Tag: European Union

  • Mr Major’s Press Conference in Brussels – 15 July 1994

    Below is the text of Mr Major’s press conference in Brussels on Friday 15th July 1994.


    PRIME MINISTER:

    We have, as you know, very little time. We are all due back at dinner where we have more discussions in just a few moments but let me say a word or two about our pre-dinner deliberations.

    It has taken us a little longer than we originally expected to make a decision on a Commission President but the most important part of that was to make sure that when the decision was made it was the right decision. I believe that that has now been achieved and I warmly congratulate Jacques Santer on his nomination. That now of course goes to the European Parliament and I hope they will speedily and unanimously endorse it.

    Let me just say a word, if I may, about the other candidates whose names have been put forward over the last few weeks but who have not been selected to be President.

    A number of people have contributed in many ways to this debate, a number of highly respected European figures have permitted their names to go forward. The whole matter has, I believe, been conducted in a dignified and a friendly spirit in these discussions and that certainly was the tone of the discussions we have had this afternoon.

    I think Jacques Santer is a wise choice for the next few years. He is well known to all of us, he has served on the European Council for ten years; he brings a wide degree of experience to the job as Prime Minister for some years, experience in finance matters, experience in foreign affairs. He has twice held the Presidency of the Council in 1985 and 1991 but on each of those occasions he made a substantial personal contribution to two of the most significant legislative acts that the Community has produced – the Single European Act in the mid-1980s and of course the Maastricht Treaty with its pillared structure in the early 1990s – and of course the importance of the pillared structure allowing matters to be decided by consensus was of very great importance in ensuring that that treaty came to be, so I think in Mr. Santer we have a President who is well able to reconcile conflicting views around the European table. I think that is very important indeed.

    There will be many difficult decisions to be taken in the future. He is committed to free trade, committed to the economics of the free market, a strong supporter of subsidiarity and a very strong supporter also of enlarging the Community and that is going to be a very important theme of the next few years. He comes from a country proud of its national identity and I have always regarded him as a healing force and not a divisive force and I think that will be very welcome with the difficult decisions that will need to be taken over the years that lie ahead. In brief, I think he is the right man in the right place at the right time and I wish him every success in the difficult and demanding job that he will be undertaking.

    When we had finished reaching agreement on the Presidency, we had a useful discussion on a number of other subjects and that discussion will continue over dinner this evening. Douglas Hurd gave the Council a detailed account of his visit with the French Foreign Minister to the former Yugoslavia. At the end of that discussion, very strong support was expressed by the Council for the plan set out by the Contact Group. We believe that it is absolutely essential to do everything to secure its acceptance and avert the threat of an intensified war in former Yugoslavia. It may be the Foreign Secretary will wish to add a word or two about that.

    The French Prime Minister also raised the question of emergency aid for Rwanda. I don’t think it is an exaggeration to describe the problems there as truly horrifying. The French are playing a leading part to bring about an improvement and they deserve our support. The United Kingdom has made a very substantial contribution to the UN High Commissioner for Refugees and in other ways and we will continue to do so, so we supported the proposal from the French Prime Minister for further assistance to Rwanda and that will be discussed in further detail at the Foreign Affairs Council in the next day or so.

    That is as far as we have got with our subjects in this European Council thus far, the dinner conversation, as I say, lies ahead us but if you have any questions I will happily take them but first I will ask the Foreign Secretary perhaps to say a word or two more about Yugoslavia.

    FOREIGN SECRETARY: [Douglas Hurd]

    I don’t think I need add much. I gave the Council an account of Alain Juppe and my travels and our talks to President Tudjman, with Izetbegovic and the Sarajevo Government and with the Bosnian Serbs and President Milosevic in Belgrade.

    We rammed home the strong arguments in favour of accepting the Contact Group’s plan but I told the Council that I came away with a rather sombre impression particularly from our discussions with the Bosnian Serbs. There is a very real danger of a drift back into war with all the consequences for the Bosnian people and for everyone indeed who is making an effort there so I left them with that feeling. It does mean, as the Prime Minister said, that anyone who has any influence over the situation has got to bestir themselves between now and the end of the month to maximise and improve to the utmost the chances of this plan being accepted.

     

    QUESTIONS AND ANSWERS

    QUESTION:

    Prime Minister, what do you think you have achieved by vetoing Mr. Dehaene in Corfu? Haven’t you wound up today with a candidate very much in Mr. Dehaene’s line of thinking?

    PRIME MINISTER:

    I have never had anything personally to say against Jean-Luc Dehaene, as you know, but there are quite distinct differences in policy between those that Mr. Santer holds to and those that attract the support of Mr. Dehaene. Mr. Santer is a very strong believer in free trade not protection; he is a very strong decentraliser, he believes in federalism in the sense of decentralisation; he is a strong supporter of subsidiarity which is going to be an important theme of the next few years. He has shown by his record in a number of ways that that is the case. He was, as I indicated a moment ago, the author of the pillared approach that enabled agreement to be reached by consensus and not centrally-determined through the Commission; he was the President of the Council when it reached its final decisions on the Single European Act and crucially in that the Single Market, all of which are vitally important to us. I don’t think there is any doubt that he is a strong believer in nation states and I think there is another point perhaps that many other people have not yet spotted and that is the fact that for his own reasons he has been a longstanding opponent of harmonisation of taxes. All those are very distinct policy points of some importance to us.

    The other point I would make is in the nature of the man himself. He is, I think, a reconciler and a healer. We are soon going to have sixteen nation states sitting round the table, not twelve, and very possibly within five years will be moving towards twenty. It is very important that the views of all of those nation states are fully taken into account and reconciled; I believe he will be very good at doing that. It is quite a formidable list of reasons for supporting him and I am very pleased at the outcome we reached this afternoon.

    QUESTION:

    I wondered whether in view of what you just said, Prime Minister, you are therefore surprised to hear that Mr. Santer just now has denied that there are any political differences between himself and Mr. Dehaene. I quote: “I certainly do not believe the time has come to pause in the process of further European integration and in a deeper political union” and he repeated himself as federalist in that sense. Does that entirely square with what you have just been saying?

    PRIME MINISTER:

    Would you have expected him to say: “Well I have got a long list of differences with my old friend Jean-Luc!”? You know very well in terms of the European debate that he isn’t going to say that.

    I have set out a whole series of practical indications of his record of what he stands for. You will have seen, I am sure, the interview he gave in the Luxembourg press just a couple of days ago and he set out very clearly his views in terms of decentralisation; he made it perfectly clear there that he was a federalist in the sense of being a decentraliser, not a centraliser and I think if you read his interview you can take it from his own words, not mine, that he matches the list of attributes that I have just suggested to those present he has.

    QUESTION:

    Does that mean that you too now, Prime Minister, are a federaliser in the sense of a decentraliser?

    PRIME MINISTER:

    I am a decentraliser, that is certainly the case. I don’t think I would attribute any other words of yours to that. I am certainly a decentraliser, I certainly believe that the nation state is an important part of the European Union, so do other nations, and it will remain so.

    QUESTION:

    Prime Minister, if the views of Mr. Dehaene and Mr. Santer are so different and if one must look through his policy record to prove that, why do you think it was that Mr. Santer backed Mr. Dehaene so enthusiastically in the first round debate on the President’s job?

    PRIME MINISTER:

    Were you present at the Christian Democrat meeting beforehand?

    ANSWER:

    No.

    PRIME MINISTER:

    Nor was I. I suggest you ask someone who was present at the private meeting for the answer to that question.

    MURRAY RICHIE (GLASGOW HERALD):

    If you are such a convinced decentraliser as you say and you agree with subsidiarity, why don’t you practise it in Scotland?

    PRIME MINISTER:

    Scotland is part of a single United Kingdom, I am not going to join in the sort of decentralisation the Scottish Nationalists want in Scotland which has as its ultimate aim not decentralisation but the eventual removal of Scotland from the United Kingdom.

    As far as devolvement of authority is concerned, you will know, working for the “Glasgow Herald”, of the immense devolvement of authority that has now gone to Scotland and to the Scottish Secretary of State and the changes that are currently being agreed to extend that even further in the United Kingdom.

    JUDITH DAWSON (SKY TV):

    You said that Leon Brittan is the right man for the job and you did repeat that quite a number of times before and during the Corfu summit so would you agree that Jacques Santer is a compromise, has to be a compromise for you and for the other European leaders and has what happened to Mr. Tim Devlin caused you very much grief?

    PRIME MINISTER:

    I made perfectly clear that our first choice for President of the Commission was Leon Brittan and I don’t resile from that now. I think Leon Brittan in every way would have made an excellent President of the Commission for the next few years. None of that detracts from the fact that I think Jacques Santer is an excellent candidate who has attracted support right the way across the Heads of Government and I hope will attract the support of the European Parliament in the next few days so I think he will do an excellent job.

    As far as Mr. Devlin is concerned, the Chief Whip has dealt with that matter and I believe he has dealt with it properly.

    FOREIGN SECRETARY:

    And, of course, there is one other point to add perhaps: that Jacques Santer was chosen as the result of a period of very intensive consultation of everybody by the Presidency and that was not so before Corfu.

    JUDITH DAWSON:

    Do you think that should have happened the first time round?

    FOREIGN SECRETARY:

    Of course.

    PRIME MINISTER:

    We not only think that now, we said that at the time loudly and clearly.

    QUESTION:

    Prime Minister, now you have secured a candidate for the Commission who is clearly extremely satisfactory to Britain, do you consider that after the Corfu veto and in the talks that followed, you have put one over on Chancellor Kohl and President Mitterrand?

    PRIME MINISTER:

    No, it isn’t a question of putting one over on any other members of the European Council, that is not remotely the way I see it. I thought it was right to take whatever action was necessary to get a President of the Commission whom I believe was right for Europe in the next few years and right for the United Kingdom in the next few years. That was the purpose of exercising the veto at Corfu and the only purpose.

    DON McINTYRE:

    Can I ask you whether, as David Howell said on the radio this morning, the really desirable thing about Jacques Santer from your point is that he will be very low-profile and that is really why you want him?

    May I ask the Foreign Secretary what on Bosnia he has in mind when he says that anybody who has any influence on the Serbs should use it in the desperately short time there is as they seem to be immune to all influence including that of the Russians?

    PRIME MINISTER:

    I think possibly Jacques Santer will be lower-profile than his predecessor. I don’t think it is the height of the profile that is really the relevant factor but the direction in which the profile is moving and as I indicated to everyone a few moments ago, I think the direction in which he will take the Community will be very amenable to the majority of member states including us.

    FOREIGN SECRETARY:

    On the Bosnian point, you never can tell in life when a particular argument or piece of persuasion or pressure is just going to tip the balance in favour of what you want done so there are all kinds of pressures, the Russians you mentioned. I was actually thinking of President Milosovic. I believe there are ways in which he could exert himself should he so choose which would really be effective in bringing the Bosnian Serbs to their senses. Whether he will do that or not I don’t know. It is in his interests to do, we urged him to do so, I hope he will do so.

    QUESTION:

    Prime Minister, we have heard your comparison of Mr. Santer with Mr. Dehaene. How does he compare in your view to Jacques Delors? Is he better suited in your view to being the next President of the Commission than Delors was, more to your taste?

    PRIME MINISTER:

    I think I got the underlying message! I think he will be very suitable for the next few years but I don’t think anyone should underestimate the contribution that Jacques Delors has made to the European Union over the last few years. He and I haven’t always agreed, there is no particular secret about that, but my respect for his abilities is very great.

    QUESTION (WALL STREET JOURNAL):

    Diplomats of some member states in Brussels have expressed fears that Jacques Santer is perhaps someone from a small country that doesn’t have the clout that M. Delors or M. Dehaene perhaps have and will find it hard to lay down the law in certain areas that are quite important to the UK I believe such as the internal market, insurance, where there isn’t much progress in enforcing laws. Are you worried that a weak Commission in this sense would undermine the UK’s interests?

    PRIME MINISTER:

    No. I don’t accept the premise, if I may say so, at the outset. I think there has been some black propaganda of that sort about from Heaven knows where. I think from what I have seen of Jacques Santer is that he will press his case and his beliefs quite hard where that is necessary, certainly that is my judgement of the man.

    As far as the laws are concerned in the Community, the laws are there to be obeyed in the Community and I have no doubt the Commission collectively will ensure that they are. That was something we pressed for very strongly in the Maastricht Treaty. It was a matter of concern to us prior to Maastricht that we did have a number of laws across the Community and we were not satisfied that every member state was fully implementing them. There are now mechanisms to make sure that they do and I am sure they will be enforced.

    SHIRLEY DODD:

    Prime Minister, do you think you will be able to live easily with the fact that M. Santer is a strong supporter of the Social Dimension of the Union and of a single currency?

    PRIME MINISTER:

    I think there are two things that often get run together: one is the Social Dimension of the Community and the other is the specific Social Chapter.

    As far as the Social Dimension of the Community is concerned, we have no difficulty with that. Indeed, if you were to ask the Commission which country has implemented more Social Dimension measures than any other, you would find it was the United Kingdom.

    As far as the Social Chapter is concerned, it is not a matter of relevance to us whether any President of the Commission supports it or not because we are not a party to the Social protocol, it doesn’t affect us, so whether they support it or not is not relevant to the United Kingdom but on the Social Dimension which is a separate matter, we support the Social Dimension, we have implemented the Social Dimension and I would anticipate will continue to do so.

  • PMQT – 14 July 1994

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


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Mackinlay : To ask the Prime Minister if he will list his official engagements for Thursday 14 July.

    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. Mackinlay : What instructions has the Prime Minister issued this week in connection with combating the appalling level of air pollution throughout the Thames valley and in every other urban area of the United Kingdom? Can we be assured that it is Government policy that the polluters will pay and be prosecuted, rather than merely be given a ticking off and a prohibition notice? Now is the time for action to combat air pollution.

    The Prime Minister : Of course, it was a Conservative Government who established the first ever environment Department as long ago as 1970, and we take environmental matters very seriously. On air pollution, we have already agreed tight emission standards for new cars and lorries and we intend that they be rigidly enforced. We have taken the lead over the rest of Europe by introducing integrated pollution policies and we are determined to ensure that those are kept. We made it clear earlier this year in discussion documents that making the air cleaner is an important part of our policy and, where necessary, we will take action.

    Mr. Marlow : Is a single European currency a commercial convenience, or does it mean single European interest rates, a single European economy, harmonised and high levels of European taxation and, effectively, a single European state? And, if it is the latter, could my right hon. Friend tell the House that he is most unlikely ever to put it before the British people? It would give a great deal of simple pleasure to a lot of simple people if he could say so.

    The Prime Minister : I am always prepared to give some simple pleasure to my hon. Friend. As I have told the House on many occasions, a single currency would not be a practicable proposal, unless one had a proper and equally performing series of economies right across the area that would be governed by that currency. Without that, there would be the very practical difficulty that one would get large-scale structural unemployment and a massive demand for funds transferred from one part of the European Union to another. It is for that very practical reason that I do not believe that we are within many years of being able to consider a single currency.

    Mrs. Beckett : Is the Prime Minister yet able to tell us whether, in the context of the presidency of the European Commission, there are any candidates who do not support the social chapter?

    The Prime Minister : I can tell the right hon. Lady that, since we are not partners to the protocol, it does not matter from our point of view whether they are in favour or not.

    Mrs. Beckett : But the meeting is tomorrow. Is the Prime Minister telling us that, having used the veto–so he said–to permit extensive consultations, he does not know whether any of the candidates are against the social chapter?

    The Prime Minister : I sometimes think that the right hon. Lady prepares her second and third questions before listening to the first answer. The second question bore no relationship to the answer which I just gave her, which I shall repeat. Since we are not partners to the protocol that governs that aspect of European policy, it does not matter to this country whether the new president does or does not support that.

    Mrs. Beckett : The Prime Minister, as he will be well aware, has twice run away from answering the question. Is he reluctant to answer it because he knows that, in a triumph of personal diplomacy, he vetoed the appointment of one Conservative Prime Minister from a Benelux country who supports the social chapter, and will now support the candidacy of a Conservative Prime Minister from a Benelux country who supports the social chapter?

    The Prime Minister : Oh dear, oh dear. I fear that the right hon. Lady has shown the House too clearly that she does not have a scintilla of understanding of the European policies of each of the candidates whose name has been put forward for the presidency of the European Commission. There is a substantial difference between those policies that I vetoed last week and those that are followed by any of the candidates who remain in the ring at the moment.

    The decision will be made on Friday and the right hon. Lady might then understand the distinction between the policies of a European Commission president whom I would not accept and those of a European Commission president whom I can accept.

    Mr. Batiste : Is my right hon. Friend aware that the impending statement from the Secretary of State for Defence will be keenly awaited by many people who work in the defence contracting industry in Leeds and in many other parts of the country? Can he confirm that “Front Line First” means enhancing the capabilities of our front-line troops by giving them the best available equipment to do the many jobs with which they are faced?

    The Prime Minister : My right hon. and learned Friend will be making a detailed statement about the matter in a few minutes and, if my hon. Friend will forgive me, I will not anticipate that statement in detail. “Front Line First” was established to ensure precisely that we direct the resources available to the front line to maximise the fighting capacity and the cutting edge of the British armed forces.

     

    Q2. Mr. Hain : To ask the Prime Minister if he will list his official engagements for Thursday 14 July.

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

    Mr. Hain rose

    Mr. Richards : Liar. [Interruption.]

    Madam Speaker : Order. [Interruption.] Just a moment. Let me establish who made the remark.

    Hon. Members : Stand up.

    Madam Speaker : Order. I understand that it was Mr. Rod Richards. Is that the case?

    Mr. Richards indicated assent .

    Madam Speaker : In that case, I require the hon. Gentleman to stand up and immediately apologise.

    Mr. Richards : I withdraw my remark, Madam Speaker.

    Madam Speaker : The hon. Gentleman must apologise to me as the Speaker of the House for those words.

    Mr. Richards : Madam Speaker, I apologise to you.

    Mr. Faulds : On a point of order, Madam Speaker.

    Madam Speaker : Order. I call Mr. Hain.

    Mr. Hain : Will the Prime Minister establish an inquiry– [Interruption.]

    Madam Speaker : Order. The House must now come to order. The matter is over and done with.

    Mr. Hain : Will the Prime Minister establish an inquiry into the way a member of his Cabinet, Lord Wakeham, and other leading Conservatives were in 1988 taken off selected Lloyd’s syndicates which later suffered three years of catastrophic losses? Were they the beneficiaries of insider information while millions of pounds of losses were dumped on ordinary Lloyd’s investors?

    The Prime Minister : If the hon. Gentleman has any information whatever to suggest impropriety, he should bring that information forward. Given the inferences that clearly underlie his question, under the privilege of Parliament most people would not regard it as the right way to raise that matter.

    Mr. Mans : Has any member of my right hon. Friend’s Cabinet in the past advocated the abolition of nuclear weapons while at the same time suggesting that they should be retained, or suggested that we should withdraw completely from the European Community while advocating a federal Europe with Britain inside it? Have not all three contenders for the Labour leadership done all of those?

    The Prime Minister : The answer to that question is clearly, no. Had they done so, they would certainly not be members of my Cabinet.

     

    Q3. Mr. Simon Hughes : To ask the Prime Minister what official engagements he has already fixed in the London borough of Southwark for the rest of the current year.

    The Prime Minister : I have no engagement planned at this stage.

    Mr. Hughes : In that case, will the Prime Minister accept a short engagement to cross the river and explain to the people of Southwark, a borough with one of the highest levels of deprivation and unemployment in Britain, whether it is the Government’s policy to narrow the gap between the richest and the poorest in Britain and increase public services before thinking of cutting taxes? If so, when?

    The Prime Minister : If the hon. Gentleman looks at the available public assistance given to people in hardship, both to those in work on very low incomes and those out of work, he will see that there has been a significant improvement in recent years in the resources available to deal with those problems. He will know of the significant resources put particularly into inner-city areas of deprivation like Southwark over a large number of years. What does need to be done, and it requires the assistance of local authorities and others if we are to get to the root of the problem, is to ensure that those boroughs are also prepared to co-operate with bringing private capital into the area so that a joint approach of public and private capital can maximise the improvement for people who live in poor circumstances.

     

    Q4. Mr. Wareing : To ask the Prime Minister if he will list his official engagements for Thursday 14 July.

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

    Mr. Wareing : Since the Tory Government came to power in 1979, this country has lost a considerable proportion of its manufacturing base, yet, alone among European Union Governments, this Government have benefited to the tune of £124 billion worth of North sea oil revenue. We can guess what the Germans and French would have done with that. What did the Tory Government do with it?

    The Prime Minister : The hon. Gentleman would, perhaps, be prepared to acknowledge in private that employment in manufacturing industry has been on a downward trend since the 1960s, whomsoever have been in Government. It has now stabilised. The manufacturing base at the moment is broadening, not narrowing. We now have the best economic circumstances, not just for exports but for growth and manufacturing, that we have had for the past 20 or 25 years. That is readily understood by everyone beyond the confines of the Labour party.

     

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

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

    Mr. Bruce : It is common ground in the House that the civil service is full of people of ability, honesty and integrity. Yet we would all agree –indeed, civil servants would agree–that the high cost of government and grandiose waste in building projects, for instance, are not what we are looking for. Does my right hon. Friend agree that the White Paper published yesterday, “Continuity and Change”, shows that we also need improvement and cost reductions?

    The Prime Minister : I agree with my hon. Friend. We can take pride in the performance of the British civil service over many years. That is evident not only in this country but by the fact that a number of other countries have copied the British civil service system. It has high standards of integrity, and we are determined to maintain that integrity and impartiality while improving the service delivered through the civil service to the people of this country, who pay for it, and to us.

    Mrs. Mahon : The Prime Minister will be aware that at the moment, no national health service patients can be placed in private health care systems or homes against their wishes if they or their relatives will incur a personal charge for that move. Will the Prime Minister give the House a guarantee that people will retain the right to free NHS care?

    The Prime Minister : I can certainly give the hon. Lady that guarantee : the right to national health service care free at the point of delivery is an integral part of the Government’s policy, and will remain so.

     

    Q6. Mr. Oppenheim : To ask the Prime Minister if he will list his official engagements for Thursday 14 July.

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

    Mr. Oppenheim : Has my right hon. Friend had a chance to study the recent report by the National Institute of Economic and Social Research, which shows that during the 1980s, Britain’s manufacturing productivity growth out-performed that of Germany, whereas the period when we were most out-performed by Germany was between 1974 and 1979? Does not that illustrate that the time when this country was in danger of slipping into a second rate, low productivity, low wage, skivvy economy, with Mickey Mouse jobs, was not under the present Government, but rather in the heroic days of Labour’s industrial strategy?

    The Prime Minister : My hon. Friend has unearthed some interesting facts, which Opposition Members would do well to study. He is entirely right. The key to lasting prosperity and lasting jobs is to get the underlying economic conditions right, and then to keep them right. That is what we have done, and is what we propose to continue to do.

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    “part of the problem not part of the solution”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Several hon. Members rose

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

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

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

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

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

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

    “Deregulation has been an economic failure”.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. John Cunningham (Copeland): Go on.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Mr Major’s Press Conference in Naples – 10 July 1994

    Below is the text of Mr Major’s press conference, held in Naples on Sunday 10th July 1994.


    PRIME MINISTER:

    Let me say at the outset that I think Naples has been a very spectacular setting for the summit and it has been a very lively and refreshing summit in many ways, some of which I will set out for you in the next few minutes. Prime Minister Berlusconi certainly set a very fast pace with what I thought was an extremely adept chairmanship.

    Let me take a whole series of issues, but firstly let me say, I believe on this occasion we took a very substantial step towards the sort of summit reform that I first advocated at Munich two years ago, we were more informal this year, and next year we have agreed, and clearly set out in the summit communique, that we will extend that informality yet further.

    As far as the summit process is concerned, we also took a decision on this occasion to look at world institutions over the longer term and I will say a word about that in a moment, and also a word about both economic and political issues.

    Perhaps I can start firstly with the summit process. There has been a sea-change in the way in which the summit has been conducted and will in future be conducted. We had on Friday evening over dinner I think the most stimulating free debate that I can recall in any of the summits I have attended over the last four years or so, and that debate over dinner on Friday evening set the tone for a genuinely informal series of meetings. Everyone, if they had set-piece pieces, certainly seemed to ditch them. We sat around the table and covered a very great deal of territory. But perhaps most important of all, we addressed some of the strategic questions which I have always believed really should be the purpose of summits like this.

    One other substantial change this year in the process was to have the political meeting conducted between eight Heads, including President Yeltsin. I pressed for this last year, I discussed it with President Yeltsin when I was in Moscow, I thought and continue to think that it is vital to have Russia as an equal partner in our political work. I believe it proved its worth this morning.

    We are going to continue to change the format next year at Halifax, the Canadian Prime Minister is committed to that as well. What in practice that means is we will allow for even more free unstructured discussion, there will be the minimum amount of pre-scripting and the maximum amount of free ranging debate, that is the value of the summits, there may well be other changes as well that will be discussed between Heads as we approach the summit process itself.

    Let me say a word about the international institutions. Over the last few years, economically and politically, the world in which we operate has changed at a quite bewildering speed, I doubt that anyone in peace-time can recall its equal. And I think that means we have to look at the institutions that have served us so well over the past 50 years, in many ways they may have to adapt and to some extent that process has already begun, I offer you the illustrations of NATO of course and the development of Partnership for Peace; the enlargement begun, to be continued, of the European Union; the transformation of GATT, originally a temporary structure, into the World Trade Organisation. Those are changes we have seen or are seeing at the present time.

    But we took the view that we now needed to look even further ahead. What we need to think about is how the world economy is going to change as we move into the next century, how are we going to tackle the problem of jobs, it exists not just in the United Kingdom but right across the developed and the developing world. How are we going to enlarge free trade beyond the GATT process we have agreed, how are we going to help the developing countries both with their existing debt and in entering into the free trading system as equal partners? They are questions that we are going to have to develop and as we do that we may have to look at the institutions that deal with them.

    Let me turn for a moment to some economic questions. The economic programme and the conclusions of the summit discussions will be familiar I think to many of you, they have the same emphasis as the policies that we have been following in the United Kingdom for some time – labour market reform, higher standards in training and education, encouraging the creation of new jobs, and reducing the burden of regulation on businessmen. On trade we want to see the Uruguay Round ratified and then fully implemented as speedily as possible. And crucially at this summit everyone committed themselves to continuing with trade liberalisation.

    In the communique there were two objectives that I would draw your attention to particularly. Firstly, in the information sector, we want to see obstacles to competition removed, protected monopolies should be a thing of the past, that was broadly agreed. And secondly, Britain supports both inward and outward investment and the summit has called for the removal of obstacles to direct foreign investment.

    One other area of considerable concern to the British for some time was help for the developing world, another vital responsibility for those people gathered at the summit. Nearly four years ago at Trinidad I launched an initiative to relieve the burden of debt which lies most heavily on the poorest countries. On this occasion at this summit the summit has called for further action, for a reduction in the stock of debt and for more generous terms for countries facing special difficulties, that is very welcome and is a process that will need carrying even further.

    On the political questions, we spent a lot of time, as did the Foreign Ministers who were gathered here, on Bosnia. And as you will see in the summit communique we have issued a fairly stark warning. If the parties do not take the opportunity for peace that has been created by the work of the contact group, there is a grave risk of war on a large scale. I do not say that lightly, it is the considered conclusion of the discussions that we have had, not only over the last couple of days but over recent weeks.

    Next week Douglas Hurd and the French Foreign Minister, Alain Juppe, will be going across the former Yugoslavia together next week and they will be seeing the leaders of all the parties and they will impress upon them that they cannot afford to let this chance of peace slip. If the war intensifies, no-one is going remotely to gain from that, but the peoples of Bosnia yet again are going to be the losers from that intensification of war and the risk of that war spreading is a real risk and that point will be made very clear in the Foreign Secretary’s tour next week. We were agreed, without any dissent whatever, to press the parties as hard as we possibly could to go for peace on the basis of the contact group report.

    We spent sometime also looking at the very difficult situation in Ukraine. As you will know, Ukraine is holding the run-off in its Presidential elections today. We very much wish to help the in-coming Ukrainian leadership tackle the problems they face, and in particular restructure their economy, we would like to see a stable and a prosperous Ukraine over time. We agreed that our help would include a new energy strategy which does provide for the complete closure of Chernobyl, I will expand on that later if you invite me to do so.

    In Yemen we have just seen a particularly brutal civil war, less publicity perhaps than other conflicts, but nonetheless a very serious conflict. What in practice has happened is that North Yemen has used force to suppress the south and a new humanitarian problem has been created within Yemen. We propose to pay very close attention to developments there, we would like to see reconciliation, we would like to see dialogue, we do not wish to see repression within Yemen and we do wish to see Yemen living at peace with her neighbours, Saudi Arabia, Oman and other countries with whom we have a long and very deep relationship.

    I have just in these last few moments only touched upon some of the key points of our discussion on this occasion. Because of the nature of the debate, because of the informality of much of the debate, it spread a good deal wider than many of the summits I have attended in the past, and hence not everything is included in these brief words I have had to say to you.

    I do believe in that unstructured way that we are returning to the real purpose of the summits and we are likely to get the best value out of the summits by proceeding in that way.

    We focused here on some very specific issues, but we have also used the time for thinking more strategically than is often the case about the longer term and I think as a result of that, I can speak for myself but I think probably for the other. Heads of Government who have been here as well, we think it has been a thoroughly worthwhile summit and we find ourselves refreshed at the thought of continuing in this vain when we meet again next year at Halifax.

     

    QUESTIONS AND ANSWERS

    QUESTION (Robin Oakley, BBC):

    Prime Minister, could I ask you something about a question you did not mention, the discussions in the sidelines here about the successor to M. Delors as President of the European Commission. Obviously you and three of the other Heads of Government here were interested in this question, do you expect the summit on Friday now to produce a solution to this problem, do you expect a single name to be figuring there or possibly a shortlist?

    PRIME MINISTER:

    I do not think that is yet clear. No decisions could possibly be made here. One of my concerns about what happened before was that there was not proper consultation amongst the Twelve, I made that perfectly clear at Corfu when we discussed the matter.

    Plainly there cannot be discussions among the Twelve when only a small number of members are here, so there were some fairly general bilateral discussions. But on the general point of whether there will be a conclusion. Our European partners know that I did not lightly use the veto at Corfu, it is not something you do without a great deal of thought. They also know that if necessary, and I hope it will not be necessary, I would not hesitate to use it again if I thought that was in our interest or in the wider interest of the European Union.

    What is happening at the moment is that the German Presidency are consulting partners extensively and I see no reason at the moment why the matter should not be satisfactorily resolved, I hope that it will be possible to do so by the end of this week.

    QUESTION (George Jones, Daily Telegraph):

    You have spoken about the threat of the war intensifying in Bosnia if this peace initiative fails, are you now ready to pull out British troops rather than have them bogged down in another winter, particularly if the arms embargo is lifted?

    PRIME MINISTER:

    I think you jump over several hurdles in asking that particular question. Certainly we do take the view that the situation is very dangerous, there is a chance of peace as a result of the work of the contact group, we hope it will be taken. We are by no means certain that it will be taken, the Foreign Secretary will be pressing people very hard and I think we cannot at this stage go from that to a judgment of what the situation may be like in a month, two months or three months time, I do not think it would be wise for me to enter into those judgments at the moment. But I do want to make it clear, I hope we have made it clear, that we do think the situation is serious and I cannot indicate what we may be in a position to do in a month, two or three months time, I think we must wait and see what happens. The first thing to do, self-evidently, and the most important thing to do in the short-term is to make it absolutely clear to the parties involved that we expect them to reach a settlement and that the consequences of not reaching a settlement are very serious. All the parties to the discussions over the last couple of days will be doing that. The Foreign Secretary, as I have said, will be in former Yugoslavia next week and he may wish to add a word.

    FOREIGN SECRETARY:

    I have nothing to add. I think everybody, the Russians, will do their bit, I think everybody represented round the table were at one on the need to seize the opportunity of these next weeks and try to make the best of them. The choice is not between the present situation which is half peace and total peace, the choice is between total peace, accepting this plan, and sliding back into the kind of savagery which was the state of Bosnia a year ago, and that is one point I think we should all be making to the parties.

    QUESTION (Paul Reynolds, BBC):

    How do you reconcile the Bosnian peace plan with the principles of the London Conference, which you chaired, the high principles about the inadmissibility of territory acquired by war, the right of refugees to return home, both these principles will be violated even if the Bosnian peace plan is implemented? What do you say to the Bosnian people as you make it clear to the parties that they must make settlement, when they say well what about the London Conference which you chaired?

    PRIME MINISTER:

    I do not think continued slaughter of the Bosnian people is something the Bosnian people or anybody else would wish to see. We have to deal with the realities of what exist and the danger potentially to the Bosnian people and everybody else of a renewed outbreak of severe conflict are self-evident. During the ceasefire period there have been outbreaks, it has not been a complete ceasefire, but the danger of that conflict reactivating, not just to the Bosnians but also with the added risk that as a result of that it will move further south and create a wider conflagration, is something that we cannot readily overlook. So what we need to do is to try and stop the fighting and continue with the diplomacy to provide the best possible settlement that we can reach, that is what we are seeking to do.

    FOREIGN SECRETARY:

    The plan we are pressing is of course a plan which keeps Bosnia with its existing international frontiers. The argument is about the map inside Bosnia of how the Bosnian communities, Bosnian Serbs, Bosnian Croats, Bosnian Muslims, can live together and what kind of map is needed to create a good chance for that.

    PRIME MINISTER:

    What is self-evident beyond that, let us take the happy assumption that the map is agreed, and not just a ceasefire but an end to the conflict comes about, of course that does not mean everybody walks away from Bosnia and leaves it, there will undoubtedly at that stage be the need for peace-keeping on quite a substantial scale for a period we cannot yet judge.

    KEITH ROCKWELL (JOURNAL OF COMMERCE):

    You have expressed the support of your government for the trade and investment liberalisation measures put forward here but some of your G7 partners rejected a barter plan that President Clinton brought with him here. Do you accept the reasons put forward by these partners for not accepting it, i.e. that ratification of the Uruguay Round would be difficult if they did accept or is there another motivation there in your mind?

    PRIME MINISTER:

    It is an argument. I would have willingly accepted the broader liberalisation. I think it was entirely right of President Clinton to move forward.

    The GATT Round was a remarkable advance but there was a lot that the GATT Round did not do; it hasn’t dealt with services for example and there are a range of other areas so there is no doubt that we have to continue with liberalisation.

    In the debate around the table, everybody agreed with that. Some of our partners took the view that we ought not to take a further step forward on liberalisation until after the formal ratification of GATT because of the internal political difficulties in a minority of countries of getting that ratification and it was accepted that that created an internal problem for some. I regret that. I would like to have moved further and faster but once the ratification is complete – and we committed ourselves to that ratification by 1 January – there was no dissent from anyone that at that stage liberalisation moves forward so to the extent that President Clinton’s plan was not included in this communique, it was certainly not pushed to one side, it is a subject to which people will return within a very few months to make sure that liberalisation goes further.

    QUESTION (JAPANESE NEWS AGENCY):

    I would be very glad if you would give me your personal impression of Mr. Murayama who is a Socialist leader.

    PRIME MINISTER:

    I know lots of people of different political philosophies with whom I get on extremely well. I enjoyed meeting Mr. Murayama. He made a very impressive contribution to our discussions this morning and I had the opportunity of speaking to him privately at a bilateral. I have absolutely no doubt at all that with him as Prime Minister of Japan the good relationship between the United Kingdom and Japan will continue. I have not a shred of doubt about that.

    PETER GRIFE (AP DOW JONES NEWS SERVICE):

    Financial markets have been in nearly perpetual turmoil even when you were meeting here on Friday. What do you think is causing the upheaval in financial markets, particularly what is going on between European currencies and the dollar and what have leaders here done about it and what could they do about it once they get back to their home countries?

    PRIME MINISTER:

    There was a brief amount of discussion among the Heads of Government and rather more amongst Finance Ministers but I spent a period as a Finance Minister and the one thing that I learned beyond doubt during the period as a Finance Minister is that Finance Ministers or indeed Heads of Government talking about the market is almost invariably counter-productive so I have no intention of responding directly to the question for the sound market reason I just set out.

    QUESTION:

    A brief domestic question, Prime Minister. If, as we now believe, Lord Archer is cleared of any impropriety over share dealings this week, will that clear any impediment to him taking a part in your government reshuffle?

    PRIME MINISTER:

    I think you know the situation with inquiries, the statutory position. The Department of Industry had a statutory responsibility. They have set up an investigation – that is an investigation that is provided for by the Companies Security Act. That is being carried out in the normal way at present.

    I was informed of this matter first when it came to the DTI’s attention earlier this year but the matter must now rest statutorily with the Department of Trade and Industry and with the investigators who have been appointed. I don’t think it would be at all right for me to offer any further comment on that whatsoever.

    QUESTION (BELGIAN RADIO):

    Prime Minister, I would like to go back to the question of the successor to M. Delors. Do you think the meeting of next Friday should produce one common candidate or could you eventually accept a short list to be submitted to the European Parliament?

    PRIME MINISTER:

    I think the intention is to try and find a successor to M. Delors by Friday. I think that is the way the Heads of Government wish to proceed and that is what I hope it will be possible to do.

    BRIAN HANRAHAN (BBC):

    Prime Minister, did your discussions today clarify what you think of the situation in North Korea after the death of Kim Il-Sung and is that something where President Yeltsin was able to contribute to the discussions which you said had shown the value of him being here?

    PRIME MINISTER:

    We discussed a range of issues which you will have seen in the communique including that. I think the communal wish as far as North Korea was concerned is for the discussions with the Americans to continue and for the conference that has been planned to go ahead. There was a complete unanimity of view upon that. I don’t think I wish to comment beyond that.

    ADAM BOULTON (SKY TV):

    Mr. Major, would it be an accurate description of the economic section of this summit to say that the leaders of the seven industrialised countries came here, put jobs and growth at the top of the agenda and created not one extra job?

    PRIME MINISTER:

    No, the answer is it would not. You have to consider how jobs are created.

    The problem that the world faces at the moment is that almost irresistibly for the last twenty-five or thirty years there has been a steady underlying growth in unemployment. That is true particularly in Europe and particularly in many of the developing countries.

    There are many reasons for this, people have different views. In some areas, the reason is the development of technology. Technology creates jobs for people who are skilled that nobody imagined could exist until the technology was developed but the counter-point of that is that it does tend to destroy jobs for people who are unskilled or less skilled and the problem that we perceive is that in many countries there is a larger pool of people who are unskilled or poorly-skilled who are becoming an almost permanent pool of people whom it is difficult to employ. That is a point that can only be addressed in one way.

    Firstly, as far as the creation of jobs is concerned, we think there is no doubt that the increasing liberality and flexibility of the markets will enhance world trade and create jobs – that is the first point to make.

    The second point is that internally within each country we believe deregulation – I use that in the British sense of removing burdens from business – will also help to create jobs. That was a very novel idea two or three years ago produced primarily though not exclusively by the British. That is now generally accepted as far as jobs are concerned.

    Nobody was arguing for large expenditure packages that might create jobs in the short term that would be unsustainable in the long term. As far as the developing world was concerned where the jobless problem is also very serious, we looked firstly at the point I made of the liberalisation of trade but secondly at the elimination of debt to put them in a position where the increasing resources they have can be used for job-creation of one sort or another rather than just the payment of debt.

    I don’t think the characterisation you used is accurate. There were some very practical mechanisms reinforced that we believe will create not short-term but long-term permanent jobs.

    JOHN CRAIG (DAILY EXPRESS):

    You said the intention was to try and find a successor to M. Delors by Friday. I wonder if you are prepared to let us into a secret and tell us who you would like to see get the job and if not, perhaps you could tell us what sort of qualities you are looking for, what sort of person, what sort of European Commission President you would like to see.

    PRIME MINISTER:

    I am not sure, John, whether that was a bid for the post – I will give it careful consideration if it was!

    I don’t propose to share a name with you. I indicated after Corfu that I thought there were a number of people who could credibly do the job and there were some that I would be less pleased to see in-post.

    I think in general terms the sort of qualities I would be looking for would be someone who was in favour of free trade rather than protection, Europe needs free trade; it can’t wrap itself up into a little ball and pretend that Japan, South-East Asia and America aren’t there so clearly he needs to be a free trader. He clearly needs to be someone who supports the development of NATO and the Atlantic Alliance. He or she would clearly need to be in favour of enlargement and clearly need to follow the trend the Community has been developing in terms of subsidiarity. Ideally, I would not like to see an idealogue there. I would like to see someone who is experienced in the way the Community works.

    That isn’t a composite check-list. It may be we will find someone who ticks off adequately on most of those points and not all. The other important thing I think is that it has to be a President who will work to represent all the members of the European Union. That seems to me to be very important and I am sure we can find a candidate who fits that bill.

    QUESTION (SWEDISH JOURNALIST):

    You said that it is counter-productive for Ministers to talk about currencies. Is that a new lesson and does that mean a shift in your practice?

    PRIME MINISTER:

    I don’t think it is a new lesson, I think it is a lesson that a large number of Heads of Government and Finance Ministers have learned over the years. I certainly have learned it. I don’t think generalised comments about what often are very detailed matters creating currency turmoil are very useful.

    KEVIN BROWN (FINANCIAL TIMES):

    Returning to jobs, you came here saying that it would be, you hoped, one of the main themes of the summit. In fact, the communique although it deals with jobs at some length, does not go much further if at all than the OECD jobs report and indeed the Detroit summit. Is that a disappointment to you? Would you have liked to have seen more specific measures included for job creation?

    PRIME MINISTER:

    No, I don’t regard it as a disappointment. There was, before we began to discuss international institutions on Friday evening, a very long discussion on the subject of employment and the creation and maintenance of jobs and that was followed up again on the Saturday morning.

    What I wished to see here was not a series of tiny supply-side moves or public expenditure commitments. What I wanted to see was a community of view about how the world economies could collectively increase trade and create jobs and that community of view emerged. It isn’t a community of view that would have been readily achievable even a couple of years or so ago and yet today it is clearly there and there was no difficulty whatsoever in agreeing to the terms of the communique so I think that is a very substantial advance. Even the largest economies in the world are no longer immune from external influence, it doesn’t matter how big they are or who they are, we are interdependent to a degree and the extent to which we are able to agree the right prescription for accelerating trade and creating jobs the greater the impact is likely to be upon all of us so I found it rather refreshing that we were able to reach that agreement.

    QUESTION:

    Prime Minister, paragraph 9 of the Political Declaration talks about the international community equipping itself with more efficient means to respond in a prompt way to humanitarian emergencies worldwide, a kind of echo of the Berlusconi idea about a humanitarian task force. Can you flesh out precisely what that is likely to mean, what the British contribution might be and all the rest?

    PRIME MINISTER:

    It is Mr. Berlusconi’s idea and he raised it. It has been raised in general terms but it isn’t yet fleshed-out. I think he was responding to a feeling that certainly exists in great measure in Italy and I think exists in many other countries.

    The United Nations has a great burden at the moment. It is certainly possible to argue that the burden on the United Nations is a greater burden than the United Nations is at present equipped to bear and many people I think would subscribe to that view. What Mr. Berlusconi was doing was pointing to that and saying that as we consider the institutions we need to see how we can respond more rapidly to problems like the one that he brought before us. He did not have and did not pretend to have a detailed prescription of what needed to be done; he was flagging up a problem that existed, that we know exists, and that it would be attractive to find a way of dealing with.

    It was left that if he had further proposals he would put them to us and certainly this is one of the matters that is likely to be discussed as we look generally at the institutions and within the United Nations. We were of course concerned not to cut across the responsibilities of the United Nations. Creating fresh organisations to do something in a new way when an organisation already exists to do it is not what Mr. Berlusconi had in mind or indeed anybody else.

    STEVE DOUGHTY (DAILY MAIL):

    Prime Minister, did you indicate to your summit colleagues that in the event of the Bosnia peace plan breaking down you are now willing to consider the lifting of the arms embargo?

    PRIME MINISTER:

    I think everybody recognises the inherent danger of lifting the arms embargo and we did not have a detailed discussion on that. I think our views on that have been made clear in the past and I did not need to reiterate them on this occasion.

  • PMQT – 28 June 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Mrs. Beckett indicated assent.

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

     

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

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

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

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

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

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

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

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

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

     

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

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

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

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

     

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

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

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

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

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

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

     

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

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

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

    Hon. Members : Where is he?

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

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

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

  • Mr Major’s Commons Statement on the 1994 European Council at Corfu – 27 June 1994

    Below is the text of Mr Major’s Commons statement on the 1994 European Council at Corfu, made on 27th June 1994.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major) With permission, Madam Speaker, I shall make a statement about the meeting of the European Council which I attended with my right hon. Friend the Foreign Secretary and my right hon. and learned Friend the Chancellor of the Exchequer.

    The Corfu Council put another three building blocks in place in constructing post-Communist Europe. First, the treaties of accession signed with Austria, Finland, Norway and Sweden will help to create the wider Europe that we seek, a European Union that extends from the Atlantic to the Arctic. I warmly welcome the positive vote on accession in the recent Austrian referendum. I hope that referenda in the other three EFTAN countries this autumn will prove equally successful.

    Secondly, we agreed in Corfu that the association agreements with our central and eastern European partners must be fully and urgently implemented; so should the United Kingdom-Italian initiative to link those countries more closely with the foreign affairs and home affairs pillars. That will help them to prepare for full membership of the European Union as soon as possible. Cyprus and Malta will also be involved in the next stage of enlargement.

    Thirdly, the European Union signed a partnership and co-operation agreement with Russia, one of the most comprehensive agreements ever concluded between the Community and another country. President Yeltsin said that the agreement symbolised Russia’s return to the economic life of Europe as an equal partner. He also pledged the support of his Government in bringing about stability in central and eastern Europe and his willingness to work closely over former Yugoslavia.

    Russia has just signed the partnership for peace agreement with NATO and, on 9 July, President Yeltsin will play a full part in the political debate at the Naples summit. I warmly welcome Russia’s increasing integration with western political institutions.

    In the discussion of the problems facing people throughout Europe, I suggested a series of moves to combat drug trafficking and other international crime. The drugs problem throughout Europe is growing. Enough cocaine has been seized in the European Union this year alone to provide 24 million individual doses. I pressed for more effective cross-border intelligence gathering on drug trafficking. I urged the Community to strengthen the Europol drugs unit and to set up speedily the full European police office, which should have a wide remit to tackle organised cross-border crime. I underlined the importance of action within our own countries and suggested that the Union should hold a conference on drugs and organised crime, and should involve also countries in central and eastern Europe. I was glad to receive wide support for those proposals, which were endorsed in the conclusions of the Council.

    We made progress on two economic issues high on the British agenda. First, we agreed that markets in telecommunications and energy should be further liberalised to give Europe’s consumers access to wider, cheaper and more efficient services. Secondly, we strongly supported the German proposal to set up a European deregulation task force with business men as members, precisely as we have done in this country. That was agreed. The task force will help to cut back burdensome Community regulations on business.

    The Council endorsed the macro-economic guidelines drawn up by the Economic and Financial Council on the conditions for sustainable growth. We agreed that it was essential to continue cutting public sector deficits and reducing inflation. I reported that the British economy had grown by nearly 3 per cent. in the year to this spring, and that unemployment had fallen here by more than 300,000 since the end of 1992. Britain remains the fastest-growing of the big economies in the European Union.

    The Council approved a first priority list of 11 trans-European network projects. That includes the second channel tunnel rail link and proposals to improve the rail links between Northern Ireland and the Republic. Any contribution to the financing of such projects must come from within existing Community resources. At our insistence, the Council agreed that there could be no financial guarantee from the Community for the trans-European network. We believe that Europe’s taxpayers must be protected against such open-ended commitments.

    We heard further evidence that the subsidiarity principle is being successfully implemented. We expect the number of main legislative proposals coming out of Brussels this year to be about half the number of those in 1993 and one quarter of the total four years ago. That is a very significant improvement.

    In external policy, the Council discussed Ukraine, and agreed to step up support for economic reform and nuclear safety there, tied to the closure of Chernobyl. That discussion will be taken forward with the United States, Japan and Canada at the economic summit in Naples in early July.

    The Council once again discussed Bosnia. The contact group has done valuable work based on the European Union’s plan, but there is an urgent need for the parties to show the will for a negotiated settlement if that process is to succeed. We agreed that the European Union would make every effort with the United States and Russia to bring the negotiations to the point of decision.

    Let me now turn to the presidency of the European Commission. The treaty lays down that the Commission President should be selected by “common accord” to serve a term of five years. Common accord is vital. For the President of the Commission to serve the whole Community effectively, he must enjoy the confidence and support of all of its members.

    Before the Corfu Council, we told the Presidency and other partners that we supported Sir Leon Brittan’s candidature and believed a genuine consensus of all 12 member states to be essential. No one disputed the necessity of a genuine consensus.

    When we heard that Mr. Dehaene was thinking of putting himself forward at a late stage, we privately informed the Belgian Government and other partners that we could not support him. We warned that it would not be possible for him to attract a consensus of the whole Community. We hoped, therefore, that his candidature would not be pressed.

    Neither then nor at any later stage did any partner say that either Sir Leon Brittan or Dr. Lubbers, the two long-standing candidates, was unacceptable. Both, of course, had outstanding credentials and long experience of the Community – Sir Leon as a Commissioner for six years and Dr. Lubbers from 12 years on the European Council.

    At the Corfu Council, four states – representing nearly half the European Union’s population – did not support Mr. Dehaene in the long discussion on the first evening. In several interventions, I made our strong views very clear to the Council, as I had in a number of bilateral discussions.

    On the following morning, Sir Leon and Dr. Lubbers decided to withdraw their candidatures. Other European countries indicated that they could accept Mr. Dehaene. I maintained my position that we could not. I said that I had given the matter careful thought, and that our decision would not change at any stage. I reiterate that position in the House today. I suggested that consultations should be put in hand to find a candidate who had the support of all member states. The German Chancellor, who takes over the Presidency later this week, said that he hoped to resolve the matter speedily, if necessary by convening a special summit on 15 July.

    Our position was not a personal criticism of Mr. Dehaene, although in our view Sir Leon and Dr. Lubbers had much stronger qualifications. For the next five years the Commission needs a President who is in tune with the times and the mood across Europe – a President whose instincts are with enterprise and competitiveness. Above all, Europe needs a President of the Commission who is selected with the full approval of all member states.

    The Corfu Council has highlighted an issue of increasing concern to many European Union members – the way in which decisions are reached. It is an important point of principle that the key decisions require unanimity and that all member states should have an equal opportunity to participate in collective decision making. The procedures used for this decision, before and during the Council, were not satisfactory. There was no need for this matter to have come to an open division at a European Council; it should have been avoided. Had more comprehensive consultation taken place, as in the past, and had the views expressed by different states been heeded, it could have been avoided.

    I believe that there are a number of well qualified people who could take on the post, on the basis of a genuinely common accord. We stand ready to play our part in consultations on it. There is no reason why that should not lead to an early and satisfactory outcome.

    I wish to see Europe succeed. I want it to regain the affections of the people of Europe. I want a Europe with which all member states – now 12, soon to be 16, then 20 – can all feel comfortable. Achieving that may mean disputes along the way. But being a good European does not mean signing up to everything that our partners do. At Corfu we fought for what we believe is in the best interests of this country and Europe. That is what we will continue to do.

    Mrs. Margaret Beckett (Derby, South) I thank the Prime Minister for his statement.

    We warmly welcome the treaty of accession signed by Austria, Sweden, Finland and Norway, and agree that the result of the referendum in Austria was encouraging. We hope very much that it will be followed by positive results elsewhere in Scandinavia in the autumn.

    As the Presidency conclusions confirm, all those countries will bring a great deal to the European Union – not just a net contribution to the Community’s budget, but strong support for open government and for efforts to protect the environment. In addition, they are, of course, as the summit statement says, “in the vanguard” of support for the social chapter of the Maastricht treaty. That means that 15 out of 16 member states will support that chapter.

    We also welcome the partnership and trade agreement with Russia, the financial support offered to the Ukraine to close the Chernobyl nuclear reactor, and the progress made on further enlargement, specifically the applications of Cyprus and Malta, which will be widely welcomed in the House, and of Poland and Hungary.

    The Opposition are also delighted that the Corfu summit strongly reaffirmed the social dimension of Europe and, in particular, invited the Commission to make ‘full use of the new possibilities available’ from the social protocol.

    Another initiative that we welcome is the Council’s agreement to involve the Social Affairs Council with ECOFIN and the Commission in further follow up to Mr. Delors’ White Paper on growth and employment. We endorse the follow up to the White Paper, particularly the emphasis on education and training and the crucial need to maximise the potential of human resources – to invest in people.

    The Opposition are pleased that at least all the other member states and all the new applicants rule out the economics of the sweat shop and agree with the Council that the agreement – [Interruption.] Conservative Members should hear this; they should hear what the Prime Minister has signed up to. We agree with the Council that the agreements on works councils, on the protection of young workers, and on the creation of an agency for health and safety at work all represent significant progress in the European Union’s social dimensions.

    We are also pleased – despite what the Prime Minister said – that the prospect of further finance to support the trans-European networks has not been ruled out, especially as one of the 11 agreed projects includes the channel tunnel rail link. Does the Prime Minister now accept – I seem to remember him boasting in the past of having vetoed it – that the worth of this project lies in the fact that it might help to redress the growing tendency for Britain to experience all the costs of membership of the EU while our Government resist the benefits?

    Will the Prime Minister ensure that one of the first acts of the new Minister working on information technology will be to lift the unfair restriction on British Telecom which prevents it from entering the emerging market for television services? Does he not realise that the quickest way to build an information super-highway in Britain is to allow BT to compete with cable, which the Government refuse to do?

    Can the Prime Minister confirm that, during the summit discussions on many of the issues that I have mentioned, and in particular during the positive discussion on the follow up to the White Paper on growth, employment and social policy, he was not present? Is today’s report correct, that the right hon. Gentleman attended a three-hour discussion for only a few minutes and did not take the opportunity to speak? Does he recognise that what was agreed, apparently in his absence, enhances the social chapter of the Maastricht treaty – in stark contrast to the right hon. Gentleman’s rhetoric?

    How much of the right hon. Gentleman’s sound and fury about the Commission Presidency is a smokescreen to hide from his Euro-sceptics the fact that he has accepted a further strengthening of the social dimension in Europe and European intervention to promote jobs?

    Has not this weekend been, not a triumph, but a humiliation for the tactics of a Prime Minister who claims to be an ace negotiator but who found himself, and Britain, relegated to the sidelines? May I anticipate the Prime Minister’s standard response – that the Opposition simply do not understand how successful he has been – by pointing out that he went to Corfu to promote a British candidate for a senior post in Europe, won no support from any of his colleagues and ended up vetoing a Conservative? May I further remind him that my colleagues and I went to Corfu – [Interruption.] I am sure that Conservative Members want to hear this. We went to promote a British candidate for a senior post in Europe, and we obtained the unanimous support for that candidate of delegations from every one of 15 member states. We need no lessons from the Prime Minister on how to negotiate successfully.

    Does not this point up the fact that the Prime Minister has once again put his own standing in Europe before Britain’s standing and influence? Does he not realise that what happened this weekend weakens his chances of fighting successfully for reform of the common agricultural policy, and his chances of working to resist the further encroachment of VAT – issues that really matter to the people of this country? Does the right hon. Gentleman agree that the weekend’s events show not that he is a Prime Minister who is strong but that he is weak, a prisoner of his Euro-sceptics, and that yet again it is the people of this country who will pay the price for his failure?

    The Prime Minister I never cease to marvel at the transformation in the right hon. Lady’s attitude to Europe. She has slipped effortlessly from slavish and unthinking opposition to the European Community to slavish and unthinking support for everything that emerges from it. Can this be the same right hon. Lady who once said: ‘If one believed, as many of us do, that the EEC is a prime obstacle to the policies we need, how can we be expected to put our consciences and principles aside and cease to fight to win?’ I shall spare the right hon. Lady the other eight quotations that I have.

    I welcome what the right hon. Lady said about the accession treaty and the result of the referendum in Austria. I also welcome her support for the partnership and co-operation agreement – the further relationship with Russia and the actions on Chernobyl – and her support for the future enlargement of the Community to include Cyprus, Malta and four other countries, not just the two that she mentioned.

    We do accept the social dimension, but her reference to the social chapter relates to those member states that have signed the social protocol, not to ourselves – something which the right hon. Lady may not have understood.

    The right hon. Lady said that further finance for trans-European networks had not been ruled out, but I can tell her most emphatically that neither has it been ruled in.

    On information technology, I welcome her support for competition – a little late perhaps, but none the less welcome.

    The right hon. Lady referred to a discussion. There was a whole series of discussions over lunch and in plenary. The one in which I did not take part related to economic matters and my right hon. and learned Friend the Chancellor of the Exchequer, quite naturally, spoke on behalf of this country. In every other discussion I not only spoke but set out this country’s position very clearly.

    The right hon. Lady spoke of her successful negotiations. She, like me, met members of the socialist group in Corfu. Did she urge them to support Sir Leon Brittan? [Interruption.] I hear the shadow Foreign Secretary, the right hon. Member for Copeland (Dr. Cunningham), saying that she did not support the British candidate. Nor did we hear from the right hon. Lady whether, on an issue of principle and importance to this country, she would have maintained the British veto. She said not a word on that. We cannot get a clear answer from her on that any more than we can from the shadow Foreign Secretary, who has wriggled on every programme on which he has appeared.

    The right hon. Lady also referred, without a great deal of knowledge, to the reform of the common agricultural policy – clearly not understanding that the enlargement of the Community to include the central and eastern Europeans would make it absolutely imperative that there was a root-and-branch reform of the CAP.

    Mr. Kenneth Baker (Mole Valley) Does my right hon. Friend agree that the decision he took in Corfu at the weekend on the Presidency was not only right but courageous and popular – popular not just in the Conservative party but throughout this country and in many electorates across Europe? It is the Opposition parties who are isolated from public opinion in this country. Will my right hon. Friend ensure that, in putting forward his new vision of Europe, that does not result in a Franco-German stitch-up?

    The Prime Minister I am grateful to my right hon. Friend for his support. I made the judgment on the Presidency of the Commission – which is the most important executive post to be determined – on the basis of what I believed to be right for the European Union as a whole and right for this country. For the reasons I gave, and although I have nothing personal against Mr. Dehaene, I did not believe that he was the right person for that job. I believe that the decision taken will have a great deal more support across Europe than is being speculated upon by many Members on the Opposition Benches, and I have no doubt that it was the right decision, in the short term and the long term, for this country and for Europe.

    Mr. Paddy Ashdown (Yeovil) Does the Prime Minister agree that the present fast-deteriorating situation in Bosnia gives grave cause for concern? If the present fragile and much-breached ceasefire does not give way to a negotiated settlement, is it not the case that we may well be witnessing a terrifying escalation in the war in Bosnia, with the probability that it will spread to the rest of the Balkan peninsula?

    As to the Presidency, the Prime Minister’s attempt to portray the Punch and Judy farce at Corfu as Henry V at the battle of Agincourt – with the right hon. Gentleman in the title role – is deeply unconvincing, to say the least. Is it not the case that everybody in Europe and most people in Britain realise that the Prime Minister sacrificed Britain’s long-term influence and interests to obtain short-term 559 headlines in the Murdoch press and to deliver a large dollop of appeasement to the right wingers on his own Back Benches?

    The Prime Minister All the right hon. Gentleman achieves with interventions of that sort is to show how little he understands about negotiation in Europe and the issues at stake. I accept that there is a fundamental difference of approach to European issues between my party and the right hon. Gentleman and his colleagues. The right hon. Gentleman has been very frank. He does not consider the sovereignty of this Parliament important – he has made that perfectly clear. I disagree. He does not believe that we should maintain and exercise the right to veto. I strongly disagree. If the right hon. Gentleman is saying that on any occasion when this country may disagree with our colleagues in Europe we should automatically accept what they believe to be right and not what we believe to be right – which is the necessary consequence of not using a veto – he speaks for no one but himself and a tiny minority.

    The right hon. Gentleman is correct to say that the situation in Bosnia is grave. The ceasefire is holding, but we must bear in mind that a ceasefire is all that it is. Even that is not satisfactory. Tragically, another young soldier of the Duke of Wellington’s Regiment was killed yesterday. The right hon. Gentleman is right to say that we must work extremely hard in weeks to come to turn the ceasefire into a settlement that will last.

    Sir Edward Heath (Old Bexley and Sidcup) Does my right hon. Friend the Prime Minister agree that the fact that he considered himself to be forced to use the veto is a matter for regret, not for rejoicing? I believe that he recognises that the inquest will continue a long time and will overhang the whole of the 1996 discussions about the treaty’s future nature.

    Does my right hon. Friend recognise, as I do, that Sir Leon Brittan would have made an excellent President of the Union? Does he realise that Sir Leon received no support from any other member state because of the widespread belief that the British Government would use all their powers to bring pressure to bear on Sir Leon to reorder the Community and not to develop the European Union? That fact must be faced.

    Does my right hon. Friend agree that the Government’s major task now is to concentrate on how to resolve the crisis – for crisis it certainly is? It is said to be a matter of principle. What is the principle? We all know that the veto is there and that it can be used – that is not an issue. The treaty clearly describes when the veto may be used. There is no matter of principle involved.

    My right hon. Friend the Prime Minister said that he had nothing against the Belgian candidate. How does he propose to resolve the crisis and to find a suitable candidate? He said that there must be unanimity. Does that mean that only candidates acceptable to the British Government will be agreed to? [HON. MEMBERS: “Yes.”] It is not an issue on which there can be general agreement, which is what unanimity is about in a democracy – not domination by one particular country, but the work of all the countries put together.

    The Prime Minister My right hon. Friend has raised a number of points, and I should like to respond directly to all of them.

    I share my right hon. Friend’s regret that it was necessary to use the veto on this occasion. As I said in my statement, it should not have been necessary, and it could have been avoided had the degree of consultation that took place, for example, in 1984 been replicated. I very much hope that the matter can now be speedily resolved. There have been occasions in the past when the Presidency of the Commission was not approved at a European Council; subsequently, rapid consultations produced an outcome satisfactory to all members of the Community. I hope that that will be the case now.

    I also share my right hon. Friend’s view of the qualities of Sir Leon Brittan: he would indeed have been an excellent President of the Commission. I do not think that anyone who knows Sir Leon well would imagine that he would have done anything other than that which he believed to be right for the European Union. There is no doubt, in my opinion, that the excellence of his performance as a competition Minister during the past few years weighed against him in the minds of some of our colleagues when they considered who should be President of the Commission.

    I believe that we need to resolve the matter with urgent bilateral contacts, and we are ready to take part in those contacts. The point of principle was not whether the veto should be used; as my right hon. Friend said, the veto is there, and it is there precisely to be used. The point of principle was the manner in which the consultations took place, and the manner in which the late candidature itself emerged.

    As for the acceptability of the candidate, what I hope to achieve is a candidate who is acceptable to all members of the Community, not just to the United Kingdom. We are in this as one of 12, soon to be 16. The candidate must be acceptable to all member states. Although that cannot possibly mean that he or she would be the first choice of all member states, I think it perfectly possible to obtain a candidate who will be acceptable to all and who – in the next five years during which he or she has responsibilities to discharge – will carry the confidence of all member states. That is what I wish to achieve with all possible speed.

    Several hon. Members rose

    Madam Speaker Order. Before we proceed any further, let me point out that – as the House can see – a large number of hon. Members wish to question the Prime Minister. I now want only very brisk questions; otherwise I shall use my discretion, and ask the Prime Minister to answer only one of the questions. I want to call as many hon. Members as possible on this important statement.

    Mr. Giles Radice (Durham, North) The Prime Minister has just underlined the importance of consensus. Does he think that there really is a candidate who has the support of all the Governments of the 12 member states – especially when they include a British Government who have just shown themselves to be under the thumb of the Euro-sceptics?

    The Prime Minister As to whether there is a candidate acceptable to all, the answer is yes. The next few weeks will prove that to be the case.

    Mr. Tom King (Bridgwater) In his efforts to promote someone who was manifestly a very suitable candidate – Sir Leon Brittan – how was my right hon. Friend helped by the statement of the Labour MEP who is now the leader of the European socialists, who said that even if the Council approved such a choice they would seek to defeat it in the Parliament?

    The Prime Minister I was not aware of that statement, and, to my surprise, the right hon. Member for Derby, South (Mrs. Beckett) has chosen not to bring it to the attention of the House.

    Mr. James Molyneaux (Lagan Valley) Is the Prime Minister aware that in 1940, when I was 20, it was not considered any great crime to put Britain’s interests before the then European consensus? Does he derive some satisfaction from the recent European elections, in which some Opposition parties showed a marked reluctance to put before the electorate proposals for further surrender of Britain’s interests?

    The Prime Minister Although not every aspect of the results of the European elections was entirely to my satisfaction, my party certainly contested the campaign on European issues, while others signally failed to do so.

    Sir Teddy Taylor (Southend, East) I congratulate the Prime Minister on standing firm against the blitzkrieg tactics of the French and Germans in promoting their candidate. Will he take the opportunity to remind the Europeans that Britain’s especially good economic situation, compared with theirs, has arisen not just because of the brilliance of the Chancellor of the Exchequer’s policy but because of our escape from the ERM? Will he give that message on their future economic climate as well as his splendid guidance on the Presidency?

    The Prime Minister In the past, I have expressed the view that the deregulatory policies – the supply side policies – that we are following are the right way to create jobs. On this occasion, it fell to my right hon. and learned Friend the Chancellor of the Exchequer to make those points, and he did so.

    Mr. Andrew Faulds (Warley, East) Why should Britain’s interests suffer because we have a puny Prime Minister who is more concerned to reassert his authority – his enfeebled authority – over his rebellious and, indeed, ridiculous right wing than to work and co-operate for the future of that great role of a united Europe?

    The Prime Minister The hon. Gentleman speaks for the things that he believes to be important, and he must expect me to do the same; I did so on this occasion.

    Rev. Ian Paisley (Antrim, North) Has the Prime Minister anything to tell the House and the people of Northern Ireland about the talks that he had with the Prime Minister of the Irish Republic during the Council? The agreement was that strand 1 of the talks would include only the constitutional parties of Northern Ireland and Her Majesty’s Government, yet, following talks, the Prime Minister announced on television that he and the Taoiseach were discussing strand 1 of the talks, from which the Irish Republic Government were excluded as the talks were internal to Northern Ireland. Having used his veto on one occasion – I agree with what he did – he should use his veto against the Prime Minister of the Irish Government, who keeps insisting that Northern Ireland should be part of his country.

    The Prime Minister No, my discussions with the Irish Prime Minister were not about strand 1, which has been the subject of discussions between the British Government and the constitutional parties in Northern Ireland. My discussions with the Irish Prime Minister related to political strands 2 and 3. We still have not achieved agreement, but we are making progress. We have commissioned further work.

    Mr. Peter Shore (Bethnal Green and Stepney) So far, so good: the Prime Minister has won the first battle over the Presidency, but there will be further rounds to be fought and it is the last battle that really matters. Does the Prime Minister agree that, in strengthening his position against an unwelcome candidate for the Presidency, he would do better to say that our basic objection is to the appointment of an open Euro-federalist as the President of the European Commission, and that our objection will continue if the Commission proposes any other Euro-federalist candidate?

    The Prime Minister I am not sure that the right hon. Gentleman carried all his colleagues with him, but his intervention was entertaining from where I sat. He would expect me to consider all future candidates on their merits, and I will do so.

    Mr. David Howell (Guildford) I warmly support my right hon. Friend’s stand, which in due season will be supported not only by Britain but by many millions of people in the European Union. In setting up the preparatory committee for 1996 at Corfu – the so-called reflection committee, which will have two Members of the European Parliament as members – will he ensure that the House has an adequate and full opportunity to contribute to that committee and a full say in ensuring that we get the right kind of Europe after 1996?

    The Prime Minister I regard that as an extremely important point. The Heads of Government have agreed that a study group should convene in around a year’s time to prepare for the 1996 intergovernmental conference. It is highly likely, although it is not a decision for me, that the Select Committee here may wish to take its own considerations and make its own representations directly to the study group. I believe that it would be right for it to do so. It may well be that other groups will also wish to put forward their representations, both to the British Government and to the study group. Clearly, this will be an important intergovernmental conference and it is vital, in my mind, that everybody who has a valid point to put forward should have the opportunity of doing so and the opportunity of discussing it.

    Mr. Geoffrey Hoon (Ashfield) If the Prime Minister’s objection to the appointment of the Belgian Prime Minister is essentially procedural in that the nomination was sorted out in secret, behind closed doors, will he, therefore, support proposals to make the European Union’s system of appointments more open, more democratic and more accountable?

    The Prime Minister The hon. Gentleman bases his question on a misassumption. I have not said that my objection was procedural. I have said that the procedure was part of the reason why we complained. As a point of principle, the procedure was wrong. I also made it perfectly clear that, in my judgment, Mr. Dehaene was not the best qualified candidate for the job. I do not believe that one should accept anyone other than someone whom one believes is fully qualified for this job. I also made the point that, on key policy issues, I did not believe that the approach that Mr. Dehaene favoured was right. None of those points is novel; I made them perfectly clear the other day and they should be clear to the hon. Gentleman.

    Mr. William Cash (Stafford) Does my right hon. Friend agree that it is not only important to ensure that we do not have a federalist as President of the Commission, but that it is essential that we do not have the Germans and the French running the European Community? We should use the reflection group which has been set up in Corfu to ensure that we reduce the role and the powers of the European Commission and the European Union so that we can be sure that we concentrate on the office and the institutions rather than on the man.

    The Prime Minister Whoever becomes President of the Commission in due course, I very much doubt that that person will exercise the influence and authority that Mr. Delors has exercised over recent years. The changing nature and enlargement of the Community make it extremely unlikely that anyone will exercise that authority again. That view is held not only by the British Government, but by the Heads of a number of other Governments.

    On my hon. Friend’s other points, I mentioned the increasing success of subsidiarity. On new legislation – I take the figures from memory – in 1990, there were about 180 new pieces of European legislation. In the first half of this year, there have been 25.

    Mr. Tony Benn (Chesterfield) If European co-operation extends, as it must and should, to cover the whole continent, is it not absolutely clear that we shall have to move to a different system under which the nations involved harmonise, by consent, through their own peoples and Parliaments? The real enemies of a new Europe are those who wish to seize all power and to put it in the hands of bankers and Commissioners who are not accountable and cannot be removed.

    Is the Prime Minister also aware that the siren voices in this House, in the press and in the City of London are wholly unrepresentative, not only of opinion in this country, but of opinion in other countries in that huge continent? Those countries want to govern themselves and not to be governed by a political class who have contempt for the opinions of ordinary people.

    The Prime Minister I agree with co-operation by consent. The right hon. Gentleman will recall that in the Maastricht treaty we established pillars in three vital areas for co-operation by consent and agreement. There is no doubt that by consent the countries of the European Union can often exercise more influence collectively than individually. I strongly agree that that consent principle should be extended. There are areas for common decision where common consent would not properly work.

    My concern is that the influence of some Europeans would move us too fast towards common decision, and not by co-operation or by common consent. That is where I fear that Europe would lose the affection of its people. I do not wish that affection to be lost. That is why I have argued for the nature of Europe that I set out in the election campaign just a few weeks ago. We must extend co-operation by consent; we shall seek to do so in future.

    Mr. Ian Taylor (Esher) My right hon. Friend was quite right to say that use of the veto should be exercised with great reluctance, but, in the circumstances that he has described over last weekend, he was absolutely justified in exercising that veto. Will he now ensure that he works closely with the Germans, during their Presidency of the Community, to find a successor acceptable to all and to help the Germans who themselves have a difficult few months ahead with their elections? When the Council of Ministers makes a proposal, can it also give a job description so that it is quite clear to everybody what is expected of the new Commissioner?

    The Prime Minister I shall certainly wish to work with the new Presidency as soon as it takes up its responsibilities to reach a common accord on a new Commission President as speedily as possible. I cannot yet say who that will be, but I think that there are a number of people who would be worthy of consideration. My hon. Friend makes a valid point about a job description.

    Mr. Dafydd Wigley (Caernarfon) The Prime Minister said that there were two very good candidates available other than the one being discussed – Sir Leon Brittan and Dr. Lubbers. Will he assure the House that, if Dr. Lubbers’s name were to come forward again, he would not use his veto, notwithstanding Dr. Lubbers’s federalist tendencies?

    The Prime Minister I made it clear some time ago that, in the event that Sir Leon Brittan’s candidature for the Presidency did not receive the support of colleagues, I could accept Dr. Lubbers.

    Mr. Ashdown But Dr. Lubbers is more of a federalist.

    The Prime Minister I could accept Dr. Lubbers. Whether Dr. Lubbers’s name will come forward again seems very doubtful.

    Mr. Ashdown But he is more of a federalist.

    The Prime Minister The right hon. Gentleman has probably never met either of those gentlemen. He has certainly never sat and negotiated with them. He has certainly not sat round the table reaching decisions with them. He has certainly not met them in bilaterals time after time after time. The right hon. Gentleman should either speak about things about which he knows or say nothing.

    Mr. Nicholas Budgen (Wolverhampton, South-West) Will my right hon. Friend the Prime Minister give us his assurance that any candidate approved by the British Government for the Presidency will pass the test of being in favour of Britain’s opt-outs on the social chapter and the single currency and against a further move towards a united states of Europe?

    The Prime Minister We have those opt outs and we intend to retain those opt outs, so the position of the new President on those is not especially relevant. I shall repeat the point that I made a moment ago. I shall look at each candidate for the Presidency on their individual virtues and make a judgment on that.

    Mr. Tam Dalyell (Linlithgow) Would the Prime Minister help the House on a question of straightforward fact? Is it true or is it untrue that, as reported in the press, his Chief Whip told him that if he did not exercise the veto he would be opposed this autumn for the leadership of his own party?

    The Prime Minister I can tell the hon. Gentleman categorically that no such conversation took place and no such advice was received.

    Sir Peter Hordern (Horsham) Is not it important to the future of the European Union that proper consultation between member countries should take place before the summit meetings? How can it otherwise be the case that two well recognised figures, both eminently qualified – Dr. Lubbers and Sir Leon Brittan – were bypassed by a secret conclave between the French and the Germans at Mulhouse? That cannot be a satisfactory way in which to proceed, and it would be a bad day for this country and for the European Union if it were.

    The Prime Minister I agree with my right hon. Friend in what he says, and I have every expectation now that there will be a proper consultation over the next few weeks and that a satisfactory candidate, who will be accepted by all, will then emerge.

    Mr. Dennis Skinner (Bolsover) Is the Prime Minister aware that, when all the clamour has died down and the flag-waving has ended, in a quieter period, he and others will have to make a choice about who is going to get the job? It would be fair if I were to ask him if he will he give a guarantee to the House that he will veto each and every federalist who is put up for that job.

    The Prime Minister If that was a job application, I would certainly veto the hon. Gentleman. I repeat the commitment that I gave the House a moment or so ago. I will consider every candidate on his merits, and I will not bind myself beyond that consideration.

    Sir Peter Tapsell (East Lindsey) In stating my full support for my right hon. Friend’s cool, determined and far-sighted representation of our country in Corfu, may I invite him to garner support and strength from the fact that the British people instinctively understand that the so-called European Union is increasingly in danger of becoming the latest vehicle for the age-old German desire to dominate Europe so that those who really have the interests of a democratic Europe of co-operating nation states at heart will need to work a good deal more effectively after Corfu to bring that about?

    The Prime Minister I believe that the Community is a collection of nation states, the voices of all of which need to be taken seriously and considered. There is no doubt that the Community must reach its decisions collectively and that no individual nation should have excessive influence.

    Mr. Peter Mandelson (Hartlepool) Does the Prime Minister accept that I am familiar with the European views of Dr. Lubbers? Will he tell the House precisely how Dr. Lubbers’s views on the future development of Europe differ from those of Mr. Dehaene?

    The Prime Minister Well, he is a free trader for a start. I think that that is rather important. He is much more in favour of subsidiarity and deregulation. He is not in favour of extra expenditure; and he is an Atlanticist. Would the hon. Gentleman like a longer list?

    Sir Fergus Montgomery (Altrincham and Sale) Is my right hon. Friend aware that, no matter how he had voted on the Presidency, he would still have had the niggling criticisms from the Opposition Benches? Does he accept that to put the interests of Britain first has to be the aim of any British Prime Minister? Does he agree that it is wrong for the Labour and Liberal Democrat parties to make the statement that we have no influence at all in Europe unless we go along with plans that have been pre-arranged between Germany and France?

    The Prime Minister That certainly is the practical effect of what has been said by the Front-Bench Members of both the Labour party and the Liberal Democrat party. It is all very well saying that we seek co-operation and that a difficult circumstance would never arise so we would never have to use the veto. I am afraid that that is to live in cloud cuckoo land.

    The reality is that from time to time, for very good reasons, there are matters in which every nation state finds itself at odds with its European partners. In those circumstances, unless the veto is maintained on matters which may be of vital interest to this country, we would inevitably have to follow the views of others, with no escape route whatever for the British. That is not an acceptable position to the present Government. I regret very much that it is acceptable to the Opposition and to the Liberal Democrats.

    Mr. Nigel Spearing (Newham, South) As the relevant article requires common accord, is there not a duty on all members involved to avoid action that could create common discord? The Prime Minister has told us that the customary procedures of consultation were not carried out on this occasion. If they had been, and bearing in mind the support that Dr. Lubbers had from a number of other countries, is it not likely that we would have had Dr. Lubbers as the President of the Commission?

    The Prime Minister I think that is quite possible.

    Mr. Michael Colvin (Romsey and Waterside) Is my right hon. Friend aware that four nations which did not have a vote in Corfu will warmly welcome the stand that he took on the question of the successor as President of the Commission? They are Austria and the three Scandinavian countries, which do not want to join a European Union on 1 January that is dominated by a French and German axis.

    Will my right hon. Friend acknowledge that the House is deeply disappointed that he has not released the remaining quotations from the right hon. Member for Derby, South (Mrs. Beckett), the Leader of the Opposition? In order that we may be aware of the principles of the Labour leadership on Europe, perhaps my right hon. Friend will release one a day for the next eight days.

    The Prime Minister There might well be occasions when it would be appropriate to release some of the others.

    I very much believe that it is vital for Europe that the French-German reconciliation continues. All of us who look over a period of years believe that to be entirely right. I very much hope to see that continue and that the close relationship between France and Germany itself will continue. Equally, we ourselves both seek and now enjoy a close relationship with both those countries and our other European partners. That close relationship does not mean accord on every subject; nor would it ever be likely to be the case with nations of such varied interests. But we seek a common accord wherever we can and we seek the best relationship not only with France and Germany but with France and Germany and our fellow partners in the European Union.

    Mr. John Fraser (Norwood) What accommodation does the Prime Minister anticipate will be reached between the Turkish and Greek communities in Cyprus to enable Cyprus to be admitted as a member of the Community?

    The Prime Minister It is a considerable way off before Cyprus is likely to be admitted as a member of the Community. Certainly, if the dispute between the north and south is unresolved, it will be extremely difficult for Cyprus to be admitted to the Community. What we have said is that we will look at that and consider the case in the next phase of enlargement – that is certainly some years away.

    But I share a view that I think the hon. Gentleman would accept: first, we must continue with the United Nations’ efforts to try to find a satisfactory accommodation to the long-standing problem of Cyprus. We have, for example, had British troops there now for nearly 30 years, and other United Nations countries for a similar period, so we will continue to seek that accommodation. Secondly, although this is not yet a matter discussed with our European partners, clearly we hope that that dispute will be resolved before it is possible for Cyprus to become a member of the European Union.

    Mr. John Butterfill (Bournemouth, West) Does my right hon. Friend agree that, given the importance to the Belgian economy of the presence of European institutions in Brussels, it makes it doubly imperative that any Belgian candidate for the Presidency should receive the unequivocal support of all member states?

    The Prime Minister I believe that any candidate needs the unequivocal support of all 12 member states. I have no doubt that there are men of talent in each of the European countries – all 12 of them – who could perhaps serve as President of the Commission. It is not the nationality of the candidate that I consider relevant; it is the attributes that the candidate has.

  • Mr Major’s Doorstep Interview in Corfu (II) – 24 June 1994

    Below is the text of Mr Major’s doorstep interview in Corfu on Friday 24th June 1994.


    QUESTION:

    Prime Minister, are you prepared, if necessary, to use the British veto today?

    PRIME MINISTER:

    I am not going to discuss what I am going to do in the meeting at all, there are a lot of discussions to be had, they have not yet been had, I am not going to make any comment at all on that until after the meeting.

    QUESTION:

    If it had to be postponed to a special summit, how serious would that be do you think?

    PRIME MINISTER:

    The right thing is to get the right candidate and to make sure there is a consensus for the right candidate, that has always been the case and if it is has to be deferred it would have to be deferred, but clearly it would be desirable to reach an agreement.

    QUESTION:

    Can I ask you about your talks with Mr Reynolds, I know the Irish side would like to begin detailed talks about a new framework for Ireland, do you think you can start detailed talks today?

    PRIME MINISTER:

    We have been discussing the framework in some detail with the Irish for some time and the Taoiseach and I have had the opportunity of discussing detailed [indistinct] on other occasions, how much detail we will get into this afternoon I am not sure, but we are perfectly prepared for discussions on detail at any time.

  • Mr Major’s Doorstep Interview in Corfu (I) – 24 June 1994

    Below is the transcript of Mr Major’s doorstep interview in Corfu on Friday 24th June 1994.


    QUESTION:

    How significant is today for the future of Europe, do you think?

    PRIME MINISTER:

    I think there are two very important agreements to be signed today, firstly the Accession Agreement for the EFTA countries to join the Community, that is something we have wished to see for a long time. The Community isn’t complete as twelve, sixteen is more complete with twenty later even more complete and of course the Partnership and Cooperation Agreement with Russia is a remarkable step forward; it will help open the European market to Russian exports and the Russian market to European exports and European investment so I think that is a very welcome development.

    QUESTION:

    Do you think you are going to be able to reach agreement on Jacques Delors’s successor tonight?

    PRIME MINISTER:

    I don’t know yet. I haven’t had a chance to discuss the matter with others. Everyone would like to reach agreement if they can but as yet I don’t think anyone really knows.

    QUESTION:

    And the right person for the job?

    PRIME MINISTER:

    We’ve always said that Leon Brittan is the best person for the job. That is not say anything against the other candidates. We think he is the best candidate but I’ll have nothing to say about that until we have finished our discussions.

  • Mr Major’s Comments Following the European Elections – 14 June 1994

    Below is the text of Mr Major’s comments following the European elections made during an interview given in London on Monday 13th June 1994 and broadcast the following morning on Tuesday 14th June 1994.


    QUESTION:

    [Mr Major was asked what priorities would change following the European election results].

    PRIME MINISTER:

    I don’t think I would put it in that way. The priorities we have are long-term priorities, they are not short-term ones, they are not changeable priorities like changing a shirt each day. We have some very long-term politics that we believe we must see through. Some of them are now coming to fruition, low inflation for example, lower interest rates to help industry, unemployment beginning to fall, exports beginning to rise, the economy back in growth. That is a long-term policy and we will stick with the policies that have brought that about. Equally with the health reforms, with the education reforms and with the policies in the Competitiveness White Paper to improve the working of the economy and create jobs, all those will continue.

    We will produce a new parliamentary programme for the next session, we will announce that later in the year. It won’t be as large as this year’s programme that has been very large indeed, but it will have a number of interesting measures in it and it will help move our reforms forward.

    QUESTION:

    [Mr Major was asked if unity in the Conservative Party would now end after the recent truce].

    PRIME MINISTER:

    No. I think the political recovery is going to start. I don’t have a great deal of doubt about that. The party in the country is perfectly clear that it wishes a united party in Parliament, that message is unmistakeable. Most people expected that there would be disagreements during the European elections – they were disappointed.

    I think the parliamentary party on Europe has a message that overwhelmingly it can follow. Moreover, it is a message that I believe is right. To move substantially to the Euro-sceptic wing of the argument or the Euro-enthusiast wing of the argument doesn’t seem to me to be right for Europe or for this country. The vast majority of people in this country take a more practical, more pragmatic view. That is my view and I believe it is the view of the overwhelming majority of the Conservative party.

    QUESTION:

    [Mr Major was asked if the arguments hadn’t already started].

    PRIME MINISTER:

    Very low-key and I think if you were to go and ask the other parties and subject their views on Europe to the same searching telescope that has been put in front of the Conservative Party, you would get the same sort of responses. No-one believes that Mr Skinner and Mr Shore are enthusiastic for Europe and I think that is true of a large number of members of the Labour Party.

  • Mr Major’s Press Conference – 13 June 1994

    Below is Mr Major’s on-the-record press conference held in London on Monday 13th June 1994.


    PRIME MINISTER:

    This press conference is on-the-record, and I think I should say at the outset that I have reached the conclusion that it would be useful, from time to time, to supplement the normal briefings of the lobby with a press conference of this nature that is on-the-record.

    Let me say something about current matters and the election results yesterday first. Let me acknowledge at the outset we had very poor results in the elections yesterday, very poor results but on a very low poll, two-thirds of the electorate simply did not bother to vote and the turn-out, not just in this country, but across Europe, was frankly derisory.

    Having said that our results were poor, they were of course a good deal better than almost anybody predicted. The opinion polls have been discredited again, the Conservative vote was not as predicted, 21 percent or 23 percent or 33 percent behind Labour.

    I believe it has been clear for some years that many people are simply not frank when asked questions by opinion pollsters, I suspect they resent the prying nature of the questions and it seems that the answers are not always accurate, perhaps a lower salience for opinion polls in the future would be welcomed by quite a lot of people.

    Let me say a word about some of the lessons I believe can be learned from this election. Firstly, it is apparent that many people are still both angry and bruised as a result of the recession, that has happened here in the United Kingdom, as indeed it has happened right across Europe. The governing parties in Denmark, France, Greece, Ireland, Spain, Portugal, have all won a much smaller share of the vote than they did in their last general elections.

    Here in the UK we are now firmly back into growth, but that is clearly not yet the general perception of the public. Many people simply declined to vote on this occasion, “Not this time” was a frequent message on the doorsteps. There was a general feeling of irritation amongst the electorate with all politicians, but certainly of course directed at the government.

    Having said that, Labour had a good result, even though during the campaign they neither produced nor discussed any policies, and it must also be said that this election was held at a time uniquely favourable to the Labour Party for reasons, some of them sad, that I believe everyone fully understands. Even so, in mid-term, after a deep recession, on a low turn-out, they barely beat the share of the vote that we achieved at the last general election.

    In the European elections it was only the Conservative Party that fought the elections on European issues, we mounted an effective campaign, a campaign that spelt out clearly the policy differences between the main parties. I believe that is one of the principal reasons why the Liberal Party failed to make the advances that had been so widely predicted for them.

    What is clear from the outcome of this election is that we are back into the politics of a clear choice, the only alternative to a Conservative government could be a Labour government, everyone I think can understand that, any other choice is simply a good spoiler but unreal.

    Let me just say a word or two about policy from now on, starting with the economy. We are now back into economic growth and that is going to continue, I am confident that we will meet our growth forecasts. We have the lowest inflation since the 1960s, I am confident we will meet our inflation targets. Unemployment is now falling consistently, I am confident that will go on and there is now more hope for the unemployed than there has been for a very long time.

    We are pursuing, and we will continue to pursue, long-term policies that we believe will lead to success for this country, that is the reason for our education policies, our training policies and the thrust of the competitiveness White Paper, those policies are right and they are important to me, they will continue in the future.

    We are also taking tough measures to fight crime in Britain, there is no doubt on the doorstep, not just during the election but in the travels around the country I have had in the last year or so, about the depth of public concern over crime. At present we are changing the law with the Criminal Justice Bill, reforming the policing system with the Police Bill, cracking down on drugs with more initiatives to come in the future. My priorities are to do more to protect the public from crime, more to bring criminals to justice and more to prevent crime in the first place.

    We have at the moment a full programme of long-term reform going through Parliament, it is going through Parliament this year and there will be more next year. Apart from our long-term vision for the economy we have a long-term programme for public services in the Citizen’s Charter, long-term reforms to complete in the Health Service, new ideas to create a better transport system for this country using private initiatives and private capital, ways of bringing together welfare, work and training to help and to encourage people back into work, and with the new national lottery, new ways of brightening people’s future.

    We have had a tough couple of years through the recession and beyond, government at any time is never easy, certainly not during a recession. There have been a large number of very difficult decisions to make and I have no doubt that is always the way of government and there will be difficult decisions in the future. But I intend to stick to what I set out to do because I passionately believe that is for the long-term benefit of this country.

    Let me just add one final point before I take any questions you may have. Going round the country I find a great deal of concern about the way in which Parliament does its business, I share that concern expressed to me. Parliament has before it an excellent report from Michael Jopling, I hope we can find ways of enabling the Commons to do its business in more sensible ways, in more sensible hours, without either unacceptably reducing the government’s capacity to carry its programme or reducing the Opposition’s flexibility in deploying and pressing its case against government legislation. I believe that this effort has very strong support on both sides of the House and very strong support outside the House from millions of people who follow our proceedings. The government is keen to make progress on this front, if the Opposition are equally keen I hope we should be able to map the way forward before the summer recess.

     

    QUESTIONS AND ANSWERS

    QUESTION (Michael Brunson, ITN):

    May I put to you, since you said that we were now back to the politics of a clear choice, the point that the Labour Party makes this morning, it is twofold: one is they say that the mantel of trust, as they put it, has passed from the Conservatives to them, because of the actions you took over tax; and two, that if you try to go down the tax-cutting road in an attempt to win the country over you will not succeed because nobody will believe you?

    PRIME MINISTER:

    The clearest illustration from the Labour Party is that they certainly do not have tax-cutting in mind, that even when the opportunity for tax cuts may be there, they would prefer to spend your money, Michael, on things that they think are important rather than put it in your pocket for you to spend.

    As far as trust is concerned, we said a number of things at the general election that we sought to do: we put education at the top of the agenda and we have left it there; we have said we would continue with the health reforms, and we have done it; I said we would get inflation down, and we have done it; interest rates down, and we have done it; unemployment down, and it is happening. We had to take the decision on tax, not because we wished to, not because we expected to have to do so, but because the position of the economy was such that it was necessary for us to do so. We therefore took the decision that we judged was right for the country and I think the impact of that can be seen in the economic circumstances we are now reaching. If and when it is prudent to cut taxes in the future, our instinct will be to cut them, I cannot tell you when that will be, but if the circumstances arise where we think it is right to cut taxes I would rather let people decide themselves how to spend their own money than we should decide on their behalf.

    QUESTION (John Pienaar):

    Are you ready and waiting for any challenger to your leadership and since then you have appealed to be allowed to finish the job that your party was elected to do. After these elections, how do you assess the chances of a challenge and your own chances of leading your own party at the next election?

    PRIME MINISTER:

    I will be leading the Party at the next election, John.

    QUESTION:

    [Inaudible] given that these results, though perhaps not as bad as expected ..

    PRIME MINISTER:

    I keep hearing this, John, I keep hearing this, I am still here, we have a mechanism if people wish to challenge me in the autumn, that is a matter for them, I do not expect one, I will be here waiting for it if there is one, I will beat it and I will be here to and through the general election.

    ELINOR GOODMAN:

    Do you think you can recover given that no previous Government has ever recovered from a trough like this and isn’t there then a case for changing leadership under those circumstances?

    PRIME MINISTER:

    You say no-one has recovered from a trough like this. I wonder whether that is right. When I became Prime Minister, at the start of the campaign for the leadership of the Conservative Party at that stage we were 19% behind in the opinion polls. That looks exactly the same as the position that emerged from yesterday’s results.

    That was self-evidently wrong in the past because we did recover; not only did we recover from that 1989 trough, we recovered to win the general election with more votes than any party has ever had at any stage in our history so can we recover? Of course we can. Will we recover? Of course we will. Will we win the next election? Yes, I believe we will.

    ADAM BOULTON (SKY NEWS):

    I wonder if I could ask you if you are finally going to get a grip on the civil war which has broken out once again in your own party with those MEPs who lost their seats almost unanimously attacking the divisions in the parliamentary party while Eurosceptics or whatever they want to call themselves are saying you have got to bow to the silent majority who didn’t vote, take on Europe which they say is now going to be dominated by Helmut Kohl and the Germans?

    PRIME MINISTER:

    I am glad you asked that question because let me make it clear yet again I am not bowing either to the Euro-enthusiastics or the Eurosceptics. I am saying and doing precisely what I believe is right for Europe.

    I believe what I set out in the election campaign is the right way ahead for Europe if it is to succeed. I have made that clear on innumerable occasions. I wish to see the European Union succeed. I think one can see from these results right the way across Europe, not just in this country, that people are concerned at the way the European Union has developed. The turn-out was rotten in other countries as well as here, people are frustrated. All the governing parties did badly.

    I think, therefore, we have to think afresh about how to make Europe a success and I don’t believe myself that the idea lies on either extreme – tearing down what exists or building it up to some unreasonable federalist centre. There is a middle way, a practical way, for Europe; it is the way that I believe in and in stating that I am not nodding in a Eurosceptic direction or in any other direction, I am nodding in the direction of what I believe is the right way ahead for the future.

    GEORGE JONES (DAILY TELEGRAPH):

    Prime Minister, your Party Chairman, Sir .Norman Fowler, has spoken this morning about the need for a reshuffle and some new faces at the top of the Government. Can you give us any indication of your thinking on that and when the time might be? Are you going to do it this week, next week or never?

    PRIME MINISTER:

    I think you can rule out this week, you can certainly rule out next week and I am absolutely positive you can rule out never.

    Yes, there will be a reshuffle. I can’t tell you when it will be, I think I owe that to the people who are concerned with it, to let them know first when we have a reshuffle. There will be one, it isn’t imminent. I think there are appropriate times to hold a reshuffle both in terms of good management and in terms of man management and when I reach the appropriate time then I will make the changes I think are necessary.

    ANDREW MARR:

    Have these election results changed your mind on anything?

    PRIME MINISTER:

    These election results are disappointing. No Conservative leader, no prime minister, likes to lose seats. I don’t think it has changed my mind as a result of these elections. It has made me more determined to pursue the things that I think are right and try to explain them more adequately so that people can see what we are doing and why we are doing it rather than labour under some of the misapprehensions that perhaps are about now. I don’t think it has changed my mind; it has reinforced my view that we concentrate on the things that are of long-term importance to this country.

    If you are concerned with matters that are long-term, you often have to take a good deal of short-term pain and short-term unpopularity. If I may give you a practical illustration of that, the first thing I said, not when I became Prime Minister but when I became Chancellor, was that we needed to get inflation down.

    That is easier said than done. I stuck to a firm anti-inflationary policy right the way through the general election. There were many people saying: “Cut interest rates, it will make you more popular at the time of the election!” I didn’t do so because I judged it wouldn’t put us in the best disinflationary position for the future. I have taken the same view on other matters. If something is right, it is better to see it through even if it is unpopular and difficult to explain in the short-term so nothing has changed.

    ROBIN OAKLEY (BBC):

    Prime Minister, why do you believe you are still being punished by Britain’s electors in the face of economic recovery when Chancellor Kohl appears to have escaped a similar degree of ire from the German electors after a much shallower recovery?

    PRIME MINISTER:

    I saw Boris Johnson’s report this morning; I think he misses the most important ingredient in explaining that phenomenon.

    The phenomenon you have seen in all Western countries during the last twenty years is of a mid-term dip in governments’ popularity and people returning to their natural and instinctive preference as they near a general election. We are not near a general election, we are up to three years away from a general election. In Germany, they are only months away from a general election and so the normal impact of politics, the normal way it has tended to work for twenty years, is that people tend to protest less and move back to their natural home as they get near a general election. I think on this occasion the CDU in Germany, Chancellor Kohl’s party, has benefited from that. Their vote fell but not by as much as that of other governing parties in Europe and I think that is the principal reason.

    ROBIN OAKLEY:

    As a supplementary to that, what are the results in the European parliamentary elections which would have led you to contemplate resignation?

    PRIME MINISTER:

    I did not believe the opinion polls this time any more than I did last time and I was right again so the question didn’t cross my mind.

    DON McINTYRE:

    Prime Minister, some of your Ministers have been pretty dismissive of Tony Blair but David Mellor said yesterday that he was an exceptionally gifted politician and that the Conservative Party should take note and get its act together. Where are you in that expression of opinion?

    PRIME MINISTER:

    In the spirit of good nature to someone who may become the leader of the Labour Party but isn’t yet, I would, if I may, offer Tony Blair a piece of advice: Don’t believe what is said about you today, Tony, and don’t believe what is said about you in eighteen months’ time.

    COLIN BROWN:

    Prime Minister, on the subject of the single European currency, will you be moved off your policy of leaving it until after 1996 for the House of Commons to decide and what will you do about disciplining those Ministers who break that line?

    PRIME MINISTER:

    Well they won’t. The line is perfectly clear, clear in the manifesto and it is perfectly clear that it is both logical and the right line. The answer is I won’t be moved off it and I don’t expect people not to agree with it.

    PETER BURR (REUTERS):

    There has been some nervousness in the market today after Sir Norman Fowler’s comments about the possible need for early tax cuts. Are you a little bit concerned that you might be pushed into an early move in that direction?

    PRIME MINISTER:

    No.

    PETER BURR:

    As a supplementary to that, there has been a lot of talk, murmurings and briefings saying that the next movement in taxation is likely to be downwards. Clearly, you were punished by the electors for the tax increases. Can you say that the next movement in taxes will be downward?

    PRIME MINISTER:

    We will decide upon taxes at the time of this year’s budget, next year’s budget and the budget in the year after that. I am not going to anticipate what that is going to be.

    When and if it is prudent to cut taxes, we will perhaps make a decision to cut them but not until. It is impossible to say at this stage when it will be. All that can be said is that our instincts are to be a tax-cutting party when it is prudent to do so – not recklessly but when it is right – and I don’t know at this moment when that will be.

    QUESTION (“TODAY”):

    After a series of rather poor election results, your voters seem to be turning their back on you. Do you ever get fed up and really feel as though you want to turn your back on it, walk away and maybe take up gardening full-time?

    PRIME MINISTER:

    Do I look fed up? Do I look as though I am about to turn my back?

    The answer, Paul, is no and the reason the answer is no is that there are things I want to do in politics, things I have set out, and I don’t intend to be pushed off them. I intend to try and continue to complete them.

    JOHN CRAIG (DAILY EXPRESS):

    What do you think a Cabinet reshuffle will achieve? You seem to be acknowledging that the Government’s problem is one of personalities rather than policies.

    PRIME MINISTER:

    No, I don’t necessary acknowledge that. Politics is like a moving stream, it moves on. All the way through Government there are people of talent and ability who wish to have their opportunity to show how they can serve their country in Government. Those changes necessarily start at senior levels and move down the ranks. I think that is a part of politics that all politicians live with.

    QUESTION:

    Can you comment on your Party’s reverses in your own East Anglian backyard? Labour won in Norfolk and Suffolk and almost took your own seat of Cambridgeshire. Surely this is more than a mid-term protest?

    PRIME MINISTER:

    I think if you look at the size of the turn-out in Cambridgeshire you will see precisely what happened. The Conservative vote largely stayed home, the Labour vote recovered and the Liberal vote I guess – though I haven’t studied it carefully – is pretty much where it usually is.

    There are quite strong traditional Labour areas in some of the East Anglian areas, if you go back sufficient years you will find a lot of Labour seats there. Now that has changed. what has been evident on this occasion is that the Labour vote firmed in some areas and the Conservative vote didn’t turn out so you had the results that you saw yesterday.

    I don’t have any doubt about the results at the time of the next general election. People then will make a clear judgement on policy. They won’t be just voting against things they haven’t liked during a recession, they will have to vote positively for which programme they prefer, the programme of the Conservative Government or the alternative programme of the Labour Opposition. When the people of East Anglia, as elsewhere, have to make that choice I have no doubt in my mind whatever about the choice that they will make. At the moment they are operating in a vacuum. Nobody knows what Labour policy is, whether they have any, how it would work and how it would be implemented. At some stage between now and the next general election when they have a new leader presumably that leader will be asked what his or her policies are and how he or she would propose to bring them about. I would imagine that will be the case and when and if that happy event occurs then I think people will form a more secure judgement about the future. In any event I am confident about the election.

    I think that is it. Thank you very much indeed. I look forward to the next occasion.

    MICHAEL BRUNSON (ITV):

    When is the next one?

    PRIME MINISTER:

    In due course, Michael.

    MICHAEL BRUNSON:

    Every month?

    PRIME MINISTER:

    It will be on irregular occasions when I think it is appropriate.