Tag: European Union

  • PMQT – 24 November 1994

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


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. McKelvey: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Mr. McKelvey: In the course of his very busy day, will the Prime Minister show some concern for the plight of the disabled, the elderly and the poor in our society who suffer disproportionately because they cannot pay their fuel bills? Will he chuck the intended VAT increase into the dustbin where it belongs and replace it with an adequate cold climate allowance?

    The Prime Minister: As the hon. Gentleman may know, my hon. Friend the Minister for Social Security and Disabled People will be making a statement on the disabled after Question Time. On fuel and power generally, the VAT compensation package compensates not only poorer pensioners but others for VAT on fuel. The measures are worth about £2.5 billion over three years. From 1996-97 onwards, spending on benefits and pensions will have been increased permanently by £1.25 billion a year. That is an indication of the extent to which we are prepared to make and have made provision to help people on low incomes.

     

    Q2. Mr. Gill: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Mr. Gill: Does my right hon. Friend understand that I for one would rather resign the party Whip than vote for a Bill with which dozens of his right hon. and hon. Friends do not agree and for which there is no popular support? Will he recognise the absolute folly of imposing a highly unpopular tax for the purpose of paying the subscription to a highly unpopular and increasingly expensive club?

    The Prime Minister: Like me, my hon. Friend has a large rural constituency and I suspect that there are many net gainers in his constituency as a result of our membership of the European Union. On the European Communities (Finance) Bill, as my hon. Friend knows, there was very broad support in the governing party and in other parties for the deal that I reached at Edinburgh in 1992. It has a small additional cost for the United Kingdom–£75 million next year, rising to £250 million in 1999. It preserves the United Kingdom abatement, which is very important and which has saved us £16 billion since 1984. As a result of the agreement that I reached, the United Kingdom’s share of the cost falls proportionately by a substantial amount and becomes far less than that of many other member states. As a result of the agreement, we shall be below Germany, France, the Netherlands, Austria, Sweden and Norway in the league table of net contributors. It is an agreement that we can legitimately commend to the House and, on its merits, it merits support.

    Mr. Blair: Now that the Cabinet has confirmed that next Monday’s vote is indeed a vote of confidence, may I take it that the Prime Minister will be leading for and speaking for the Government in that debate?

    The Prime Minister: The vote of confidence relates not just to the vote on Monday but, as I said to the House some time ago, to the passage of the Bill in all its essentials. In those circumstances, the Cabinet considers it right that the Chancellor of the Exchequer should open.

    Mr. Blair: I find that extraordinary. Can the Prime Minister understand why people do not feel confident in his Government? Would the following be a fair summary of where he stands this week? The deputy chairman of his party is found to have written a memorandum which admits the total contempt that the British public has for his party. The vice-chairman of his party is forced to resign after remarks about our European partners which beggar belief in an adult politician. The chairman of the Prime Minister’s Back-Bench Committee is challenged because he is too loyal to the Prime Minister. The Chancellor of the Exchequer, meanwhile, talks of suicide pacts among Ministers while getting his sums wrong on the European budget. Meanwhile, the Prime Minister’s Back-Bench Members roll around the television studios in a state of anarchy. After this week, would not any objective, reasonable observer conclude that his party has become an ill- disciplined rabble incapable of governing this country?

    The Prime Minister: As the right hon. Gentleman managed to muddle most of his facts as between deputy chairman and vice-chairman, he is certainly wrong on almost every statement that he uttered. If he really wants to know about divisions and rabbles, he might well look at the divisions in his own party, not least below the Gangway. He might well look at divisions between himself and the deputy leader of the Labour party. He might well look at the divisions in his own position on Europe. It was the right hon. Gentleman who said some years ago– [Interruption.] I know that the Opposition do not like it, but perhaps they should hear it. It was the right hon. Gentleman who said:

    “We’ll negotiate a withdrawal from the EEC.”

    It was the right hon. Gentleman who said more recently:

    “Well, I wasn’t actually opposed to membership of the European Community.”

    Just a few days ago, it was the right hon. Gentleman who said: “Under my leadership, I will never allow this country to be isolated and left behind in Europe.”

    The only thing that moves that fast is a rabbit heading for its burrow.

    Mr. Dykes: Does my right hon. Friend the Prime Minister also agree that, apart from the comprehensive answer that he gave previously, the essential reality for Monday is that the glib repudiation of a solemn treaty, an international agreement and a modest proposal for European Union financing increases would be almost as bad as a shameful attack on our closest foreign allies, which we have heard from other quarters in the past few days?

    The Prime Minister: My hon. Friend touches on an important point that was missed by the Leader of the Opposition. The Government are standing by an agreement that we reached in 1992 with strong support in the House at the time and that we reached with our European partners. The Bill before the House implements an international agreement that was negotiated with full Cabinet backing, accepted by the Cabinet and widely endorsed by the House. It is for that reason that it is inescapably a matter of confidence that the Government should secure the passage of that legislation.

    Mr. Ashdown: Whatever the Prime Minister’s protestations, does he not realise that it is the view of most people in this country that his Government and their kamikaze Cabinet have now descended into farce and civil war? If, on Monday, they were forced to go, the whole country would cheer and a start could be made on putting our nation’s problems right.

    The Prime Minister: I sometimes think that the right hon. Gentleman spends all the time between Tuesday and Thursday and between Thursday and Tuesday practising his next sound bite. He certainly gives that impression week after week. I remind him that it is he and his party who claim to be strong Europeans, he and his party who time and again joined in procedural votes to try to wreck the Maastricht treaty, and he and his party who will find an excuse next Monday to vote against the Government. Their commitment to Europe is skin deep when it comes to essentials.

    Mr. Ottaway: Is my right hon. Friend aware that the Cairo conference on population and development in September was a landmark in dealing with world population growth in that it produced a global action plan agreed by almost every country? Does he agree, in particular, that the best way to implement such a plan would be for other countries to follow the Government’s example and announce a similar huge increase in funding of 60 per cent. such as he announced in July?

    The Prime Minister: I agree with my hon. Friend. It is a very serious international problem and I think that the international conference which took place was an extremely useful and worthwhile event. As my hon. Friend indicated, we made a substantial contribution–I think, from memory, that the commitment was around £100 million over the next two or three years–and we played a very positive part in that conference. It is a matter of importance and one to which we shall give continuing interest in the future.

     

    Q3. Mr. Robert Ainsworth: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Mr. Ainsworth: Following today’s astonishing revelations of a massive security breach by an employee on a short-term contract at British Telecom, will the Prime Minister be ordering an inquiry? If so, will it cover the huge increase in agency and casual labour since privatisation?

    The Prime Minister: I have seen the report in The Independent this morning to which I assume that the hon. Gentleman is referring. I understand from inquiries made this morning that BT has carried out an investigation and tells us that it is satisfied that there has been no hacking of the system, nor any evidence that confidential information referred to in the article has ever been available on Internet.

    Dame Elaine Kellett-Bowman: Has my right hon. Friend heard of the presumptuous attempt by the town of Preston to usurp the place of the city of Lancaster as the county town of Lancashire? Will he put every possible obstacle in the way of that outrageous presumption?

    The Prime Minister: I see that my hon. Friend has the cross-party support of the hon. Member for Blackburn (Mr. Straw). As a southerner unfamiliar with this particular matter, I think that it would be unwise for me to commit myself, but, naturally, as my hon. Friend raises the matter, I shall look at it very carefully.

     

    Q4. Mr. Hall: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Mr. Hall: Is the Prime Minister aware that the former Prime Minister, the right hon. Member for Old Bexley and Sidcup (Mr. Heath), yesterday told the House that he was disgusted with the Maples proposals for inter-party warfare, yobbos and trying to trick people into positions? He said that they were completely unjustifiable and called on the Prime Minister to repudiate them immediately. Will the Prime Minister do that this afternoon–yes or no?

    The Prime Minister: If the hon. Gentleman is concerned that any of my hon. Friends would be nasty to the right hon. Gentleman, I give him my assurance that my hon. Friends will be very gentle with him.

    Mr. Cormack: Does my right hon. Friend agree that this country’s international reputation for probity is built on the proposition that contracts are honoured and commitments kept?

    The Prime Minister: I agree precisely with that proposition. It is upon that proposition that the Cabinet is determined to honour the agreement that I reached on behalf of the British Government two years ago with our European partners in Edinburgh.

     

    Q5. Mr. Gapes: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Mr. Gapes: Is the Prime Minister aware of the acute financial crisis facing Redbridge and Waltham Forest health authority, which is asking Redbridge health care trust to do 10 per cent. more work for about £2.5 million less next year? Will he express his clear and unambiguous commitment to do everything possible to keep King George’s hospital open and stop any closure of its accident and emergency department?

    The Prime Minister: I will certainly study the position that exists within that health district and ask my right hon. Friend the Secretary of State for Health to examine it. I do not have the facts in front of me and I do not propose to commit myself until I have looked at them.

    Sir Wyn Roberts: As the Leader of the Opposition welcomed the recovery, growth and low inflation in the economy, is there any reason why we should pay any attention whatever to the shadow Chancellor, who is intent on sabotaging those achievements?

    The Prime Minister: I would think probably no reason at all. Clearly, the right hon. Gentleman does not do so–and if he does not, I see no reason why we should.

     

    Q6. Dr. Lynne Jones: To ask the Prime Minister if he will list his official engagements for Thursday 24 November.

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

    Dr. Jones: Does the Prime Minister recall that, in an answer to the hon. Member for Hemsworth (Mr. Enright), he told the House “No Government have ever been more open than this one and there is no suspicion of sleaze.”–[ Official Report , 26 April 1994; Vol. 242, c. 104.]

    Is that still his view, or does he at last realise that he set the standard at the last general election when he accepted money from foreign-based business men in return for continuing tax concessions?

    Hon. Members: What about Maxwell?

    The Prime Minister: My hon. Friends remind me of one person who formerly funded the Labour party. The hon. Lady ought to contemplate that. Perhaps the Labour party should return the money to the Maxwell pensioners which they donated to it some time ago.

  • Mr Major’s Joint Press Conference in Chartres – 18 November 1994

    Below is the text of Mr Major’s joint press conference with President Mitterrand, held in Chartres on Friday 18th November 1994.


    PRESIDENT MITTERRAND:

    I will start by giving you some elements of our conclusions and the Prime Minister of the United Kingdom will then add to these remarks.

    This was the 17th Franco-British summit. This Chartres summit was mainly geared to a certain number of European questions which are important, some of the really important international problems, on the development of the war in Bosnia, for example, and also matters of defence. That is not a comprehensive list, there is more, but I am telling you what the main themes were.

    On the European matters, we ran through the main issues of the day, the preparation of the Essen European Council meeting, the European summit, also the orientations of the up-coming French Presidency. Of course work has started, in fact in depth thinking has been started too and representatives of the Prime Minister and myself have discussed these matters at length and therefore we are completely ready to start the next phase on 1 January next.

    And we think it is essential to inform our British partners of this and of course our British colleague added his own remarks. The preparation also of the intergovernmental conference in 1996, this is a very important date and the preparation for this has been somewhat delayed by a series of political events in the domestic area. And lastly, but I repeat this is not an exhaustive list, we also talked about the future enlargements of the Union.

    I think we agreed in considering with the Prime Minister that the urgent thing was to consolidate what we had already achieved. That does not mean that we refuse to examine the way documents should be changed, that text should be changed and practices and customers too, each time that is necessary. But it would perhaps be a mistake to try to move yet even further forward without having consolidated what we had already achieved. That being said, we remain entirely open to suggestions from our partners.

    On international affairs, as I said before, the discussion was mainly-on Bosnia. I imagine that you have questions on that, therefore I will keep my explanations for later on.

    On defence, first we have clarified a decision which I think is very important and significant for the future, on the setting up of a Franco-British Euro-air Group. The purpose of the exercise is to train, to prepare in other words, our Air Forces to work together, to get them used to this, and in particular with regard to humanitarian operations and peace-keeping and peace-making operations. For example, there was a statement made in [indistinct] by the Western European Union in which these points were mentioned. And I think this project, because we want to move forward in pragmatic terms, a Europe .of defence, this group will be established in the UK at High Wycombe. The first Commander of the group will be a French Air Force General.

    And then another subject was the prevention and settlement of conflicts in Africa. But I have noticed, and I was very happy to note, Prime Minister, if I may say so, I was delighted to see that we have to some extent emerged from the situation that we were in in 1904, it is a bit late in the day but we have made progress. So we decided anyway to pursue cooperation between the two countries and with particular regard to preventive diplomacy. The idea is to give logistic and other support to the African countries which in the framework of action carried out in particular by the Organisation of African Unity (OAU), on the basis of a mandate from the United Nations, or to the extent the OAU would ask for this, we have just emerged ourselves from a meeting with our African partners and I am delighted to see the cooperation among us, among these two countries which have great experience in Africa, that such cooperation is moving forward, and I particularly appreciate the contribution of the UK in this respect.

    Next, cooperation as far as armaments are concerned, well you are already informed of this, the tripartite frigate with Italy, the UK, France, the so-called new generation, also known as the Horizon Project. That is the vocabulary, our British friends are always at the front of the pack, but these are important things. So this is very satisfactory, I think more forward, than the military for the future FLA, the future large aircraft. Here obviously transport capacity has to be developed and on a European basis. This aircraft is the object of the project and several other countries are already associated, including Germany, Italy and Spain.

    It has been agreed to set up a study group, trusted with the task of looking specifically at the possible participation of the UK in this project. But I want to emphasise in speaking to our British friends, and in their presence, the precise importance that we attach to this project.

    In the nuclear field we have reasserted the intention of both sides to strengthen cooperation between our two countries. I made a remark earlier which is not a restrictive remark, because I personally very much intend to see the development of more and more cooperation, which will be the very foundation of European security, because can you imagine European security without the support of nuclear forces, that would be illusory. Nuclear deterrence remains an essential element of our defence policies and the more our defence policies are one single defence policy the better that would be.

    In economic and financial affairs I just mention in passing, the most striking feature was confirmation of the economic recovery under way. It appeared necessary to emphasise the implementation of the measures decided in Naples on the debt of the poorest countries, 67 percent was the figure mentioned.

    Also, because curiously there is some talk of this, the question of the ratification of the GATT agreement, a discussion of this. It is not that we have become less enthusiastic spectators of all this, but what has been achieved has been achieved and has been done. And our officials have spent enough time and trouble to get these agreements through, it would really be rather a pity to have to come back on all this, I think it is in everyone’s interest.

    So those are the few remarks I wanted to say at the outset before asking Mr Major and Mr Balladur if they would like to add a few words which would add to my brief summary of what we have done.

    PRIME MINISTER:

    I think it will be apparent from what the President of the Republic has said that we have had an extremely productive summit, not just in the discussions that I have been privileged to have with the President and Prime Minister, but those which my colleagues have had with their counterparts in a range of different areas.

    Can I firstly say how grateful I am to the President, to the Prime Minister and to the people of Chartres for their hospitality on this occasion, it has been a delight to be here and also extremely useful.

    Let me pick up some of the points that the President has made. What has been apparent from our discussions today is that the interests of Britain and France coincide in a very wide range of areas, we have reached specific agreements today on a number of matters. Let me add a point to some of those that the President has mentioned.

    We have agreed today on the formation of a Franco-British Euro-Air Group. This is a natural development I think from our long-standing defence cooperation. The group’s headquarters will be at High Wycombe in England. The first Commander of the Group will be a French General and thereafter command of the group will alternate between British and French officers.

    Britain and France are the only two European members of NATO with the capability significantly to project military power overseas. And the new group will allow us to coordinate our Air Forces so that we can set up more speedily combined operations in peace-keeping or in humanitarian missions.

    We have also agreed to work together in another area where we have a self-evident joint interest, and that is of course in peace-keeping in Africa. In September in the South African Parliament I announced an initiative to help African countries develop further their peace-keeping capabilities. The French government, quite separately, had put forward very similar ideas. What we have agreed today is that our approaches are compatible and that we will now take them forward together with our African partners.

    We discussed also military matters, as the President has said. Specifically on military transport aircraft, I explained to the President and to the Prime Minister that British requirements fell into two quite different parts. The first was that part of our present Hercules fleet is very near the end of its operational life. We shall need to decide very soon whether to refurbish these aircraft or to buy a number of Hercules 0130J replacements to meet our immediate needs. But secondly, and as a quite separate matter, we shall need to consider our longer term requirement for similar aircraft and we are interested in exploring whether participation in the future large aircraft project would be a possible way of meeting this longer term requirement. And so to help in this I have today agreed with our French hosts that a group of senior experts from both our governments should be tasked to study possible British participation in the future large aircraft, it is without commitment but I think it is entirely right that we should examine it carefully to see the extent to which our military and our economic needs might coincide, and the extent to which, provided they do and a satisfactory agreement can be reached, that we may proceed together in this particular project.

    In the fairly wide ranging discussions we had on Europe I underlined one very high priority for Britain and was delighted to find that this was fully shared by the French government. I refer to the absolute necessity to crack down on fraud, waste and mis-management in the European Union that has been set out so clearly in the Court of Auditors Report over recent-days. Fraud in the European Union is not a fresh problem, it is not a concern that has just suddenly arisen for us, we had examined it before, we have looked at it before. The Maastricht Treaty gave the Court of Auditors new powers to uncover fraud and we intend to back the Commission fully, and the Court of Auditors fully, in using those powers. There is no doubt, following the Court of Auditors report, that there is a job to be done. First, we would like to see the Commission step up its flying inspection squads to detect fraud and fraudsters. That is an area where there should be no qualms whatsoever in any quarter about backing the Commission in the work that it has to do. And secondly, as I set out in my speech in Leiden some months ago, the European Parliament as a whole needs to act on fraud and I propose to pursue this with the President of the European Parliament. And third, we will insist at Essen that the Council acts on the Court’s special reports on particular areas of the budget and we wish to see member states cooperating in taking tougher action against criminal fraud, and I believe that is very much in the interests of taxpayers right across the European Union and particularly of course in Germany, France and Britain, the three largest net contributors to the European Union budget. And fourthly on this issue, we are in fact already in touch with the German Presidency to see how we can use the Essen European Council to add yet further momentum to the war against fraud, and I was delighted to discover today that our French colleagues not only agree with us on the need to take action like this, but also will regard this as a matter of importance to them in the French Presidency that begins on 1 January next year.

    We discussed, as the President said, a wide range of other domestic and international matters, the President mentioned Bosnia, there were many others he could have mentioned as well. I think rather than deal with all those at this stage, I would be happy to answer any questions you may have in a few moments time. So I will end my comments at this point.

    PRESIDENT MITTERRAND:

    I asked Mr Balladur, the French Prime Minister, whether he would have anything to add, he said not for the time being. We will therefore proceed to the traditional exchange of questions and answers. But I would like to say, not simply for reasons of courtesy, how grateful I am to the British delegation and to Mr Major, the British Prime Minister, for the way they have approached and undertaken the Franco-British talks. I have found that the climate that has prevailed today has been of the best that I have seen in the past few years and I wish to thank them for that. I wish also to thank Chartres, Mr George Le Moin [phon] its Mayor, for the welcome they have extended to us which has placed the summit in a context which, despite meteorological difficulties, has been particularly pleasant, and maybe accept our expression of gratitude.

     

    QUESTIONS AND ANSWERS

    QUESTION:

    Mr. President, with reference to Bosnia, following the American withdrawal of the embargo monitoring unit, it would appear that the Americans are considering therefore the possibility of lifting the embargo on weapons to Bosnia. Do you subscribe to this or are you thinking about whether French troops should continue to be part of UNPROFOR?

    PRESIDENT MITTERRAND:

    You may be right, you may be going a bit faster than events but if it is true that the Americans have announced that they wanted to change their line on Bosnia, in other words they are moving towards lifting the embargo and in that direction, it is by no means certain that they will actually go as far as providing weapons. According to some information we see in the press that would appear to be the case but that being said it is by no means certain, it may not happen at all.

    It is very difficult to talk with you about information which we actually don’t have and at present there is a curious ambiguity between the reality of what the American forces are doing there as American forces and the same American forces as members of NATO and therefore at the disposal of the UN. This sort of dual use of troops, will this last or not? I don’t know.

    PRIME MINISTER JOHN MAJOR:

    As the President said, part of the question is based on information we don’t at the moment have. It is certainly the case that we do not favour lifting the arms embargo, that is undoubtedly the case, we think lift is a last resort: We are determined to ensure that it does not come to the situation where the embargo is lifted.

    We are in Bosnia as indeed France and other colleagues are in Bosnia to do a particular job; we are there to escort humanitarian aid and UK troops will stay there while they can do a useful job without unacceptable risk.

    What concerns us about lifting the embargo is that the logic of lift is that there will be more war; the consequence of that is that there will be more suffering. It is our judgement that a settlement will only come from negotiation. What concerns us is that lifting the embargo would unravel the approach that we have followed so we hope that it will not come to that.

    PRESIDENT MITTERRAND:

    I can but confirm what has just been said. I didn’t go into an explanation myself but we already had occasion to talk about this; with the French press, France is very much against – and the Foreign Minister has been explicit on this – the lifting of the embargo and it is difficult to announce conclusions and decisions that we don’t yet know about but it is certain that the problem of the presence of French forces – and we want them to stay with the international forces – will arise inevitably if there is a lifting of the embargo and maybe we will have to talk about this at a later stage.

    QUESTION:

    A question to you, President, and the British Prime Minister as well:

    Ultimately, given the information you have today, have you not reached the conclusion that you will not be able to withstand the American decision for much longer and will you take on the responsibility of keeping troops there, be they French or British, in situ especially if they are likely to come under fire from both sides?

    PRESIDENT MITTERRAND:

    I think I had already answered that question before you asked it. Will we be able to hang on for long? I don’t know. Our position is that we are certainly not going to leave our soldiers there caught between the two fires which you were mentioning.

    There is a question of principle; will that situation arise? We don’t know. Secondly, if it does arise, obviously the logistic and technical implications are quite considerable but now we are talking about the political aspect of the military options. It is clear that it doesn’t seem to us to be compatible to be on the one hand encouraging the people who are making war to make more intense war and then at the same time to leave our Loops in between them as sort of buffers which would be a purely fictitious situation. This in fact simply adds to what John Major said really on our behalf in a way and it is a difficult embroglio and obviously the answer is negotiation and we haven’t finished our negotiation yet.

    QUESTION (Nick Gowing, Channel 4 News)

    Could I ask you both what pressure you now plan to put on both the American Administration and the new American Congress to ensure your worst fears do not come to pass, that you are forced into this position of deciding whether to keep your troops in Bosnia or not?

    PRIME MINISTER JOHN MAJOR:

    This isn’t a new problem or a new position. The position the British Government have taken over the lifting of the arms embargo is not a novel one, it has been known in Washington and known to Congress for a long time. That is the position and we will continue to sustain that position for the reasons I set out a few moments ago.

    We sent troops to Bosnia to do a particular job. It is very easy to look at the difficulties that still exist in Bosnia and forget what those difficulties might well have been if British troops, French troops and other troops had not been in Bosnia over the past two-and-a-half to three years. It is difficult to estimate what might have happened to the fighting, difficult to estimate how it might have spread, difficult to estimate how many people alive today might not have been alive but for the activities of the UN protection forces as a whole so clearly we sent them to do a particular job. I wish to see them complete that job.

    Self-evidently, we must look at the safety of the troops and their capacity to do their job in future. The right way for us to address that is for us to continue to argue what we believe is the rational case for proceeding with negotiations to try and find a settlement and for not lifting either collectively or unilaterally the arms embargo and we will continue to argue that case.

    PRESIDENT MITTERRAND:

    We are awaiting confirmation. There is no divergence of interpretation between the British and the French but there is a certain amount of information that we haven’t really got yet that we need in greater depth. It is clear that it is easier for the Americans to withdraw their troops from Bosnia than us because they haven’t got any there anyway!

    QUESTION (Robin Oakley, BBC):

    Prime Minister, given the uncertainties surrounding America’s future role in NATO and given the announcement today of the Anglo-French initiative, do you believe the time has come for urgent action in developing a European defence identity as something that should happen perhaps before the 1996 IGC, what form do you think it might take and do you have fewer reservations about a European defence dimension that you have about a European social dimension?

    PRIME MINISTER JOHN MAJOR:

    Let me pick up that point in some detail – uncertainties about the American position in NATO. I don’t believe there are any uncertainties about the American position in NATO. NATO remains the bedrock of our defence in the West and I think it is going to remain the bedrock of our defence in the West. Only within the last year or so President Clinton has re-confirmed his determination to leave 100,000 American troops on the mainland of Europe for the defence of Europe so I think nobody in looking at other areas of collaboration should doubt the primacy of the NATO Alliance, the permanence of the NATO Alliance or the importance of the NATO Alliance; it is absolutely fundamental to our future defence in the West and I do not believe anything can shake that.

    What does not follow from that is that there is not separately and in alliance with NATO – of which Britain, France and other western European countries are members – a capacity for further collaboration between western European NATO allies and that is what we have been doing in Bosnia of course, Britain and France in particular. It is what we anticipate we may well be called upon to do in the future in areas of peacekeeping and humanitarian aid; it is what underlies the decision today to establish the joint structure that we proposed.

    But defence is not a zero sum game. Because Britain and France are able to make greater cooperation wholly desirable – improved cooperation in my judgement – that does not in any sense detract from either our individual commitment to NATO or our joint commitment to NATO. It isn’t zero sum – it is a better use of our collective capability to defend ourselves within NATO and in some aspects as NATO partners bilaterally.

    QUESTION (Paul Taylor, Reuters):

    Mr, President and Mr. Prime Minister, how close are you would you say on the future of European institutions as they will come to be discussed at the 1996 intergovernmental conference and do you believe that 1996 should be a new re-founding act for Europe or a rather more modest incremental development of what was agreed at Maastricht?

    PRESIDENT MITTERRAND:

    I think that there would not be much point in repeating what has been said in Maastricht; the important thing is to do what we are supposed to do. If you look at the progress made in reality concerning the decisions at Maastricht I don’t think that we need an order of priority there but I think it is more important to implement what has been decided than to think up yet new ideas. Of course, any interesting suggestion will be looked at with interest by France but I think the priority is to first of all implement what we have already decided.

    PRIME MINISTER JOHN MAJOR:

    I entirely agree with that – the President made that point earlier in his remarks – that one needs to consolidate and deal with what was decided at Maastricht. I know there are some people who believe that there is – if I may borrow a Chinese phrase – likely to be a great leap forward in 1996. I don’t believe there is going to be a great leap forward in 1996 and I don’t know of any European head of government who does.

    PRESIDENT MITTERRAND:

    Mind you, it would be quite a leap forward to put into practice what one has decided to do! [Laughter]

    QUESTION:

    President and Prime Minister, I would like to come back for a moment to Bosnia. Do you not think that your public opinion will be surprised that President Clinton should have taken such a decision without informing you in some way or another insofar as you are often in touch with him, he is a privileged ally of yours, and the US is part of the Contact Group or do you explain this decision only in terms of American domestic policy?

    PRESIDENT MITTERRAND:

    You know as much as I do about that, probably more on the problems of internal political affairs in the United States. It is clear that Mr. Clinton is faced with a new situation; he has a Congress that has been very clear about its intentions on Bosnia so I think the two issues can’t be separated from each other. It is difficult to say that because for months, even years, this debate has been going on and I think no-one was presumably taken by surprise in learning of the decisions taken in Washington but it is true that things have taken on a sort of new course and it seems to us to be a rather sort of brutal, sudden change of course, it is perhaps even a dangerous turning. It hasn’t been decided collectively, that is true, but that is the way things are and I am trying to be as clear in my answers as you were in your question.

    PRIME MINISTER JOHN MAJOR:

    I think much of the question spreads beyond “Sharpguard” and perhaps looks at other things that haven’t been decided so to that extent the question is based upon a premise that at the moment is not reality and in my experience the relationship and the consultation between the United States and her western European partners has been very good, is very good and I have no doubt is going to remain very good in future and I think, frankly, people have made rather too much of the particular issue of “Sharpguard”

    The work that “Sharpguard” was doing continues, other Western European Union navies are participating, there are eleven countries currently involved. The decision made by the United States has been overdramatised I think in some areas. It won’t significantly the operation and there were only two United States ships involved. I think to draw, as perhaps the questioner had in mind, rather wider conclusions from that is to draw conclusions that are not justified by the reality of what has happened.

    QUESTION (Richard Dowden, The Independent):

    Are the announcements made today about defence cooperation simple bilateral cooperation in interesting important areas but of no more significance than that or could they be the foundations and building blocks of a future possible European defence force?

    PRIME MINISTER JOHN MAJOR:

    If I may pick up the point that underlies that question, Richard, it would be a suggestion that suddenly, uniquely and extraordinarily, Britain and France had decided to cooperate on some defence matters. I have to say to everyone present that that isn’t the case. The cooperation on defence matters between Britain and France is very substantial and has been very substantial for a very long time. We perhaps have more joint ventures and collaboration with France on defence matters than anyone else; that has been the case for a very long period. These are important developments but to draw the conclusion that these are developments of a wholly different nature from what we have seen before is I think going too far.

    We are looking as far as the future large aircraft is concerned at the possibility, all other things being equal, of a venture in which we will collaborate; we have done that before, there are other ventures going on at the moment that the President mentioned and that is very good. Certainly the establishment of the air group is a new but entirely rational development building on the cooperation that we have had before so rather than regarding it as some startling innovation I regard it as a further example of a growing level of defence cooperation that we have been privileged to enjoy with France for a long time and. I hope it will continue to grow.

    PRESIDENT MITTERRAND:

    And in that respect I pointed that many of these projects have already been agreed to by a number of European countries so this isn’t always a specifically Franco-British approach in all fields. That being said, there is something specifically Franco-British in expressing the hope that it will serve European defence.

    QUESTION:

    A question, Mr. President, that may be of interest to your prime ministerial guest but to do with domestic policy. It has been suggested that a new referendum be held before we move on to economic and monetary union in 1997. I would like to hear your views on the matter.

    PRESIDENT MITTERRAND:

    Do you only mean mine?

    SAME LADY:

    And the views of the British Prime Minister which might be interesting as well but not the French Prime Minister. [Laughter].

    PRIME MINISTER JOHN MAJOR:

    It would be an impertinence to comment on French internal politics – not now nor in the future – but it was a very good try.

    PRESIDENT MITTERRAND:

    I think as far as referendums go, one mustn’t overdo these things. On that in particular, the decision has been taken by the French people themselves so I don’t really think that the matter is open for discussion quite honestly and as this concerns the very distant future anyway and I will certainly refrain from getting too much involved in that particular debate.

  • Mr Major’s Speech during the 1994 Queen’s Speech Debate – 16 November 1994

    Below is the text of Mr Major’s speech during the 1994 Queen’s Speech Debate on 16th November 1994.


    Mr. Tony Blair (Sedgefield): As Members may know, my right hon. Friend the Opposition Chief Whip was taken ill this morning, and before beginning my speech I am pleased to tell the House that his condition is described by the hospital as stable, and not a cause for alarm. I know that we all wish him and Anne well, and we also wish him a speedy return.

    It is the custom of the House that the Leader of the Opposition has the pleasant duty of congratulating the mover and seconder of the Loyal Address, and I am delighted to do so. The hon. Member for Dartford (Mr. Dunn) gave a somewhat unusually combative proposal of the Loyal Address, and at some points I was not entirely sure whether he was moving the Loyal Address or giving an after-dinner speech to his local Conservative association.

    Nevertheless, I hope that I shall not do the hon. Gentleman irrevocable damage if I disclose to the House that, as he will know, I have personal reasons for being extremely grateful to him. When he was an Education Minister, although he may have done many things wrong, he did one thing right: he reversed the planned closure of a vital special needs school in my constituency of Sedgefield, despite the fact that the education experts wanted it closed.

    At the time, I thought that that was merely a one-off act of compassion on the hon. Gentleman’s part, but last year in the House he threw greater light on his decision, when he said that the last thing any Minister should sensibly do is to listen to the educational world for advice. The only advice he could give was to listen to what they say and “then do the opposite”. Given such an attitude, the only surprise is that the hon. Gentleman never made it to the Cabinet. However, I wish him well most sincerely.

    The hon. Member for Aberdeen, South (Mr. Robertson) seconded the motion with great flair, humour and wit, and said that he had the dubious pleasure of being in a House containing no fewer than three other Members who at one time had represented his constituency but had then lost it, only to win again somewhere else. I trust that the hon. Gentleman will understand if I say that, given the size of his majority, I hope that at the next election he will be able to satisfy at least half the requirements of that elite club. Both speeches, the proposing and the seconding of the Loyal Address, were able. I congratulate both hon. Gentlemen.

    It is also the custom at this time to review one or two personal events for the House over the past year, and I hope that I shall be forgiven for saying that the past year has been marked by deep sorrow for my party. Twelve months ago, John Smith gave the kind of spirited, witty and principled speech that earned him respect across the Chamber and throughout the nation. I believe that we united across party lines then, and that we still do so now, in his memory. I pay particular tribute to the life and work of Jo Richardson, who, despite immense physical pain, never wavered in her tireless work for her constituents and for the cause of women everywhere. To those two names must be added the sad loss of colleagues on both sides of the House–James Boyce, Stephen Milligan, Ron Leighton, Bob Cryer and John Blackburn, all of whom served their constituents and their country with dedication, and will be sorely missed.

    Parts of the Queen’s Speech we welcome. Thanks to the efforts of the British and Irish Governments and the constitutional parties in Northern Ireland, there is room for cautious optimism about the future of the Province–more room than at any time, certainly in my generation. The Opposition will continue to support the peace process and to play our part in building a future of conciliation and prosperity. Her Majesty’s Opposition exist not only to oppose Her Majesty’s Government, and we shall be pleased to continue to support the Government in the peace process. Indeed, we shall take an active part in next month’s conference on the economy of Northern Ireland.

    We also rejoice at the defeat of apartheid and the return of South Africa to the Commonwealth. The Opposition, at least, are proud of the part that we played in the battle against the evil of the old regime. I play particular tribute to the steadfast work of my hon. Friend the Member for Aberdeen, North (Mr. Hughes), who has made such an outstanding contribution over the years.

    We also welcome plans to expand the European Union, and look forward to the entry of new members from northern and eastern Europe, and we shall continue to make constructive suggestions for the reform and improvement of that Union and to press for the Government to regain our influence within Europe.

    Mr. Oliver Heald (Hertfordshire, North): Will the right hon. Gentleman give way?

    Mr. Blair: In a moment, if I may. On the detail of the Address, we have long urged legislation on the regulation of pensions, the establishment of an environmental protection agency, a new criminal cases review authority, and rights for disabled people. We shall, however, carefully scrutinise the detail of all those Bills.

    The pensions regulations must be comprehensive and clear. We all know of the scandal of people cheated of their savings by unscrupulous advisers who abused poor regulation. Our people will not be satisfied unless there is proper protection for the hard-working majority who save for their retirement and who should have the absolute right to see the benefits in old age.

    On the environment, we wish the new agency to be able to take action to protect our environment and to have proper powers of enforcement. I welcome the fact that, as I understand it, there will be legislation on the criminal cases review authority. The new system for investigating miscarriages of justice is long overdue. I very much hope that the method of investigation is independent and fair, and can be seen to be fair.

    Disabled people across Britain were greatly angered by the Government’s conduct during the passage of the Civil Rights (Disabled Persons) Bill. We welcome new legislation in the Queen’s Speech, and we look forward to it being implemented properly.

    Millions of people are desperate for changes in the Child Support Agency. Currently, the agency is a complete shambles, which is causing misery to tens of thousands of families. I very much hope that a radical reform of the agency is on the agenda in the coming year.

    Sir Giles Shaw (Pudsey): Will the right hon. Gentleman tell the House whether he supports the Bill on European own resources–yes or no?

    Mr. Blair: I am coming to that very point in a moment. I will then answer the hon. Member for Pudsey (Sir G. Shaw).

    Taken as a whole, the Queen’s Speech expresses the central quandary facing the Conservative party today: whether to praise Thatcherism or to bury it. Four years after the right hon. Lady’s departure, the Conservatives still cannot decide. The result is the hallmark of this Government: dogma tempered only by dithering.

    Nothing could make the point better than the debacle over Post Office privatisation. There are two extraordinary features of it. The first is not that 10 Tory rebels opposed it, but that 340 Tory Members, including the Prime Minister, supported it. One message at least is clear: “If you don’t want the Post Office privatised, don’t vote Tory at the next election.”

    The second extraordinary feature is the manner of decision-making; that is what is most extraordinary. One faction demands privatisation, so the deed is done; it is then the centrepiece of the Queen’s Speech. Then another faction rebels, so the proposal is removed. Then the first faction mounts another rebellion, and Ministers fall over themselves to proclaim their sorrow and anguish at this omission from the Queen’s Speech. Finally, the Government cast around for any hapless part of the public sector to privatise. Air traffic control is floated as a possibility, until even the genius of this Government’s public relations understands that the notion of Group 4 being in charge of air traffic control is not an immediate vote-winner.

    Ultimately, what do the Government privatise? They privatise the Atomic Energy Authority commercial services department. It is alighted on as a victim to be sold off. What does that tell us about this Government? It tells us that they are so riven by faction and buffeted from one day’s headlines to the next that they cannot address the interests of the country, and that they are woefully out of touch with public opinion. The combination of those factors makes them incapable of delivering good government.

    There should be a Bill about the Post Office in the Queen’s Speech–not to privatise it, but to liberate it within the public sector. Such a Bill would pass with virtually unanimous support. Why is it not in the Queen’s Speech? The reason is that, although the Government do not have the courage to privatise the Post Office, their dogma prevents them from adopting the only sensible alternative. The result is bad government.

    Mr. Geoffrey Clifton-Brown (Cirencester and Tewkesbury): In reviewing my party’s attitude to various issues, would the right hon. Gentleman also review his own party’s attitude to clause 4, and whether his party really–[Interruption.] Does his party really intend to abolish it, or is it just the rhetoric that he opposes?

    Mr. Blair: I did not hear the last part of the question, but I am absolutely delighted that the hon. Gentleman is so interested in clause 4. He will no doubt want to participate in the discussions on the matter in the months ahead.

    Mr. Gary Streeter (Plymouth, Sutton): On the issue of factions, will the right hon. Gentleman tell the House whether he agrees with the 61 members of his own party who signed an early-day motion calling on a future Labour Government to scrap Trident? Does he agree with that–yes or no?

    Mr. Blair: The position of the Labour leadership has been set out very clearly in the national executive statement at conference, and the hon. Gentleman can read it if he is interested.

    Mr. Patrick McLoughlin (Derbyshire, West): Since the right hon. Gentleman commented a little earlier on praising or trying to bury Thatcherism, does he regret voting for the changes in trade union reform which the Government have taken through the House over the past 15 years? If he does, which of the trade union reforms that the Government brought in, despite opposition from the Labour party, would he seek to reverse as a Labour Prime Minister?

    Mr. Blair: I have set out many times our position on trade union legislation, and I have said exactly what parts we will change and what parts we will not change. Since the hon. Gentleman intervened in my speech, perhaps he would answer this question. How did he stand at the previous election on the specific promise that he would not raise tax in this country, since he joined the Government in raising it straight after his election to the House?

    Mr. Charles Hendry (High Peak): In reference to the right hon. Gentleman’s comments on the public sector, does he think it right that inefficiencies in public services should be tolerated at the taxpayers’ expense if they lead to greater employment? Does he agree on that comment with his deputy leader? Will he tell the House if he disagrees?

    Mr. Blair: I am surprised that, after a week in which it has been revealed that a private health institution in Scotland received £30 million of public money, the hon. Gentleman should ask us about the efficiency of public services.

    Hon. Members: More, more.

    Dr. Robert Spink (Castle Point) rose —

    Mr. Blair: I will have to press on, but I shall give way to the hon. Gentleman.

    Dr. Spink: Does the right hon. Gentleman agree with his right hon. Friend the Member for Kingston upon Hull, East (Mr. Prescott) that the minimum wage would cost tens of thousands of jobs in the country? Will he support the job seeker’s allowance, which will help this Government to get the long-term unemployed back into work?

    Mr. Blair: The hon. Gentleman should be aware of recent evidence, published in the United States, of precisely the opposite effect. Indeed, it is the case that setting a proper floor for wages is a sensible way in which to operate the labour market. Secondly, let me tell the hon. Gentleman that I think that many people in this country see this Government failing to take action in relation to those privatised utilities and the pay increases awarded to their chairmen and directors, and find it quite obnoxious that the Government oppose a decent living and wage for people at the bottom end of the income scale, but do nothing about the abuses at the top.

    I was talking about the conduct of government. We see the same conduct not only in relation to the Post Office but in respect of the quite extraordinary furore which has been whipped up among the Tory party over Europe, with briefings and counter-briefings rolling around the press rooms of Britain today. So desperate are the Government to get their rebels into line that the chairman of the 1922 Committee has been dispatched to tell us that, if the Government are defeated on the Bill about own resources, or “even if there is any amendment to it”, a general election will immediately ensue. [Interruption.] There is at least some support for that proposition from the right hon. Member for Shropshire, North (Mr. Biffen), but that may simply be because he is retiring.

    It has surely come to something when a Government can secure the passage of their own legislative programme only by threatening their own demise. The Government might threaten a general election. I think we can be sure that they do not dare call one. However, what a way to run a party and a Government. That underlines the degree to which all those questions become a matter not of the nation’s interest, but simply a ball played from one part of the Conservative party over to the other and back again.

    I can tell Conservative Members that the country sees the gap between what the Conservative party today represents and what it wants a Government to do, and the country is appalled at how that gap ever widens. That shows that the politics of the 1980s has run its course. The concerns and needs of the British people have changed, and it is the Labour party that speaks for them.

    The British people want an end to the laissez-faire economics and the boom and bust of the past 15 years. They want a new economic approach, based on partnership between the public and private sectors and between management and employees to invest in industry to make our performance more dynamic and to give business and families the stability to plan for the future.

    The British people want strong public services, decent schools and well-run local hospitals, where pupils and patients, not bureaucrats, receive the resources. They do not want them to be sold off or broken up. They want poverty, inequality and mass unemployment to be attacked, not treated as of no consequence. They want safe communities liberated from violence, drugs and gangs of hooligans, where, in place of piecemeal initiatives, there is a comprehensive strategy– [Interruption.]

    Madam Speaker: Order. I believe that the right hon. Member for Sedgefield (Mr. Blair) is not giving way at the moment. Is that correct?

    Mr. Blair: I must make progress.

    Several hon. Members rose —

    Madam Speaker: Order. The right hon. Gentleman has indicated to me that he is not giving way at the moment.

    Mr. Blair: The vast majority of people in this country want safe communities, and they do not believe that the Government are delivering them. Above all else, perhaps, they want to feel that their voice is heard and that political institutions work for them and not for the people in charge. They want real democracy, with power devolved downwards, not an ever-increasing centralised state. The vast majority of people want to feel that they can trust their Government. The truth is that today no one believes a word that the Conservative party says–and no wonder. Let us consider tax, and the promises made at the last election. In March 1992, the Prime Minister said:

    “I have made it clear, we have no plans and no need to extend the scope of VAT.”

    The former Chancellor of the Exchequer said:

    “We will not have to increase taxes. I cannot see any circumstances in which that will be necessary.”

    That was said weeks before the general election. They now say that they did not know how bad the economic situation was.

    One might get away with that if one had been in power for 13 days. However, by the last election, the Government had been in power for 13 years. They knew the truth. Look at how many taxes the Conservatives have introduced. Let us consider the new Tory taxes and what they will mean for the average family: home insurance tax, car insurance tax, airport tax, petrol tax, VAT on fuel and cuts in the married couple’s allowance and cuts in mortgage tax relief. In total this year, they mean £360 on top of the £500 a year that families are already paying extra in tax since the election; 7p on the standard rate of income tax; £860 for the average family. In the light of the gap between what they have promised and what they have done, is it any wonder to them the cynicism and disgust with which their record is viewed by the majority of British people?

    Mr. Norman Lamont (Kingston upon Thames): As the right hon. Gentleman knows, the Government found it necessary to put up taxes in order to reduce borrowing, which was greater than anticipated. The right hon. Gentleman’s party fought the election on putting up taxes not in order to produce sound finances, not in order to reduce borrowing, but in order to spend more money. That was why the right hon. Gentleman wanted to put up taxes. The right hon. Gentleman now tells us that he has changed his party’s policy. Will he tell this House now that the policies of tax on which his party fought the election are wrong?

    Mr. Blair: I will tell the right hon. Gentleman what the difference is. We told the truth at the previous election. [Interruption.] I suppose that the Prime Minister will be relieved that, at least for once, the right hon. Member for Kingston upon Thames (Mr. Lamont) has come in on the Government’s side.

    Mr. Heald: The right hon. Gentleman was asked whether he would support the European own resources Bill. He said that he would answer the question. He has not. Will he answer now?

    Mr. Blair: We will judge that Bill in the light of the principles that we have set out. We have supported the settlement at the Edinburgh summit, but the hon. Gentleman knows that of course we have our differences with the Government over the social chapter. I can tell him, although I was going to deal with it later in my speech, that, in the light of the allegations about fraud and waste in the common agricultural policy, and in the light of the discrepancy between the position set out by the Chancellor last week and the figures given in some newspapers this morning, we will of course press the Government on all those issues.

    Now let me ask the hon. Gentleman, or perhaps the Prime Minister, a question: is it the case that the chairman of the 1922 Committee was speaking on behalf of the Conservative party when he said that the own resources Bill would be treated not as an ordinary piece of legislation but as a motion of confidence in the Government? I have to tell them that, if that is how it is to be treated, life becomes much more difficult, not less difficult, for the Government. The hon. Gentleman will understand that.

    I was about to deal with the Chancellor of the Exchequer’s interview in today’s edition of The Daily Telegraph , which, as ever, is interesting to read. The right hon. and learned Gentleman described himself as “fairly panic-proof”, which is a reassurance to us since he is in charge of the nation’s finances. He went on to say that his policies “have so far delivered very little to Mr. and Mrs. Smith up and down the country.”

    So far–they have been in power for 15 years; how much longer do they want before their policies deliver something? What they have delivered is an election programme secured on one basis, then broken with a series of record-breaking tax rises straight after the election.

    Mr. Michael Fabricant (Mid-Staffordshire): Will the right hon. Gentleman give way?

    Mr. Blair: No. I really must move on.

    The Chancellor of the Exchequer (Mr. Kenneth Clarke): The right hon. Gentleman keeps giving way to interventions, then failing to answer them and returning to his speech. He was asked a moment ago by my right hon. Friend the Member for Kingston (Mr. Lamont) how he now reacted to his election promises of the last election to raise taxation in order to raise public spending. If he now criticises what we are doing, which of the tax increases that he has attacked would he reduce and which spending would he cut–in contrast to the tax increase promises on which he fought the last election?

    Mr. Blair: Last week, we published a comprehensive set of tax reforms to close the tax abuses that the Government have allowed to go on. What is more, we set out the huge windfall profits that have been made by utility companies, and will be made on the sale of the national grid. If the Chancellor of the Exchequer wants to get spending down, there is one good way of doing it: get unemployment down, and let the unemployed get back to work.

    The tax failure of the Government is in the end the product of their economic failure. The mismanagement of this country’s economy over 15 years is a story of incompetence on an epic scale: the two worst recessions in living memory; bankruptcy and insecurity for millions of people; the decimation of large parts of the industrial base. With the boom-bust economics comes the inability to plan or invest for the future.

    It is not even as if the living standards in our country had soared above those in other countries. The opposite is the case. According to the latest Organisation for Economic Co-operation and Development figures for average income compared with that in other countries, Britain is just above Finland–lower than Germany, France and Italy, to be sure, but lower now than Belgium, Iceland and many others.

    Sir Cranley Onslow (Woking): Will the right hon. Gentleman give way?

    Mr. Blair: No, I am sorry.

    Of course, now the economy has reached a different point in the economic cycle. There is recovery and growth, and inflation is low. We welcome that. However, the question is not whether we are at a different point in the economic cycle. The question is whether this burst of growth will be different from the others that have preceded it. This time, the Government say, the long term will come first, which is precisely what they–noticeably the Prime Minister himself–said at the beginning of the 1980s and at the end of the 1980s.

    What is the Government’s over-arching priority now? What is the clamour throughout the Tory party for next year’s Budget? It is for tax cuts, and the bigger the better. Whether they will be given or not will depend not on the state of the economy but on the state of the Tory party.

    Mr. Iain Duncan Smith (Chingford): Will the right hon. Gentleman give way?

    Mr. Blair: The lesson of the past 15 years is that, unless we put the long term first, unless we have an economic policy that is stable and geared to the needs of the real economy, unless we strengthen our industrial base and make the investment in industry and people that we need, the reality is lower prosperity for all of us. Look even now: when we are barely out of recession, interest rates are raised. The chairman of the Conservative party promises that it will be the last such rise in interest rates. There are capacity constraints on output already. There are skill shortages–with 3 million unemployed–in parts of our economy.

    Most galling of all, the Conservative Government uniquely had the one-off, God-given bonus of North sea oil, and squandered it. They had hundreds of billions of pounds’ worth of North sea oil. On top of that, they had the privatisation proceeds. They were used not for investment but merely on current spending. What other country with all those resources would have had such a record of failure as the Conservative party has presided over?

    If reports are true, there are new oil finds in the west of Shetland field. For heaven’s sake, let us not squander that natural advantage as earlier natural advantages were squandered. Let for once the short-term interests of the Conservative party take second place to the long-term interests of the country.

    The same prejudice has led the Government to ignore the danger signs of the tearing of the social fabric of our country. We are as a nation more divided and less equal than at any time this century. Millions of people live on benefit, in poverty and without hope for the future. Of course there is a social and moral case for tackling that inequality, but there is an economic case, too. In parts of our inner cities, a generation of young people grows up in a culture of low employment prospects, poor education opportunities, family instability, drug abuse and crime. With no stake in society, it is hardly surprising when they show little responsibility towards it.

    Mr. Duncan Smith: Will the right hon. Gentleman give way?

    Mr. Blair: The Government have doubled dependency on welfare since 1979–the very Government who pledged to cut that dependency.

    Mr. Duncan Smith rose —

    Madam Speaker: Order. The hon. Member for Chingford (Mr. Duncan Smith) should not persist, as it must be obvious that the right hon. Gentleman will not give way.

    Mr. Blair: After 15 years of Conservative government, tax and spending as a percentage of national income are up and not down. Why? Because we are paying the bills of failure. We are paying for the dole queues, poverty, low pay, homelessness and crime. The Government never learn that, the stronger and more united our society, the less we waste and the more we can invest. That is the difference.

    Good public services are a part of that. A moment ago, the hon. Member for High Peak (Mr. Hendry) asked me about efficient public services. We should look at the national health service. We have been promised even more legislation now to improve

    “the management of the National Health Service”.

    What has happened since the Queen’s Speech 15 years ago, when the Conservatives said that they would do the same? Bureaucracy and administration are up £3 billion a year. There are 20,000 general and senior managers, compared with 500 a few years ago. Some £70 million has been spent on company cars.

    This week, the true Tory philosophy on the health service was revealed by the chairman of an NHS trust–a serving Tory councillor. He said that the duty of doctors is to the balance sheet of their managers, and not to the needs of their patients. We can thank him for his candour, but that is not the national health service that the British people want.

    Of course, we need efficient management, but we do not have that. We have expensive management, which is swallowing millions of pounds, while many people are on waiting lists and are forced to wait in indignity and injured on trolleys in hospitals when they should be getting proper care.

    This week, it was revealed that £30 million was put into the collapsed Health Care International. That must be added to the hundreds of millions of pounds spent on railway privatisation and the poll tax, and the hundreds of millions wasted on the national curriculum. The Government have wasted public money at every turn, and they have wasted it on dogma.

    Last week, one Minister had to admit that he had lost £30 million of public money in four months, while another was found guilty of breaking the law and misusing £240 million in relations with countries overseas. A third–the Home Secretary, no less–was found to have acted unlawfully in respect of his own treatment of the victims of crime.

    The tale of how those victims have been treated is a scandal of arrogant incompetence from first to last. The new tariff system of compensation is manifestly unfair, and it was rejected by all victims’ groups. It has no support anywhere, and when the Government launched a consultation exercise about it, not a single representation was in favour of the Government’s plans. They were warned that it was unlawful–they took not the slightest notice. Meanwhile, the Home Secretary tells the Conservative party conference that he wants to put the victim at the heart of the criminal justice system. It is as rotten a tale of Conservative hypocrisy as is possible to imagine, even from this Government. The fact is that, whether on combating drugs, juvenile offending, illegal firearms, racial violence or the treatment of victims, it is the Opposition who have been standing up for law and order in this House and not the Government.

    The chance of a new start for the Government and the country has been thrown away in the Queen’s Speech. It is no wonder that the public turn away from politics when the Government refuse to hear the voice that they are speaking with. It is the Opposition who will continue to speak up for what the people of this country want–a modern and dynamic economy, action on crime, decent schools for all, hospitals run for patients and unemployment and poverty attacked. The Prime Minister may scorn “the vision thing”. He promises “the action thing”, but where is it? His Government are not dictated by the action thing, but by the dither thing. That is where they are, all the way through from the Child Support Agency to whether Ministers should resign, the channel tunnel and the Post Office. There is a case for action on behalf of the people of Britain, and it will be put by the Opposition. We know what needs to be done–the people of Britain know what needs to be done–because we share the hopes and ambitions of our people. We share their schools and hospitals, their values and their basic decency and we share something more–their shame at what has happened to Britain under the Conservative Government.

    The Queen’s Speech shows a Government who are out of touch and out of steam. At the next election, it will be our pleasure to put them out of office, too.

    The Prime Minister (Mr. John Major): I was sorry to learn earlier that the right hon. Member for Bishop Auckland (Mr. Foster) has been taken ill. I was delighted to hear the right hon. Member for Sedgefield (Mr. Blair) say that the illness does not seem to be serious. I think that I speak for the House in saying that I hope that the right hon. Gentleman will soon be fully recovered and back here carrying out his duties.

    The right hon. Member for Sedgefield mentioned the sad loss of a number of colleagues on both sides of the House and I join him in the tributes that he paid to them. We may dispute and disagree often and violently in the House–sometimes that is our duty and our responsibility–but, whatever the interest or party that we represent, we are all here to serve the public. From time to time, therefore, it is right for us to put aside our party differences and acknowledge the work that is done by our political opponents. I happily do so today, not only on behalf of hon. Friends who are sadly no longer with us but on behalf of Opposition Members who sought to serve their country and their constituents.

    The right hon. Member for Sedgefield had some grave charges to lay before the Government–I shall deal with those that are relevant later and with some other matters that the right hon. Gentleman overlooked–but if he is going to attack the Government he really should get his facts right. If he is going to disparage the Government, he really should try to keep a straight face while he does it. If he smiles when he does so, it will hardly be a surprise to him that the House and the country are unlikely to take him seriously on those issues. If he shows signs of not believing what he says, he cannot be surprised if other people do not believe him either.

    The right hon. Member for Sedgefield was graceful about my hon. Friends and their proposing and seconding of the Gracious Speech. My hon. Friend the Member for Dartford (Mr. Dunn) entered the House on the same day as I did. We knew one another for many years before we came to this place. I know him well and he has always been blessed with the gift of clarity. [Hon. Members:– “Why are you smiling?”] I am not laying charges against my hon. Friend; I am about to praise him. I come here to praise him, not to disparage him. One always knows where one is with my hon. Friend–sometimes that is very good and sometimes it is just very clear.

    In this country, at least, we always know where we are with my hon. Friend, but abroad he has a slightly less certain touch. Seeking tickets while on holiday in Italy, he consulted his Italian phrase book, marched up to the booking clerk and, I am reliably informed, said something quite unspeakable in vile Italian. My informant did not tell me what it was, but I understand that it was emphatically not a request for a day return to Milan.

    In Florida, my hon. Friend visited Seaworld– [Interruption.] Relax. While watching the Walrus of Oz–I do not understand why the right hon. Member for Kingston upon Hull, East (Mr. Prescott) smiles when I mention the Walrus of Oz–my hon. Friend became a volunteer from the audience to play alongside the walrus. The starring piece of his remarkable performance was a passionate embrace with the walrus. That was embarrassing enough for him, but it was made far more embarrassing by the most deadly words that any Member of Parliament can hear on holiday, uttered by a lady who rushed up and said, “Mr. Dunn, I am one of your constituents.” Only time will tell whether that will increase his majority.

    My hon. Friend the Member for Aberdeen, South (Mr. Robertson) entered the House only at the last election. He referred to his first term in this House, which I am sure will be one of many. What he did not mention–we all know that he has a healthy appetite–was his election battle bus, which became notorious in his constituency for being parked outside a fast-food hamburger stop nearly every meal time. Entering with three companions, he ordered four hamburgers. “One each?”, asked the attendant politely. “I don’t know what they’re having”, said my hon. Friend, “but these four are for me.” –Clearly, elections build up the appetite in Aberdeen, but both my hon. Friends added to their growing reputations in their speeches this afternoon. Last year, I placed Northern Ireland at the head of our priorities: self-evidently, it remains at the head of the Government’s priorities. The past year has brought a new atmosphere and measured progress, but there is still a very long way to go before peace is secure and life in Northern Ireland returns to the same gentle tenor that we would expect it to have and would wish to see elsewhere in the United Kingdom.

    Next month, so long as the ceasefire is maintained, we shall open the exploratory dialogue with Sinn Fein and the loyalist political representatives. In those talks, the decommissioning of illegally held weapons will be a vital subject. Last week’s outrage in Newry–the murder of Mr. Kerr–showed how urgent that remains. Gun law has no part in democratic politics and the paramilitaries of both sides must abide by democratic principles if they wish to take part in democratic politics.

    The people of Northern Ireland, too, are impatient for political progress, and I believe that they are right to be. As part of an overall settlement, we shall make proposals for a possible way forward within Northern Ireland, including a locally accountable assembly.

    We have made good progress with the Irish Government on a joint framework document that covers relations between the two Governments and between Northern Ireland and the Republic. I hope that circumstances will allow us to complete the remaining negotiations speedily. The two Governments are seeking joint positions on some difficult issues, including the territorial claim that remains in the Irish constitution.

    Northern Ireland’s future must be resolved freely, and without prejudice or duress, and that was acknowledged in the Downing street declaration. As part of a balanced settlement, requiring change on both sides, the Irish Government agreed that the Republic’s constitution would need to change to reflect fully the principle of consent in Northern Ireland. It is obviously important for Northern Ireland to be recognised as a legitimate part of the United Kingdom while that remains the wish of the greater number of the people of Northern Ireland.

    A more relaxed relationship between Northern Ireland and the Republic is also important. Many people in the north want links with the south. There is already valuable co-operation and we would like to help it to evolve. Closer links would foster reconciliation and benefit business. Organisations in different sectors–tourism being an obvious example–will, in their own interests, wish to build up relationships. In the joint document, we shall suggest a framework for cross-border structures, working on common ground and on a reciprocal basis.

    I know that there are fears about joint authority–not least in the House but also beyond it, and most importantly throughout Northern Ireland–so let me make it clear that joint authority is not under consideration, and has been rejected by both Governments. I emphasise that those will be proposals; they will not be a straitjacket. This is not a London-Dublin deal, worked out and set to be imposed. The proposals will be published for public consultation and put to the democratic political parties in Northern Ireland. When the final outcome of the talks process is known, it will be submitted to the people of Northern Ireland in a referendum.

    The tasks ahead remain formidable, but each and every day without violence is another small victory for Northern Ireland. The benefits of peace which people are now witnessing will be a powerful disincentive to renewed violence.

    I cannot promise that those endeavours will be successful, but I can promise that we shall pursue them, with the hope of reaching a lasting peace. I express my thanks to right hon. and hon. Members, on both sides of the House, who put aside the normal political differences to support the process.

    Before I discuss the contents of the Gracious Speech, I wish to mention our economic prospects, as did the right hon. Member for Sedgefield.

    A year ago, many people had doubts about economic recovery. The hon. Member for Dunfermline, East (Mr. Brown) delved into his stock of gloomy soundbites and forecast “rising unemployment, falling output and shaky prospects for growth.”

    Since then, unemployment has decreased steadily, month by month. Today it fell by more than 45,000, to below 9 per cent. for the first time since December 1991. Throughout the European Union– [Interruption.] — only Portugal and Luxembourg now have less unemployment and, overall, the average is much greater throughout the Union, at 11.5 per cent.

    The right hon. Member for Sedgefield told us that one of the ways ahead was to reduce unemployment, but he would have been more gracious if he had acknowledged that we have reduced unemployment far more successfully than any other large country in western Europe, and that only two small countries have a lower rate.

    Mr. Skinner: Will the right hon. Gentleman give way on that point?

    The Prime Minister: I shall give way later.

    As for growth, output is currently increasing at more than 3.5 per cent., and we are forecast to have the fastest growth among the main economies in the European Union this year and next.

    The problem for the shadow Chancellor of the Exchequer, the hon. Member for Dunfermline, East, is that his every forecast turns out to be wrong–not some of them, but all of them. The laws of statistics and probability are suspended for the hon. Gentleman. If any hon. Members wish to win the lottery that we have established, they should ask the hon. Gentleman for numbers that are certain to lose, and their fortune will be guaranteed.

    I do not wish to be unfair to the hon. Member for Dunfermline, East. He is by no means the only misery merchant on the Opposition Front Bench who is seeking to spread despondency. The hon. Member for Livingston (Mr. Cook), who is enjoying an agreeable chat with the right hon. Member for Derby, South (Mrs. Beckett), was a trainee misery. He spoke of “big concerns” about how long the recovery would last. He did at least have the honesty to admit that there was a recovery. He spoke of

    “big concerns about how long the recovery could be sustained before it led to a balance of payments crisis.”

    As it happens, the trade balance is narrowing as output grows, and the hon. Gentleman was wrong.

    The hon. Gentleman has heavyweight company. The new deputy leader of the Labour party, the right hon. Member for Kingston upon Hull, East (Mr. Prescott), was in the gloom stakes as well.

    [Interruption.]

    Yes, he was. He is smiling now, probably because he knows that I am going to remind him that he said

    “I don’t see much inward investment flooding in, but I see companies flooding out.”

    I do not know what country the right hon. Gentleman was in when he said that, because it certainly does not apply to this country. The only things that are flooding out are exports, at record levels. The right hon. Gentleman also seems to have missed the inward investment. Last year, this country attracted 40 per cent. of the total inward investment from the United States and Japan that was made in the European Union. Black and Decker, for example, moved a production line to Britain from Germany–not even from the United States or Japan. Why? Because, in the words of one of its workers,

    “Industry is flexible and the social chapter isn’t.”

    Where is the Black and Decker factory? In a place called Spennymoor, bang in the middle of the constituency of the right hon. Member for Sedgefield.

    The deputy leader of the Labour party should ask his right hon. Friend whether he has seen any inward investment flooding into this country–or he could ask the hon. Member for Livingston. NEC is investing hundreds of millions of pounds to create hundreds of jobs in the hon. Gentleman’s constituency. I could have mentioned that Samsung is creating more than 3,000 jobs, that Fujitsu is creating 1, 600 or that Asat is creating 1,000. Up and down the land, there has been a vote of confidence from external investors in this country’s future, and in this Government’s management of the economy.

    Mr. George Howarth (Knowsley, North): At the 1992 general election, the Prime Minister and the then Chancellor of the Exchequer made it clear that they could conceive of no circumstances in which they would increase taxes if they won the election, yet afterwards they increased taxes. Can the Prime Minister help the House? At the time of the election, did the Prime Minister and the Chancellor know the true state of public finances and mislead the public, or did they not know the true state of public finances–in which case, why should anyone listen to the Prime Minister’s predictions now?

    The Prime Minister: I think that the hon. Gentleman could have done better than that if he had tried. He may live in his own little dream world, and he may have overlooked the fact that there was a worsening recession not here but elsewhere, which was why, right across Europe, unemployment rose and others ran into the difficulties that we ran into in this country.

    If the hon. Gentleman is concerned about inconsistencies–perhaps in view of what his right hon. Friend the Member for Sedgefield had to say about taxes–perhaps he or his right hon. Friend could tell us why they now propose to introduce a windfall tax, a payroll tax, a health tax, an entertainment tax and a development tax. Perhaps, as they are so concerned about expenditure and taxation, they will tell us which of their spending commitments–to the minimum wage, the emergency employment programme, the new technology trusts or the abolition of compulsory competitive tendering- -they will scrap. For if their oratory is honest now, their policies are not; and if their policies are honest, their oratory is not. The sooner they square that circle, the sooner we will hear little lecturettes from them.

    Up and down the land, there has been a vote of confidence in the British economy from foreign investors. The right hon. Member for Kingston upon Hull, East and the hon. Members for Livingston and for Dunfermline, East say none of that. They can, if they wish, remain the three blind mice on the Labour Front Bench, but foreign investors see what is happening in this country. To quote the right hon. Member for Kingston upon Hull, East, they have been “flooding in”, they are “flooding in” and, while they have a Conservative Government with the policies that we follow, they will continue to “flood in” and to provide jobs in the right hon. Member for Sedgefield’s constituency.

    Mr. Denis MacShane (Rotherham): Is the Prime Minister aware that, for every pound that has come into this country, more than two in the last year, and well over two in the past 15, have left? British Steel is investing £97 million in America, but nothing in this country. What policies does the Prime Minister offer to develop manufacturing based on investment by British firms in their own country?

    The Prime Minister: I am glad that the hon. Gentleman mentioned British Steel. I was in Port Talbot a fortnight ago–one of the most efficient steelworks in the world. It has the longest export order books that it has had for a long time and it is hugely successful. The hon. Gentleman may know nothing about steel making, but I suggest that he goes to Port Talbot to see for himself what I saw–the efficiency of that manufacturing industry in the United Kingdom. If the hon. Gentleman went to the motor show he would see a British motor industry that will soon be a net exporter of cars. If he visited Triumph motorcycles, which was killed by the Labour party, he would see it producing top-of-the-range motor cycles to sell to Germany, Japan, the United States and elsewhere. The Opposition run so well the story about British industry doing badly that they believe it. In reality, British industry is up off the knees on which it found itself when the Labour party was in office. It is now growing, investing, expanding and exporting to each and every part of the world. It is about time that the Labour party stopped knocking British industry whenever it has the chance.

    Mr. Skinner: Earlier, the Prime Minister talked about unemployment coming down. Is he aware that large sections of the British people do not believe his Government and their fiddled statistics? Does he understand that the other day independent figures were compiled on every British coalfield where many of the pits have shut? In Bolsover and north Derbyshire, the Prime Minister’s figures show unemployment at 12.5 per cent., but independent statistics show it to be 23.5 per cent. In Durham, the figure is 33 per cent. and it is the same in Ayrshire. In Wales, the figure is over 30 per cent. The truth is that all this twaddle, which has probably been written by Sarah Hogg, is a stranger to the truth.

    The Prime Minister: The hon. Gentleman is such a believer in conspiracies that he probably does not yet believe that there is really a Wednesday in the week. He should not squeak until he is squoken to.

    Dr. Spink: Will my right hon. Friend explain to me, to the House and to the nation why the Opposition are always running down this nation, running down our industry, our schools and our health service? Why do they not start talking Britain up?

    The Prime Minister: I suspect that there may be millions of people asking the same question over the next two and a half years.

    Dr. John Reid (Motherwell, North) rose —

    The Prime Minister: If the hon. Gentleman will forgive me, I suspect that he or his hon. Friends may want to intervene later. I want to make some progress.

    I want to deal with the legislative programme for next year contained in the Gracious Speech. Over the years, we have introduced many controversial supply side measures, privatisations and deregulations. Time after time the Opposition have opposed them, yet they do not seem to follow that opposition through. They do not commit themselves to reversing those privatisations. We all know why. They know that the privatisations are right, but they want to capitalise on public concerns when the measures are going through the House. If the Labour party’s opposition is genuine, let it commit itself now to reversing all the privatisation measures that we have carried out. If it does not do so, it should keep quiet and realise that those measures have greatly improved the efficiency of British industry in recent years.

    The Opposition will not commit themselves to that because they know that privatisation works. They know also that renationalisation would blow for good and all the belief that this is a new Labour party in any sense. Whatever the balance between public and private sector might be, the Opposition usually, and grudgingly, think that it happens to be right at the time. They do not know whether to go forward or back. They do not say yes and they do not say no. They loathe private ownership, but they dare not reverse it.

    We intend to proceed with privatisation. This year, we shall privatise the Crown Agents. [Hon. Members:– “Oh.”] I am glad to hear support from Opposition Members–I hope that it will be translated into support in the Division Lobby. Crown Agents plays a significant role in delivering our aid programme. We have agreed with its board that the best way of developing its services is in the private sector.

    We shall introduce a Gas Bill to bring genuine competition into the gas industry. Consumers already benefit from a fall, after inflation, of more than 20 per cent. in gas prices and they will reap further benefits. New suppliers will be able to enter the gas supply market, giving customers more choice and better service. Safeguards protecting price, safety, standards and social obligations will remain for as long as they are necessary.

    The Agricultural Tenancies Bill will make it easier for tenants to rent land and to benefit from the improvements that they make to it. Landlords and tenants will gain greater freedom in negotiating the terms of a tenancy, within a framework that protects legitimate interests and that guarantees that tenants are rewarded for any improvements that they may make. That has been agreed by landlords and tenants alike and will open up opportunities for young farmers to take their first step in the industry.

    Mr. William O’Brien (Normanton): The Prime Minister gave a catalogue of successes in industry. Will he comment on how the building industry will prosper in the coming year? There is a need for rented houses and for improvements to houses, yet no reference is made in the Gracious Speech to the building industry. Has he a comment to make on the future of the building industry?

    The Prime Minister: I am not sure what legislation, for that is what the Queen’s Speech deals with, the hon. Gentleman may have in mind for the building industry. The growth in the economy, which we are now seeing, will bring the building industry back to greater health. That is the way in which to bring it back to proper health. We shall introduce the Jobseeker’s Allowance Bill to help more and more unemployed people back into work. The new allowance will replace unemployment benefit and income support and will underline the bargain between job seekers and taxpayers. Job seekers are right to expect benefits but the taxpayer is right to expect a job seeker to seek a job, and the Bill will ensure that that is so.

    Mr. Derek Enright (Hemsworth): Come to my area.

    The Prime Minister: The hon. Gentleman should get his head out of the sand and look at the falling total of unemployed people. The figure has been falling for nearly two years. One day he might acknowledge that this country is doing better than almost any other in western Europe in putting people in work, in keeping people in work and in having the highest level of adult population in work. The Channel Tunnel Rail Link Bill will allow private finance to contribute to the development of one of the most important infrastructure improvements of recent years. Both public and private sectors will have a role to play and the project will be likely to create between 10,000 and 15,000 jobs.

    The Pensions Bill will implement all the main recommendations of the Goode committee. It will offer greater protection for members of occupational pensions schemes and it will implement a common pension age for men and women at 65, which I was interested to note was accepted as reasonable by the Commission on Social Justice.

    Mr. John Prescott (Kingston upon Hull, East): Has the Prime Minister read the report?

    The Prime Minister: I have read the commission’s report. I recommend it to insomniacs. We have a meaty programme of supply side reforms and I look forward to introducing them to the House. We shall also introduce the European Communities (Finance) Bill to give effect to the financial arrangements reached at the Edinburgh summit.

    Mr. D. N. Campbell-Savours (Workington): Will the Prime Minister tell us whether the £250 million predicted increase in the United Kingdom’s contribution includes forecast increases in gross domestic product by the end of the century? Can we have a straight answer to the question?

    The Prime Minister: The straight answer is yes. I hope that that is straight enough for the hon. Gentleman. I must say that, having asked for a straight answer, he looks very discomfited to have actually got one. I suggest that, if he does not want a straight answer, perhaps he should have asked his right hon. Friend the Leader of the Opposition.

    Dr. John Reid (Motherwell, North) rose —

    The Prime Minister: I will make some progress, if the hon. Gentleman will forgive me.

    I am still saying it: consistency is a virtue. Those financial arrangements were warmly welcomed at the time, and for good reason. They safeguarded our rebate–worth £2 billion a year. They produced the smallest-ever increase in own resources, and over a longer period, and they moved this country significantly down the list of net contributors to the European Union budget. The difference that the new arrangements will make, compared with what we would otherwise have paid, is to increase this country’s net contribution to the European Union by £75 million next year, rising to around £250 million in 1999, with the qualification that I conceded a moment ago. My right hon. and learned Friend the Chancellor of the Exchequer has set out the figures clearly to all hon. Members.

    I have seen suggestions that the new arrangements would double our net contributions, which is nonsense and can safely be dismissed out of hand. The outcome of the Edinburgh agreement was reported to the House and strongly supported here. This Bill is necessary to honour that agreement. We shall introduce it early in the Session and take it through speedily.

    No one should doubt the importance of securing the Bill unchanged and early. I know that some hon. Members dislike it, but it is not an optional measure that can be used as a bargaining counter for other European negotiations. It is an international commitment, entered into two years ago with the full support of the Cabinet. No British Government would have credibility in international negotiations if they failed to implement the agreements that they had freely entered into with their partners abroad, so for that reason there is no room for compromise on the Bill. That means that its successful passage in all its essentials is inescapably a matter of confidence, because of the agreements reached with our European partners. I hope that there is no doubt in the House about that.

    Mr. A. J. Beith (Berwick-upon-Tweed): Is the Prime Minister making it clear to the House that, if the Government were to lose any vote on the Bill, he would seek a dissolution and the country would have the opportunity of a general election?

    The Prime Minister: I have just made it perfectly clear that the Bill must be passed in all its essentials to ensure that we honour the obligations that we entered into with our European partners.

    Mr. Tony Marlow (Northampton, North): In the spirit of friendship, may I put it to my right hon. Friend that if the passage of the Bill were made contingent on effective measures and results in combating European fraud he might have a more coherent response?

    The Prime Minister: I made it clear in my speech at Leiden earlier this year that it was important that the whole of the European Union attacked the outrageous problem of fraud that exists in Europe. The figures that we have just seen were produced by the Court of Auditors, which, I remind the House, has its present powers because the British Government in general, and I in particular, demanded them in the Maastricht treaty. I must tell my hon. Friend that I did so because I believe that fraud in the European Union is unforgivable and must be rooted out.

    The British Government have been the leader in the European Union in rooting out fraud. We have less fraud in this country than anywhere else in the European Union, and my right hon. Friends and I intend to press again and again to ensure that the Court of Auditors has the powers necessary to root out fraud across the Community. I shall say something else to my hon. Friend, because I hope that he will back me here, too. In order to do as I have said, it may be necessary for the Court of Auditors to have greater powers to go into each country in the Community, including this country as part of the European Union, to root out fraud. I believe that it should have those powers, and I support them. We shall do all that we can to minimise, and then to eliminate, fraud in the European Union. I can certainly give my hon. Friend that assurance, but he need not tie it to the Bill, for we embarked on that several months ago.

    The House will know that earlier this summer the Government began to consult on a range of proposals to improve the position of disabled people. Following the consultation–

    Mr. Robert N. Wareing (Liverpool, West Derby) rose —

    The Prime Minister: I shall give way to the hon. Gentleman in a moment. Following the consultation, we decided to go further and, contrary to our original intimation to hon. Members, to propose a Government Bill in the Gracious Speech, rather than producing a hand-out private Member’s Bill. We have an excellent record over the years, and a great deal has been achieved.

    Mr. Tom Clarke (Monklands, West) rose —

    The Prime Minister: I have already promised to give way to the hon. Member for Liverpool, West Derby (Mr. Wareing), and I shall do so in a moment. A great deal has been achieved, but we can and should do more. The Bill will follow an exercise that focused not only on what should be done but on how it could be done and how quickly. The Government will announce the details of the Bill shortly. Let me simply say now that it will include a right not to be discriminated against in employment, a right of access to goods and services and the establishment of a national disability council to ensure that the voice of disabled people is heard more clearly within Government.

    Mr. Wareing: The Prime Minister will be aware that in 1983 I introduced a private Member’s Bill to outlaw all discrimination against disabled people, but that it was outrageously attacked by the Government and Conservative Members were dragooned into the Division Lobby to oppose it. The same thing happened to the Bill recently introduced by my hon. Friend the Member for Kingswood (Mr. Berry). I was told at the time that education and persuasion represented the way forward.

    The Queen’s Speech says only that the Government will introduce a Bill to “tackle” discrimination. It is not enough simply to select employment and one or two other aspects. Will the Prime Minister give an undertaking that the legislation will make it illegal to discriminate against disabled people, as it is to discriminate against people on the grounds of race, sex or religion?

    The Prime Minister: I have set out what will be in the Bill, and the hon. Gentleman will have the chance to read it as soon as it is published. The Minister for Social Security and Disabled People will make the details clear.

    Mr. Tom Clarke: Will the Prime Minister give way?

    The Prime Minister: I am replying to the hon. Member for Liverpool, West Derby. If the hon. Member for Monklands, West (Mr. Clarke) will do me the courtesy of listening, I shall contemplate giving way to him when I have finished.

    I have set out the details of what will be in the Bill, and I advise the hon. Member for West Derby to wait until he sees those details, which will be debated fully in the House and in Committee.

    Mr. Tom Clarke: Is the Prime Minister aware that nothing that he has said corresponds with the measures in the Bill that my hon. Friend the Member for Kingswood sought to introduce, which was disgracefully talked out by Conservative Members? As a former Whip, and as a former Minister responsible for disabled people, will he discourage The Guardian from saying that simply because the Government have introduced a Bill nobody else can introduce a Bill on the same subject? Does the right hon. Gentleman accept that if my hon. Friend or any other hon. Member introduces such a Bill, he should discourage the Government Whips from talking it out and denying the rights of 6.5 million disabled people and their carers?

    The Prime Minister: I have limited influence over The Guardian, as recent events have shown; the hon. Gentleman must take up his complaints about The Guardian with that newspaper. As for the position of disabled people, he, too, would be wiser to wait and read the Bill before making judgments on it.

    The remainder of the legislative programme will honour a number of important commitments that we have given. The Criminal Justice (Scotland) Bill will be another important step in the Government’s battle against crime.

    Dr. Norman A. Godman (Greenock and Port Glasgow) rose —

    The Prime Minister: I shall make some progress now; I know that many hon. Members wish to speak.

    Dr. Godman: Will the Prime Minister give way?

    The Prime Minister: Not on this point. Like the Criminal Justice and Public Order Act 1994, the Criminal Justice (Scotland) Bill will crack down on those who offend on bail, increase the courts’ powers to confiscate the assets of crime and streamline the operation of the courts.

    The Environment Bill will set up an environment protection agency and a Scottish environment protection agency. I suspect that that will be widely welcomed in the House and elsewhere.

    The Health Service Bill will take forward our programme of reform by streamlining the national health service management structure. The right hon. Member for Sedgefield spoke about expenditure in the national health service on administration. I look, therefore, for his support for the abolition of one entire tier of the management structure in the regional health authorities. They will be abolished while the district health authorities and family health authorities will be merged. We shall judge whether the right hon. Gentleman’s words are matched by his actions in the Division Lobby as we seek to cut administrative expenditure.

    We will introduce a Bill to provide for the supervision of those discharged under the Mental Health Act 1983. This is to ensure greater security for the community and better welfare for those recovering from mental illness. Many hon. Members will be aware of the problems that have arisen in that area. I believe that the Bill will be warmly welcomed and I am grateful for the intimations from the Opposition that they will help to speed the Bill through to law. There are three important additional measures that we intend to introduce under the general heading of law reform. The Criminal Appeals Bill follows the Government’s acceptance of the recommendation of the Royal Commission on criminal justice that a new body is needed to consider possible cases of miscarriage of justice. The new body will be independent of both Government and the courts and it will be able to review wrongful convictions.

    The Children (Scotland) Bill will ensure a comprehensive reform of child care in Scotland. It follows the reports of the inquiries into the Orkney and Fife incidents, and the White Paper of my right hon. Friend the Secretary of State for Scotland, “Scotland’s Children: Proposals for Child Care Policy and Law”, published last year.

    Dr. Godman: Will the Prime Minister give way?

    The Prime Minister: If the hon. Gentleman will forgive me, I shall tell him bluntly that I shall not give way to him on this occasion. The Bill’s welfare measures include the introduction of more flexible arrangements for local authorities to care for children in need and the introduction of more stringent criteria for taking children into care.

    We shall also introduce a Medical Act (Amendment) Bill to introduce new procedures to enable the General Medical Council to deal with the very small minority of doctors whose performance is found to be seriously deficient.

    Those are measures of reform which, I believe, will command widespread support in the House. I am encouraged by the overt support already given to these Bills across the House and I trust that we shall be able to agree speedily on their handling. Those are some of the things that are important across the House.

    The right hon. Member for Sedgefield spoke of many things, but we did not hear a great deal about practical issues from him. We have heard a great deal from the right hon. Gentleman about new Labour, although no one seems quite sure what that means. We are now getting some clues. I was especially interested in the way in which the right hon. Gentleman allocated his shadow Cabinet portfolios.

    Whom did the right hon. Member for Sedgefield choose as his shadow Foreign Secretary–Britain’s ambassador abroad? He picked the hon. Member for Livingston– [Hon. Members:– “Hear, hear.”] I agree: it is a choice entirely appropriate for the Labour party. Surely the hon. Member for Livingston is not the man who, as the cold war was heating up, “pleaded with” and “begged”–his words–the Labour conference to vote for unilateral nuclear disarmament. Surely this is not the same man who spent much of his political life equivocating over whether Britain should be in the European Union. Apparently, the answer is yes. There is not much new there.

    The hon. Member for Livingston is not the only clue–

    Mr. Campbell-Savours: Tired old arguments.

    The Prime Minister: They are tired old arguments, I know, but they are the best that the Labour party has got.

    The hon. Member for Livingston is not the only clue; there are other square pegs in round holes. Let us take the shadow defence team. What do they have in common? The answer is consistency. They are consistently against Britain’s nuclear defences. The hon. Member for South Shields (Dr. Clark), the man to whom the Leader of the Opposition would entrust Britain’s nuclear defences, is a member of parliamentary CND. Indeed, he is not alone. I have a list, which my hon. Friends may care to hear. It includes the right hon. Member for Derby, South and the hon. Member for Holborn and St. Pancras (Mr. Dobson)– [Hon. Members:– “More.”] There are lots more Opposition Members who are against our nuclear capacity. I am just telling the hon. Member for Workington (Mr. Campbell-Savours) who they are. The list includes the hon. Members for Peckham (Ms Harman), for Oldham, West (Mr. Meacher), for Islington, South and Finsbury (Mr. Smith), for Edinburgh, East (Dr. Strang), for Blackburn (Mr. Straw) and, of course, the right hon. Member for Sedgefield. All that gives a new meaning to being brothers in arms. They would scrap our nuclear weapons.

    It is another clue– [Hon. Members:– “You have missed one out.”] I missed one out. I apologise to the hon. Gentleman. I am not sure who the hon. Gentleman is, but someone will tell me. It shows that they are not only against Britain’s nuclear capacity but are proud to be against Britain’s nuclear capacity and would scrap it. Why did we hear so much about Rosyth from Opposition Front-Bench spokesmen if that was the case?

    Mr. Campbell-Savours: Yesterday’s arguments.

    The Prime Minister: The hon. Gentleman says that they are yesterday’s arguments. They do not care about Rosyth now. The hon. Gentleman should keep quiet. He is digging himself a bigger hole by the minute.

    Another clue to Labour’s new team is the right hon. Member for Sedgefield’s choice for his shadow Treasury team–the team responsible for setting and collecting taxes.

    Dr. Reid: He said something about taxes.

    The Prime Minister: I shall say something on taxes in which the hon. Gentleman will be interested. Only a fortnight ago, the hon. Member for Bristol, South (Ms Primarolo) was talking about the importance of collecting tax–absolutely right, vitally responsible. But, some small thing nagged away at my memory. Was not it the hon. Lady who supported a campaign urging people not to pay their community charge? So there we have it–new Labour. The person that the right hon. Gentleman has put in charge of collecting tax was part of the campaign inciting people to break the law and refuse to pay their tax. So, there is not very much new about Labour there either. Over the past four years, I have consistently pursued a number of long-term objectives.

    Mr. Campbell-Savours: Tell us then.

    The Prime Minister: I am about to. They include low inflation. For the first time, we may be in a position where we have broken the inflationary psychology that has damaged this country time and again since the war. We have pursued objectives of supply side reform for lasting growth, a better quality of life for all our citizens, a higher standard of public service and a lasting peace in Northern Ireland. They remain at the centre of my objectives for this year and for the future. The programme outlined in the Gracious Speech will take those objectives forward and I warmly commend it to the House.

  • Text of the Queen’s Speech – 16 November 1994

    Below is the text of the Queen’s Speech, held on 16th November 1994.


    My Lords and Members of the House of Commons.

    The Duke of Edinburgh and I look forward to receiving the State Visit of His Highness the Amir of Kuwait in May and His Excellency the President of Finland in October next year.

    The Duke of Edinburgh and I look forward to our State Visit to South Africa in March. We also look forward to our visit to New Zealand and to the Commonwealth Heads of Government Meeting there in November next year.

    My Government attach the highest importance to national security. They will work to continue the process of NATO’s adaptation to the changing security environment to allow it to play a wider role in protecting stability throughout Europe. At the Budapest summit in December they will seek to enhance the role of the Conference on Security and Co-operation in Europe in conflict prevention and resolution. They will also work for full implementation of the Conventional Armed Forces in Europe Treaty. The United Kingdom’s nuclear deterrent will be maintained.

    My Government will continue its efforts to promote a peaceful settlement in the former Yugoslavia.

    Preventing the proliferation of weapons of mass destruction remains an important priority. My Government will work to promote the indefinite and unconditional extension of the Nuclear

    Non-Proliferation Treaty; and will pursue energetically negotiations for a verifiable and comprehensive Nuclear Test Ban Treaty. The fight against terrorism in the United Kingdom and elsewhere will be maintained.

    My Government look forward to the enlargement of the European Union in January. They will work with our partners to give greater substance to the Europe agreements between the Union and countries of Central Europe, with the aim of preparing these countries for eventual membership of the Union.

    My Government will work for early implementation of the Agreements concluding the GATT trade negotiations, and for early establishment of the World Trade Organisation.

    They will seek to ensure that the principle of subsidiarity is applied to European legislation. They will promote budgetary discipline in the Union and combat fraud. They will participate in the study group which from June 1995 will prepare for the 1996 Inter-Governmental conference.

    My Government will continue to promote respect for human rights. They will maintain a substantial aid programme to promote sustainable development and good government.

    The United Nations will celebrate its Fiftieth Anniversary in 1995. My Government will continue efforts to enhance the capabilities of the United Nations, particularly in peacekeeping and preventive diplomacy.

    My Government will play an active part in tackling drug misuse, drug trafficking and organised crime at home and abroad.

    Support for consolidation of a peaceful and stable democracy in South Africa will remain a priority.

    My Government will continue to work for the long-term stability and prosperity of Hong Kong. They will seek to develop co-operation with China to implement the Sino-British Joint Declaration in the best interests of the Hong Kong people and a smooth transition in 1997.

    Support for political and economic reform in the former Communist countries of Europe and Asia will continue.

    My Government will maintain support for the Middle East Peace Process.

    They will work for yet stronger ties with the countries of the Asia Pacific region.

    Members of the House of Commons,

    Estimates for the public service will be laid before you.

    My Lords and Members of the House of Commons,

    Legislation will be introduced to give force to the changes in the European Community’s system of own resources following the agreement at the Edinburgh European Council.

    My Government will continue with firm financial policies designed to support continuing economic growth and rising employment, based on permanently low inflation.

    Fiscal policy will continue to be set to bring the budget deficit back towards balance over the medium term. My Government will reduce the share of national income taken by the public sector.

    My Government will continue to promote enterprise, to improve the working of the labour market, and to strengthen the supply performance of the economy. They will bring forward legislation to promote increased competition in the gas industry and to reform the agricultural tenancy laws in England and Wales. A Bill will be introduced to create a Jobseeker’s Allowance, reforming benefits for unemployed people and giving them better help into work.

    Legislation will be introduced to equalise the State pension age between men and women and to improve security, equality and choice in non-state pensions.

    My Government will continue to implement policies and programmes responsive to the needs of the individual citizen, in line with the principles of the Citizen’s Charter.

    They will introduce a Bill to tackle discrimination against disabled people.

    My Government will bring forward legislation to make further improvements to the management of the National Health Service; and to provide for people with a serious mental disorder discharged from hospital to be cared for under supervision.

    Legislation will be introduced to transfer the Crown Agents and the commercial activities of the Atomic Energy Authority to the private sector; and to authorise the construction and operation by the private sector of a high speed rail link between London and the Channel Tunnel.

    The delivery of environment policies will be strengthened by legislation to establish environment agencies for England and Wales, and for Scotland.

    Legislation will be introduced to reform the Scottish Criminal Justice system.

    In Northern Ireland my Government will build on the progress already made to secure peace and a comprehensive political accommodation founded on the principles of democracy and consent. They will uphold law and order and strive to strengthen the economy and create equality of opportunity for all sections of the community. They will seek to maintain close and constructive relations with the Republic of Ireland.

    My Government will promote further measures of law reform. Other measures will be laid before you.

    My Lords and Members of the House of Commons,

    I pray that the blessing of Almighty God may rest upon your counsels.

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Mr Major’s Joint Doorstep Interview with Jacques Santer – 14 September 1994

    Below is the text of Mr Major’s joint doorstep interview with the European Commission President-Designate, Jacques Santer, in London on Wednesday 14th September 1994.


    JACQUES SANTER:

    I was very pleased in my function as designate-president of the Commission of the European Union to see the Prime Minister of the United Kingdom, John Major, on my trip through the capitals, coming from Dublin; before I was in Madrid, Rome and Lisbon and we had very good talks about the constitution of the Commission and we had also the opportunity to discuss some common subjects about the forthcoming European Union, about the procedures and the institution of procedures and also the intergovernmental conference of 1996 and so on. We had a very constructive and for me at least a very useful discussion and in my view it is very important that as the upcoming President of the Commission I hear all the opinions of the members of the European Council.

    PRIME MINISTER:

    There is very little, frankly, to add to that. I have been delighted to welcome the President here today. As he said, we have ranged fairly widely, looking at what might be in the IGC, very much in its preliminary stages of course at the moment; to look at the way in which we think Europe might develop to the east; to discuss the composition of the European Commission; and to look at a number of matters related to common foreign and security policy and defence policy in the future so I think it has been a very fruitful discussion and we have agreed that we will meet at regular intervals to continue it.

    QUESTION:

    Mr. President, you are taking over at a time when there is a debate going on about the future structure of the Union. Do you see a future for a Union which has a hard core in the centre, what some people see as a two-tier Union?

    M. SANTER:

    I am very fond of all the discussions you can have about the future of Europe. I think that everybody can bring in a paper and we have to discuss it. I think that is very useful also that we have to discuss it in the future.

    As the forthcoming President for the European Commission, I cannot deal at this moment with all the papers coming up and with all the Opinions made by the European Union but I think as we made it up also for the Treaty of Maastricht and for the Treaty of the European Union we have to reach the objectives and to be a Union of 12 member states and we have to reach this objective of 12 and even the intergovernmental conference of 1996 has to reach agreement at 12 or 16; after the referenda in some of the Scandinavian countries, we have to reach 12 or 16 member states so we try and I am trying as forthcoming President of the Commission to reach agreement by all the member states. I think it is very important that all the member states can reach the targets, the objectives, that we have been trying to.

    QUESTION:

    Is it your personal view that one of those objectives should be and will be a single currency for Europe?

    M. SANTER:

    I think we reached an agreement about economic and monetary union, Inside the Treaty of Maastricht we made the steps and the stages and of course also established the criteria that each country has to reach before they could pass to the third stage and in this view I think the Treaty of Maastricht would be operational in itself. It is not my opinion to change the Treaty of Maastricht belonging to the economic and monetary union.

    QUESTION:

    But you would support the objective in that treaty of a single currency?

    M. SANTER:

    Of course.

    QUESTION:

    Prime Minister, do you believe that the IGC in 1996 will be the be-all and end-all of this debate or is it just a staging post along the way?

    PRIME MINISTER:

    I don’t think the IGC of 1996 has anything to do with a single currency and I will be very surprised indeed if a single currency is part of the debate in 1996. That debate was had at Maastricht, a view was expressed by various people, we have expressed our view and at some stage in the future people will make a judgement about whether that can proceed or not but that is not a matter that is going to be particularly on the table in 1996. Many people misunderstand that but I don’t think that is going to be materially on the table then. What people are going to be at are other institutional matters and the development of course of the Community to the east, the enlargement of the development and what that means for the institutions of the Community, that perhaps and the development of common foreign and security policy and defence.

    QUESTION:

    And on the issue of a hard core which has been raised in Germany?

    PRIME MINISTER:

    You know my view about the issue of a hard core. It depends what you mean by the issue of a hard core. If you mean the issue of a hard core that lays down precisely how the rest of the Community go, goes there and expects the rest of the Community to follow it, then I think that will be destructive and I set out my views on that very clearly at Leiden a few days ago.

    QUESTION (Hugh Pym – ITN):

    If I could switch to a more domestic matter, the unemployment and inflation figures this morning, do you feel they might suggest that the interest rate rise on Monday was unnecessary?

    PRIME MINISTER:

    No, I don’t think that. I was delighted to see the further fall in unemployment; it has been falling for a long time; we are down now to 9.2%, that is far higher than I would like to see it but there has been a very great improvement and I think people are very pleased about that but one of the things to sustain employment in the future is to ensure that we have low inflation in the future, one of the things that will make us competitive with other countries not just in Europe and elsewhere is to make sure our inflation is as low as theirs.

    What concerns me and has concerned the Chancellor is that over many years in the post-War period inflation has gone down but it hasn’t been held down, it has gone down and it has gone up. What we are determined to do in the interests of keeping people in jobs, keeping Britain competitive is to make sure that we keep inflation within our target range of between 1 and 4% and round about the middle and lower half of that by the end of this Parliament so we are looking at the pressures that might emerge in the future and taking action to ensure that those pressures don’t damage people’s jobs and people’s prosperity.

    QUESTION:

    And would you agree if necessary interest rates would have to go up?

    PRIME MINISTER:

    I am never going to speculate on which direction interest rates may go. It isn’t a one-way stream ever, you have to look at the conditions that apply and see what monetary policy is appropriate to contain inflation. We are serious about making sure we keep inflation under control. I have never made any secret about my passionate belief that we have to do that if we are to make sure that our economy progressively gets stronger and people’s employment gets progressively more secure and towards the end of last week the decision was made that it would be appropriate to have a small change at the moment.

    QUESTION:

    On one other subject, in a court case today, the Rachel Nickell case, there have been severe criticisms of the police handling because the accused has been allowed to walk free. Do you have any view on that?

    PRIME MINISTER:

    I haven’t seen the reports yet, I may comment when I have seen them.

    QUESTION:

    Prime Minister, can I ask you very briefly about Ireland? There is criticism today from the Republican prisoners who are suggesting that perhaps you and the British Government are dragging your feet over the IRA ceasefire.

    PRIME MINISTER:

    The IRA were conducting intolerable outrages for twenty-five years. I hope they have now given up those outrages for good, they certainly seem to be indicating that, they haven’t expressly yet said so, I hope they will expressly say so but we have made a great deal of progress. The Downing Street Declaration isolated the IRA, it isolated them in the opinion of the world and in the opinion of many other people and it has brought them to the position of a ceasefire. I hope we can build on that but we will build on that in a way that will be secure and I will do that at the time I think it is appropriate.

  • Mr Major’s Speech in Leiden – 7 September 1994

    Below is the press release following Mr Major’s speech at the William and Mary Lecture, given in Leiden at the University on 7th September 1994.


    PRIME MINISTER:

    EUROPE: A FUTURE THAT WORKS

    Speaking in Leiden, the Prime Minister said that his theme “will be the long term future of Europe – all of Europe – and the extent to which we are now outgrowing the concept of the original founders of the European Union”.

    The Prime Minister dealt with:

    The British outlook on and contribution to Europe.

    The future development of the European Union.

    Extending security and prosperity to Central and Eastern Europe. Britain’s Outlook and Contribution

    The Prime Minister tackled a popular caricature of Britain “that there are … only two approaches to the European Union – that of the eleven on the one hand and of Britain on the other … Britain is said to be a backmarker … and British arguments anti-European. The caricature is ludicrous. Many of the key developments of the past few years have been due to Britain’s advocacy – the single market; budgetary discipline; proposals for CAP reform … No backmarking there.”

    The Prime Minister went on to say that “Britain is irrevocably part of Europe … but it must be the right sort of Europe … We can achieve that but to do so such a Europe must be flexible … The most constructive attitude to Europe is to plan a future that works.”

    “The assets Britain brings to Europe are perhaps too easily taken for granted … second largest net contributor to the European Union’s budget … a global reach … a more significant contribution to NATO – and hence to the security of all Europe – than any other European nation … our willingness to contribute whether to the European Union or to NATO, is vivid evidence of the British commitment to the freedom and future of Continental Europe.”

    Future of the European Union

    The Prime Minister said that the vision of the Founding Fathers of the European Community “was proved right for its age. But it will not do now … The European Union seems temporarily to have lost the self-confidence of the 1980s. Popular enthusiasm for the Union has waned. We need to listen to these warnings if we are to make the right moves in the future.”

    The Maastricht Treaty “strained the limits of acceptability to Europe’s electors … our vision will only work if we carry the support of our electors … that is the fact of the matter. We need a vision grounded in reality. Europe’s peoples in general retain their favour and confidence in the nation state … I believe that the nation state will remain the basic political unit for Europe.”

    The Prime Minister said that he saw two pre-eminent tasks for the future:

    “within the existing Union to rebuild the cohesion and confidence which has diminished in the past few years: in external policy to extend security and prosperity to the countries to our east …”

    Flexibility

    “I have read with great interest recent contributions to the European debate by Edouard Balladur and by Wolfgang Schauble and Karl Lamers. I welcome their emphasis on a more flexible Europe. Diversity is not a weakness to be suppressed: it is a strength to be harnessed. If we try to force all European countries into the same mould we shall end up cracking that mould. Greater flexibility is the only way in which we shall be able to build a Union rising to 16 and ultimately to 20 or more Members States …

    The way the Union develops must be acceptable to all Member States. It seems to me perfectly healthy for all Member States to agree that some should integrate more closely or more quickly in certain areas. There’s nothing novel in this. It is the principle we agreed on economic and monetary union at Maastricht. It may also happen on defence.

    But the corollary is that no Member State should be excluded from an area of policy in which it wants and is qualified to participate. To choose not to participate is one thing. To be prevented from doing so is quite another -and likely to lead to the sort of damaging divisions which, above all, we must avoid.

    I see a real danger, in talk of a “hard core”, inner and outer circles, a two-tier Europe. I recoil from ideas for a Union in which some would be more equal than others. There is not, and should never be, an exclusive hard core either of countries or of policies. The European Union involves a wide range of common policies and areas of close co-operation. No Member States should lay claim to a privileged status on the basis of their participation in some of them. For nearly forty years now, the Member States of the European Union, first six, then nine, ten, twelve, soon to be sixteen, have worked to reduce divisions in Europe. We must not see them reintroduced. That is why an essential component of the future European construction must be flexibility. We need a debate about it.

    … Flexibility is essential to get the best out of Europe. The European Monetary Union is a case in point. The arrangements in the Maastricht Treaty for progress towards EMU do not simply allow, but require a differentiated approach. This is essential. Whatever one’s view of EMU Stage III – -and I have thought it right to reserve the United Kingdom’s position, and still do – the introduction of a common currency without proper prior economic convergence would be a disaster. But Maastricht recognised that.”

    Inter-governmental Conference

    The Prime Minister said that the Inter-governmental Conference in 1996 was likely to bring such issues into sharp focus. “How, for example, can we fashion a fairer voting system? Can we develop simpler and more transparent legislative procedures? Should the Council exercise more control over the Commission? Is the number of commissioners becoming unwieldy as the Union enlarges? Should the Commission have new powers in some areas – for example to enable it to pursue budget fraud into the Member States themselves?”

    The European Parliament and National Parliaments

    “Parliaments take time to mature … the European Parliament is a fledgling institution … there is a long way to go before it wins respect and popular affection … The European Parliament sees itself as the future democratic focus of the Union. But this is a flawed ambition because, the European Union is an association of States, deriving its basic democratic legitimacy through national parliaments … The task for 1996 is for the European Parliament to grow into its existing powers … much more should be done to build links between national parliaments and the European Parliament … I see a case for joint committees (both by inviting MEPs to contribute to national scrutiny committees and vice versa) and we will examine this in the months ahead.”

    Foreign and Security Policy

    The Prime Minister said that “steps which have been taken towards joint actions in foreign policy strike us as no more than a modest beginning … We should be more ambitious. There are obvious advantages in developing common policies towards Russia, the Ukraine and other countries in eastern and central Europe.”

    Defence

    The Prime Minister said that both NATO and the WEU had been the focus of British efforts over the past 40 years. We are committed to looking ahead … to constructing a European Security and Defence identity which reinforces NATO, which builds on the potential of WEU … Britain is, and must remain, at the core of the defence of Europe. Enlargement to the East

    The Prime Minister said that bringing the central European states into our family of democracies “must and can be done in a way which benefits the whole of Europe …The process will require many changes from the countries to our east … change cannot be only on one side … we must also face the fact that our European Union cannot function in the same way and with the same policies with 16 or 20 or more members as it did with 6 or 10 or 12 … For example, the CAP would be unsustainable and unaffordable with 20 members.”

    “It must not be our objective to admit new members to a status inferior to other partners. They must enjoy the same options, in a flexible Union, as are open to us.”

    The Prime Minister added that we had a responsibility to help the economic development of our eastern neighbours: “They must be given access to our markets and not kept at bay by trade defence mechanisms. We do not want to build a continent where economic divisions would return as ghosts of the political barriers which crumbled in 1989.”

    As to security relationships with central and eastern Europe, the Prime Minister said that “for some countries, membership of NATO will be the right answer: the only question is when rather than whether.”

    “The end of Communism has been the biggest peacetime change in our continent for over a hundred years … We now have the chance to entrench democracy across Europe. History will not forgive us if we squander it.”

    Conclusion

    The Prime Minister concluded by saying that “we have the prospect of a Union of increasing diversity [which] will make varied geometry a fact, whatever decisions we take about our institutions.”

  • Mr Major’s Joint Doorstep Interview with the Dutch Prime Minister – 7 September 1994

    Below is the text of Mr Major’s joint doorstep interview with the Dutch Prime Minister, Mr Wim Kok, on Wednesday 7th September 1994.


    PRIME MINISTER:

    Can I say firstly that I am delighted to be back here today and to renew my acquaintance with the Prime Minister, we had the opportunity of working together as Finance Ministers some years ago and I have no doubt that the excellent relationship we have enjoyed with the Dutch government over recent years is going to continue and we had the opportunity to review a range of matters of joint interest over luncheon.

    We spent a substantial amount of time looking at the prospects as we move forward to the intergovernmental conference in 1996 and other current European matters, I will not go into those in detail, no doubt if you wish to pursue that you will ask questions about it.

    We also spent some time reviewing the present situation in Bosnia. As you know, the British have a number of troops there and the Dutch have a very large contingent, many troops in Srebrenica and elsewhere, and we were looking at the events over recent weeks, the current prospects and what may happen in the future, to review the possibility of there being progress, we spent some considerable time on that.

    Beyond that we looked at a number of other bilateral matters. I will spare you the details of that, the Prime Minister may wish to mention some of them but by and large I think I will leave it to you to ask questions.

    MR KOK:

    Let me be brief at the same time. I am delighted that Prime Minister Major is able to be here today and to give his lecture this afternoon in Leiden, we know each other already for quite some time. And I think both on the bilateral and on the multilateral level a lot of issues had to be discussed in a constructive and fruitful way – the future of Europe, the enlargement of Europe, at the same time the preparation for the intergovernmental conference 1996, there we have a lot of interests in common – and we have agreed that on a bilateral basis our officials will be in contact in order to inform each other about views and possible common ways in order to tackle common problems.

    As the Prime Minister said already, we also discussed the situation in Bosnia and the undesirability that the arms embargo would be lifted, not in the least because of the position and safety of the considerable amount of troops we have in the region.

    And perhaps I might say in ending this short comment on my behalf that we exchanged views on Northern Ireland and that I expressed my admiration for the courageous and statesmanlike way in which both Prime Minister Major and Prime Minister Reynolds are trying to bring an historic problem hopefully to an end because Northern Ireland is a centre of instability and violence, as we all know, and we all in Europe, and we here in the Netherlands, do hope that it will be possible to bring this violent situation for a number of decades to an end and we fully encourage and support the way in which Prime Minister Major is doing his utmost in order to contribute to the stabilisation of that very difficult part of the world and Europe.

    QUESTION:

    Mr Kok, do you like what you hear from Prime Minister Major about variable geometry, multi-speeds, multi-layers in Europe? And Mr Major, did anything you heard from Dublin or anywhere else yesterday lead you towards setting the clock ticking?

    MR KOK:

    Would you allow me to comment on Prime Minister Major’s speech after I have heard the speech?

    QUESTION:

    We may not have the chance to talk to you.

    MR KOK:

    I will be available, I will be there.

    QUESTION:

    I think you have heard the idea from him before though?

    MR KOK:

    Yes, but it is better perhaps to give my comments after having listened to the speech.

    PRIME MINISTER:

    I set out the position the other day, I do not think our position has changed, Naturally I think we are inching forward to being clearer about matters but I do not think that is quite yet the case, I very much hope we can move forward and it can be absolutely clear that this is intended to be a permanent cessation of violence. That is the conclusion that I wish to be able to draw, but I must credibly be able to draw it and I am not sure it is entirely there yet.

    QUESTION:

    Al Gore has today joined Albert Reynolds in accepting that the IRA renunciation of violence is permanent, do you feel uncomfortable that you are still sticking out when they are both prepared to accept this, and are you worried that the rush by Dublin to get Gerry Adams involved is prejudicing the chance of bringing the Ulster Unionists along in any eventual settlement?

    PRIME MINISTER:

    I find myself in a unique position in this respect. Unlike other people I actually have the responsibility for the security of Northern Ireland and I must be absolutely certain myself that this is not just a short-term ceasefire, but a credible long-term permanent cessation of violence and I believe the people of Northern Ireland would wish me to be certain about that as well. As I indicated a moment ago, I think gradually it is being made a little clearer that perhaps this is not just a temporary ceasefire, but it is not clear yet. It can be made absolutely clear very simply. All that has to be said is for Sinn Fein to say quite clearly yes, under no circumstances would we go back to violence – that is all I am waiting to hear. I do not want any particular formulation, I do not ask them to accept words that we have ourselves uttered in the past, I just ask for a clear cut, unequivocal assurance that violence is over for good, and I believe the people in Northern Ireland would expect me to be certain about that before I move forward, and I will be.

    QUESTION:

    [Inaudible] Gerry Adams involved by Dublin [inaudible].

    PRIME MINISTER:

    Everyone must make their own judgements about what pace to take things. The Taoiseach and I have worked very closely indeed over the last couple of years and I do not doubt for a single second his commitment to have a permanent end to violence and to be able to move forward satisfactorily, there is no shred of doubt about that and we will continue to work together to try and achieve that, but both he and I must make our own judgments about the speed at which things develop.

    QUESTION:

    [Inaudible] British troops out of Belfast?

    PRIME MINISTER:

    That is not a matter I can answer today, Northern Ireland is part of the United Kingdom, there are British troops in every part of the United Kingdom, they are there to protect people against terrorist behaviour, that terrorist behaviour has come from the IRA and it has also come from some Loyalist sources as well. The policing and the troops on the ground in Northern Ireland are an operational matter, decisions upon that are decisions taken upon the advice of the GOC in the case of the Army, and the Chief Constable in the case of the Police.

    QUESTION:

    A two speed peace process seems to be coming along, with Mr Reynolds in the driving seat, what is your view on that?

    PRIME MINISTER:

    I indicated a moment ago, the decisions that must be taken in the near future are decisions that involve the British government and the people of Northern Ireland, we must be certain about those.

    QUESTION:

    What do you think about the UK economic recovery [inaudible].

    PRIME MINISTER:

    I think that is a question that you do not seriously expect an answer to. The rate of UK economic recovery has certainly been quickening over the last year or so. We now find ourselves in the position where unemployment is falling, inflation is at a 25 year low and growth has been accelerating, so I think we have a very benign set of economic circumstances and we are determined to keep them benign.

    MR KOK:

    We are now following that all over Europe, the continent is now falling, the only hope I have is that we are not only looking to the short term improvement of the economy because of the incidental improvements, but that we also are aware of the necessity to make structural adjustments all over Europe because the White Paper made by Jacques Delors and approved by the European Council is still very up-beat.

    QUESTION:

    What is your reaction to the lifting of the trade ban by Malaysia?

    PRIME MINISTER:

    I am very pleased about that. When the trade ban was introduced some time ago we made representations about it and we have continued to do so. We have had a,very long standing trading and investment relationship with Malaysia, I am delighted that the hiccup is now behind us and that we are now back into our traditional relationship.

    QUESTION:

    Mr Kok, would you be happy with the idea of a hard core of countries that went ahead, an inner core of 5, without necessarily pre-empting the Prime Minister’s speech?

    MR KOK:

    I would not be happy as an objective. We cannot exclude that as far as the economic and monetary union is concerned, where the Netherlands play another role than Britain, as we all know, that at the end of the day by 1997 or 1999 there would be a certain split for the time being between some countries participating in the third stage and others who are not yet ready, but that should always be an unavoidable outcome of the process instead of an objective. I think it should not be the objective to make a split right from the beginning, but I do not exclude that the outcome of the process might be so.

    QUESTION:

    Did you talk about who is to be the next Secretary General of NATO?

    PRIME MINISTER:

    We have not reached a conclusion on that matter today, no.

    QUESTION:

    Which names were you discussing?

    PRIME MINISTER:

    None I am prepared to divulge today.

    QUESTION:

    This morning Dr Paisley has been calling you a dictator but we have not heard yet what you have to say about him?

    PRIME MINISTER:

    I will read what he has to say with my usual interest.

  • Mr Major’s Speech in Leiden – 7 September 1994

    Below is the text of Mr Major’s speech at the William and Mary Lecture, given in Leiden at the University on 7th September 1994.


    PRIME MINISTER:

    INTRODUCTION

    Britain and the Netherlands

    John Milton, the great British poet, described Leiden as “That famous University and renowned Commonwealth, a sanctuary of liberty”. I am privileged to deliver the second William and Mary Lecture in such distinguished surroundings.

    This lecture series was inaugurated by Ruud Lubbers in Milton’s University, Cambridge. It celebrates the close bonds between our two nations over hundreds of years. Bonds so old that even in the time of the first Queen Elizabeth, her Secretary of State, Sir Francis Walsingham, declared Britain and the Netherlands to be “the most ancient allies and familiar neighbours”. Bonds epitomised in our fierce attachment to the liberty stressed by Milton. Liberty underlies much that I shall say this evening.

    The long history of the Anglo/Dutch relationship is, of course, not wholly one of unbroken harmony and friendship. I admired Ruud Lubbers’s lightness of touch in passing over four Anglo/Dutch wars as “the occasional naval battle” in last year’s lecture. And at various times in our history, Britain and the Netherlands have been fierce rivals in their pursuit of prosperity on the world’s sea lanes.

    In the post-War period, we have been staunch allies in NATO – many of whose leading figures have come from our countries. We’ve been totally committed in our support for the Atlantic Alliance. As we meet, our two Air Forces are making the largest European contribution to NATO air power in the skies over Bosnia, just as our armies have undertaken some of the most hazardous operations for UNPROFOR on the ground. Our joint amphibious force operated in Iraq in 1991 and now helps to defend NATO’s Northern region.

    The Dutch and British are not just allies; not just the inheritors of outward-looking, sea-faring, free trading, global traditions; not just bound by the history which united our Crowns in 1688; not just close neighbours; but friends, in the most genuine sense of the word. Friends from conviction and shared values. Friends by habit and instinct. Friends wherever they meet around the world.

    The challenges facing Europe

    It is from that perspective – of a candid friend – that I would like to give a British view of the challenges facing us in Europe.

    My theme is the long-term future of Europe – all of Europe – and the extent to which we are now outgrowing the concept of the original founders of the European Union.

    To some, who believe the original concept is not yet met, that may seem provocative. It is intended to be realistic. Since the 1950s and especially over the past five years, our Continent has changed in ways no-one could foresee. We live in a different Europe and a different world. The vision of the 1950s is not right for the mid-90s.

    I shall first describe Britain’s outlook on Europe.

    Then I shall look at the ways in which the European Union should be developed in the future.

    Finally, I shall set out how we can extend security and prosperity to our neighbours in Central and Eastern Europe.

    BRITAIN’S OUTLOOK AND CONTRIBUTION

    The caricature of Britain

    Let me tackle, straight away, a popular caricature.

    The caricature is that there are, in broad terms, only two approaches to the European Union – that of the Eleven on the one hand, and of Britain on the other. Britain, for these purposes, is said to be a backmarker; a country interested only in a glorified free trade area.

    The caricature is ludicrous. Many of the key developments of the past few years have been advanced by Britain’s advocacy – the Single Market; budgetary discipline; proposals for CAP reform; CFSP; deregulation and trade liberalisation. No backmarking there.

    Nor is it right to characterise Britain’s opposition to some policies as anti-European. I have argued continually that the European Union must improve its competitiveness. With over 18 million unemployed that is surely essential.

    That is why I believe we must keep social costs down. If we don’t we will lose competitiveness, lose jobs, lose prosperity.

    This, to me, is a pro-European argument. But when I first made the case, my arguments were regarded as close to heresy, and as distinctly anti-communautaire.

    The fact is that there are not two approaches to Europe among the Governments of the Union, but one and twelve. One because we are all firmly committed to a strong and effective European Union. But twelve because no two Governments have identical approaches. Issue by issue, the twelve members line up in different ways. Sometimes, the United Kingdom finds itself with the majority, sometimes not.

    Sometimes, we are on our own. But that does not happen only to the United Kingdom. Yet how often have we seen the headline “Britain isolated”; and Britain’s fidelity to the European Union questioned as a result? We don’t see this question asked when, as often happens, other Member States stand on their own, in what they see as important national interests.

    Yes, Britain – like the Netherlands, like Germany, like France, Italy, Denmark, in fact like all twelve Member States – has her own perspective on Europe. Our perspective is not wrong simply because it is different.

    The British Outlook

    So what is the British perspective?

    First, it is quite simply that Britain is irrevocably part of Europe. We are hard-headed about it but perfectly clear. The British people know that their future rests with being part of the European Union.

    But, second, it must be the right sort of Europe. One which does not impose undue conformity, but encourages flexibility. Only in that way will we achieve the Europe we want – a Europe which is free and secure, prosperous and coherent, democratic, potent and generous.

    Third, we believe that the political dimension is crucial to making the most of the development of the Union.

    Fourth, we want the European Union, – which is, after all, a unique community of democracies – to pull its full weight internationally and be a power for good in the world.

    And fifth, we want the Union’s development to be realistic, attainable, and – crucially – supported by its peoples.

    Like everyone else, we want to move forward in Europe. We cannot consider Europe complete while so many European democracies remain outside the Union. But if we are to build well, we must build carefully. We do not just want a futuristic grand design which never leaves the drawing board. Even worse would be to put up a building which fell down because we hadn’t got it right. The most constructive attitude to Europe is to plan a future that works. That is what Britain wants.

    Britain’s Contribution

    It is to this Europe that Britain seeks to make a very large and positive contribution.

    The assets Britain brings to Europe are pet haps too easily taken for granted.

    We have the world’s sixth largest economy. London is one of the world’s leading financial centres. Our trading links and global connections bring substantial benefits to Europe. We are the second largest net contributor to the European Union’s budget.

    With France, Britain is one of only two nations in the Union which still have a global reach to their foreign policies. Alone in Europe, the United Kingdom is a member simultaneously of the UN Security Council, the Economic Summit, and of the Commonwealth which now comprises one third of the world’s nations. We have a deep involvement in all of the Continents of the world.

    Our contribution to the defence of Europe, to its security institutions, to its ability to exert an influence when conflict threatens European interests – as in the Gulf – is second to none among the Member States. Far from staying separate, over 40 years ago we merged our security policy into that of the North Atlantic Alliance. We were prepared to commit ourselves to its integrated military structure. We have made a more significant contribution to NATO – and hence to the security of all Europe – than any other European nation.

    I make these points, not from national pride, but because our willingness to contribute, whether to the European Union or to NATO, is vivid evidence of the British commitment to the freedom and future of continental Europe.

    Given this commitment, it is high time that the caricature of Britain in Europe was buried. We have a commitment which surely gives Britain the right – just as others have the right – to advance her reasoned views without constant questioning of our European credentials.

    THE FUTURE OF THE EUROPEAN UNION

    Achievements and Problems

    We should not let the European Union’s recent difficulties obscure its remarkable success over four decades.

    The European Community was born to end divisions in Western Europe. It has succeeded. With NATO, it has given us peace and prosperity in our part of the Continent, and made war literally unthinkable. The determination of the Founding Fathers has succeeded far beyond the estimations of most people in their time. Their vision was proved right for its age. But it is outdated. It will not do now. We must all adjust our vision to meet the challenges of today and tomorrow.

    The deep hurt of the recession and bitter divisions over Maastricht – within so many Member States have left the European Union bruised and battered. We British had a parliamentary fight unequalled in perhaps a hundred years to pass the legislation. Other Governments had to invest great effort into persuading their Parliaments of its worth. Where Member States held referenda, their results were far from a ringing endorsement of the Treaty. This year’s European Elections were another warning. All over Europe, the picture was much the same: a poor turn out, with many votes cast more on domestic than on European issues. I believe that the Netherlands were no exception.

    The European Union seems temporarily to have lost the self-confidence of the 1980s. Popular enthusiasm for the Union has waned. We need to listen to these warnings if we are to make the right moves in the future.

    The Lessons for the Future

    The European Union has come a very long way in a very short time. There is impatience to take it further, but impatience is a poor framework for building soundly. Even though the original ambitious schemes mooted were not incorporated in the Maastricht Treaty, the final outcome nevertheless strained the limits of acceptability to Europe’s electors.

    The lesson is self-evident. Harmonisation and integration will not work if they have to be forced on people. Of course it is for governments and politicians to give a lead. But our vision will only work if we carry support of our electors, if our people can see the benefits, understand them and want them. That is the fact of the matter. We need a vision grounded in reality.

    Another clear message is that Europe’s peoples in general retain their faith and confidence in the Nation State. In the European Union, Nation States have both pooled elements of sovereignty and retained their independence and individuality. We have reached a careful and effective balance, and the evidence is that our peoples are wary of over-centralisation and of overambitious blueprints for new European architecture. They do not feel that a huge, remote, multi-lingual, multi-cultural, multi-national amalgam would be responsive to them or could properly reflect their national identities.

    Edouard Balladur said last week: “France has always wanted a Europe of nation states, which respects each country’s own personality”. So has Britain. I believe that the Nation State will remain the basic political unit in Europe.

    A third lesson is the need for greater transparency. Both the language and the institutions of the European Union can be extraordinarily difficult to penetrate from outside. They need to be made accessible to the citizens of Europe. At present they are not.

    Tasks for the Future

    I see two pre-eminent tasks for the period ahead:

    – within the existing Union, to rebuild the cohesion and confidence which has diminished in the past few years;

    – in external policy, to extend security and prosperity to the countries to our East. I shall come back to this in a few minutes.

    The European Union now needs to regain public support by making a success of what is already on its agenda.

    Let me touch on some of the key points in this process.

    Flexibility

    First, cohesion within a community of twelve to sixteen requires flexibility, as I argued consistently throughout the recent European elections.

    So I am glad a debate on this matter is now developing, and I have read with great interest recent contributions by Edouard Balladur and by Wolfgang Schauble and Karl Lamers. I welcome their emphasis on a more flexible Europe. Diversity is not a weakness to be suppressed: it is a strength to be harnessed. If we try to force all European countries into the same mould we shall end up cracking that mould. Greater flexibility is the only way in which we shall be able to build a Union rising to 16 and ultimately to 20 or more Member States.

    The way the Union develops must be acceptable to all Member States. It seems to me perfectly healthy for all Member States to agree that some should, integrate more closely or more quickly in certain areas. There’s nothing novel in this. It is the principle we agreed on economic and monetary union at Maastricht. It may also happen on defence.

    But the corollary is that no Member State should be excluded from an area of policy in which it wants and is qualified to participate. To choose not to participate is one thing To be prevented from doing so is quite another – and likely to lead to the sort of damaging divisions which, above all, we must avoid.

    So I see a real danger, in talk of a “hard core”, inner and outer circles, a two-tier Europe. I recoil from ideas for a union in which some would be more equal than others. There is not, and should never be, an exclusive hard core either of countries or of policies. The European Union involves a wide range of common policies and areas of close co-operation. No Member States should lay claim to a privileged status on the basis on their participation in some of them. For nearly forty years now, the Member States of the European Union, first six, then nine, ten, twelve, soon to be sixteen, have worked to reduce divisions in Europe. We must not see them reintroduced.

    That is why an essential component of the future European construction must be flexibility. We need a debate about it.

    By flexibility, of course, I do not advocate chaotic non-conformity. Our union depends on the rule of law. Where countries have accepted obligations, they must honour them. If they fail to honour them they must – if necessary – be made to do so. Nothing is more destructive of commitment to common European aims than the popular belief that, while some countries diligently obey the rules, others are cheating and being allowed to get away with it.

    There are areas where conformity is right and necessary – in the rules which govern international trade and the Single Market and the environment, for example. But conformity can never be right as an automatic principle. Flexibility is essential to get the best out of Europe – and to respect the wishes of our peoples.

    The European Monetary Union is a case in point. The arrangements in the Maastricht Treaty for progress towards EMU do not simply allow, but require a differentiated approach. This is essential. Whatever one’s view of EMU Stage 3 – and I have thought it right to reserve the United Kingdom’s position, and still do – the introduction of a common currency without proper prior economic convergence would be calamitous. But Maastricht recognised that. In general, the Maastricht Treaty’s flexible arrangements allow countries freedom and choice on how they decide to participate in the pursuit of our shared aims.

    The Inter-Governmental Conference

    The Inter-Governmental Conference in 1996 is likely to bring many issues into sharp focus. How, for example, can we fashion a fairer voting system? Can we develop simpler and more transparent legislative procedures? Should the Council exercise more control over the Commission? Is the number of Commissioners becoming unwieldy as the Union enlarges? Should the Commission have new powers in some areas – for example to pursue budget fraud into the Member States themselves?

    In developing Britain’s approach to the IGC, I will be guided by four considerations:

    The first is my sense of what Britain’s Parliament wants and what people actually need.

    Secondly, I shall want to see greater flexibility in the European Union, and greater tolerance of diversity.

    But that makes it all the more important, third, that Europe maintains a strong sense of shared purpose and common enterprise. The IGC must be the anvil on which we forge a stronger Union.

    And fourth, that any proposals for change are workable and effective. The European Union has never lacked for ideas for its development. But it needs ideas which work.

    The European Parliament and National Parliaments

    This is particularly evident in the approach we must take to developing the European Union’s democratic credentials.

    Within a more open, flexible and diverse Europe, what should be the respective roles of the European Parliament and the national parliaments?

    Parliaments take time to mature. Compared with the British Parliament and the States General in the Netherlands, the European Parliament is a fledgling institution. It has gained considerable powers in a short period. It plays a significant role in the legislative process: some 50 per cent of its legislative amendments are adopted, which is a far higher average than any national parliament. Yet clearly there is a long way to go before it wins respect and popular affection.

    The European Parliament sees itself as the future democratic focus for the Union. But this is a flawed ambition, because the European Union is an association of States, deriving its basic democratic legitimacy through national Parliaments. That should remain the case. People will continue to see national Parliaments as their democratic focus. It is national parliamentary democracy that confers legitimacy on the European Council.

    The European Parliament is not the answer to the democratic deficit, as the pitiably low turn-out in this year’s European Elections so vividly illustrated. The upshot, sadly, has been an unrepresentative and rather incoherent range of parties in the new European Parliament, in which fringe, protest and opposition groups are over-represented. We must wait to see if, over time, our electorates begin to take European Elections more seriously. But, for now, it would be premature to consider a further increase in the Parliament’s powers.

    The task for 1996 is for the European Parliament to grow into its existing powers – for it to ensure that legislation is sensible and proportionate; to avoid damage to competitiveness and jobs; and to contribute to matters such as budgetary control, market opening, and the scrutiny of spending.

    It should also do all it can to oppose fraud. Defrauding the Community budget has become a multi-billion ECU industry. It is scandalous and it does need comprehensive action. No Member State is immune from this. Indeed, it is an area in which national interests and the best interests of the European Union often conflict. The Parliament should continue to give its full backing to the Court of Auditors in waging war on fraud. In that way it can earn the strong support of European electors by lightening the load on their pockets. It could give them more confidence that their taxpayers’ money is properly spent. It’s this sort of action which will improve the status of the Parliament.

    In parallel, I believe that much more should be done to build links between national Parliaments and the European Parliament. Westminster, as I suspect is the case with most national Parliaments, is partly at fault here. We all need to develop a more cooperative effort with the European Parliament and we must examine how this can be done. In my own country, I see a case for Joint Committees (both by inviting MEPs to contribute to national scrutiny committees, and vice versa) and we will examine this in the months ahead.

    Second and third pillars

    The IGC will also consider the so-called pillars – the separate arrangements for foreign and security policy, and for home affairs and justice. They enable Europe to operate through co-operation and not compulsion in areas that are hugely sensitive to the national interest. Britain wants to see more energy put into them.

    The first joint actions in foreign policy strike us as no more than a modest beginning. They have included the elections in South Africa and Russia, humanitarian aid in Bosnia and assistance to the Middle East peace process. We should be more ambitious. There are obvious advantages in developing common policies towards Russia, Ukraine, and other countries in Eastern and Central Europe.

    Of course, for each of us, there will be areas of foreign policy where national action is more appropriate. Hong Kong is an obvious example for the United Kingdom. But when we can act together we have a diplomatic impact much greater than the sum of our parts.

    What of defence? We have NATO, we have the Western European Union. Both offer guarantees for our safety, both call for commitments, both have been a focus of British efforts over the past 40 years. We have now decided to retain and reshape NATO – that is one of the fundamental decisions of the last two years. The January NATO Summit agreed to develop new structures which will allow groups of countries to conduct operations together within the NATO framework, but without the participation of all. We have also decided, at Maastricht, to work towards a common European defence policy, based on the WEU.

    There is serious and detailed work to be done before we have turned these general propositions into reality. Britain will be at the core of this enterprise. Britain’s armed forces have the experience, skill and professionalism to meet the new challenges which we now face. The defence of Europe is not for us a luxury, but a necessity.

    The third pillar, Home Affairs and Justice, deals with threats to our societies of a different kind. There are growing risks to all of our countries from organised crime, and in particular from drug trafficking and money laundering. Cooperation in the fight against crime must become as instinctive as it is in foreign and defence policy. And our Governments must organise their work better than the criminals who oppose them. We are determined to see a success made of Europol, and the further development of the third pillar. The United Kingdom will pursue this energetically.

    ENLARGEMENT TO THE EAST

    A month ago, on a warm night in Warsaw, I sat by the Monument to the 1944 Uprising and heard a remarkable speech by the President of Germany. To anyone familiar with Warsaw’s history, it was striking that he should be there at all. He was speaking to a nation whose overriding foreign policy objective is to integrate with Western Europe’s institutions and above all with the European Union and with NATO. For all that has happened in Polish history, the Polish people want to bind themselves to Germany and to the rest of us. And for all that has happened in German history, Germany wants Poland to be a free and equal partner in our Union.

    On the following day I sat in Vilnius with the Prime Ministers of the three Baltic States. Their goal was the same. They, like the Poles, the Czechs, the Slovaks, the Hungarians and other peoples on the edge of our present Union, are part of the European family.

    After the war, and through the 1950s and beyond, we had to preserve the security of Western Europe against the threat from Communism. Now we must move on. Communism has gone. For the next generation we face a different task. It is to make sure that the barriers now down in Europe’s East do not rise again in any form.

    We have taken our first small steps along that road but we have to go a great deal further. Our predecessors went to war after Poland and Czechoslovakia were invaded. But at the end of a six year war that engulfed the world, those same nations lost their freedom for half a century. By bringing the Central European States into our family of democracies, we can finally make good the damage they suffered. This must and can be done in a way which benefits the whole of Europe. Indeed, it will enhance the Union: a free, stable, prosperous and democratic Central Europe will be a huge benefit to the whole Continent.

    The process will require many changes from the countries to our East. They will need to embody our standards of democracy, law and human rights. They must adopt the economics of the free market.

    However, the change cannot be only on one side. If we expect them to make changes to join us, then we must make changes to help them do it. We must be prepared, for example, to offer periods of transition in some areas. We must also face the fact that our European Union cannot function in the same way and with the same policies with sixteen or twenty or more members as it did with six or ten or twelve.

    Two examples suffice to make this point. The Common Agricultural Policy, as at present operated, would be unsustainable and unaffordable with twenty. members. Wholesale reform will be essential. Secondly, the admission of less economically advanced countries will mean a major reform and redirection of structural funds.

    No-one can doubt that these changes will be controversial and, for some, very painful. Across Europe, we have only just begun to think about them. Member States are not yet reconciled to the policies that are necessary to bring them about. It must not be our objective to admit new members to a status inferior to other partners. They must enjoy the same options, in a flexible Union, as are open to us.

    Enlargement: Economic Cooperation and Free Trade

    We have a responsibility to help the economic development of our neighbours to the East – and it is in our own interests to do so. We must be open-minded and open-handed.

    They must be given access to our markets and not kept at bay by trade defence mechanisms. We do not want to build a Continent where economic divisions would return as the ghosts of the political barriers which crumbled in 1989.

    Enlargement: Security Relationships

    Our outward reach of course must extend to security relationships. Here, too, we must be flexible. For some countries, membership of NATO will be the the right answer, the only question is when rather than whether. For twenty-one countries now including Russia “Partnership for Peace” is making a reality of practical cooperation. The six central European countries and the Baltic states are now also associate partners in the Western European Union. The end of communism has been the biggest peacetime change in our continent for over a hundred years. It is an opportunity we have longed for, hoped for. We now have the chance to entrench democracy right across Europe. I do not believe history will forgive us if we squander it.

    Mr. President, soon we hope to be welcoming four new members to the European Union. They will not be the last. We have the prospect of a Union of increasing diversity, a Union in which difference in size, shape, economic and industrial profile, philosophy, history and culture will make varied geometry a fact whatever decisions we may choose to make about our institutions.

    This diversity, these differences, will undoubtedly make for more vigorous debate, more late nights, harder work to keep our common aims on track. We may sometimes need to take comfort in the observation of a Dutch philosopher, Spinoza, that all excellent things are as difficult as they are rare.

    We will have to balance priorities, the priorities of the smaller nations with those of the larger ones, the needs of the southern countries with those of the north, of allowing for the various weights of agriculture and industry in the national economies of our European Union. In the future, Britain will work hard to ensure the Union takes good account of these differences. We want to ensure that common policies are adopted wherever they offer common benefits; we want to ensure our Union is not a directorate of the larger countries at the expense of the smaller countries. Above all, Mr. President, we don’t want Europe to go off the road. When we see a proposal that could have this effect, then we will say so in a frank and a realistic way and when we have positive proposals to put forward, we will do so vigorously and argue our case with conviction and clarity. That is the positive attitude that we have, an attitude to help Europe towards a future, a future that works, a future that we believe can be built if we have the courage, the application and the farsightedness to take the decisions now that will shape our future not just for the months and the years immediately ahead but far beyond that to make the most of the opportunity that I passionately believe lies at hand for all of us in Europe. [Applause].

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

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


    PRIME MINISTER:

    THE ROLE AND LIMITS OF THE STATE

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

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

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

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

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

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

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

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

    The role of government

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The ownership revolution

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

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

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

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

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

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

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

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

    The public sector revolution

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

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

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

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

    Five ways to break down boundaries

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

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

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

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

    Fourth, we are devolving power within government itself.

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

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

    The new privatisations

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

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

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

    Private Finance

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

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

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

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

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

    Competition and Choice

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

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

    Taking decisions at the right level

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

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

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

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

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

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

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

    The listening service

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

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

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

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

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

    The new public sector

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

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

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

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

    The way ahead

    We will be legislating shortly to take these reforms further.

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

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

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

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

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

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

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

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

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