in the past year. I am sure that the House will want to record its appreciation of the work of Sir James Kilfedder, Sir Nicholas Fairbairn, Geoffrey Dickens and Derek Enright – different characters, but people who all, in their different ways, brightened the dullness of political life. They will be missed. In particular, perhaps I may be permitted, on behalf of the Opposition, to express our grief at the tragic and very recent loss of Derek Enright, who will be long remembered and deeply mourned.

    I am delighted to commend the right hon. Member for Witney (Mr. Hurd) and the hon. Member for City of Chester (Mr. Brandreth). The speech of the right hon. Member for Witney was, of course, as elegant as ever. As Northern Ireland Secretary, Home Secretary and, indeed, Foreign Secretary, he was never less than decent, assiduous and honest – and, on occasions, he was far-sighted, courageous and successful. He served no fewer than three Prime Ministers and was totally loyal to all three, which I would take as a compliment.

    After the election, of course, the right hon. Gentleman will have more time for his own writing and Conservative Members will find food for thought in at least two of his earlier offerings. Written in the 1970s, they tell of a rather different age and, indeed, a different Conservative party. One is called “Truth Game” and the other “An End to Promises” – probably not many sales among the Cabinet nowadays. The best testimonial to the right hon. Member for Witney, whose speech I enjoyed and I commend him for it, was that offered by his friend and colleague the hon. Member for Aldershot (Sir J. Critchley), who said that he is “a touch too clever for the Tory party.” That charge has never to my knowledge been levelled against the hon. Member for City of Chester, but I greatly commend him for his speech. I mean no offence when I say that I greeted the end of it with some relief since I gather that he holds the world record for after-dinner speaking. It is recorded that he spoke for 12 hours and 32 minutes, though sadly it is not recorded how many of the audience stayed to the end of it.

    The hon. Member for City of Chester came to the House with a great reputation for loudness; indeed, that was only for his sweaters. He also runs a teddy-bear shop, I understand, in Stratford, so who says there is not sufficient diversity of experience in the House today? He is also a past winner, I am told, of the world Monopoly championships. No doubt there is a place on a board of the utilities waiting for him. More important, he is the author of a book called “Great Sexual Disasters”. The remarkable thing is that it was written before he came to the House. I have no doubt that a sequel is well on the way. He made a highly witty and amusing speech and I commend him for it, as I do the right hon. Member for Witney. They have lived up to our usual standard of speeches before the main debate begins.

    Before I come to the main part of the Queen’s Speech, I should mention the issue of Northern Ireland, which was mentioned in the Queen’s Speech. The Labour party will continue to back the Government in their efforts to secure peace in Northern Ireland, and we will do so even when progress is difficult.

    All of us know that for the current ceasefires to be turned into a lasting peace, there must be all-party talks with a view to a negotiated, constitutional settlement that has the support of both communities in Northern Ireland. Those talks can take place only in an atmosphere of trust where all parties are committed exclusively to the democratic path. That is why we have supported the establishment of an international commission to look at arms decommissioning in parallel with preparatory talks that could lead to substantive all-party negotiations. We very much hope that the two Governments can proceed in this direction as soon as possible. It will be a hard road ahead.

    We appreciate the enormous pressures on all involved in the search for peace – pressures that are often conflicting. From the first, we have supported the Government and we will continue to support them while we believe that they are acting genuinely and in good faith in the search for peace.

    On the rest of the Queen’s Speech, I cannot, of course, comment – it would be quite improper – on how Her Majesty responded when it was first put before her, but I think that the reaction of most people would be, “Is this it?” Indeed, she could be forgiven for fearing that she was the victim of another hoax, but this time it was not a joke by a DJ pretending to be the Canadian Prime Minister but the British Prime Minister presenting her with a joke of a Queen’s Speech. It is utterly irrelevant to the interests of Britain. It is the programme of a party that has ceased to have any real vision or purpose in government at all. It is about the interests of the Tory party, cobbling together any old brie-à-brae of legislation that can keep the Conservative party in one piece. Because that can be done only by appeasing the extreme right-wing members of the party, it is they who have determined the small substance of the programme, which is as far from one-nation politics as it is possible to imagine. There is nothing about jobs, nothing about reducing inequality and insecurity and nothing about helping those in poverty. Indeed, there is the opposite.

    The programme has another purpose. In an extraordinary move – and an extraordinarily inept one – an advance press briefing on the Queen’s Speech was given yesterday, not by the Leader of the House, as is traditional, and not by any of the Ministers who will implement the Queen’s Speech, but by the chairman of the Conservative party. What did he say in what journalists call an “unprecedented” eve of Queen’s Speech briefing? He gave the game away. What did he say the purpose of the Queen’s Speech was? He said that it was “to smoke out” the Labour party. He did not say that it was to provide new energy, ideas or vitality for Britain, but that it was to smoke out the Opposition. He did not say that it was to help the people of Britain, but that it was to play a game in the run-up to the election. I say that a Government’s job should be to govern. If they cannot govern in Britain’s interests, they should not be governing at all.

    Let us look at the problems that our country faces. They demand a radical Queen’s Speech, a giant of a Queen’s Speech and one that matches its ambitions with the nation’s problems. Instead, we get a rag-bag of right-wing ideas, fiddling around at the edges of Britain’s problems – a pathetic mouse of a Queen’s Speech that is designed not to help Britain, but to secure the survival of the Tory party. There cannot be any more eloquent testimony to the state of today’s Conservative party than this.

    Let us look at the problems that we face. There are the scandals in the privatised utilities; there is nothing in the Queen’s Speech about that. One in seven 21-year-olds is unable to read properly and one in five cannot count. There is drug abuse and violent crime. One in three people is on welfare benefits under this Government. The national health service is under strain and has been turned into a two-tier system. Public transport is crumbling and pollution is rising. Does the Queen’s Speech address any of those questions? It is utterly irrelevant to the problems of Britain and shows no real recognition of the state of Britain today.

    Britain is 35th in the world standard of education-35th Britain. To be 35th may be good enough for the Conservative party, but it is not good enough for this country or for our children. Can the Conservatives not see that it is, in part, because of our slide in the education league that we have slumped in the economic league too, from 13th to 18th? They are not the only team to have slumped to 18th in the league; Wolverhampton Wanderers has as well, but at least Graham Taylor did the decent thing – he resigned. He will be at home now, watching our proceedings on the TV as many unemployed people do, and he will be speaking for the nation when he says, “Do I not like this Queen’s Speech.”

    It is extraordinary. Britain is 18th in the league of prosperity – 18th in the national income per head. Over 16 years, Britain has had the lowest growth rate of any G7 or European Union nation and the deepest recessions – two of them. Even at the current point of the economic cycle, investment is below what it was in 1989. According to the Bank of England, it is 20 per cent. below what it was at previous similar stages in the cycle. Between 1979 and 1993, the level of investment in the United Kingdom was the lowest of that of any of the 18 countries of the G7 and the European Union. There has been record borrowing, a decaying infrastructure and a 20 per cent. devaluation. All that has happened after the Government have had £120 billion of North sea oil and £80 billion of privatisation money, which they have taken and spent. People often say of the Conservatives that they may be cruel, but that they are competent. This is an economic record of shame. They are cruel and incompetent in equal measure.

    Of course, what happened to the great relaunch of the Prime Minister – relaunch No. 19 – when he came back from his holidays? We all remember the press briefings, do we not? The leadership election was won. We were told that he was “brimming with energy” and “fizzing” with new ideas. Perhaps what will worry the Cabinet as much as it worries us is the report that the Prime Minister was making a Cabinet “in his own image”. He was looking at all areas of policy, and he was going to “stamp his personal authority” on every area.

    That bit at least we can accept: this Queen’s Speech has the Prime Minister written all over it, with the imprint of the last person who sat on him. It is a Queen’s Speech designed to appease those who kept him in his job. It has been dictated by his party’s craving for survival rather than this country’s need for change.

    We will, of course, examine each Bill on its merits. Some Bills are likely to be uncontroversial. There must, of course, be a broadcasting Bill. We have accepted the principles of the White Paper, and we shall examine the contents of the Bill with care. There must be legislation on defence, the reserve forces, Army discipline and chemical weapons. Some of the housing proposals in the Queen’s Speech are those that we urged on the Government. We 16 will scrutinise carefully legislation on the disclosure of evidence in criminal cases to see that it is fair, although we have supported the royal commission’s recommendations on making the system more open.

    The divorce and domestic violence legislation is now back on the agenda, but where is the scope and the vision that matches up to the problems of Britain today? Surely that is the point that Conservative Members should understand. In so far as there is an agenda of substance, it is one dominated by the right – for example, vouchers for nursery places. We know that the Secretary of State did not want them, nor did her Ministers. We know that she was overruled by the Prime Minister, and why? Because, as The Sunday Times put it, “a powerful coalition of Tory right-wingers, including Michael Portillo and John Redwood” leant on him: they who must be appeased, and appeased they have been.

    There will be no choice when the nursery places are not available. A huge bureaucracy is to be created and £5 million will be needed to administer the pilot projects alone. Many local authorities – including the chairmen of Conservative local education authorities – are already saying, and it has not been denied either, that they fear that they will lose funding. All that will happen when the £165 million could provide a real guarantee to all four-year-olds of a proper nursery education.

    What else did the right demand? It demanded more money for assisted places. Why? Not because that will even begin to address the problem of under-achievement in our schools, but because it imagines that that will make things difficult for the Labour party – another piece of smoking out. That £100 million will be spent to play a party political game. That money is there to be spent on our children’s education, and the Prime Minister chooses to spend it on subsidising private education for 30,000 children while the educational needs of millions go neglected in our country.

    Resources mean choices – assisted places for the few, or smaller class sizes for the many. I know the choice that the Labour party makes; it is the choice that British people make. [Interruption.] It is the choice – [Interruption.] Before Conservative Members tell us that class sizes do not matter, why do so many of them send their children to private schools with small classes? [Interruption.]

    Mr. John Greenway (Ryedale) rose –

    Mr. Blair indicated dissent. The rowdier Conservative Members get, the more beaten they show themselves to be. [Interruption.] They appear to have a new tactic – to sit there and shout rather than stand and shout. We shall wait and see.

    Mr. David Shaw (Dover) He is losing his temper.

    Mr. Blair I gather that I am being accused of bad form by the hon. Member for Dover (Mr. Shaw).

    We all know the purpose of the asylum Bill. The former Tory research director, who is now a Conservative candidate, said when he left: “Immigration, an issue which we raised successfully in 1992 and again in the 1994 Euro-elections campaign, played particularly well in the tabloids and has more potential to hurt.” Of course the hurt is done not only to the Labour party. When politics is played with such issues, it causes hurt to many ordinary, decent people in this country who should not be hurt.

    We oppose bogus applications and fraud and we recognise the need for immigration controls, but race and immigration should not be the plaything of party politics. Let me suggest to the Prime Minister how the issue may be tackled to ensure that it is not.

    We should be clear in our minds what the real problem is – the real opening for fraud. According to recent parliamentary answers, not a single asylum decision on the fast track has been taken within the seven-day limit; the average is 40 days. The decision on the substantive procedure is meant to take 28 days; it takes, on average, eight months. The appeals procedure is supposed to take nine weeks; it takes 10 months. If we deal with those delays, we shall start to deal with the problem properly.

    The Prime Minister denies that that issue is being used to play the race card in any sense. Let the new Bill go to a Standing Committee of the House, so that evidence may be taken and considered, and let it be a genuine consensual exercise in getting at the truth. I am delighted to see that some Conservative Members are nodding at that.

    Dame Elaine Kellett-Bowman (Lancaster) You do not mean a Standing Committee.

    Mr. Blair It is not an unreasonable proposition. It would be a way to take the issue out of party politics and have it dealt with sensibly and with reason. I very much hope that we shall hear a pledge in the debate, especially in the light of events of the past couple of weeks, that Nigeria will not be on the list of nations decreed by the Home Office to be free of internal repression.

    On housing, the Government have removed the duty to find accommodation for priority homeless households. That duty on local authorities is to be scrapped despite warnings from charities and local authorities of the effects of doing so. It is a cruel and senseless measure, which will harm some of the most vulnerable people in Britain.

    Every issue that is now considered by the Government is considered on the following basis. I want to describe the way in which government now works, and I believe that many Conservative Members know, in their heart of hearts, that this is how it now works.

    These are the tests that are applied. What can put Labour on the spot? What can squeeze a headline out of tomorrow’s papers? What can keep the two wings of the Conservative party together? As a Minister said to a newspaper the other day, it is government by tacking. It is a tawdry, low-life, demeaning exercise in political tactics. It is everything about using government as a propaganda machine and it is nothing about the interests of Britain as a country.

    Consider the year since the previous Queen’s Speech. [Interruption.] It is very interesting. Conservative Members all want to shout sedentary interventions, but I do not think that they want to intervene today. No – they do not want to intervene today; they are so pathetic. It is another little game: usually, they intervene; today, they are all going to sit there and shout instead. Why do not they, just for one minute, behave like a Government 18 instead of a rabble? What is wrong? Do they not dare to stand up today? Is there a problem? It is a little game with the Whips. To think that those people can keep themselves in government for another 18 months – it is a tragedy for this country.

    I shall take advantage of the fact that Conservative Members are not going to interrupt me. Let us look at the past year – [Interruption.] Does the former chairman of the Tory party want to intervene? The tactic of not intervening is so bad that I can believe that he might have thought of it. No one wants to intervene – what a pathetic bunch they are.

    Dame Jill Knight (Birmingham, Edgbaston) Conservatives recognise convention and tradition. We recognise that during the speeches this afternoon, on this special day, we do not intervene.

    Mr. Blair First, in that case, Conservative Members broke the convention at least 10 times last year. Secondly, I think that the hon. Lady means the Budget speech, not this one. [Interruption.] Let us break a rule – they can come at me if they want to.

    Mr. Jim Lester (Broxtowe) As someone who was. a one-nation Tory long before I entered the House, I must say that the right hon. Gentleman is not doing much to convince people like me that he has converted.

    Mr. Blair If the hon. Gentleman considered the current position and policy of the Government on the immigration issue that has just been raised, on Europe, on tackling poverty and on employment, he would probably find that he had a lot more in common with what we say than with what the Government say.

    Let us consider the past year since the Queen’s Speech. If the BBC were to run a review of the Tories in the past year, it would not know whether to get the news, sport or light entertainment departments to put the compilation together. The country needs to know how the Government are run. Let us consider the Nolan inquiry. There were allegations of sleaze and we were told that there was no need for an inquiry. Then, there was an inquiry and the Government accepted the findings, but their Back Benchers did not like them so the matter was put in the hands of a new committee. There was then a vote – the Government lost the vote, said the vote did not matter and blamed the Whips. That is how the Government conduct their business.

    On the issue of the utility bosses – the fat cats – first, there is no need for an inquiry, but the pressure grows so there is a Confederation of British Industry inquiry, and with it the new mantra, “Wait for Greenbury.” We wait and the recommendations appear. First, the Government accept them, but when they try to implement them they find that they hit the wrong people – the subject was not even mentioned in the Queen’s Speech.

    On the subject of arms to Iraq, first, we heard that there was no need for an inquiry but then we were told that there would be an inquiry and that we were to wait for the Scott inquiry. We are still waiting. On the subject of Europe, the Whipless wonders were expelled to darkness for daring to defy the Prime Minister. They were propelled into fame; they were so in demand by the media that they should have paid council tax on No. 4 Millbank. They were brought back into the fold having conceded nothing, having given up nothing and having won the policy battle.

    Sir Peter Tapsell (East Lindsey) While the right hon. Gentleman is on the subject of Europe, will he say whether a Government led by him would join the single European market and retain our controls on immigration?

    Mr. Blair We are in the European single market and we have made it clear that we shall retain our veto on immigration issues. We have always said that. As to the family and domestic violence Bill, imagine trying to portray the Lord Chancellor – of all people – as a wild-eyed, anti-family, anti-religious destroyer of all that Britain holds dear. One expected him to turn up eating muesli and wearing sandals. The Government caved into the pressure, but then there was a backlash against the backlash. The Government caved in again and the Bill is back in the Queen’s Speech.

    Never was there a greater show of appeasement or a better indication of how the Government work than at the Conservative party conference when the Defence Secretary made one of the most ill-considered speeches ever delivered by a Defence Secretary. The chiefs of staff were appalled, the Special Air Services were sickened and former Tory Prime Ministers found the speech revolting. But what did the Prime Minister do? He stood up and he led the applause. The Prime Minister, who once would have had us at the heart of Europe, rose to salute the person who would have us out of Europe altogether.

    The Prime Minister does not believe in that policy – I would have more respect for him and for his current position if he did. The Prime Minister has lurched to the right on Europe not through deliberation but through default. It is time that the one-nation Tories who disdain such views stood up and said so loudly and clearly. They must sit in the Chamber, listening to the stridency and extremism, asking themselves why the Prime Minister caves in to the first four or five members of the hard right who want to see Government policy change. One-nation Toryism is dead; it is finished. There is only one party of social justice in the House today. Do not ask me who it is, Madam Speaker: simply read the comments of the hon. Member for Aldershot which appear in today’s Evening Standard.

    Mr. Iain Duncan Smith (Chingford) As we are talking about supposed cave-ins, will the Leader of the Opposition explain Labour’s education policy to the House? Last year Labour favoured taking grant-maintained schools back under political control, but when the right hon. Gentleman sent his child to a grant-maintained school, the policy changed and suddenly grant-maintained schools were in favour. Extremists such as the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley) complained and the Labour party shifted policy again. Now it is in favour of retaining half of all grant-maintained schools under political control.

    Mr. Blair The hon. Gentleman is wrong on every point, and if he were to read the relevant Labour party documents, he would realise that. I will tell him what the difference is between Labour and the Conservatives. If we make a change, we do so in the interests of this country and we stand up for that change. What is more, if there needs to be a change, I lead it; I do not follow it.

    Mr. John Redwood (Wokingham) Why should we believe the right hon. Gentleman’s views on Europe today when they are the complete opposite of his views 12 years ago? What will his views be in 10 years?

    Mr. Blair I have heard it all now. Twelve months ago, the right hon. Gentleman sat in the Cabinet and agreed with the Government’s policy. He is the man – I shall be corrected if I am wrong – who served in the Government at the time of the Maastricht decision and supported the Government all the way. [Interruption.]

    Madam Speaker Order. Hon. Members will stop shouting so much.

    Mr. Blair As I said last year – and I meant it – I would rather serve in a party that stands up for a constructive, proper relationship in Europe, than in a party that, probably later under the right hon. Gentleman, would move to take Britain out of Europe altogether.

    Mr. Nirj Joseph Deva (Brentford and Isleworth) Does the right hon. Gentleman know that last year there were 38,000 bogus and 1,700 genuine applications for asylum in Britain? Bogus applications damage race relations in this country.

    Mr. Blair I hope that no one will suggest that we or anyone else are in favour of bogus asylum applications. I hope that the Government are not either. Earlier, I made a suggestion that is worth considering. I do not know whether the hon. Gentleman would agree that the Bill should go to a Special Standing Committee that would take evidence. That would take the matter out of party politics altogether.

    Not a promise has been kept on tax, VAT, mortgage relief, the value of the pound, Europe, education and health. The Conservative Government have created a less equal, more unfair and more divided country than any Government this century. For decades, our nation, under Governments of both political persuasions, tried to pursue policies that brought the nation together because it was fair and efficient. Today, there is not even a pretence at it by the Government.

    Britain as a nation is less fair, less united and less cohesive. It thinks and acts less like one nation than at any time this century. The Tories may wrap themselves in the language of the nation state, but they have done more to destroy the fabric of Britain than any party in living memory.

    Mr. Phil Gallie (Ayr) A few minutes ago, the right hon. Gentleman suggested that he would rather belong to a party that had constructive and objective views on Europe, so why does he not come and join us? Why does he not accept that he has already moved down a whole pile of avenues that the Conservative party has advocated over the years? Perhaps he should recognise his true position in future.

    Mr. Blair At first I thought that it was an error of judgment by the Whips to stop interventions. Now I know that it was a canny and intelligent move. For heaven’s sake, we know perfectly well that there are different views on Europe in the Cabinet, but now the Government cannot even discuss certain issues connected with Europe as they are so worried about disagreeing.

    We needed a Queen’s Speech for Britain. We needed measures to lift Britain up the prosperity league by raising investment in skills, infrastructure and the regions and to bring knowledge and information to the people by harnessing new technology for our schools, in the workplace and in the home. We needed a Queen’s Speech to provide new opportunities for the young unemployed, to build homes for the homeless and to allow people a decent standard of living. We needed a Queen’s Speech to reform welfare and allow people back into work who need and want to work, to cut class sizes, to raise standards and to take tough action against failing schools. We needed a Queen’s Speech to restore the health service as one unified system of proper public service in Britain. We needed a Queen’s Speech to make the streets safe again by legislating for a proper crime prevention strategy in every part of Britain.

    We should and could have had a Queen’s Speech to revive local government, to bring real democracy to the nations and regions of Britain and to clean up politics after years of Conservative sleaze. We should have had a Queen’s Speech with a foreign policy based not on the need to appease people within the Conservative party but on Britain’s true national interests.

    The Queen’s Speech was not designed to make Britain proud, hopeful or confident. It will merely strengthen the desire of millions of people to see the Government put out of office. They have been there too long, they have told too many lies and they have made too many mistakes. They have nothing whatever to offer the future of Britain.

    A Queen’s Speech designed to smoke out the Labour party has instead smoked out the Government. It exposes them for what they are – tired, inept and incompetent. The Government have given up governing the country. By their tactics today, they show just how pathetic and pitiable they have become. The Government are now behaving like an Opposition and they will soon get the chance to be an Opposition. It is time for them to go.

    The Prime Minister (Mr. John Major) At the outset of his remarks, the right hon. Member for Sedgefield (Mr. Blair), the Leader of the Opposition, paid tribute to those of our former colleagues who sadly died in the past 12 months. I willingly join him in that tribute. They each in their own way made a distinctive contribution to the House, and we shall miss them. I reiterate our sympathy to their friends and families.

    No one who knows my right hon. Friend the Member for Witney (Mr. Hurd) will be remotely surprised by the quality of his excellent speech. I sat alongside my right hon. Friend often enough at international meetings to know his worth. Time after time, often in a hostile environment, he won arguments for the United Kingdom, and won them well.

    In the House, my right hon. Friend has a particular reputation. Throughout the years I have known him – that goes back to long before I became a Member of this place – my right hon. Friend has always been valiant for moderation. Not for him the cheap and silly soundbite to sully his opponents. My right hon. Friend is rightly contemptuous of that. His politics have been constructed on rational argument. I believe that the country and the House will be the poorer when he leaves this place.

    My right hon. Friend has been a generous source of wise counsel to the country as well as to the Government. He has been a great servant of the state. I am most grateful to him. All of us in the House who wish our country well should join in those sentiments.

    I congratulate also my hon. Friend the Member for City of Chester (Mr. Brandreth) on his amusing speech. He was very amusing but not wholly frank. My hon. Friend had a dark secret that he declined to mention – his distant ancestor, Jeremiah Brandreth. Jeremiah was an agitator, a left-wing agitator, and, like so many, he was rather unworldly.

    Mr. Dennis Skinner (Bolsover) He was a good one.

    The Prime Minister The hon. Gentleman says that he was a good one. Well, he was known as the hopeless radical, and so good was he as a left-wing agitator that he was arrested and convicted, and became the last man to be beheaded for treason in this country.

    Mr. Ronnie Campbell (Blyth Valley) So far.

    The Prime Minister The hon. Gentleman may unknowingly be right. I have not told the House that Jeremiah was arrested by a Mr. Waldegrave, an illustrious predecessor of my right hon. Friend the Chief Secretary. I warn my right hon. and hon. Friends: if they consider that the spending round is rigorous, let them know that my right hon. Friend the Chief Secretary is in no mood for compromise.

    My hon. Friend the Member for City of Chester was president of the Oxford union. He had an endearing habit in debate. If he found – it was a most unusual circumstance – that he was losing the argument, he would physically stand on his head to confound his opponents. I congratulate him on an extremely useful preparation for national politics.

    We have heard U-turn after U-turn from the Leader of the Opposition. The right hon. Gentleman does not literally stand on his head, but he has a remarkable chameleon-like ability to change political colour, depending on the audience that he is facing. I have rarely heard such copperplated nonsense as he fed to the House this afternoon. It was humbug at its worst, and juvenile in its style of criticism. It was what we have come to expect from the right hon. Gentleman – cheap soundbites and no sign of his real policy substance, if he has any.

    We had the usual nonsense and absurdity that we have heard over the past few days about lurching to the right. That is this week’s approved soundbite from the thought merchants who govern the right hon. Gentleman in his back room. I hope that one day he will learn to give up this silly name-calling –

    Dr. John Reid (Motherwell, North) Will the Prime Minister give way?

    The Prime Minister I will later. I hope that, one day, the right hon. Gentleman will learn to give up this silly name-calling, and learn to address serious issues of policy that are of interest to the country.

    The right hon. Gentleman had something to say about “one nation”. Only one party – mine – is truly the “one nation” party. The right hon. Gentleman has an interesting way of claiming to be in the “one nation” party. He would start by dividing up the United Kingdom and covering it with a rash of assemblies; he would then give the remnants to Brussels, because he would not want to be isolated on any single issue. He would put the young out of work with a minimum wage; he would destroy grant-maintained schools, and the choice they offer. As for defence, he would put it under the control of a former member of the Campaign for Nuclear Disarmament – which describes most members of his shadow Cabinet.

    Those policies would not create one nation. They would weaken it, split it and divide it – and that is what the right hon. Gentleman stands for.

    Dr. Reid Will the Prime Minister give way?

    The Prime Minister In a minute.

    Let us just examine the latest soundbite: “lurching to the right”. Giving parents more choice – is that lurching to the right? If it is, I willingly lurch in that direction. Reforming welfare to help those in genuine need: a lurch to the right? I welcome it. Fighting crime and the drugs barons – is that a lurch to the right, or does the right hon. Gentleman agree with it? Helping the disabled, giving tenants the right to buy their homes, creating incentives for enterprise – what sort of lurch is that? What are those, other than commonsense Conservative policies that are in the interests of this country?

    The Opposition conduct policy by finding their cheap sneer of the week and using it, whatever happens. When – if ever – they return to real politics, they will find that there is much more substance to politics than the childish, juvenile nonsense that they spout day after day after day.

    Dr. Reid I believe that the Prime Minister personally has not lurched to the right. We are suggesting that he has been caught in a trap by those on the right. There is, however, a way in which he can illustrate his moral fibre – the fact that he is not a prisoner on every issue – and show that he is not prepared to use the race card in a general election. Will he accept the Leader of the Opposition’s suggestion that the asylum Bill be dealt with by a Special Standing Committee? The people of Britain can judge from his answer whether he is really committed to “one nation” policies, or whether he is a prisoner of the right.

    The Prime Minister I shall turn to the asylum Bill later. Let me tell the hon. Gentleman, however, that there is one party in the House that is using the race card, and it is not mine: its members sit on the Opposition Benches.

    When the right hon. Member for Sedgefield next talks about world prosperity, he might get some of his facts right. The countries that have risen in the prosperity league include low-taxation, free-market countries such as Japan, Hong Kong and Singapore; the countries that are slipping down the league include countries that have pursued socialist policies of high taxation and high spending.

    Mr. Peter Hain (Neath) Will the Prime Minister give way?

    The Prime Minister Not for the moment; I may do so a little later. The right hon. Gentleman sees his job as being to disagree with everything – to attack the Government’s motives first, and their policies second. In his view, all is wrong; nothing is right. But if he were in power – ah! Amazing things would happen. We would never be isolated anywhere in the world. He would never be isolated: the world would automatically accept his position. Everything would suddenly become for the best in the best of all possible worlds.

    Taxes would not rise, although the deputy Leader of the Opposition says that they will rise for the highest-paid. That is not something that I heard from the Leader of the Opposition at the CBI conference just the other day. But of course, spending would rise, because spending promises are made daily, despite the efforts of the shadow Chancellor.

    Unemployment, the Opposition think, would vanish. The sun would shine. That is the substance of the right hon. Gentleman’s soundbite, day after day. His position is, of course, total baloney, and he knows that it is total baloney. I intend to concentrate on the real world of sound policies, not on the right hon. Gentleman’s world of soundbites. This country is now enjoying a more sustained and secure recovery than it has known for many years.

    Several hon. Members rose –

    Madam Speaker Order. Hon. Members should not persist. They heard the Prime Minister say that he will give way a little later, and having heard that, they should not persist.

    The Prime Minister I reiterate that I shall give way to some Labour Members in a few moments. Britain is back in business in a big way. The changes of the past 16 years have transformed this country’s prospects for the better. Sixteen years ago, the dead could not be buried in Labour Members’ constituencies; 16 years ago, we could not take our own money abroad; 16 years ago, people could not run their own companies, because of the way the trade unions ran amok; 16 years ago, Britain had an incipient inflation problem.

    The Leader of the Opposition may choose to forget, but I do not think that the nation will have forgotten the shambles that emanated from Labour policies. Whenever the Opposition talk about this country, they try to talk it down, and refuse to recognise what has happened. Inflation is no longer a serious issue: it is under lock and key.

    The number of people out of work – [Interruption.] The deputy Leader of the Opposition sniggers. When was inflation less than 8 per cent., even on a rigged quarterly basis, under the last Labour Government? It has been about 3 per cent. under this Conservative Government for three years, and shows no sign of getting out of control. What help have we had from the Opposition to bring down inflation?

    The number of people out of work has fallen by almost three quarters of a million. It is now below Germany, and well below France. A higher proportion of British people are in work than ever before in our history, and more than in any comparable European country. [Interruption.] Labour Members do not like it, but that is the real world, from which they try to hide.

    Strikes are at their lowest level since records began, interest rates are at half their peak, public spending is under control, and growth is firmly based on rising exports and rising investment. It is the most secure platform for prosperity that this country has known for generations.

    Mr. Robert Ainsworth (Coventry, North-East) The Prime Minister has explained how other countries have moved within the economic prosperity league. After 16 years of Tory government, where has Britain moved in the economic prosperity league? We want to hear it from his own mouth.

    The Prime Minister We have moved, over the last few years – [Interruption.] Curiously enough, I invite the hon. Gentleman to look at The Sunday Times, which exploded Labour’s advertisements. It showed that, in fact, Britain is becoming progressively more prosperous, while socialist countries are becoming progressively less prosperous. That is because they insist on policies such as the social chapter, from which they cannot opt out once they have signed in – unlike what the Leader of the Opposition suggested the other day.

    Ms Joan Ruddock (Lewisham, Deptford) I am grateful to the Prime Minister for giving way. I want to ask a question similar to that asked by my hon. Friend the Member for Coventry, North-East (Mr. Ainsworth). Has not Britain now moved down the prosperity league from 13th to 18th place? Will he give the House the benefit of his opinion on why that has happened under his Government?

    The Prime Minister I can tell the hon. Lady directly that Britain is now the fastest-growing economy – [Interruption.] She does not like that. We have put right what was wrong under the last Labour Government, and Britain is now the fastest-growing economy in western Europe. She does not have to take just the Government’s word for that: she should read what the OECD has to say about the British economy. It is the OECD that comments favourably about us, and it was the IMF that carted Labour away to the knacker’s yard when a Labour Government were trying to run the economy.

    Mr. Tristan Garel-Jones (Watford) Is my right hon. Friend aware that the Leader of the Opposition, not only throughout his speech but in all that he has said all over the country in the past 12 months, has hardly been able to point to a Conservative reform of the past 16 years, in labour law or in industrial law, in health or in education, that he proposes to repeal? Does my right hon. Friend agree that perhaps no one in the House has moved further to the right than the right hon. Member for Sedgefield (Mr. Blair)?

    The Prime Minister The Leader of the Opposition certainly seems to have lurched quite a long way to the right, but I sometimes wonder to what extent his party has lurched with him. I think that Labour’s heart and soul are where they always were – opposed to strong defence, nuclear weapons, low-inflation policies and free enterprise. That is where the heart of the Labour party is, even if a squatter is moving off its land on to ours and posing as the leader of the Labour party.

    Mr. Robert N. Wareing (Liverpool, West Derby) Will the Prime Minister give way?

    The Prime Minister I should like to make a little progress now, and I trust that the hon. Gentleman will permit me to do so. I have set out the platform for prosperity that we now have, but it is not a platform that the country can afford to take for granted. Getting there has not been easy. The policies that picked Britain up from its knees were fought tooth and nail by the Labour party, and those who fought them are not the people to build on them in future.

    As the Leader of the Opposition said, we still face many challenges – harsher competition from all over the world threatening jobs and security, a growing elderly population in need of care, tidal changes in technology and rapid social change.

    Conservatives are clear about how to deal with those problems. First, we have an unswerving commitment to an enterprise economy. That means low taxes, for the economic benefits they bring. It means incentives to encourage investment and create wealth, policies to increase personal prosperity and choice, and Government accepting that they should not always interfere. There are times when Governments do damage by interfering. In short, ours are policies to make Britain the enterprise centre of Europe.

    Mrs. Alice Mahon (Halifax) rose –

    The Prime Minister I shall not give way to the hon. Lady now, but perhaps I shall a little later. Opposition Members will hate our policies, because they hate choice. In their hearts, they hate the private sector, and believe that our great public services can be built only by higher taxation. As usual, they are wrong. People do not want, and in the 1990s they do not need, every choice to be taken for them by the Government or by some other central bureaucracy.

    Of course, there will always be a role for the state. I do not favour a totally laissez-faire attitude in society, any more than I want a nanny state. Conservatives have always accepted the social obligation to care; so do the Government, and so will Conservative Governments after the next election. But we need those who can do so to care for themselves. For those who cannot, there must be the help that only an enterprise economy can pay for.

    We care for our public services – schools, hospitals and welfare. I grew up dependent on those, just as people do today – and unlike some Opposition Members, I do not intend to kick away the ladder that I climbed as a boy. But to build our public services, we need growth, not high taxes. Growth is built on policies for enterprise, not on the policies of envy and spite that ignite Opposition Members.

    We must also win the war against crime, protect the stability of the United Kingdom and stand up for our sovereign interests abroad. In the future, as in the past, that will mean tough action to deliver safety and security.

    Mrs. Mahon As the Prime Minister was talking about public services and choice, is he aware of the serious problem facing people in Calderdale and Kirklees, who face having their water cut off in a few days? Why was there no provision in the Queen’s Speech to try to prevent that from ever happening again’? This is a first-world country, so why is the greedy, incompetent privatised Yorkshire Water allowed to run that company? When will the Prime Minister take responsibility for the delivery of free clean water to the people of my constituency?

    The Prime Minister In addition to everything else, the Opposition have a policy to make it rain when it is convenient. We have just heard from the hon. Lady the absolute instinct of the Labour party to oppose the private sector whenever it can. Were there never problems in the old nationalised water industry? Of course there were.

    A year ago, I spoke about the changing situation in Northern Ireland. Since then, the ceasefire has held, and there is a new atmosphere in Northern Ireland. There is a new situation: a growing economy, more jobs, policemen patrolling without armed soldiers in tow; in a word, Madam Speaker, peace. For weeks – and for, I believe, negotiating purposes – Sinn Fein has been declaring a state of crisis. It has warned – but it tells us that it is not a threat – that violence could return unless the other parties come rapidly to the negotiating table. But violence does not return of its own accord, like the daffodils in spring.

    If Sinn Fein is committed to exclusively peaceful methods – as its leaders claim it to be – there can be no question of violence returning. Let Sinn Fein say that unequivocally. If its commitment is real, threats and thuggery should stop. The killing has stopped, but much else has not. A 16-year-old girl is dragged from her home in west Belfast by masked men, tied to a lamp post and assaulted. Her hair is cropped, and paint is poured over her. A 67-year-old woman from Londonderry is taken to hospital in shock when seven self-proclaimed provisionals with baseball bats break in and smash her house.

    That may not be murder, but it is not peace, and it is not behaviour which merits Sinn Fein’s entry to talks. I want Sinn Fein to denounce such behaviour and to stop it. I have given Mr. Adams and Mr. McGuinness the freedom to appear face to face on the media and express their views. Let them do so, and express their opposition to the punishment beatings which go on day after day after day in Northern Ireland.

    Almost every day brings a fresh atrocity – there have been 250 since the ceasefire. Each assault, each threat, each so-called warning puts a question mark in the minds of reasonable people. I wish to move forward to negotiations involving all parties, including Sinn Fein. I believe that we can, and I shall work for that, but it will need good will and trust. We cannot move forward at any price, and we cannot move forward with a gun held to our head. The road to peace will be open if those erecting road blocks remove them, and I hope they will.

    Rev. Martin Smyth (Belfast, South) I agree with the Prime Minister. There was a recent case in Londonderry when individuals took refuge in the cathedral. Martin McGuinness – who had directed people involved in the stoning of houses – also directed those who wanted to put pressure on the bishop to remove those individuals from the cathedral. When a ship is decommissioned, it is not only put out of service but its crew is scattered. Until the IRA battalions are scattered, there can be no lasting peace.

    On the 10th anniversary of the signing of the Anglo-Irish Agreement, may I point out that the methodology of the agreement still denies people the right to equal citizenship which is at the heart of the Gracious Speech? I yearn for the day when the people of Northern Ireland will be able to put forward an elected representative to negotiate a way forward.

    The Prime Minister We all look forward to the day when the road is open, not just for the preliminary talks we are looking at currently, but beyond them to the round table talks between all the constitutional parties which can find a proper settlement in Northern Ireland. I look forward to that day, and I pledge to the House that I will continue to work for that day – but not, as I indicated a moment ago, at any price.

    Dr. Joe Hendron (Belfast, West) I totally agree with the Prime Minister’s comments on the punishment beatings by both sets of paramilitaries. But on a slightly different aspect, bearing in mind the fact that the promotion of jobs in Northern Ireland is mentioned in the Gracious Speech, that the Prime Minister has played a noble role in the peace process in Northern Ireland and that he is aware that the Republic of Ireland has a 10 per cent. corporate tax which helps the Irish Government and the business people in the Republic of Ireland to attract investment from the United States and elsewhere, will the Government consider introducing a 10 per cent. corporate tax in the north of Ireland, in order to treat both parts of Ireland equally and to help to attract inward investment? I bear in mind the Prime Minister’s conference in November, when I had the pleasure of hearing him, and I congratulate him once again on that. Surely the introduction of a 10 per cent. corporate tax in Northern Ireland would be a big step forward.

    The Prime Minister I congratulate the hon. Gentleman on his special pleading – a special pleading with which I am familiar from my visits to Northern Ireland. Northern Ireland enjoys a number of other advantages not enjoyed in the south or elsewhere. One must consider the position in the round. Not only would the hon. Gentleman be surprised, but the House would be astonished beyond belief, if I were to deal with such tax measures on this occasion. [Interruption.] I fear that, despite the tempting invitation from the shadow Home Secretary, I have no intention of doing so.

    Our commonsense, practical programme of traditional Conservative values is set out in the Gracious Speech. The centrepiece of our economic strategy will be unveiled later this month in the Budget. It will show our determination to turn Britain into the enterprise centre of Europe. As I said a moment ago, I do not intend to anticipate its contents, but it will be consistent with sound public finance and our resolve to move further towards a more enterprising economy. We have brought public spending under control. We will reduce it further, and, when prudent, we will cut taxes on companies and individuals.

    For Britain to compete in tomorrow’s world, more of our young people will need to be taught and trained in the skills and knowledge of the new century. Already, our education reforms offer parents more choice and pupils more opportunity. Up and down the country, parents are choosing grant-maintained schools for their children. That is excellent news. We will ensure that those highly popular schools can grow to reflect parents’ choice in the future, as I believe they will. I have given a commitment to make a nursery place available for every four-year-old in the country.

    Mr. Andrew Miller (Ellesmere Port and Neston) Will the right hon. Gentleman give way?

    The Prime Minister I shall not give way for the moment. I have given way quite a lot, and I want to make a little progress. We will take a further significant step in that direction by giving parents the power to choose the nursery place they think is the right one for their children. Parents expect that choice, and they will get it.

    Those young people will be entering a world of rapid change. One of the key areas of change is broadcasting. Digital technology will revolutionise broadcasting, just as much as the switch from black and white to colour television. Britain will be right at the forefront of those changes, and the broadcasting Bill will ensure that we stay there.

    The Conservative party has a long tradition of helping those in need. [Interruption.] It is fashionable for hon. Members to dispute that. The Conservative party has provided more social advance than the Labour party has ever dreamt of. But to help those people to best effect, we must ensure that only those in genuine need receive that help, and our programme will do that.

    In housing, our measures will ensure that those in greatest need get the help they deserve. We will raise the standard of social housing by increasing competition in its provision. We will introduce measures to ensure fairer access to social housing, and we will give new opportunities for tenants of housing associations to buy their own homes. Those are the measures that the Leader of the Opposition forgot to mention in his catalogue of what was not in the Queen’s Speech.

    We intend to offer further help to disabled people. Fate has robbed our fellow citizens who are disabled of a great deal. Governments should not rob them of choice. We will give disabled people themselves the funds to pay for the equipment and services they need. We have extended, and will continue to extend, the choice available to them.

    Britain has always opened its doors to those who are in genuine need of asylum, but our current system has been abused. This year, some 40,000 claims for asylum will be made – 10 times the figure in 1988. The Labour leader spoke of delays in applying for asylum. With that increase in figures, of course there are delays, and that is why we need reform. Only a small number –

    Sir Michael Shersby (Uxbridge) Will my right hon. Friend give way?

    The Prime Minister Not at the moment.

    Only a small number are likely to succeed, and they deserve to be determined speedily. The asylum and immigration Bill – [Interruption.] I suggest that Opposition Members read the Bill before they talk about it. It will ensure that applications for asylum are dealt with quickly and efficiently.

    Genuine asylum cases will always receive a ready refuge in our country. That is our tradition, and it will continue. Of course we will continue to honour our United Nations convention obligations, just as we always have. Of course genuine asylum seekers will be treated with sympathy, as they always have been. But further action, including legislation, is necessary to deter bogus asylum seekers and to speed up the consideration of spurious applications, which, I regret to say, form the vast majority of asylum claims.

    Several hon. Members rose –

    The Prime Minister I will give way in a moment. We will take that action in the interests of fair, but firm, policies. Those who attack that Bill, as the right hon. Member for Sedgefield did, do our excellent race relations no service whatsoever. He said that he opposed bogus applications. So do we, so he should support us on that issue.

    On the criticisms that have come from some Labour Members, I have always believed strongly in racial tolerance in Britain. I grew up in a multiracial community. I am proud of the way in which race relations have improved in the past two or three decades. It did not always seem likely that they would do so. Today, many members of ethnic minority groups are role models for all of us, not just for those of their own race and colour. They are Britons. They grew up here. They represent their country – our country – with distinction, at home and abroad, and they must have the same rights as every other citizen. I will not see that progress threatened by those who use race for short-term political gain.

    In the interests of good race relations, I will ensure that we have a fair system of asylum – fair for those who need help, and fair for those who do not believe that this country should receive bogus asylum seekers either.

    Several hon. Members rose –

    The Prime Minister First, I will give way to my hon. Friend the Member for Uxbridge (Sir M. Shersby) who, I think, has a particular interest.

    Sir Michael Shersby Is my right hon. Friend aware that, in the past year or so, the United Kingdom has been a target for a sustained and planned campaign of illegal immigration, employing the use of sophisticated forged documentation? Is he further aware that my local authority, the London borough of Hillingdon, is paying more than £1 million a year to care for unaccompanied child refugees, who have been brought to this country as part of that campaign? Does he agree that, in dealing with the problem of illegal immigration and asylum, we have to deal with those issues?

    The Prime Minister I agree that those difficult issues exist, and we should address them. But I must tell the whole House that we are seeking to address a particular problem. It is not a help to good race relations to leave that problem unresolved; nor is it a help for Opposition Members, for political reasons, to turn that Bill into a Bill about race, when it is about proper asylum procedures.

    Mr. Max Madden (Bradford, West) In that spirit, will the Prime Minister take some time to reflect on the suggestion of the Leader of the Opposition that the proposed Bill be considered by a special Committee? Also, following the suspension of Nigeria from the Commonwealth, will he investigate why only one Nigerian national has been given refugee status in the United Kingdom so far this year? Will he also take the necessary action to declare Nigeria a country of significant upheaval, thereby enabling Nigerian nationals whose applications for refugee status are subject to appeal to claim benefit pending the outcome of the appeal?

    The Prime Minister We shall deal with everybody, from whatever country, on asylum on a fair and free and open basis. That includes those people from Nigeria. I saw some of the rumours about Nigeria a few days ago, and fair old nonsense they were. As far as the first part of the hon. Gentleman’s question is concerned, of course, as a matter of courtesy, I will consider what the Leader of the Opposition said. I have to say to the House that I do not immediately find myself attracted by it, for this Bill will be the subject of the proper, wide-ranging discussion that all Bills have in the House during a very lengthy procedure. But of course I will consider what the right hon. Gentleman had to say.

    Mr. Robin Corbett (Birmingham, Erdington) Will the right hon. Gentleman give way?

    The Prime Minister I will give way on this issue to one more hon. Member.

    Mr. Corbett I am most grateful to the Prime Minister. The whole House will welcome the way that he has spoken about the issue, and the language that he has used in doing so. In that spirit, rather than simply as a matter of courtesy – which is not unimportant – will he take the wider point of my right hon. Friend the Member for Sedgefield (Mr. Blair), that if we are going to make the maximum contribution to sustaining and developing good race relations, we would do it best on the basis of consensus? Will he bear that in mind in thinking about my right hon. Friend’s suggestion?

    The Prime Minister I have borne that in mind in the manner in which I have approached this issue, but I have to say that it is those who raise the question of race when we are dealing with the question of asylum abuse – [Interruption.] It is those who do that who raise the problem. I have to say to the hon. Gentleman that it is his hon. Friends who have been behaving in that fashion, not this Government.

    What we are seeking to do – [Interruption.] No one denies – certainly the right hon. Member for Sedgefield did not deny it, to his credit – that there is a serious problem of asylum abuse. It is the responsibility of this Government and this House to deal with that question of abuse. It is not the responsibility of this House to drag in extraneous matters that could damage race relations while we undertake consideration of the Bill. Those people who do it cannot claim to be doing it in the interests of asylum seekers or in the interests of good race relations. I appeal to the Opposition to get off the kick they seemed to be on some days ago, and to deal with this Bill responsibly, as I believe it should be dealt with.

    Sir Peter Emery (Honiton) Will my right hon. Friend give way?

    The Prime Minister For the last time, I will give way.

    Sir Peter Emery My right hon. Friend started this section of his speech talking about education. Will he bear it in mind that there is a vast campaign by Labour and Liberal Democrat-controlled local education authorities, which go out of their way to try to urge headmasters, governors and parents to resist voting for a grant-maintained system? That has to be examined, and the Government must take positive action about it.

    The Prime Minister I am grateful for what my right hon. Friend says. I know that there have been real problems there. Whenever our country has been faced with change and difficult circumstances, the family has been a rock for the people of this country. No Conservative Government led by me could introduce legislation that would undermine marriage and the role of the family. At present, almost three quarters of all divorces are completed in less than sixth months, on grounds such as adultery or unreasonable behaviour. In future, no divorce would be possible in less than one year.

    The family law Bill will put in place a framework to ensure that married couples face up to the responsibilities they have to each other, and, critically, to the children of that marriage. It will remove the incentive for couples to make allegations one against the other, often harming their children, and usually for the purpose of obtaining a more speedy divorce.

    This Bill ensures that arrangements for children precede divorce, and it allows divorce to be barred when it would cause grave hardship. I believe that these measures are emphatically pro-marriage measures, and I believe that they deserve support. But I recognise that it undeniably touches upon the religious convictions and personal conscience of many hon. Members.

    I have no wish to seek to ride roughshod over those convictions; so, as far as the Government are concerned, we shall propose free votes on matters of conscience in the family law Bill, and I hope that other parties will follow that lead. The Bill will also deal with domestic violence, a crime from which every person should be protected, whether married or unmarried and in cohabitation.

    Over the past two years, we have seen the largest ever fall in recorded crime. However, one of the most frustrating features of our criminal justice system is that cases have to be dropped because of the current rules on disclosure. That may mean that too many guilty people walk free. We will introduce changes to ensure a fairer balance of disclosure between the prosecution and the defence.

    One of the most worrying problems we face is the growth of organised crime, which does not respect international borders. Such crime is often a trade in drugs, bringing untold misery for profit. Only in the past few days, we have seen a particularly highly publicised and tragic case of how drugs can devastate a family. In such an evil trade, no drug is soft, and no drug is safe. We must use every resource against this threat.

    We will remove the present barrier to the Security Service helping the police and other agencies against organised crime. The usual statutory safeguards on the actions of the Security Service will, of course, continue to apply.

    Mr. Ronnie Campbell Will the Prime Minister give way?

    Mr. A. J. Beith (Berwick-upon-Tweed) Will the Prime Minister give way?

    The Prime Minister Not at the moment.

    Many of the drugs from south America are smuggled to northern Europe through the Caribbean. Over the past few weeks, I have consulted Caribbean leaders about ways in which to break the chain. At their request and with their agreement, I will ask the European Union to give them effective help. The intention would he to find 33 the resources to stop the Caribbean being used as a way station for drugs from Latin America en route for northern Europe. If we can stop the drugs trade there, we shall damage it significantly, and do a great service to many hundreds of thousands of people throughout northern Europe.

    Mr. Campbell Will the Prime Minister give way on the topic of drugs?

    The Prime Minister No, if the hon. Gentleman will forgive me. I have taken the attention of the House for a long time. I know that there are right hon. and hon. Members who are waiting to speak. Those are new approaches, but they are necessary. I believe that they can succeed.

    The tradition of voluntary military service is an important thread in our national fabric. The reserve forces make a vital contribution to this country’s security and well-being. By their selflessness, dedication and sheer enthusiasm, they enrich the quality of our national life and they deserve our gratitude. The reserve forces Bill will enable the reserves to respond more flexibly to the new challenges facing the country since the end of the cold war. In future, they will be able to take their part in peacekeeping and in many other matters.

    Our legislative programme will allow us to build on the successes of the past, and to meet the challenges ahead. The policies that Labour advocates would squander our opportunities as a result of its readiness to increase spending, its readiness to put up taxes, the certainty that it would let inflation rip, and its discouragement of investment with more red tape. Labour will try to square its tax and spending inconsistencies with windfall taxes of one extraordinary sort or another. Such policies do not add up to a credible programme of opposition, let alone of government. They add to the reasons why Labour, as it has admitted in its own documents, is unfit to govern.

    We have served our nation well, and we have built a strong economy. Labour’s policies do not add up. We have been tough on crime; Labour has been soft. It is not remotely fit to govern. We have offered choice and high standards in schools; Labour Members exercise choice themselves, but would deny choice to others. They are not fit to govern. We have raised the quality of care in our hospitals. Labour would rip up our reforms and plunge the hospital system into chaos. Again, Labour is not fit to govern. We have stood up in Europe, often alone. Labour Members would not; they are not fit to govern, because they are not prepared to stand alone.

    Our legislative programme is the right programme for this country; it will also be a litmus test for the Opposition. Let those who say that they support the market support the measures in the Finance Bill. Let those who rightly, and merrily, take the opportunity of choice in schools support our plans for choice in schools. Let those who would be tough on crime and tough on the causes of crime join us in being tough on the criminal. That is the litmus test, and we shall see what comes burning through.

    While we set out important long-term policies, Labour demonstrates time and again why it is unfit to govern. We will pursue our objectives for the economy, for choice, for opportunity and for a safe and secure United Kingdom. That is what lies at the heart of our programme. I commend it to the House. No other party can put the interests of this country first as this Conservative Government do. [Interruption.]

    Madam Speaker Order. Will hon. Members now leaving the Chamber do so quietly and quickly?

    Mr. Paddy Ashdown (Yeovil) I join the Prime Minister and the leader of the Labour party in congratulating the mover and seconder of the Loyal Address.

    The right hon. Member for Witney (Mr. Hurd) has an elegance of phrase that we will, frankly, miss in the House, because it is not found in too many other right hon. and hon. Members. I must say to him, bluntly, that I am not sure that we will miss his management of the nation’s foreign affairs, though his long commitment to the business and affairs of the nation has been diligent and is highly regarded.

    I seem to remember that the right hon. Gentleman was once famously described by Andrew Rawnsley as “Sir Geoffrey Howe on speed”. That is an interesting description. We have all noted how quickly he left the Government in order to spend more time with his bank manager. I think he will be missed as well when he leaves the House.

    I had intended to remind the House of the ancestors of the hon. Member for City of Chester (Mr. Brandreth), but unfortunately the Prime Minister got there before me. I had intended to say that the fact that his ancestor was beheaded by an ancestor of the Chief Secretary to the Treasury, the right hon. Member for Bristol, West (Mr. Waldegrave), was perhaps an early example of being tough on crime and tough on the causes of crime.

    The hon. Member for City of Chester has often said that he has spent the past few years trying to live down being a past television personality. I suspect that he will spend the next few years trying to live down being a past Conservative Member of Parliament, and I wish him luck in that.

    Of course there are some things which we welcome in the Queen’s Speech, and I will touch on them in a moment. But overall, a glance at this programme tells us, frankly, all we need to know about the Government. It tells us that they are no longer a Government of direction, let alone of any kind of long-term vision. They cannot be saved by new policies, because they have none – they ran out of those ages ago. They cannot be saved by another relaunch. I have lost count of how many relaunches they have had since the last election. I recall that the most recent one lasted a full two days before it was forgotten. They cannot be saved by another lurch to the right – they have done too many of those.

    Let us admit, since the Opposition parties know it, that this Queen’s Speech is not the event that matters in the month of November. It is an example of going through the motions. The Queen’s Speech is a charade – a pantomime. It is a necessary formality before the real event in less than two weeks’ time, the Budget. The Government now have nothing further to say to the nation except, “Please vote for us because we’re going to give you a tax cut.” That is the beginning and end of the message that they will now present to the country. It is 35 their only hope and they know it. Their assumption is that they can hoodwink us once more – that they can fool the nation again.

    The Government believe that we will not remember that the tax cuts pledged before the last election were paid for afterwards with higher taxes, higher mortgages, lost jobs, bankrupt businesses and broken lives. They think that we will forget that. They think that people would rather have a little more money in their pockets today than decent schools and better chances for their children in the future.

    The Government think that Britain can be fooled again. I think that they are wrong. Just compare Britain’s economic situation last year with that achieved this year. Last year, borrowing was £1 billion above target at £35 billion or thereabouts. Today, it is not £1 billion above target, but likely to be £10 billion above target, at £30 billion. Last year, the inflation rate stood at 2.5 per cent., but this year it has nearly doubled to 4 per cent., and it is going up. Last year, the growth in gross domestic product was 4 per cent., but this year it is barely 2 per cent. Last year, growth in sales and manufacturing output in Britain stood at 4 per cent., but this year there was zero growth, and more bad figures were published today. However, last year, the Government said that things were so bad that we had to have record tax increases, but this year, they say that they are so good that they can afford a tax cut. Who the hell do they think they are fooling? They are not fooling anyone. Everyone in the country knows what the Government know, and they know beyond peradventure that the Government are preparing to risk responsible management of the nation’s economy for short-term tax cuts to save their own skins.

    We now learn that the Labour party will stand idly by and allow the Government to do that – so we hear – because Labour Members dare not vote against a Budget that puts Conservative tax cuts before Britain’s interests.

    On Monday, at the Confederation of British Industry conference, the Leader of the Opposition said that he was “unashamedly a long-termist”. I applaud that commitment and I agree with it, but a person cannot be an unashamed long-termist if the best that he can do is to abstain when the Government so obviously place short-term party interests before the long-term interests of the nation. It will not wash.

    I believe that Labour cannot do what it rightly and understandably seeks to do – win a reputation for economic responsibility – if Labour Members will not vote against a Government who are so plainly acting irresponsibly. If the Labour party will not stand up for the long-term interests of the nation in opposition, how on earth can the country trust it to do so in government? If the Labour party acquiesces to the present Government distorting the country’s finances to get themselves re-elected, why on earth should the country not conclude that Labour would do exactly the same if it were in their place?

    In two weeks’ time, we shall see the cynicism of the Government by the Budget that they present, but we shall also know the mettle of the Labour party by the way in which Labour Members vote on that Budget. The nation will be watching both of them. Today, however, we debate a Queen’s Speech that – the Leader of the Opposition put it rightly – is barely a sufficient programme for three months, let alone a full year. That is precisely the point. For it is a cut-and-run programme, designed to be ditched at any time for an early general election. They are fag-end measures from a fag-end Government.

    The one thing that drives the Government – obsesses them – is to find something, anything, to mark out clear water between themselves and new Labour, which now appears determined to become indistinguishable from them. The Leader of the Opposition’s tactics – in my opinion, good tactics but bad strategy – are driving the Prime Minister absolutely mad.

    Turn as he will, the Prime Minister has not a clue about how to handle that. Blown hither and thither by the gales that rage in the Conservative party, he now tacks frantically from one side to the other, driven on by his own weakness and rebellions all around him. One week, he leads the applause for his Defence Secretary, who has grabbed the wheel and swung it towards clear blue water with a speech of such juvenile right-wing nonsense that it discredits not only his position but the whole nation; the next, we are told that he has at last found firm anchorage, sheltering under the lee of the Deputy Prime Minister, safe in the harbour of one nation Toryism.

    Mr. Skinner What, in his wedding dress?

    Mr. Ashdown However, a week later, there he is, throwing overboard long-planned legislation on divorce and domestic violence and making the Lord Chancellor carry the can, to satisfy a tiny group of Conservative right wingers and the ramblings of a freelance journalist on the Daily Mail.

    I predict that it will not be long before the Prime Minister is off again, blown on by a news headline or a minor revolt of Conservative Back Benchers or a Minister who has now become too weak to control. Behind him he will trail that sorry, bedraggled Armada that now passes for the Government of our country.

    Mr. Skinner You can’t drag an Armada.

    Mr. Ashdown Oh, he can; that man can. He can drag them behind. The albatross of the past 16 years hung around their neck, weighed down by broken promises and political sleaze, paralysed by internal divisions and ministerial incompetence, they will limp on until they make their final rendezvous with the ballot box. What drives the programme is fear – fear of what that ballot box will bring. But fear is not only the Government’s stimulus; fear is the weapon that they intend to use – it is the only weapon that is left to them and it will be their chosen weapon at the next election.

    The Government will raise fear over constitutional change – we heard it today. They will say that it will break up Britain. But the opposite is true. The Union is more likely to be broken by the arrogance and contempt with which the Government ride roughshod over opinion in Scotland and Wales and the communities of Britain. They will raise fear over the chaos which they say would follow any change to the way we are governed. But the opposite is true. Britain’s democratic structures have become so out of date, so out of kilter with the needs of a modern, citizen-based, information-rich society, that they are now just as much a block on progress as are the out-of-date machines in too many of our competitive industries.

    Mr. David Nicholson (Taunton) The right hon. Gentleman talks about changes in the structure of government. Over the past 18 months the right hon. Gentleman and I, and our colleagues in Somerset, have worked together with success to save the tier of Somerset county council; indeed, we have succeeded in saving the county council tier across most of the country. Given the two-tier structure of local government that we now retain in this country, does the right hon. Gentleman’s party still intend to superimpose on top of it – under Westminster and under Europe and Strasbourg – the tier of regional assemblies?

    Mr. Ashdown A tier of regional government already exists. The only difference is that it is not democratically accountable. The Government have gone round constructing it – there are people in Bristol who deal with Government Departments for the west country, but the people of the west country have no control over them. All we seek to do is to ensure that those people are democratically accountable to the areas that they serve.

    The Government will raise the fear – we have already seen it today – that the nation is about to be swallowed up by Brussels. But the opposite is true. All that Brussels does, it does because the Government have agreed to it, in secret, in the Council of Ministers – and the only person who agreed to more than the Prime Minister was his predecessor.

    Many of the things that we and everyone else want for our people in the years ahead – security, the right framework for a strong economy, a powerful voice in the world, a clean environment in which to live – can be achieved only if we work constructively with our European neighbours. But the Government would sacrifice all that to appease a few rabid anti-Europeans on their own Back Benches.

    The Government will raise the fear that if we try to invest in education, we will become bankrupt. But the opposite is true: the one certain way to bankrupt Britain is to fail to invest in our people. For they are the most important resource that we have.

    The Government will raise the fear that long-term investment in our infrastructure and a long-term programme to clean up our environment will mean short-term misery for us all. But the opposite is true. Unless this country starts taking the long-term view, it is bound to go on failing – in the short term and in the long term.

    The Government will raise the fear that the country cannot be safely governed except by people who have had as much experience as they have had. I presume that they mean people like the Home Secretary, whose chief experience since his appointment two years ago is that of being found guilty eight times by the courts for breaking the laws which he is supposed to be there to protect.

    Mr. Skinner Nine.

    Mr. Ashdown The hon. Gentleman says that it is nine – I am happy to accept that. Frankly, I have lost count.

    If it is experience that the Government value so much, if it is experience that gave us the poll tax or the arms to Iraq scandal or sleaze on the Back Benches or economic bungling and mismanagement or the misappropriation of aid for the world’s poor into the Pergau dam scandal or the timidity and failure of three years of fatal hesitation in Bosnia, then frankly I think we can do without it. It is not that sort of experience that Britain needs, but new ideas, new energy and some new policies to prepare it for the next century.

    Mr. Gallie Will the right hon. Gentleman give way?

    Mr. Ashdown If the hon. Gentleman will allow me to make a little progress I shall happily give way later. The Government’s programme for the next year should have contained such measures. But it does not. There are some measures that we can welcome in the Queen’s Speech, as I said earlier, but they are few in number and small in character.

    If the Bill on asylum is designed to speed up the procedures for dealing with applicants and to weed out bogus applicants, we would welcome it. But that will not be its purpose. Instead, I believe that it will be a disgraceful attempt to play the race card by blacklisting certain countries’ nationals and preventing them from even applying for asylum. I speak of countries such as Nigeria, from where there have been 9,000 applications for asylum since 1993, of which only four have been granted. I am happy to give way to the Prime Minister if he is prepared to answer the question. It would put many minds at rest.

    The Leader of the Opposition quoted from an article – which I saw also – by Mr. Andrew Lansley, who was the head of research for the Conservative party at the last election. Interestingly, it is an Observer essay that is targeted at the methods used to destroy Labour in 1992. It is entitled “Accentuate the negative to win again” – and we have seen quite a lot of that. In the article, Mr. Lansley, who is now a Conservative party candidate, says”Immigration, an issue which we raised successfully in 1992 and again in the 1994 Euro-elections campaign, played particularly well in the tabloids and has more potential to hurt”.” They are the words of a Conservative candidate who was the Prime Minister’s research director at the last election. I shall happily give way to the Prime Minister because I believe that he has a very good reputation on race issues. It is the Prime Minister, and not those on the Back Benches, who will run his party’s policy on the matter while in government. Will he personally repudiate the sentiment expressed by Mr. Lansley and give an absolute undertaking that it will not recur during the next election campaign?

    The Prime Minister I indicated earlier to the right hon. Gentleman that I grew up in a multiracial area. [Interruption.] Will the right hon. Gentleman do me the courtesy of listening? I grew up in a multiracial area and, from time to time, I lived in a rented house with people of more than one race. While I lead it, the instincts of my party will not be to play race at any time, in any way, on any occasion or upon any provocation. That will not be our policy.

    I believe passionately in the equal rights of everyone in this country – whether they be black, brown, yellow or white. That is my firm conviction and it has always been my firm conviction. That will be the Government’s policy for as long as I sit on the Front Bench. I hope that that is clear.

    Mr. Ashdown The Prime Minister’s emotions and his sincerity about the matter are not to be doubted; what must be doubted is his control of his party. The Prime Minister has not done what I asked him to do. Is he prepared to stand at the Dispatch Box and repudiate the words of his parliamentary candidate, Mr. Lansley? He is not prepared to do that, and therefore we must infer that at the next election Conservative candidates will be free to put forward that sort of policy.

    The Prime Minister The right hon. Gentleman is doing exactly what I said earlier, and it is contemptible. I have set

    I have set out the Government’s policy, which is the policy of the Conservative party. It is the policy of every hon. Member and of every parliamentary candidate. Is that clear enough for the right hon. Gentleman?

    Mr. Ashdown The Prime Minister is not prepared to repudiate Mr. Lansley’s words: I think that the nation and the House will recognise and understand that deficiency.

  • PMQT – 7 November 1995

    Below is the text of Prime Minister’s Question Time from 7th November 1995. Michael Heseltine responded on behalf of John Major.


    PRIME MINISTER:

     

    Unemployment (European Union)

    Q1. Sir Teddy Taylor: To ask the Prime Minister if he will raise at the next meeting of the European Council the implications of the level of unemployment in the EU.

    The Deputy Prime Minister (Mr. Michael Heseltine): I have been asked to reply.

    I can confirm that employment and unemployment in the European Union will be on the agenda for the next European Council in Madrid in December.

    Sir Teddy Taylor: Will my right hon. Friend insist that the Council gives urgent attention to the forgotten army of 18.5 million unemployed in the European Union, a total which has soared by 5 million in the past three years? In particular, could he tell our friends in France, who are at present creating extra unemployment on top of a 12 per cent. total by setting artificial exchange rates, that they could learn a great deal from Britain, which escaped from the exchange rate mechanism and the social chapter and has found that unemployment has been falling ever since?

    The Deputy Prime Minister: My hon. Friend makes a most valuable contribution, particularly when he points out that this Government will not accept the social chapter, and neither will we impose the overheads of a minimum wage on the competitive manufacturing base that we have here today. The whole House can welcome the fact that unemployment in this country is down by 713,400 since December 1992.

    Mr. Hutton: On the subject of unemployment within the European Union, does the Deputy Prime Minister recognise it as a fact that, since 1979, the United Kingdom has had the third highest unemployment rate within the European Union? When will he drop the damaging dogma of his party and start to work with our European partners to tackle the scandal and the waste of almost 20 million people unemployed in Europe?

    The Deputy Prime Minister: It is very convenient for the hon. Gentleman to choose 1979, when we had to start the process of undoing the stranglehold that the trade unions had on the British economy, of privatising the industries that are now leading the British recovery across the world and of creating in this country the enterprise centre of Europe, all in the teeth of Labour party opposition.

     

    Engagements

    Q2. Mr. Nigel Evans: To ask the Prime Minister if he will list his official engagements for Tuesday 7 November.

    The Deputy Prime Minister: I have been asked to reply. My right hon. Friend the Prime Minister is travelling to New Zealand to attend the Commonwealth Heads of Government meeting.

    Mr. Evans: Does my right hon. Friend agree that the most significant vote last night was that passed by 587 votes to two, which bans paid advocacy, which was the recommendation of the Select Committee on Standards in Public Life and went further than the Nolan committee, and contrasts sharply with the sheer stench of trade union-sponsored humbug on the Opposition Benches?

    The Deputy Prime Minister: My hon. Friend is absolutely right in pointing out the justification for the determination of my right hon. Friend the Prime Minister to set up the Nolan committee so that the House would have an opportunity to deal with the matter of restoring public confidence in the House. It was my right hon. Friend the Prime Minister who ensured that such matters were thoroughly and comprehensively considered. The work was carried out by an independent committee. As a result, the House was able to pass by an overwhelming majority the far-reaching change to which my hon. Friend has drawn attention.

    Mr. Prescott: Does the right hon. Gentleman accept that he and the Prime Minister were completely out of step with public opinion in wanting to keep the outside earnings of Members of Parliament secret? Does he share my sense of outrage that some Conservative Members are already making it clear that they will not observe the decision of the House? Will he make it clear that that would be totally unacceptable to him and the Prime Minister?

    The Deputy Prime Minister: The right hon. Gentleman raises a most important question for the House. I can say unreservedly on behalf of the Prime Minister and myself, since he asked me specifically, that both of us believe that it is right for all right hon. and hon. Members to enter into the spirit of the letter of the decisions taken yesterday evening. That was the will of the House. As to what the House should determine to do in the event of any right hon. and hon. Member not making such a decision, that is properly a matter for the House of Commons.

    Mr. Prescott: In view of his reply, will the right hon. Gentleman now ask the Prime Minister to reconsider his rejection of Labour’s proposal to refer the funding of political parties to the Nolan committee? Is it not time that the Prime Minister came clean on where his party gets his money, or has the Tory party got something else to hide?

    The Deputy Prime Minister: Of course, we all know that the Opposition want to pass the cost of party politics on to the taxpayer. They want one-track Members of Parliament with no outside interests and who are totally beholden to the party Whips, with all the draconian centralisation of power that that would represent. That would be a wholly alien development in the constitutional history of this country.

    Mr. Prescott: Why cannot the public know where the Tory party gets its money? Who has paid for a knighthood? Who has bought a peerage? And which foreign business men have bankrolled the party, fleeing the country? I ask him again, what has his party got to hide?

    The Deputy Prime Minister: The right hon. Gentleman is up to the sort of sleazy politics characteristic of the Labour party. The fact of the matter is that his party has sold out hook, line and sinker to the trade unions–it always has. He is the first person to complain that he has to ring up trade union leaders to ask their permission before he takes a simple decision on behalf of the Labour party.

    Mr. Peter Griffiths: Does my right hon. Friend agree that, however hon. Members may have voted in the Divisions last night, those who seek to gain party advantage from the issue simply demean the institution that they claim to honour?

    The Deputy Prime Minister: My hon. Friend is right, but he characterises the Labour party in too generous terms. It is undermining the credibility of this House by constantly criticising the performance of a tiny number of right hon. and hon. Members. The fact of the matter is that the overwhelming majority of people who come into this House are motivated by the highest standards of public service.

    Mr. Beith: Now that the House has made an important decision, with the votes of hon. Members in all parties, on the conduct of Members of Parliament, would the Deputy Prime Minister move the agenda on to the other things that would make Parliament more relevant to the lives of people, such as electoral reform–because that would make far more difference to the lives of people than even the decisions we made last night–or will he do as the Prime Minister did last night and attach his cause to the side which in the end will lose?

    The Deputy Prime Minister: The right hon. Member may see that as moving the agenda on; I would regard it as moving it back into a wholly unacceptable dark age.

     

    Social Chapter

    Q3. Sir Ralph Howell: To ask the Prime Minister what plans he has to rewrite the social chapter of the EU.

    The Deputy Prime Minister: I have been asked to reply. My right hon. Friend the Prime Minister rejected a new social chapter at Maastricht because it would have reduced competitiveness and destroyed jobs. The Government will not accept it, or anything like it, at next year’s intergovernmental conference.

    Sir Ralph Howell: I thank my right hon. Friend for that reply. In view of the fact that the social chapter has few friends in the House except on the Labour Front Bench, would it not be constructive for the Government to produce a more acceptable alternative social chapter? Will my right hon. Friend the Deputy Prime Minister urge the Government to make the Right to Work Bill the cornerstone of that new social chapter to eliminate involuntary unemployment and save £5 billion per annum in this country alone?

    The Deputy Prime Minister: I know that my hon. Friend brings a particular expertise to this subject and there is a great deal to which we should listen in what he has to say. I know that he will welcome the introduction of the earnings top-up scheme, which is designed to help people move into and stay in work without the burden of a minimum wage, and he also will look forward to the introduction next year of the jobseeker’s allowance.

    Mr. Keith Hill: Will the right hon. Gentleman confirm that, in the absence of the social chapter, Britain has the longest working hours, the fewest holidays, the poorest pensions, the lowest wages and the highest levels of job insecurity of all the leading nations of Europe? Which of those facts does the right hon. Gentleman deny, and do they not explain why the British people are longing for a Labour Government with our promise to bring in the social chapter?

    The Deputy Prime Minister: What the hon. Gentleman does not recognise is that Britain has one of the fastest falling levels of unemployment and one of the fastest growing economies in Europe. What he threatens by his proposals is that the flood of inward investment coming here, not only from north America and Asia but from Europe itself, would come to a halt if Labour threw away the competitive advantages that our economy possesses.

     

    Engagements

    Q4. Mr. Alexander: To ask the Prime Minister if he will list his official engagements for Tuesday 7 November.

    The Deputy Prime Minister: I have been asked to reply. I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Alexander: Does my right hon. Friend recollect that tomorrow the new Gas Act is likely to receive Royal Assent? I remind him that, by opening the market to competition, new entrants are likely to come in and that standing charges in that industry are likely to be a thing of the past in a couple of year’s time. As standing charges are widely resented by the elderly and those on fixed incomes, will he urge British Gas and the other utilities to start abolishing those charges now, before competition and a change in the law oblige them to do so?

    The Deputy Prime Minister: My hon. Friend is absolutely right in drawing the attention of the House to the fact that the privatisation programme, and that includes British Gas, has, of course, been a triumph for British consumers. The fact is that competition has cut prices for gas consumers; standing charges are down by 29 per cent. since privatisation; gas prices are down by over 20 per cent. since privatisation; and the legislation to which my hon. Friend referred has already led to the possibility of experiments in the south-west. I read in this week’s newspapers that perhaps another 10 to 15 per cent. will come off the prices to the domestic consumer as a result of that enhanced competition. What that all stands for is that the Conservative Government, by privatising these industries, have not only created world-class companies but served the consumer in a way that nationalisation could never have begun to do.

     

    Q5. Mrs. Roche: To ask the Prime Minister if he will list his official engagements for Tuesday 7 November.

    The Deputy Prime Minister: I have been asked to reply. I refer the hon. Member to the answer I gave some moments ago.

    Mrs. Roche: Given that, in the United States of America, it is illegal for foreign nationals to make donations to political parties, why do the Government not introduce the same legislation here? Are the Deputy Prime Minister and the whole of the Conservative Government frightened to let the British people see how the modern Conservative party is funded?

    The Deputy Prime Minister: I know of no restriction in this country that says that foreign nationals who are members of trade unions cannot give money to trade unions, which is then directed to the Labour party.

    Mr. Quentin Davies: Does my right hon. Friend agree that, if investment is to thrive, costs must be kept down and business taxes kept low? Does he therefore agree that it would be a disaster for investment, and therefore for our prospects for growth and employment in the future, if the Labour party were able to implement its plans to allow local authorities to fix their own business rates?

    The Deputy Prime Minister: The Labour party in power has always put up costs, prices and taxes. Whether it is a national Labour Government or local Labour government, the same process is at work. In either case, it would be a disaster for Britain’s investment potential.

     

    Q6. Mr. Martyn Jones: To ask the Prime Minister if he will list his official engagements for Tuesday 7 November.

    The Deputy Prime Minister: I have been asked to reply. I refer the hon. Member to the answer I gave some moments ago.

    Mr. Jones: Will the Deputy Prime Minister ask the Prime Minister when he returns what is the precise role of the Deputy Prime Minister? It seems to be costing £40,000 a month for the Deputy Prime Minister to answer even fewer questions than his right hon. Friend.

    The Deputy Prime Minister: Just the other day, people were complaining because I had brought £1 billion of Siemens investment to the north-east. I think that I am cheap at the price.

  • Mr Major’s Joint Press Conference with President Chirac – 30 October 1995

    Below is the text of Mr Major’s joint press conference with President Chirac, held in London on Monday 30th October 1995.


    PRIME MINISTER:

    Can I firstly welcome you to this press conference. This has been my seventh meeting with President Chirac in the last 6 months and on this occasion he has brought a very powerful team of his Ministers with him.

    This morning our Foreign Ministers, Defence Ministers, Finance Ministers, Transport Ministers, have all held separate discussions and subsequently reported to us about them. Collectively we have reached a number of wide ranging decisions.

    Let me just firstly say that this morning the President and I visited RAF Strike Command at High Wycombe. And we did so for two special reasons. Firstly, to inaugurate the Franco-British Air Group; and secondly, to present decorations to General and General Rose who worked so successfully for so long together in Bosnia.,

    I think that that ceremony, both the inauguration of the Air Group and the joint award of Honours, illustrates the increasingly close partnership that is developing between France and the United Kingdom. It is a global partnership and that theme of global partnership has been the dominant theme throughout this summit. Let me set out precisely what I mean by that.

    Britain and France are both European countries a worldwide outlook. We are the only nuclear powers in Western Europe. We each make a huge contribution to the overall defence of Europe. We are the largest European contributors to United Nations peacekeeping. We are Permanent Members of the United Nations Security Council and participants in the Economic Summits. And we both have obligations to parts of the world, like Africa, where we have long-standing and historic ties.

    In defence, upon which we spent a great deal of our time this morning, the President and I have concluded that the vital interests of one could not be threatened without the vital interests of the other equally being at risk.

    Step by step in defence, our approaches are moving closer together. In defence procurement, Britain has a wider range of joint projects with France than with any other country. We are discussing together the most effective structures for European defence, drawing on the lessons that we have learned In Bosnia.

    The Franco-British Euro-air Group is one bilateral dimension. We have decided on another – new arrangements for the Royal Navy and the French Navy to exercise and to train together.

    We have made important progress in deepening our nuclear cooperation. Our aim is to strengthen deterrence whilst retaining the independence of our nuclear forces. This deepening of cooperation will strengthen the overall European contribution to deterrence.

    Our Armed Forces, taking all aspects together, are closer today than at any time in the last 50 years, and the President and I shall look for yet further defence cooperation.

    We discussed the full range of European questions. We have a different approach to some of those questions, but we agreed to work together on a number of aspects at the Intergovernmental Conference. Subsidiarity is an area where we have a shared interest and concern. Subsidiarity – that is keeping or returning decision-making to the national level. We discussed, and have a common interest, in a more effective common foreign and security policy based on an intergovernmental agreement. We have a common approach to justice and home affairs matters and for the role of national parliaments. And we agreed to continue discussion on these and a number of other aspects that we are likely to face at the Intergovernmental Conference.

    We spent some time discussing the removing of regulations and red tape. We both agreed that small businesses had a vital role to play in our economies as generators both of employment in the future and of growth. And we have decided therefore to launch a joint initiative to reduce burdens on business and will invite businessmen from both countries to contribute to that work.

    Both of us have long, historic and very strong interests in Africa. We are launching today a joint initiative on conflict resolution and peacekeeping in Africa. We shall help African countries to develop their own capabilities and shall invite Western European Union partners to join us in sending advisory teams to Africa.

    You should, I hope, find on your chairs a detailed note of further joint approaches which we will take in Africa. These include a number of matters which you may wish to raise in questions but will not detain you with now.

    Let me just highlight four others of the many subjects we discussed.

    The first of these is Bosnia. We will continue working closely together on Bosnia and will both make a large contribution to the peace negotiations and the implementation of a peace settlement.

    Second, terrorism. I deplore the recent bombings that there have been in France. I have promised President Chirac every possible assistance and we have agreed on specific steps to enhance cooperation between France and the United Kingdom in dealing both with terrorism and with organised crime.

    On United Nations reform, about which we both spoke at the UN meeting just a few days ago, we both want to see effective follow through to the work of the G8.

    And finally, on a very positive note, we are launching the Entente Cordial Scholarship Scheme. This is an imaginative scheme that will be privately funded to help young people in Britain and in France to study in each other’s language and in each other’s country.

    Those are just the sketchy headlines of what has been, I think we both believe, a particularly productive summit.

    PRESIDENT CHIRAC:

    I have nothing to add to the substance of what the Prime Minister has said, I have nothing to change in what he has said.

    As to the specific details, we shall be happy, both of us, to take questions from the press and I am very happy to welcome members of the British, French and other press corps as well.

    But let me make one comment, if I may, to start with. I have been attending French/British meetings for many years now and I have followed how these meetings have progressed and I am most struck by the sea-change which has occurred in our discussions. In Franco/British relations today there is no trace whatsoever of a gracility of ill humour. I think it has become quite natural for us to talk about everything, to discuss everything frankly and openly, to discuss matters which bring us together as well as matters which can divide us. But there is no drama about it, it happens quite naturally and openly.

    And on an increasing number of subjects all the time we have increasingly convergent views on these issues which are the challenges for our countries in the future. In other words, we have a greater and greater awareness all the time of the increasing solidarity of the destiny of our two countries, and that is extremely pleasant, this friendly atmosphere, this atmosphere of friendship which goes beyond us politicians but which concerns our countries and our systems. And I am very struck and impressed by this increasing closeness between France and Britain.

    QUESTION:

    President Chirac, particularly on the point of terrorism, do you think the British government is doing everything it can to prevent a spill-over from the Algerian war taking place in Britain and to stop Britain being used as a haven by Islamic radicals?

    PRESIDENT CHIRAC:

    As far as the fight against terrorism is concerned, I do not think, I am absolutely convinced that the British government is fully determined to do everything it can. I am convinced that there is excellent cooperation between the British and French services involved. And I have only thanks to express to the British authorities on these two scores.

    I would add that the Prime Minister wished to go beyond even that and proposed to me a strengthening of our cooperation in the fight against terrorism, and he also proposed to me that we should strengthen our cooperation in the fight against drugs, and I thoroughly agree with him on those two counts.

    QUESTION:

    Could I ask you both what the significance to Anglo/French relations, and indeed to nuclear cooperation, you find in the British decision to back French nuclear testing over the protestations of the Commonwealth?

    PRIME MINISTER:

    Let me respond to that point first. President Chirac had scientific advice about the necessity to test the French nuclear deterrent. I think on the back of that scientific advice it would have been extremely difficult for the head of any country not to have accepted that scientific advice and tested, as advised, his own nuclear deterrent. Upon that basis, I have offered the President my support for the action that he has taken. If one is a nuclear power there are certain obligations. Some of those obligations involve ensuring that the nuclear weapon is in proper order, that it is working as expected. And one does need in those circumstances to test, if that is the advice one is given. That is the advice the President was given, he accepted that advice. Frankly, I believe he had no choice and upon that basis I have offered him my support.

    PRESIDENT CHIRAC:

    Support for which I am most grateful and which is also part and parcel of the solidarity of countries of the European Union. But I would also like to say that I was fully aware of the reaction that international public opinion would have when I took my decision. But the decision was absolutely inevitable for the safety and the reliability of French nuclear weapons. It would have been irresponsible of me not to take that decision. That is the negative answer to your question if you like. But there is a positive answer to your question too, which is that I am now in a position to confirm that France, as the United Kingdom, will sign the full Nuclear Test Ban Treaty and that France and the United Kingdom have both said that they will support the zero option on on-site controls, no small tests, no tests whatsoever, that France and the United Kingdom have just signed the Protocols of the Ruratonga Treaty which next spring will make it possible to declare the South Pacific a nuclear-free zone. And therefore there will be no further problem of nuclear testing.

    The United States, as you know, have agreed too to the zero option. In my recent discussions with the Russian President I understood him to say that that would be Russia’s position too. I am not answering in Russia’s place of course but I understood that would be his position. And I would not rule out China taking the same position too, and that would be a very optimistic and positive conclusion to the whole affair.

    PRIME MINISTER:

    The President, on behalf of France, the Americans and the British have agreed to sign the Protocols to the Ruratonga Convention. I think that is very welcome. What we can actually now see, not very far in the future, just a few months away, is an end to nuclear testing and the signature of the Nuclear Test Ban Treaty. That is now, with luck, just a matter of months away and I think that is great progress and I am delighted about that.

    QUESTION (Jon Snow, Channel 4 News):

    When you became President, one of the earliest public pronouncements you made, or one that was recognised worldwide, was the offer to send French troops to save the people of Srebrenica. The Dutch government has today published its findings over what happened in Srebrenica and sad reading they make. The Dutch Defence Minister says that the whole concept of the so-called safe areas failed dismally. Could I ask you both whether as members of the Permanent Five Security Council of the UN you accept any culpability, any blame, for what went wrong and the fact that we are now sitting in a situation in which 8,000 citizens of that area are either dead or missing?

    PRESIDENT CHIRAC:

    You are referring of course to events which occurred as I became President. I believe that the United Nations forces were not able to fulfil the role that they were supposed to play. And I think it was wrong in the past to accept that confusion between a military role and a humanitarian role and the result was that events of that kind did occur. Who was responsible? Certainly not the United Nations because the United Nations was not given to proper mandate to act. I think it was a collective responsibility, I think that the British and French governments realised that when they decided together to react to what happening, to change their policies and to set up together the Rapid Reaction Force. And a lot of observers made fun of the Rapid Reaction Force when it was announced initially, but it did make it possible to give the troops the resources they needed to attain their objective, which was a peacekeeping objective and which was I think behind the positive developments that we have witnessed since.

    PRIME MINISTER:

    I think it is perhaps sometimes a little too easy to overlook the reality that it is the British and the French, and their troops on the ground, who have played the biggest single role of turning what looked like at one stage a trans-Balkan war, and at another stage like the mass genocide and slaughter of huge numbers of people, into a position where across central Bosnia there is peace and where we can now look forward to the possibility of a peace right the way across Bosnia. That would not have happened but for the action of the British and French governments who sent the largest number of troops and sent the troops not only in the largest numbers but sent them earliest. There were also those countries who participated predominantly in the conferences that were held and that determined with the Rapid Reaction Corps to respond to some of the events that were occurring. So, no-one doubts the horrors from the early genocide and subsequently what occurred in the former Yugoslavia, but I think the British and French troops played the predominant role in mitigating the slaughter and saving lives. And I do not think it an exaggerated claim to say that but for the activities of British and French soldiers and their commanders, there are literally hundreds of thousands of people alive today who would otherwise have been dead. And I think in the scales of who did what and what the outcome was, that is something that should weigh heavily.

    QUESTION (George Jones, Daily Telegraph):

    Could you clarify this statement where you say you do not see situations arising where the vital interests of either France or the United Kingdom could be threatened – is that like the NATO declaration that if one country is invaded, could you tell us what it means?

    PRESIDENT CHIRAC:

    I don’t think I need to elaborate a great deal on this. We are very strongly linked politically, economically, culturally and geographically, and I am not referring to the Channel fixed link. I am referring quite clearly to the fact that we are very close to each other. But clearly one cannot imagine a situation where in the immediate future or in the foreseeable future a conflict might occur in which France and Britain would not be on the same side, we will clearly be on the same side, and I think we must draw some conclusions from that strategically speaking?

    PRIME MINISTER:

    I think really the point is quite straightforward. Neither the President nor I can conceive of circumstances in which in any way France was threatened militarily, in which the interests of the United Kingdom would not be seen to be similarly threatened. And equally the President can conceive of no circumstances in which the United Kingdom was threatened militarily that would not equally threaten the vital interests of France. And we thought it appropriate to make that point crystal clear on this occasion to exemplify the increasingly close cooperation we have in all aspects of defence.

    QUESTION:

    Mr President, 50 years ago, referring to somewhat complicated relationships with General de Gaulle, Winston Churchill said: “Of all the crosses I have to bear, the cross of Lorraine is the heaviest”. I would like to ask the successor of General de Gaulle, whether this is a heavy cross to bear on your shoulders? I am referring to the increasingly Euro-sceptical policy of Her Majesty’s Government or if that policy is a relief and a comfort for you?

    PRESIDENT CHIRAC:

    I must say I don’t know what Euro-scepticism is – is it a fad. And in every country of the European Union, not only the United Kingdom, there is such a phenomenon. So let us be realistic about this and if one is realistic, what does one see? What one sees is that there is considerable progress in European construction. There are areas in which France and the United Kingdom have a somewhat different approach. We discuss these differences and I say we discuss these differences quite equably and openly, it is certainly not a heavy cross to bear. And there are other areas in which our views are perfectly convergent, and the Prime Minister has told you what they are, everything which concerns the construction of a Europe which is closer to its citizens, on enlargement, on other issues. On these issues we have no conflict of views whatsoever. So let us not be ideological, we are pragmatic people. We are moving ahead at our own pace but very positively and without there being any misunderstanding between us.

    QUESTION:

    To come back to terrorism I have three somewhat distinct questions. First of all, the French government has stated that it is concerned about the fact that some Islamic fundamentalists may have taken refuge in the United Kingdom. Secondly, there is information to the effect that the SIS might open an office in London, the BBC announced this this afternoon. And thirdly, Abad Anas [phon], one of the founder members of SIS, is supposed to be in the UK and has made a request for political asylum. Can you comment?

    PRESIDENT CHIRAC:

    On the first question, my answer is no. There is no difference of view between us on that. On the other questions I have no comment to make. But I would refer you back to what was said earlier on which is that I consider that cooperation between France and the United Kingdom in the fight against terrorism is absolutely first class, it is efficient and I warmly welcome it.

    QUESTION:

    Could you tell us about what concrete steps have been taken to strengthen cooperation between the French and British governments in the fight against terrorism?

    PRESIDENT CHIRAC:

    When it comes to the fight against terrorism, it is not customary to announce publicly exactly what one is going to do, and I am sure you will understand that.

    PRIME MINISTER:

    I will just add one point to that. Although the President is entirely right in saying that we do not announce publicly what the cooperation is, let me just say two things to you. Firstly, the cooperation is already close; and secondly, the President and I agreed this morning on ways to make it closer yet. Terrorism is a scourge to all countries and we will work very closely in dealing with it, but I am afraid that we are not going to tell people precisely what we shall be doing.

    QUESTION:

    Did you talk about who might be the next Secretary General of NATO, whether it is clear that there will be a British candidate, and if there is not then can you both tell me what you think of the candidature of Ruud Lubbers?

    PRIME MINISTER:

    Let me respond to that first. We did consider the possibility not of one, I saw one British name being floated in the press, there were in fact a number of British names that we considered. But we also looked at other names that were already in the field. Dr Lubbers is not yet a formal candidate, I should make that entirely clear. But were Dr Lubbers to be a formal candidate for the Secretary General of NATO, I think he would receive strong support from the British government.

    PRESIDENT CHIRAC:

    And you will hardly be surprised to hear me say that there again we share the same view.

    QUESTION (John Craig, Daily Express):

    Prime Minister, do you agree that Euro-scepticism is a fad?

    PRIME MINISTER:

    I think there are many ways to describe Euro-realism, Euro-scepticism, Euro-philyism, Euro-phobism, there are all sorts of names. I think what is important is that one looks at the problems related to Europe with a clear and open mind and decides what is the answer most appropriate to the British interest and the European interest, and that is the way the government examines them.

    QUESTION (Tom Carver, BBC TV):

    Can both Presidents tell us what this new rapprochement that seems to exist is going to do for the much vaunted Franco-German axis that we have?

    PRIME MINISTER:

    I am grateful to be promoted to President but I fear it is not a title I can accept. I will leave the President to answer that.

    PRESIDENT CHIRAC:

    The Franco-German friendship, let me put it that way, is part and parcel of our destiny for reasons of history and geography that I don’t need to elaborate on here. But also because we are two countries at the very heart of Europe it was always clear that Europe would never get anywhere unless there was a clear understanding between France and Germany. If there is no understanding between France and Germany, there will be no Europe, full-stop. But Europe is not only France and Germany, Europe is also a number of other countries and a leading country of course is the United Kingdom with its traditions, with its history. And the United Kingdom cannot be on the sidelines. Therefore the cooperation between France and Germany, the understanding between France and Germany is absolutely essential but it is not enough, there has to be something else and that something else is the British presence. Clearly that is a reflection of British interests. And I think France is in a position to facilitate that necessary synergies between the British view of things and say the German view of things. One always tends to imagine that there are very considerable differences of view, but when one gets down to them and when one looks at them very closely one realises there is no difference which cannot be reduced. And I believe that Franco-British cooperation, which is going from strength to strength every year and is gaining in strength at each one of our meetings, is one of the important points for a vision of a sound stable Europe developing strongly into the future.

    QUESTION:

    Did you discuss the Quebec referendum and what is the position of Paris and London?

    PRESIDENT CHIRAC:

    The referendum is going on this very day and you will hardly expect me, nor the British Prime Minister, to make any comment on that.

    QUESTION (Magreb Press):

    Why has it taken so long for the former dominant powers in Africa to launch the present initiative, that is conflict resolution and peacekeeping, and what prompted the move?

    PRIME MINISTER:

    I suppose one could always have done a good thing earlier. I think the fact that the President and I have discussed this on more than one occasion. We both in our own backgrounds have a direct interest in parts of Africa, it was a matter that naturally arose in our conversations some time ago and that we have subsequently taken forward. It clearly is important. If you look at what has happened in Africa over the last few years there are some people who will say, well it is very depressing to look at the problems in Africa. I think that is at best a half truth, and at worst a complete untruth. Because many of the changes that have taken place in Africa have been very beneficial. Many of the African governments are struggling very hard to turn away from bad economic policies to sound economic policies. Many of the African countries that were not democracies are moving towards being democracies. Of course there are some areas where things are not yet right, but a great deal of progress has been made and both the President and I would like to lend a helping hand, where we can, to that process.

    PRESIDENT CHIRAC:

    And I would just add one further point to that. There was reference earlier on to Euro-sceptics, now we are talking about Afro-pessimists. But I am neither one nor the other. And as far as Africa is concerned, I think that Africa is moving ahead in the right direction. And I fear that a lot of Afro-pessimists are in fact people who are trying to withdraw from Africa and trying to shuffle off the efforts which are necessary for the development of Africa. But I am optimistic for three reasons: firstly, Africa is moving ahead in the right direction; the rule of law is gaining ground; the management of public affairs in Africa is improving every year and that is I think clear when one looks at the increasing number of agreements which are entered into with the international financial institutions; thirdly, today African nations have understood that there are two things they must do – first of all they have to take into account regional interests and they also have to be involved in conflict resolution in order to avoid conflicts as far as that is possible. And those three developments I think are liable to give greater confidence to African peoples but also to Europeans who wish to participate in the development of Africa and that is why I am an Afro-optimist.

    QUESTION:

    You talked about advances in European construction thanks to excellent Franco-British cooperation, particularly on defence matters. But when you discuss matters like the EMS, the single currency, the IGC, is that not likely to hold back European construction, is that not pragmatism too?

    PRIME MINISTER:

    I mentioned some of the areas in terms of what is loosely called European construction. I am always wary when people talk of European construction, it means different things to different people.

    As far as the Intergovernmental Conference is concerned, I set out a series of areas where it is clear already, before the Intergovernmental Conference begins, that there is a broadly common interest between the British position and the French position. There will not be unanimity on every issue between Britain and France, or indeed I suspect between almost any two countries in the European Union, total unanimity is a very rare proposition. But there is a good deal of unanimity and we will try and build on that in the Intergovernmental Conference. There will be some things that will be unacceptable to some nations and that is a matter that will need to be determined in the conference when it begins next year.

    As far as Monetary Union is concerned, the British position on that is well known, our position has not changed. I set it out pretty clearly in the Maastricht negotiations when I obtained for the British the right to opt-out of a Single European currency if that is formed and if it is not thought to be in the British interests to join. That was the position and that remains the position.

    PRESIDENT CHIRAC:

    Just one comment as far as France is concerned. Let me first of all point out, if I may, that each time a debate of this kind gets going we are told that things are going very badly. But I think it is quite beyond challenge that Europe is progressing. Some people find that Europe is not moving ahead as quickly as possible, some people say not as well as possible, but basically it is moving ahead. Soon after I became President, France was the President of the European Council and I hosted a meeting in Cannes of 15 Heads of State and Government, plus 11 Heads of State and Government of countries which may one day become members of the European Union, and I have no recollection of there ever being a venture of this kind in history. Nobody thinks today that there could be such a thing as a war in Europe, if one excludes the unfortunate affair of ex-Yugoslavia. So I think that is real progress.

    Once you have got that far, you have of course other issues to deal with – the Intergovernmental Conference, the need to adjust the European institutions to an increasing number of member countries. That is necessary. Well we shall be tackling that issue and we shall be thinking pragmatically once again about the ways in which we can succeed in that reform. And on several points France, the United Kingdom, Germany, see eye to eye, on other points there are differences. Fine. But that is what diplomats are there for and that is precisely why we agree on a certain period of time necessary to come to an agreement. But I don’t doubt that eventually we shall come to an agreement on the best institutions which are best suited to the principles of each country and I hope that Europe will be enlarged, that it will be closer to its citizens thanks to the application of the principle of subsidiarity on which both British and French and Germans fully agree.

    Then you raised the issue of the currency, a big debate on the currency. You are familiar with the position I took during the French debate on Maastricht, I came out in favour of [indistinct] today I have made it very clear that whatever efforts need to be made and of course those efforts have to be properly distributed in France, but France will meet the conditions which will enable it to become a member of the single currency on 1 January 1999 – that is the French option. And I don’t think anybody can challenge today that France has the political will to do that because it is in our interests and we believe it is in our interests because it requires us to reduce our budget deficit and it is only by reducing our budget deficits that we shall be able to rise to the challenge of unemployment, and that is my objective, to fight against unemployment. Clearly fighting against unemployment means sound management and sound exchanges. France being what it is, I believe the single currency is a positive thing for France, it is something which will enable France to fight effectively against unemployment and to maintain social cohesion, which is something also which I have stated a great deal. And I would also say that it is a great French tradition, the single currency basically is an assertion of the stability of exchange rates, that is the objective of the single currency. And France’s objective, France’s view of things, has always been in favour of the stability of exchange rates. That was one of the major hobby-horses of General de Gaulle, whom you referred to earlier on, and it remains France’s unwavering position on monetary issues.

    The British Prime Minister has just recalled his position, which we are amply familiar. The United Kingdom, which does not have the same characteristics, the same constraints as France does, does not wish to have its hands tied. It wishes to keep full freedom to take that decision if and when it feels it is in its interests to do so. And I would observe that the UK will fulfil the criteria for monetary union if it wishes to embark upon it because its economic management is sound and reasonable. So the UK will have its hands entirely free to take the decision it feels fit to take and it will take that choice when it feels appropriate to do so. I am sure we will discuss it beforehand and I am sure the British government will discuss it with its British partners. We must respect the freedom of choice of the British government in this respect.

    QUESTION:

    Could you clarify something the Prime Minister said about global partnership. Does that mean that it is easier to have common foreign policy between countries which have a worldwide presence than within the 15 countries of the European Union?

    PRIME MINISTER:

    No, that was not what it was intended to convey. Though a common foreign policy, agreed by unanimity and not imposed by qualified majority vote, is a very attractive proposition for Europe.

    Clearly collectively if the whole of Europe agrees to a foreign policy then we are in a stronger position than if any one or two countries themselves agreed. But the remark I made about global partnership was not particularly geared to one aspect of policy like foreign policy, but geared to the range of interests that I set out, and the President set out, that are common both to France and the United Kingdom. We are the only two European nations that are nuclear powers, that have a worldwide interest, that sit on the United Nations Security Council, that have long-standing historical interests in large parts of the world like Africa and it is upon that basis that we have a common outlook on many problems. And it was that common outlook, based on common background, common history and common interests, that led the President and I to conclude that there was ample scope for a global partnership. And as we have indicated in defence and other areas, there are large areas that illustrate in very practical terms the extent of partnership that already exists today between Britain and France and we have both reiterated our determination to sustain those areas of agreement and to build on them wherever and whenever we think it appropriate.

  • Mr Major’s Speech to 1995 Conservative Party Conference – 13 October 1995

    Below is the text of Mr Major’s speech to the 1995 Conservative Party Conference, held in Blackpool on Friday 13th October 1995.


    PRIME MINISTER:

    Introduction

    Today is Friday the Thirteenth. Remember it. This is the day I’m going to tell you how we’ll win the next election.

    And if anyone is superstitious they shouldn’t be.

    This is Margaret Thatcher’s 70th birthday and she won three elections in a row.

    So the omens are good.

    Many happy returns to Maggie today, and it’ll be many happy returns for us at the Election.

    We’ve won four and we’re going for five.

    All elections are important.

    But the next is a watershed.

    Because whoever wins will inherit the strongest economy for decades.

    We built that economy.

    It wasn’t easy.

    And I don’t know about you but I’m not in the mood to hand it over to Labour to wreck.

    So, Mr Chairman, we’re going to mount the fight of our lives. And when the time comes, we’re going to deliver the win of our lives.

    Leadership

    But first a bit of housekeeping.

    As you know, in June I resigned as Leader of our Party and called a leadership election.

    I did so because speculation was drowning out everything we were trying to do.

    How could you argue our case on the doorstep with that sort of thing going on?

    Well of course, you couldn’t.

    It had to end – whatever the risk.

    I might have lost. If I had I would still have been at this Conference. Still offering my full support to the Party, I believe is best able to govern this country.

    But I won.

    And today, face to face, I’d like to thank you – for your support – when the going was rough.

    Thank you, too, to my campaign team led so ably by Robert Cranborne.

    And there’s someone else who has always been there when the stakes were high.

    She’s here today too.

    Of course – I mean Norma.

    Labour

    But, that was yesterday.

    Today, we meet united, healed, renewed – and thirsting for the real fight – with Labour.

    Last week the Labour leader predicted that we’d wave the Union Jack. Of course. This Party has never waved any other flag and we never will.

    To win, Labour must persuade people this country is on its knees. Clapped out. Beaten up.

    They shouldn’t find that too difficult. That’s the way it always is – under Labour.

    But they know it isn’t true under the Conservatives. And the world knows it isn’t true.

    The world knows the only way our country would match their deception would be if they were running it.

    I don’t question Labour’s patriotism.

    But is a funny patriotism to rubbish our achievements – how shall I put it? – before breakfast, before lunch, before tea and before dinner, and then get up and do it again before breakfast – on the Today programme.

    I don’t doubt Labour’s good intentions : the road to hell is paved with them.

    They say they want to help businesses – so they’ll clobber them with the Social Chapter.

    They say they want to help the unemployed – so they’ll destroy jobs with a minimum wage.

    They say they want to treat the unions fairly – so they’ll give them privileges even Michael Foot didn’t dream of in the 1970s.

    I think Labour has been re-reading “1984” – the book that introduced “Doublethink”.

    You remember – doublethink is the trick of holding two contradictory beliefs at the same tine – and accepting both.

    It was the brain-child of another public school-educated Socialist. His name was George Orwell.

    But actually it wasn’t. That was his pen name.

    His real name – was Eric.

    His surname?

    You’ve guessed it. It was Blair.

    Eric Blair.

    He changed his name. I can’t say the same thing about my opposite number.

    He’s changed everything else. His politics. His principles. His philosophy.

    But – to the best of my belief – he hasn’t changed his name.

    At least not when I got up to speak.

    But he’s abandoned so much, so fast you never know.

    The Liberal Democrats support all Labour’s nonsense.

    But they’re neither here nor there.

    Because as we saw the other day, they’re the only party in British political history that has had its entire battle plans wiped clean off the media – by a goldfish.

    The Great Divide – Us Versus Them

    Mr Chairman, around the world, people now believe Britain is winning.

    But don’t let’s fool ourselves.

    I’m looking to the future.

    There’s still a lot to be done.

    The new Millennium will bring longer, fuller lives.

    Shifts in world power.

    More and more competition.

    Changes in technology, fast and furious.

    And, even with growing wealth, new welfare problems.

    That is the Millennium challenge. We have to respond to it.

    Explain to people the opportunities within their reach. Tell them what can – and cannot be done – and what the price will be.

    By telling them I mean really telling them. I don’t mean insulting them by trivialising issues for instant media consumption.

    I believe the public will respond to the plain truth.

    I believe they’re as sick as I am of politics by soundbite, by nudge and wink.

    No wonder people are turned off politics. The way some politicians conduct the debate would disgrace a nursery.

    There are only two ways to the future. Labour’s way. And there’s ours.

    Scratch beneath Labour’s rhetoric and you see the reality. Prescott, Beckett, Blunkett, Dobson, Cook. They believe a socialist state can do it all.

    If that were true the past 50 years would have been quite different. Cradle to grave socialism – I always thought that rather constrained way to go through life.

    But the State can’t do it all – and, what’s more, the State shouldn’t do it all.

    Beat Labour one more time, and we’ve beaten socialism for good.

    Our way – the Conservative way – is very different.

    We believe the Government should choose what Government should do – and do it better.

    Beyond that we should help individuals shape their own future. Help them – but not nanny them.

    Conservatism is choice.

    Choice is liberty.

    Blazon it on your mind.

    We should offer choice whenever we can.

    But there’s one thing in our Tory tradition that has inspired me, it’s our historic recognition that not everyone is thrusting and confident and fit. Many are not: and they deserve protection. With a Conservative Government they will always get it.

    Individual rights will be defended.

    Ownership will be encouraged.

    And, above all, we will stand for – and will protect – one United Kingdom, unbroken and undivided.

    The Enterprise Centre of Europe

    We Tories often talk of business and the need for success.

    It’s worth remembering why. It’s quite simple.

    If business makes profit, it provides jobs and pays taxes.

    And those people with jobs pay taxes too. Taxes pay for our teachers, our nurses and our public services.

    So we must make business more successful.

    We are in Europe – and rightly so. It’s the richest home market in the world.

    Half of our trade goes there.

    But half does not. And both halves are equally important.

    That’s why Malcolm Rifkind will actively pursue the vision of Atlantic Free Trade – refreshing our vital links with the Americas.

    If we’re to compete with America, Japan and the Pacific Basin, we must be the unrivalled Enterprise Centre of Europe.

    Let me spell out precisely what that means.

    It means high spending and high taxes are no longer an option. The state spends too much of our national wealth. We must get that share below 40 per cent – and keep it there.

    The state spends too much of our national wealth. We must get that share below 40 per cent – and keep it there.

    If the State spends too much, it taxes too such.

    In the recession, we had to put taxes up to protect the vulnerable.

    Now the recession is over, as soon as prudent, we must get taxes down again.

    And – be in no doubt – I don’t only mean income tax.

    I mean the taxes that damage investment and stultify wealth creation. I mean inheritance tax. I mean capital gains tax.

    We must cut them, and then – when affordable – we should abolish them.

    We receive more investment into Britain than any other European Country.

    This very day, the Queen will open Samsung’s massive new development in the North East.

    Fujitsu, Daewoo, Nissan, Black and Decker, NBC, Siemens have all decided their future is here.

    You don’t hear Labour talk of this.

    Of course not. These companies didn’t invest in a socialist Britain.

    They set up here because it’s a Conservative Britain.

    And they’ll only be followed by others if we keep Britain Conservative.

    Labour say they know how to run a market economy.

    I asked Humphrey the cat about that.

    I’ve the first time I’ve seen him move so fast.

    It took all the resources of the Royal Army Medical College to get him over the shock.

    Labour have stood in the way of everything we’ve done.

    Where were they when we cut inflation?

    When we faced down union power?

    When we fed life back into the corpse of so many nationalised Industries?

    Humphrey could answer the question. Humphrey knows. Like Macavity, Labour wasn’t there.

    They were the advocates of the easy options and they opposed every tough decision we took.

    Interest Rates up? Disgraceful, said Labour.

    Interest Rates down? Not enough, said Labour.

    Interest Rates the same? The Chancellor must act, says Labour.

    Always, always, always the easy option.

    So when they criticise us, just remind them of this.

    If we’d followed their advice, we’d have been in Carey Street.

    Unemployment has been coming down for two and a half years.

    But it’s still far too high.

    The best route to more jobs is more small businesses.

    We are the Party of small business. When I was a small boy, my bread and butter was paid for by my father’s small business. He made garden ornaments 40 years ago and some fashionable people find that very funny.

    I don’t.

    I see the proud, stubborn, independent old man who ran that firm and taught me to love my country, fight for my own and spit in the eye of malign fate. I know the knockers and sneerers who may never have taken a risk in their comfortable lives aren’t fit to wipe the boots of the risk takers of Britain.

    When my father’s business failed – because his health failed – I saw the price the small businessman may have to pay.

    I know the sacrifice they make for the dreams they have.

    They don’t know whether they’ll succeed.

    But they work as hard as they can.

    That’s why, as Ian Lang told you, we’ve set up the biggest consultation with business ever seen in this country – to find out what more we can credibly do to help then.

    Frankly, Mr Chairman, I think they’re heroes.

    Europe

    I know one thing: we mustn’t pile burdens on business.

    So let me say this to our friends and partners in Europe.

    Don’t ask me to sign the Social Chapter. I won’t do it.

    I don’t look for popularity abroad – I prefer to protect jobs right here.

    Don’t misunderstand me. I’m for Europe, not against it.

    And I intend to argue for policies that will help it succeed. Pressure to stop arguing and go with the European consensus is strong. It’s difficult to set rational argument against the last movement of Beethoven’s Ninth.

    We must be sympathetic, but we must stand our corner.

    We must ask our partners to understand our thinking and we must understand theirs.

    Against the background of the traumas Europe suffered over the past 60 years – war, dictatorship, civil war, military occupation – it’s not surprising to me that they look towards European unity as a guarantor of political stability. Of their decision never to go to war with one another again.

    Only twenty years ago, Greece, Spain and Portugal – new partners in Europe – were ruled by men in dark glasses and epaulettes.

    Now these countries are secure in the European Union.

    In a few years’ time – thanks in large part to British policy – they will be joined by Czechs, Poles, Hungarians and others, now liberated from Communist dictatorship.

    They are knocking on the door to entry and we want to tie them in to the democratic family of Nations.

    Because it’s in our British interest: a further guarantee that our children and grandchildren will never face the conflicts than cost the lives of so many of our fathers and grandfathers.

    Unoccupied, undefeated, the war left Britain with a very different perspective from the rest of Europe.

    If we want to persuade our partners that their policies for Europe are wrong – as I believe many of them to be – we must use our imagination to understand their feelings and their motives.

    We entered Europe,

    For prosperity.

    For co-operation.

    For a louder voice on that great Continent.

    But we did not enter it for a new tier of Government.

    We did not enter it for Socialism through the back door.

    And we did not enter it for a federal Europe.

    It wouldn’t work for us. Our partners must understand that it’s politically and constitutionally unacceptable.

    But that’s what Labour would agree to and I believe they are profoundly wrong.

    We will advance our arguments firmly and courteously in Britain and in Europe.

    For Britain for Europe.

    But underneath the rational argument we should not be misunderstood.

    If others go federalist, Conservative Britain will not.

    Welfare spending

    Mr Chairman, providing quality care for those most in need is a strong part of the Tory tradition.

    Shaftesbury and Disraeli were doing it when socialism was just a distant nightmare in most people’s minds.

    We are proud of our free National Health Service. We have fought to make it the best in the world in the next century. We have put more resources into health. Not just once, but year after year. And we are modernising it, so that it remains the best in the world.

    But, Mr Chairman, we are succeeding. People are living longer. And that success in health creates new challenges for our welfare system.

    The easy way out is to load the bills onto future generations – issuing blank cheques for our children to pick up.

    In other words, living on tick. I wasn’t brought up to do that. And I don’t think that it’s right for the country.

    We have already done more than anywhere else in Europe to build up massive pension funds.

    But because we live longer, we need to develop similar approaches to long term care – encourage new forms of savings, new kinds of insurance, more flexible use of pensions.

    That’s the next step forward in our welfare system, and one we are examining right now.

    We don’t have all the answers yet. But it is important that people know we’re addressing their long-term problems.

    It’s a huge challenge but it’s one we can’t duck and one we must get right. And it’s one that will only be met by recognising the money we spend has first to be earned through an enterprise economy.

    It’s a strong Tory tradition that you and I look after ourselves and our families before we turn to others to pay our bills.

    That’s why we need to target our welfare spending on those who need it.

    I don’t need anyone to tell me that the welfare system matters.

    I know what it’s like when the money for the week runs out by Thursday.

    But welfare should offer people a ladder back to the pride of self-reliance, not a trap for the poor.

    That’s why we’re designing a welfare system for the twenty-first century.

    Targeting benefits. Reforming pensions. And helping people from welfare back into work.

    But not tolerating those on welfare who won’t work.

    From next autumn, everyone who is unemployed will need to undertake a contract for work.

    A contract that makes it absolutely clear that they have obligations to accept paid work when it is available.

    Mr Chairman, we’ll continue to shape a welfare system that is generous to those in need. We can do no other.

    But it must be one that also reflects the basic Tory instincts of rewarding prudence, thrift and family responsibility.

    Education

    Education affects not just careers, but people’s whole lives. That’s why, when I became Prime Minister, I put education at the top of my agenda.

    I haven’t changed. But education has.

    Since then we’ve introduced regular tests. Made school inspection more rigorous. Given parents more choice and information.

    Today, three times as many young people become students as in 1979.

    Last year I told this Conference that we would make nursery education available to all 4 year-olds.

    We’re doing just that with vouchers: to put power and choice where it belongs: not in the hands of bureaucrats. But in the hands of parents.

    Choice. Choice. Choice. And all opposed by Labour.

    I still want to widen choice in education.

    Some years ago, we set up the Assisted Places Scheme. It helps children from low income homes to go to our best private schools.

    It’s been a great success.

    But Labour hate it.

    That’s true to form – they always claim to want to help people – but in return they demand that people know their place.

    And in Labour’s view there is no place for children of low income families in private schools. So they want to abolish the scheme outright. Labour’s message to them is: no choice for the poor.

    One of the schools that offers places to pupils on this scheme is in Edinburgh. It’s one of Scotland’s most famous private schools – Fettes.

    Quite a lot of famous politicians went to Fettes including – Iain Macleod.

    Iain Macleod was a One Nation Tory and wouldn’t he have been proud to see pupils of poor families at his old school – sent there by a One Nation Government.

    So am I. So I’m going to give more children that opportunity.

    We’re going to double the Assisted Places scheme.

    But I want to widen choice still further.

    So if parents want specialist schools, we should let them have them.

    And if they want religious schools, we should let them have them too.

    This isn’t a dogma. It isn’t elitist. It’s based on the belief that children are first and foremost the responsibility of parents: and they know what is best for their children.

    We also want excellence in education, so I believe we should let good schools expand.

    Bad schools should be closed.

    Of course, closing bad schools means a row. But it’s the right row to have and Gillian Shephard is prepared to have it.

    Not every child can benefit from the Assisted Places Scheme or private education.

    Real choice will come when every state school offers the highest standards – when every state school prizes discipline, when every state school puts learning before political correctness. Gillian is going to work with every good head and teacher to deliver that.

    Many parents believe they’ve found a way to higher standards already. They’ve chosen for their schools to become independent, self-governing schools: what we call grant maintained.

    These schools are in the state sector. Run by the Head and the Governors. They get their money from government to spend as they think fit.

    Their results have been outstanding.

    That’s why I want to enable all schools to become grant-maintained.

    But Labour want to destroy them – wipe out their freedoms and take away their budgets.

    These schools became self-governing after a ballot of parents. Parents chose independence. Labour want to wreck then without a ballot. Labour hate independence.

    So, parents at the next election – choice or no choice. That’s the choice.

    VE/VJ Day

    This year we have all remembered with gratitude the sacrifice our predecessors made for our forbears.

    VE Day and VJ Day were very special.

    Most of you would have attended some of the events or watched the remarkable television coverage.

    I was there. I found it immensely moving.

    The sense of pride was tangible.

    But Mr Chairman, unlike others, I didn’t hear people on VJ Day shouting out party political propaganda.

    For me, it was a day in which a free people paid tribute to those who kept them free.

    Back in June you will remember the huge commemoration which took place in Hyde Park.

    Let me tell you a story of that day.

    At the entrance to one stand was an elderly man trying to get in.

    He had no ticket – so the security guard was about to turn him away.

    But luck would have it, a brigadier was passing by. Not any old brigadier, but one of the organisers of VE Day. He saw something pinned to the chest of this elderly man.

    Not all of us would have known what it was. But the brigadier did.

    It was the highest award for gallantry in our armed forces: the Victoria Cross.

    The elderly man was immediately given a seat of honour on the platform.

    Later that day, I had the privilege of meeting him – and the other Victoria and George Cross holders.

    I learned that they receive a small annual payment.

    It was £100 a year. A figure set 40 years ago, before many years of inflation. It has never changed.

    It seemed to me that, in this year of all years, it should be changed;

    So to show that this country has not forgotten the bravest of the brave: it will be changed.

    From August this year that payment will be uprated to its original value. It will increase from one hundred pounds a year to one thousand three hundred pounds a year.

    Northern Ireland

    In the last year, life has changed in Northern Ireland.

    I want to make those changes permanent. To see the next generation there growing up in prosperity – and peace.

    Patience, determination and fairness have carried us a long way.

    No one has shown these qualities more consistently than Paddy Mayhew and Michael Ancram – Northern Ireland has been well served by them.

    But we’re not there yet. There are still some who, in one breath, say they’ve given up violence for good – and in the next warn that it could return. It needn’t, and it won’t, unless they themselves pick up the gun.

    But if it is to last, it must be a just peace. One that is fair to all sides.

    And a peace that is constructed away from the shadow of the gun.

    However long it takes, building this peace in this part of our United Kingdom will continue to stand at the top of our priorities.

    Britain in the World

    Mr Chairman, Britain has big interests in the world.

    We are the only nation at the hub of the European Union, the Commonwealth, NATO and the United Nations. We are a nuclear power and a member of the Permanent Five of the Security Council.

    Our armed forces are today serving in more than forty countries including Bosnia.

    I sent troops there in 1992. Not everyone approved but I believe it was right.

    They went to the Balkans for two reasons – to protect men, women and children from starvation, rape and genocide and to prevent a full scale war at the crossroads of Europe.

    They have succeeded superbly – often at great risk to themselves. We can be proud of what they have achieved.

    It now seems possible we may soon have an uneasy peace. I hope so.

    But our role will not end there.

    Help will be needed to monitor the peace and we will play our part in this.

    International influence creates international obligations – and we will meet them.

    The Constitution

    Mr Chairman, we can only continue to be a big player abroad if we remain one United Kingdom at home.

    We recognise that Scotland and Wales are Nations in their own right.

    Of course, if they insist they could ultimately go their own way. We could not properly stop them.

    At the moment there is a clamour for constitutional change as many see the Westminster Parliament as a long way away.

    Some say we would be more popular if we bent to this clamour: if in Wales we set up Labour’s expensive talking shop, or in Scotland we said:

    “OK. You want your own tax raising Parliament you can have it. Don’t blame us when it all goes wrong.”

    But that is not our way.

    We are the Conservative and Unionist Party.

    I will not trade easy votes today for constitutional chaos tomorrow.

    We are sensitive to people’s concerns in Scotland. So we are looking at more ways of giving people more say over decisions affecting their day to day lives.

    But it’s my duty to warn of the effect of Labour’s plans for the constitution.

    Labour are proposing changes to our Constitution for their own party political advantage.

    In Scotland they are running scared of the SNP – so they have promised to impose a tax raising Parliament in their first year.

    In Wales they are not so worried about Plaid Cymru so Wales would just get an Assembly.

    And in England they can’t make up their minds so there they might – or might not – impose regional assemblies.

    There is no demand for these in England. Labour only promise them in an attempt which fails to justify the over-representation of Scottish Labour MPs at Westminster.

    It is a straightforward gerrymandering and we might as well say so.

    In Scotland, the new Parliament would raise income taxes.

    I hope Scotland realises what this means.

    People in Scotland, uniquely, will pay higher income tax on the same income than people in England or Wales or Northern Ireland. To start with, a tartan tax of an extra 6 pounds a week for the average family.

    Let me ask you a question: if you were a businessman, wanting to invest and create jobs, where would you invest: in Scotland, where you’ll have to pay higher wages to compensate for higher taxes, or somewhere else? You know the answer to that.

    The Tartan Tax will do two things: it will pay for more bureaucrats and more politicians and it will begin the decline of Scottish prosperity. Neither of them are in the interests of Scotland.

    All that is only the start. Conflict with the Westminster parliament would be inevitable.

    And then – the siren voices of the separatists will foment mischief and demand an independent Scotland cut adrift from the UK.

    These are not distant problems. These are Labour’s plans for the first year of a Labour government.

    Mr Chairman, opinion polls tell us the Scottish people are not fond of the Government at the moment. But I’m fond of then and they are being deceived by Labour.

    Labour’s plans are an immediate threat to Scotland and a threat to the United Kingdom.

    We will continue to look for ways to improve the Government of Scotland. That is our duty.

    But we will resist these damaging plans with all our strength. That too, is our duty, and the Conservative and Unionist Party will fulfil it.

    Law and Order

    Mr Chairman, as I go round the country I talk to people about crime. What they want is to feel safe – at home and on the street.

    In the past two and a half years, recorded crime has fallen.

    Well and good. Now we must make sure that the fear of crime starts to fall, too.

    People want crime reduced and criminals caught and convicted. And so do I.

    So today, let me add to what Michael Howard told you yesterday.

    We’re going to step up the fight against crime. To hit it harder and harder and harder.

    Organised crime is big business on an international scale. And – at its centre – is drugs.

    When I see the sheer evil of the drugs trade I am devoid of sympathy for the men around the world who run it.

    They live lives of comfort, often of outward respectability, while they pour poison into the veins of millions.

    Today, no parent, however safe and prosperous their home, can be entirely easy in their mind that their children won’t be offered drugs.

    And that is true in some of our market towns as well as our big cities.

    Two weeks ago, here in Blackpool, a 17 year-old died having taken drugs.

    That boy’s whole future was snuffed out for profit.

    Let me tell you what we shall do.

    First, there can be no question of lifting our border controls. We are an island and we need them. Those controls are vital. They are not negotiable. And they are staying.

    Secondly, our tradition has always been to have local police forces.

    But local forces alone aren’t equipped for this sort of crime.

    So for the first time ever, we’re discussing with the police the establishment of a national squad. This will have one mission: to take on organised crime in this country and break it.

    The police will lead on this. They will have the support of the new National Criminal Intelligence Service, working with Customs, MI6 and GCHQ.

    But all our available skills are not yet involved in this battle.

    For many years the Security Service has protected us against espionage and terrorism.

    But they can’t help the police because it is illegal for them to do so.

    I think that’s absurd. And in an age when our children are more likely to be killed by a drug dealer than by an enemy missile, I think it’s indefensible.

    So this autumn, we will change the law. It’s time to let the Security Service into the battle for the public and against organised crime.

    Day by day, we are making more use of modern science against the criminal.

    We are already using Closed Circuit Television in public places across the country.

    This has been hugely successful. More cameras mean less crime.

    So over the next three years we will add 10,000 more cameras in town centres, shopping malls and public places in every part of the country. They will improve security for the shopkeeper and safety for the shoppers.

    But the most effective eyes are the policeman’s eyes.

    I want to make every street safe.

    Since 1979, we have recruited an extra 16,000 policemen – 500 in the last year

    That’s helpful. But not enough.

    I want to send an unmistakeable message to every criminal that there are going to be still more police on the streets.

    So let us tell Chief Constables now so they can plan ahead.

    So, Chief Constables, begin to plan. Because in the overall arithmetic of this year’s public expenditure settlement we have found the resources over the next three years to put, not 500 but an extra 5,000 police officers on the beat.

    Mr Chairman, I said we intended to intensify the fight against crime – and I mean it.

    Peroration

    Mr Chairman, after four terms, why a fifth?

    Because in a shifting world only we will build a safe future for our people and heal the scars of the past.

    Because we are building a more secure economy as the enterprise centre of Europe.

    Because we are reforming public service to make it more accountable to the public who pay for it.

    Because we stand for choice and excellence in education, and in the midst of the biggest revolution since Rab Butler.

    Because we will retain the old rock solid guarantee of the health service that care will be free at the point of delivery, and where improvement is necessary it won’t be treated as a sacred cow.

    Because defence and security of the realm and the safety of our streets are paramount concerns of our Party.

    We Conservatives are:

    – for the individual, not the state

    – for choice, not direction

    – for ownership, not dependence

    – for liberty, not control.

    These are the enduring things, the cornerstones of our beliefs. We have worked for them, cared for them, fought for them.

    We are building the greatest success for this nation that we have known in our lifetime.

    We will not surrender them to a light-weight alternative.

    We carry the scars of battle, yes, but they’re honourable scars. We know no other Party can win the battles for Britain that lie ahead.

    So when you go home – refreshed and uplifted, I hope, by our Conference – remember these things, and ask the people on the doorstep:-

    – Would taxes be higher or lower under Labour?

    – Would inflation be higher or lower under Labour?

    – Would there be more or less choice under Labour?

    – Would our defence be more secure under Labour?

    You and I only have to ask the question to know the answer.

    We stand for a wise and kindly way of life that is rooted in our history.

    Our hopes from our country are not tired.

    Our ambitions are not dimmed.

    Our message to our fellow country men is clear. Millions have still to make up their minds.

    The choice is theirs. Our Nation’s Future is at stake – and we stand ready to serve.

  • Mr Major’s Speech at the Cambridgeshire Euro-Constituency Business Lunch – 29 September 1995

    Below is the text of Mr Major’s speech at the Cambridgeshire Euro-Constituency Business Lunch, held on Friday 29th September 1995.


    PRIME MINISTER:

    Europe is a Jekyll and Hyde for most people. There are some things about Europe that are undeniably frightening. But there are things that are undeniably right, such as the single market. A single market is immensely important. Half our trade goes to Europe. Half our trade these days actually goes to Europe. But we shouldn’t forget the half that doesn’t. The single market is a great achievement, a great bonus to British business and British commerce and a great opportunity to British prosperity. Though it isn’t yet a proper single market. It is still closed to telecommunications where by and large we lead Europe.

    We haven’t opened up the insurance and banking industries. The areas where we earn such huge invisibles and the City of London is still closed to much of Europe, that still needs to be overcome.

    We still need to do a great deal to turn the embryo single market that we have that broadly exists for manufacturers into a proper single market right across Europe. When that happens it will be an enormous bonus for overseas earnings and overall prosperity in the United Kingdom. Don’t ever underestimate it. Don’t underestimate either the importance where it is appropriate of Europe working together politically as well as economically. It is a typical criticism of the most federalist of our partners in Europe that all the United Kingdom has ever been interested in is a free and open market, but we are interested in a free and open market and they aren’t and we’re winning and they’re going to have to give way and we’ll get there.

    But that isn’t all we are interested in. We are interested in co-operation across Europe with our European partners. Co-operation on the basis of agreement and consensus. Not co-operation on the basis of a qualified majority vote against the interests of a nation state on matters of great importance.

    One of the issues that comes before the Intergovernmental Conference in a year or so’s time will be whether our common foreign policy should be determined by unanimity with every nation state freely agreeing to a common policy or whether it should give the qualified majority vote with every country being bound by the qualified majority vote. It sounds very communitaire to have a qualified majority vote on foreign policy but we have not agreed, and I will tell you why we will not agree. It is not because we are anti-European but I think the absolute and total absurdity that a common vote in Europe can change a British policy for Hong Kong is as stated in those terms, self-evident. In any event it is impracticable. Can by common vote in Europe mean that Europe can decide that British and French troops could go to Bosnia against perhaps the opposition of the British Prime Minister and the French President? You only have to think to see that it may be an idealistic aspiration and it is desirable for us to work together but the concept of that being imposed is absolutely and totally unworkable and unacceptable to us and I believe unacceptable to others in Europe. But so many of the other nation states in Europe used as they are to Britain fighting the good fight while they stand on the sidelines and say “Tut tut, how anti-community you are” while privately agreeing with us. It is very convenient to have Britain fighting on those issues and we will.

    That is one issue for the Intergovernmental Conference where the more federalist enthusiasts will argue that a common foreign policy – that is to say the present one – is not workable, whilst knowing in our hearts that there is not a snowball in hell’s chance that any British Conservative Prime Minister would agree to sacrifice the direct control of the British Cabinet and the British Parliament over foreign policy matters outside the United Kingdom. They might as well know that now, and I had the opportunity of mentioning it last weekend in Mallorca. But because we have these fears, do not get sucked into this feeling that everything that happens in Europe is against the British nation. It is not true.

    Let me make a couple of points not often made. Some of the nations in Europe 10 years ago, some of the nations inside the European Community are now becoming a good market for this country and embryo industrial nations such as Spain and Portugal. Fifteen years ago before they joined the Community they were governed by men in dark glasses and epaulettes. In fifteen years they have been brought into the Western democratic family of nations and prepared for industrial status in a democratised Western Europe. Don’t underestimate the importance of that to our security.

    Suppose we had, as we envisaged, extended the European Union some years ago further to the East across Europe beyond, for example, Italy. Imagine we had actually achieved the ambition of enlargement right across Europe. Suppose we had actually done it. Would Yugoslavia or Bosnia be such a mess today if it had been brought within a Western free trading area 15 or 20 years ago? Would we have hundreds of thousands of people brutally murdered? Would British, French, Greek, all sorts of other countries – though not the United States – have soldiers actually on the ground there in Yugoslavia if we had actually extended the concept of a free trade area and Western democracy further across Eastern Europe?

    The objective that will deliver the certainty of security in Europe not just for this generation but for our great-grandchildren and our great-great-grandchildren is to take the opportunity of developing the European Union much further across Europe. Wars this century started in Western Europe. Western Europe and Central Europe like Sarajevo and Bosnia. That’s where they started. Inconceivable for that to happen now in Europe if you can spread the inter-relationship of trade and political interest and influence further across the European Community through the Balkans, Slovakia, Bulgaria, Romania. Let us think that will happen in our lifetime. There is not a shred of doubt in my mind that it will. And there is not a shred of doubt in my mind that when it happens there are future generations that will be more secure in their lifetime that ever we could be in ours. That is the long-term point of our aim in British foreign policy to secure the safety and security of the British nation. Despite the disagreeable views of our press about Europe that is our goal.

    Let me talk about some of the issues. Why is the European Union that has helped safeguard democracy in Western Europe, that is helping to enhance the prosperity of security and democracy in Europe and has opened up the richest market, British business and commerce we have ever known, richer by far than the old Empire, why is it so unpopular? There are people whose ambitions are more visionary than most. I do not accept for one second that it would be sensible today or in 10 or 20 years time for us to have what many people feared we might have, a European Government taking most of the effective decisions involving Europe and taking them in Brussels and not taking them in Britain. For all its deficiencies and difficulties in Westminster where you can support the Government and your directly elected members and you can have direct contact with your MP. I do not believe we will ever accept such a transfer of fundamental authority but people fear and they see the changes that have been made and they say is there is a European government inevitable?

    I remember in the 1960s the feeling that existed at the time. Socialism was inevitable. I remember the argument ran very strongly until people actually saw what socialism was like and it became anything but inevitable. It has found itself out of government for 16 years already and I hope please God for a long time. So we are not going further down that road but it is because people fear that they poke suspiciously at everything that emerges from Europe and ignore as a matter of right all the things that are of interest and worth in it, that is essentially the competitiveness of Europe.

    How much more expensive it is to employ people in Europe. This is an argument I have repeated again and again. If you take the graph of unemployment across Europe for the last 25 years, it goes steadily down. For 25 years in good years and bad years, in boom and in dust, the underlying level of unemployment right across Europe and beyond is rising. There are 20 million European citizens unemployed, 20 million. In France, the country nearest and most comparable to us, there is just around 13 per cent unemployment and no sign of it decreasing. In the mighty German economy their unemployment is rising above us for the first time that most people can remember since the Marshall plan brought back prosperity to Germany. It is Britain that is bringing unemployment down in a changing world today. The labour skills of so many millions are no longer required in the way they were before. It is Britain that is providing them and the reason it is providing the new jobs is partly what Robert said earlier. It isn’t just the Social Chapter. Were we to sign the Social Chapter or were any future Government to sign it, all those social costs across Europe that at present lie outside the Social Chapter would rise. They would be brought into the Social Chapter and it would add something like 20-40 per cent to the average labour costs of more people in British industry.

    At the moment we are taking markets in Germany, taking markets in France, taking markets as we should for this is a competitive European Union right the way across Europe and beyond. Because we are more positive and efficient than the other nations. We want to stay that way and that means no Social Chapter. It means no other extra artificial burdens on employers because the burden on an employer means more people unemployed and out of work and that is the principal, single, economic problem of Western Europe.

    I despair sometimes when I sit around the European table and I hear my European partners talking about competition between France and Britain and Germany and Italy. Can they not understand that France and Germany and Britain and Italy must compete with the United States and Japan and the countries of the Pacific Rim? It is an argument we are determined that Europe accepts and wins. We understand it here and I have every intention of following policies here that will make Britain better, even if our European partners disagree with what we are doing and regard us as being very uncommunitaire for trying to keep our nation in work, while their coalition governments buy popularity for the majority of their people in work by giving them more benefits in work at the expense of the minority who are not in work who will be joined by others not in work and who will have less and less chance of getting work if they particularly go down that route.

    And then there is the single currency. I know of no issue that has so torn apart the sinews of British politics. In all our long history there are about two illustrations of the sort of deeply damaging divisions in our Party. First the corn laws of the 1840s and the second example is tariff reforms at the turn of the century.

    A single currency across the whole of the European Union will only work by changing the Union out of all recognition. So there is no question of a single currency across the whole of Europe. You may safely rule it out. All you would get is massive structural unemployment, social difficulty in for example Greece and a demand for huge transfers of money from the more wealthy Northern European nations straight to Greece to deal with that social difficulty and social unrest. Perhaps a small group of nations could go ahead with a single currency. They had ambition for 1997. I said I would not believe those ambitions would be realised. They had ambitions for 1999. I believe that when we get closer to 1999 they will increasingly see that is not safely achievable. In our discussions over the weekend at Mallorca, I believe I saw the dawnings of understanding of this. So perhaps 2001 or thereabouts might be possible? But only for a small minority.

    But the European Union must weigh the arguments very carefully indeed. It would be the biggest economic and political change in the structure of Europe that Europe has ever seen. Do not be in any doubt about the scale of change. If a small group of say six go ahead with a single currency, what does that do to the whole of the European Community? What does it do to the other 21, for we will be 27 nations within 15 years time? What will it do to the other 21 who are outsiders? How do you run a single market? How do you deal with structural funds? What happens if the countries outside the single currency devalue competitively against the single currency? Do they really believe that Greece and Portugal and the others are going to enter a new rigid, unmoving exchange [indistinct]. It cannot be done. Those are the problems. A huge number of problems. I can stretch them to the door and back again and then up to the far corner but have not remotely begun to be understood by the people who passionately care for the best of reasons about building a single Europe whose slogan is “If you have a single market you must have a single currency”. Economic codswallop. But not because we are anti-Europe.

    I think I can say in public and in private I have taken more pain because I am trying to take a middle road that I think is right for the long-term of this country on Europe than any other British politician in this country. So I think I have a right that almost nobody else has to lay out in crystal clear terms the problems that I actually see if they move down that road. It might one day be right. We would be mad to say it would never happen, one never knows what is going to happen in the future. We could not and should not rule it out for ever as some are urging us to do. But we should prod very cautiously at this beast with a very long stick, and we should not rush at it because of the impact it will have on every citizen in Europe.

    What would be the feeling in Scotland if we were to abolish the Scottish pound and replace it only with pound sterling? And yet that we are familiar with that example and situation. The Scottish pound is acceptable in Manchester as it is Dundee. I must say I look forward to the sight of French farmers as they finally realise the franc has gone for ever and I must say I find that extremely amusing. And what about the gentlemen of the Bundesbank when they realise that the mark is no more?

    We have got to discuss these things. They have been the undiscussable subjects of Europe. It has been politically correct not to say that the emperor just possibly may have no clothes. Or if he is not naked he is hardly dressed for a ball. And it was those matters that I was starting to put with delicacy and charm to my European colleagues in Mallorca. My arguments got more support there than many previously would have thought possible. For they know as I know. Is Belgium going to be in deficit and going for a single currency by the year 2000? It is no more enlightening than Old King Cole galloping out of his nursery rhyme to their rescue. And what about Italy? Or France?

    They will have to change. I passionately believe that because I wish Europe to succeed. But when I continue to raise these problems in Europe it will not be because I want Europe to fail. It will be because I want Europe to succeed.

  • Mr Major’s Joint Doorstep Interview with Yasser Arafat – 27 September 1995

    Below is the text of Mr Major’s joint doorstep interview with Yasser Arafat, held in London on Wednesday 27th September 1995.


    MR ARAFAT:

    First of all, I have to thank His Excellency for giving me this opportunity to come here and to offer His Excellency the whole brief of our very difficult and long discussion until we had achieved what has been achieved between us and our partners and cousins, the Israelis in Gaza and I offered to His Excellency a copy of this agreement and at the same time we can’t forget and I have to offer to His Excellency in my name and in the name of my people our thanks for what he has done to facilitate and push forward these negotiations by all means and in all directions so I have to say to your country from my heart “Thank you very much! Thank you very much!” and at the same time we had the opportunity to speak about the next text and the economic issue concerning the meeting at Barcelona and the meeting which took place in Amman for [indistinct] Conference and help to coordinate together and at the same we cannot forget that His Excellency was the first G7 leader who came to visit us in Gaza which for us meant a lot; it gave us a very big push in our very difficult circumstances so I have to repeat again and again in front of all of you: “Thank you! Thank you! Thank you!”.

    PRIME MINISTER:

    Mr. Chairman, thank you very much indeed! Perhaps I can say that the Chairman is a very welcome guest here at Downing Street today. I have been delighted to renew the discussions that we were able to have in Gaza earlier this year and also delighted to congratulate him most warmly on the remarkable agreement that he has reached with Prime Minister Rabin and Foreign Secretary Peres on the future of the Occupied Territories.

    We hope very much – and the Chairman is very confident – that it will now be possible for elections to go ahead perhaps in December, perhaps in January – the date is to be decided – but it clearly is a very remarkable step forward and I know the Chairman looks forward to signing this agreement in Washington tomorrow.

    I am very pleased indeed that the European Union will play a significant part in monitoring these elections and that the Crown Agents will also be playing a significant role in various matters. We have been able to provide a certain amount of assistance to the Chairman in the difficult circumstances he faced; that will continue. We will look to see where we are able to increase that as a very tangible indication of the please that we have at the progress that has been made towards what has been a very intransigent problem for so very many years.

    I know the Chairman has some very heavy negotiations still ahead of him next year but they have already determined the time-scale at which those talks will start and I think the prospects for the future look a good deal brighter than any that might have been imagined just a short while ago so for those reasons I have been very pleased to welcome the Chairman here today, very pleased to continue the dialogue that we had in Gaza and I look forward to that dialogue continuing both directly between the Chairman and myself and also between my Ministers and his representatives.

  • Mr Major’s Comments on the Majorca EU Summit – 23 September 1995

    Below is the text of Mr Major’s comments on the Majorca EU Summit, made in an interview on 23rd September 1995.


    QUESTION:

    [Mr Major was asked if his view on the future of the European Union went down well with other EU leaders].

    PRIME MINISTER:

    I think it went down extremely well. The point that I was making to colleagues was that the European Union is changing. Nothing is going to stop some of that change, it is growing. It was 6 members at one stage, it is now 15; within a decade or so it is going to be 27. That means there are going to be changes in the European Union itself, inevitably so.

    No-one supposes that every member of the European Union can move towards a single currency. If they do not, then we need to consider what that means with some members within a single currency if that happens and other members outside it.

    QUESTION:

    [Mr Major was asked if other EU countries understood Mr Major’s political constraints that a Conservative leader could not join the single currency].

    PRIME MINISTER:

    You make these assertions but those are matters that lie some years ahead. What we have been discussing here is how we actually proceed from the present circumstances and the point that I was making to my European partners is that there are many things that need examining before decisions should be taken and the examination of those matters simply hasn’t begun. What is to be the relationship between the inner core and the outer core?

  • Mr Major’s Press Conference Interview in Majorca – 23 September 1995

    Below is the text of Mr Major’s press conference in Majorca, held on Saturday 23rd September 1995.


    PRIME MINISTER:

    We came here this weekend without a set agenda, without pre-prepared positions, with the opportunity of having a look at some of the problems and opportunities in front of Europe over the next few years. And I have to say I think the meeting was all the better for not having been pre-prepared and not having large scripts in front of one on each and every subject that might be raised. I think we have had a much better, freer, franker exchange of views than I can recall on many occasions in the past. And by frank, I do not use that as a euphemism for rows. It has not been a bland meeting, it has been a very good meeting, but it has certainly been conducted in an excellent spirit on every side throughout the weekend. And I think that Felipe Gonzalez has had a very considerable success in calling this meeting and having so many things examined so thoroughly.

    Let me just say very briefly a few words about the three component parts of the meeting we have had over the last day or so. Yesterday we spent the majority of the time discussing the challenges and the opportunities that lie immediately ahead of the European Union. The old slogans and the old prescriptions won’t do any longer. We are now coming to a position where it is not sufficient just to hold out an aspiration of doing this or that at some stage in the future. We are now reaching the position where clear-cut decisions will need to be taken on a whole range of things – enlargement, a little later the single currency, the financial perspective again at the turn of the century and of course the matter we discussed this morning, defence architecture and all the other matters that will be discussed in the IGC. I think most of you know what I had to say yesterday so I won’t bother to repeat it on this occasion, though I am happy to take your questions on it in a few moments.

    Last evening over dinner we had a discussion that divided into three parts: firstly, a discussion on Russia, the internal position, relationship with the European Union, prospects for its future; secondly, a discussion on the Middle East, again its relationship with the European Union, prospects for the peace process in the Middle East, relationship with particularly the Palestinian authority, I think a number of people are very concerned about the difficulties that they face; and the third part of the discussion last evening was on Bosnia and the prospects for moving from the present position to a ceasefire right across Bosnia and then after a ceasefire a settlement, and then what would happen after the settlement.

    No-one should assume that if we get a ceasefire and then a settlement that that is going to be the end of Western Europe or United States involvement in the former Yugoslavia, self-evidently it will not and we spent some time discussing those matters last evening. Again, rather than elaborate on a very complex discussion I will answer any questions you may have.

    This morning I was asked to open a discussion on defence and security architecture in Europe, clearly an important part of the Intergovernmental Conference. Things have changed more dramatically, I think, than most people realise until they sit back and think about it over the last few years. Ten years ago, if we had met here, we would not have been discussing the future architecture of European defence, we would have been discussing the difficulties there were between East and West, SS20s pointing in one direction, Cruise missiles pointing in the other. So we have come a very great distance in the last 10 years or so, but we need to look at the problems that lie immediately ahead of us.

    The fall of the Iron Curtain creates the prospect of re-uniting Europe and of enlarging our institutions, but it has also created quite a substantial arch of instability, from the north-east down to the south-east, from the Baltics to the Balkans. And those were the areas that we were actually discussing this morning and how we adapt to that new environment, how we extend and develop both the security and the prosperity that we have, NATO enlargement being a key part of that discussion this morning.

    The over-arching objective, self-evidently, a Europe whole and free. Beneath that general aspiration a great many difficult and tricky decisions to be taken, some of them to be taken perhaps at the Intergovernmental Conference, others to be taken over the years ahead, bearing in mind always the sensitivities and the importance of Russia and also of course of the Ukraine. So those really are the areas of discussion we have been involved in over the past couple of days.

    I should say also, in the high-ways and by-ways of those discussions I have had three separate discussions with the Irish Prime Minister, John Bruton, on circumstances and prospects in Ireland. It was not an occasion for us to come here and make clear cut decisions about what was going to happen in the immediate future. We have been looking at the present situation, trying to discuss the best way in which we might proceed. We have determined some ways that we may examine a little more carefully in the future. We have decided to look more carefully at what we have called Strand Three of the process, that is the relationship between east and west, between Dublin and London. And by and large we had a pretty satisfactory series of exchanges. I should just say, because people tend to think that whenever the Taoiseach and I get together we do nothing but discuss the peace process in Northern Ireland. Of course that is of great importance to us and we spent a great deal of time discussing it, but we also discussed other European Union and bilateral matters as well.

     

    QUESTIONS AND ANSWERS

    QUESTION (Robin Oakley):

    President Chirac has indicated he wants to see the IGC concluded quickly, Chancellor Kohl has suggested it could well be delayed until the second half of 1997, taking it well beyond the next British general election. Which camp do you belong and do you fear that your veto has been weakened by the election timetable?

    PRIME MINISTER:

    No, I don’t think the British capacity to veto if we think it is necessary has been weakened, whatever the timetable may be. I am personally relaxed about the timetable. What concerns me is the substance of the discussions. We will have a clear cut British position on a range of matters and it matters not to me whether those matters are determined before the election or after the election, I am relaxed about that. But we have many complex matters to do. I don’t think this is going to be a very short and speedy affair, this Intergovernmental Conference, it has got a great deal to look at. It is not going to be earth shattering in its implications, I don’t believe. Many of the matters to be discussed are quite detailed, quite difficult, and they will probably take quite a while. But I don’t wish to put an artificial constraint, either a short term constraint or a constraint of delaying decisions to put it out a long way. I am relaxed. We will take the decisions when we are in a position to take them and the British position will not change, whether we are this side of the election or the other side of the election.

    QUESTION (Judith Dawson, Sky News):

    Going back to your meeting with the Taoiseach, are you confident that you will be able in the near future to announce the date of another summit?

    PRIME MINISTER:

    We did not discuss the date of another summit. I should say that the Taoiseach and I speak a good deal more regularly than most people realise and I would think our offices are probably in touch almost on a daily basis. I do not know when we will reassemble for a formal summit. But the lack of a formal summit will not stop the discussion and the developments going on, that will continue. As soon as we are in a position to have a summit, we will have one, but I do not wish to set a date for it today, and neither did we discuss a date at all over the weekend,

    QUESTION (George Brock, Times):

    You talked about the enlargement of both the European Union and NATO. From your discussions which of these two organisations would you prefer to see enlarged first and did you get any impression about which way it would happen?

    PRIME MINISTER:

    I don’t think anyone knows yet is the strictly accurate answer to that. I think both of those enlargements are going to proceed by stages. Anyone who thinks there is suddenly going to be a date upon which the European Union is going to dramatically expand, I think misjudges the complexities of expanding the European Union. The present intention is that discussions with the Visegrad countries, and possibly with one or two others, will begin 6 months after the conclusion of the intergovernmental Conference. So there is broadly a date, I guess, sometime by 1993 at the latest they will begin the enlargement discussions with them at that stage.

    As far as NATO is concerned, that is not of course just a matter for the European Union and we did not discuss the specific timetable for the enlargement of NATO in detail over the weekend. But again, NATO I think will enlarge incrementally. There is not suddenly going to be a date upon which there is a huge and dramatic enlargement of NATO, that is not how I believe it will work. I think it will enlarge at a relatively relaxed speed and it will begin to enlarge from the centre of Europe, moving eastwards.

    QUESTION:

    You said just now that the negotiations with the Visegrad countries would begin 6 months after, is that an agreement that was reached here?

    PRIME MINISTER:

    No, that has been the understanding from a couple of summits ago, it is not a novel piece of agreement, that has been the working assumption for some time.

    QUESTION (John Palmer, Guardian):

    I was interested to hear that because certainly the other governments say the only formal agreement on 6 months is Cyprus and Malta, with the timetable for the others left open, but you say there is a political consensus that that will be the case?

    PRIME MINISTER:

    That is certainly my understanding, yes. My understanding is that we are going to start looking at this 6 months after. How soon they get in, of course, there is no agreement upon how soon they get in. But there has been very considerable pressure from the Visegrads to continue discussing and I hope we will be able to do it six months afterwards, and I have not heard anyone veto that, my understanding is they will be able to do that.

    QUESTION:

    Could you elaborate on how far you pushed forward the thinking on European security architecture and do you now envisage the very real likelihood that at least some East Europeans may find themselves in the EU and in the WEU before they are in NATO, is that now because of Russian attitudes more likely to happen.

    And also, you are quite relaxed about the timetable for finishing the IGC and you say it will not make any difference to British policy, do you have the assurances of Mr Blair about that as well?

    PRIME MINISTER:

    I don’t need them, he won’t be here to discuss it. So I was referring to British Conservative government policy before the election and British Conservative government policy after the election, and I shall look forward to discussing it you on both occasions, both before and after the next general election. It is something we will both look forward to.

    On the earlier point. It is not possible to say whether they would join WEU or the European Union before NATO, it simply is not possible to say. I certainly would not rule out that in some circumstances there would be an enhanced relationship with NATO before the European Union, but that is not a view we have agreed and discussed. But it is certainly possible that it will fall out that way. It is at the moment too early frankly to say.

    QUESTION (BBC Wales):

    In your bilateral discussions with Mr Bruton did you talk about the public concerns in Ireland and in Britain about the dangers from nuclear power stations?

    PRIME MINISTER:

    The question of WILFA [phon] was briefly mentioned but it was not a substantive discussion. Beyond that we didn’t, no.

    QUESTION (Tony Bevins – The Observer):

    Could you give us your assessment of the risk of allowing the deadlock in Ireland to continue for much longer please and can you also tell us what areas you are looking at with Mr. Bruton for breaking this deadlock?

    PRIME MINISTER:

    On the latter point, I don’t think it would be wise to go into that in detail at the moment.

    On the earlier point of how risky is the deadlock, I think that too many people read too much into each setback and there is a great danger that whenever there is a setback like the postponement of the summit, up pops someone to say as surely as Christmas comes around every year that the process is in crisis and all sorts of dreadful things are about to happen. I have heard that before on a number of occasions and the reality that there is an undertow that all the politicians have to take account of whether they are British, Irish, Northern Irish, Sinn Fein, whoever it may be, and that is the huge undertow of public opinion in Ireland that wants this process to continue. No-one is readily going to be able to say they are going to stop this process without having to answer not just to history’s judgement which I think would be severe but also to the judgement of people today in Northern Ireland so when people jump up and say: “This is in crisis, the peace process is doomed!” and other nonsense of that sort, I think they are entering into their own negotiating position rather than stepping back and understanding the realities of what actually is going on at the present time.

    I remain optimistic about the process. It isn’t going to suddenly produce a conclusion. Anyone who thinks that we are suddenly going to wake up one morning, rub our eyes and have a final agreement to the problems of Northern Ireland misunderstands both the nature of our discussions and the nature of the problem. The solution will evolve. You may notice movements as you go along, others you won’t but the changing perception of what people demand to which the politicians have to respond is continuing all the time and anyone who goes to Northern Ireland today and compares the atmosphere in Northern Ireland, the way of life in Northern Ireland, the economic activity in Northern Ireland, the aspirations in Northern Ireland to twelve or eighteen months ago will find a wholly different situation and frankly, this old-style oratory doesn’t help and we really ought to be looking together to find a way through the present setback and I will continue to do that. I know John Bruton will, I think many of the Irish politicians will as well in the north and I hope and believe we will find a way through.

    QUESTION (Paul Meray – Reuters):

    Are you concerned about comments from Gerry Adams that he feels the process could slip back into violence if there is not progress fairly soon?

    PRIME MINISTER:

    Who is going to be violent? Mr. Adams says it can slip back into violence; whose violence will it be? It doesn’t have to slip back into violence if Mr Adams doesn’t want it to slip back into violence, that is a matter that is in Mr. Adams’ hands and I hope he will tell us that it isn’t going to slip back into violence. It isn’t all that long ago that Mr. Adams was saying to us: “Violence is ending! We are on our way to a settlement!”

    I don’t think this suggestion that you slip back to violence every time something doesn’t proceed at a rapid pace is remotely helpful. When Mr. Adams next says that, I suggest the people to whom he says it ask him: “Who is going to return to violence? Are you, Mr. Adams, going to return to violence? Are the IRA going to return to violence?” That is the question Mr. Adams needs to answer and on the basis of what Mr. Adams has been saying in the last year his answer to that question should be no and if it isn’t no, how does he explain all the things that he has been saying over the last twelve months?

    QUESTION (James Mates – ITN):

    Prime Minister, on a different subject can I ask you about Chris Patten’s remarks that Hong Kong British passport holders should be given the right to live in the UK. Do you agree with these remarks? Did he discuss them with you before he made them? Is it going to be Government policy?

    PRIME MINISTER:

    I haven’t seen the remarks and I will comment on the remarks when I have seen them and when I have discussed them with Chris. I have not seen them, I have been here, I don’t know when or how they were made or in what context so I am not in a position to discuss them at the moment.

    QUESTION (Sarah Holmes – The Independent):

    Prime Minister, has there been any progress at all in deciding what the name of the single currency should be?

    PRIME MINISTER:

    None whatever. It wasn’t mentioned.

    QUESTION (Sarah Holmes – The Independent):

    Can you tell us what your favoured thought is at the moment?

    PRIME MINISTER:

    No, I can’t. I haven’t given it any thought at all. The name of a single currency that may be some time ahead doesn’t frankly seem to be the most important issue. The most important issue is what are the implications of a single currency and I spend a lot of time thinking about that but I confess to you in the privacy of this meeting I haven’t spent a lot of time thinking about the name of the single currency yet and as I said, it simply wasn’t mentioned.

    QUESTION (Robin Oakley – BBC):

    Prime Minister, you have said that the European Union has got to accommodate itself to a world in which some members will be in a single currency and some will be out. What precise accommodations do you think are necessary?

    PRIME MINISTER:

    I am pointing out that the position of the European Union has changed and what I have said I have not said for the first time this weekend though it seems to have struck more of a chord this weekend. It is a message I have delivered elsewhere and to my colleagues in Europe on a number of occasions in the past.

    Let us look at what most people think is a possible future. Many people will say to you that a small core of the European Union may be able to go ahead with a single currency in 1999 or perhaps a little later. Let us take as a base for discussion the belief that that might happen, that half a dozen might go ahead.

    There are fifteen members now, half a dozen go ahead, nine don’t. Within ten years, there could be as many as twenty-seven members of the European Union. If six have gone ahead, what about the other twenty-one, what is the relationship between them going to be? What happens if one or other currency that is not part of the inner core devalues against the inner core? What do the inner core feel about that? They are very worried about that. Do they have a mechanism for dealing with that? They do not.

    What happens about the fact that the inner core, might integrate more speedily than elsewhere? Have they considered either the political or the economic implications of that? The answer is they haven’t considered that.

    What are going to be the circumstances in which countries not in the inner core might subsequently join the inner core? That, too, is undetermined.

    What happens to the direction of structural funds and the determination of structural funds? If the idea of a single currency is that it would help improve integration and growth, are those countries going to make a greater contribution to the structural funds of the less well-off nations in the European Union that wouldn’t be sharing in that extra spurt of growth?

    There are a whole range of other questions like that. I could spend twenty minutes listing for you the questions that have not yet been examined.

    We know the aspirations for a single currency, people have set out what they seem to think are the advantages of a single currency but the realities of what it means, how it would be bought out, what its market impact would be, what it would do both to the political and the economic structure of the European Union have not been fully examined and the whole basis of it thus far is that the European Union has tended to move forward broadly together – easy when you have six members, less easy frankly with fifteen, almost impossible when you get to nineteen and then twenty-seven – and this is why for some time we have been talking – it is a dreadful jargon phrase and I apologise for it – about “variable geometry”. The concept that fifteen or nineteen or twenty-seven countries would move together on a broad front at a united pace in the same way, at the same time, with the same objectives simply isn’t economically or politically credible.

    The European Union has to address all these questions and decide how it is going to deal with them and it was those questions and others that I put to my European partners in the discussion yesterday. It was not an attempt to cause a row, not an attempt to create a blockage in discussions; it was laying before them practical questions that will need to be examined in the near future and I am delighted to say that there was very general agreement that those matters did need to be examined before irrevocable decisions were taken.

    QUESTION (Robin Oakley):

    Could you ever envisage as Prime Minister leading Britain into a single currency in the period you would expect to be in that office?

    PRIME MINISTER:

    That begs several unknowns, Robin. Firstly, I think it is too early to say. I will look at the circumstances. As I have always said, I do not think a single currency is imminent. Some people believe it may happen for some in 1999 – well perhaps. I am not certain about that, I think there are very real difficulties that we British have been talking about for some time that have not yet been properly examined and I think the Monetary Committee discussions that have been taking place will begin to sharpen some of those difficulties so although there is an aspiration for 1999, I think at the moment that is what it is, an aspiration.

    QUESTION (John Palmer):

    Just a clarification on your last answer to Robin, Prime Minister. The Commission, as you know, are already looking at just the questions that you have raised with your colleagues today and their preliminary conclusions seem to embrace the strong view that non-participating countries, basically a minority of the fifteen, should remain committed to convergence irrespective of whether they are in and secondly, that exchange rate stability should be helped to be assured by a re-entry into a strengthened EMS for countries who choose not to participate in EMU.

    Do both of those strike you as practical answers to the questions you raised?

    PRIME MINISTER:

    Let me take the three points:

    Firstly, the convergence criteria. We invented the convergence criteria, it was British determination that got the convergence criteria into the Maastricht Treaty. The convergence criteria are first and foremost sensible and practical economic aims so of course people should continue to aim for the convergence criteria of low inflation and the other things that go with it. The answer to that is self-evidently yes.

    On the second point, frankly, I would be very surprised if it was a majority of the fifteen that were able to move ahead in the first tranche going to a single currency. I wouldn’t be surprised, I would be absolutely dumbfounded if that turned out to be the case.

    Thirdly, the monetary relationship between the inner core and the outer ring. One of the ideas that has been floated is that the inner core of course will be a single currency so within the inner core there is no exchange rate fluctuation, there is only the one currency. Outside, the proposition is that there should be a strengthened EMS in order to maintain the value of the external outer-ring currencies against the inner core. Well, a strengthened EMS didn’t turn out to be all that successful in the early 1990s! One of the problems that caused so-much currency turmoil then – and not only for the United Kingdom – was that the flexible Exchange Rate Mechanism that Britain entered became a more rigid Exchange Rate Mechanism as people moved towards the aim of a single currency – that was one of the problems.

    Is it going to be attractive to the countries in the outer ring to find that they don’t have what many of them would perceive to be the advantages of being in the inner core but they would have the discipline and responsibility of having to maintain the same exchange rate against the inner core without the advantages of being a member? I wonder how politically saleable that is going to be in all of the countries outside the inner core. It is, again, a worthy aspiration but when you get down to the reality of whether it is politically deliverable in all the countries of the outer core, then I begin to wonder about its practicality and these are the matters that needed to be examined.

    On the substantive point, the convergence criteria are self-evidently right, we invented them, we adhere to them. I have no doubt, if we choose to, we will be in an economic position to enter. I don’t have any doubt about that. I think we are entering into a future in which the inflationary psychology has changed and when we can look forward in the United Kingdom to a low-inflation future and a future of sustained growth and of course that will apply providing we follow sensible economic policies and the convergence criteria are precisely that.

    QUESTION:

    Do you think that might be practical [inaudible]?

    PRIME MINISTER:

    No, it will not.