Tag: GATT

  • PMQT – 1 February 1994

    Below is the text of Prime Minister’s Question Time from 1st February 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mrs. Gillan : To ask the Prime Minister if he will list his official engagements for Tuesday 1 February.

    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 : Does my right hon. Friend agree– [Interruption.]

    Madam Speaker : Order.

    Mrs. Gillan : Thank you, Madam Speaker.

    Does my right hon. Friend agree that the combination of BMW and Rover, creating the largest specialist car manufacturer in the world, is good news for Rover, for its work force and for the United Kingdom? Given the demand for Rover cars around the world, especially for the Land-Rover, does he agree that this is a far cry from the days when Rover was a state-run bankrupt shambles, producing cars that nobody wanted to buy?

    The Prime Minister : I agree with my hon. Friend. I believe that the new arrangements will provide new export markets and more investment for Rover. BMW will be able to offer Rover access to new markets–for example, in Germany and the United States, where the Rover network is weak. With a world-beating product and that link, the prospects for Rover are excellent.

    Mr. John Smith : In the light of that answer, is it now the Government’s definition of success for a British company that it is taken over by a foreign competitor?

    The Prime Minister : The right hon. and learned Gentleman really should catch up with the modern world. He simply does not understand how free markets work. Only a few weeks ago, he welcomed the Government’s achievement in working for a successful conclusion to the GATT round. GATT stands for free trade. That means companies trading and buying across national boundaries. He may know that Marks and Spencer owns Brooks Brothers in the United States; Grand Metropolitan owns Jack Daniels; John Swire owns Cathay Pacific; and Hanson, GEC and Racal own foreign companies. That is the world in which we live, not the 1960s, which the right hon. and learned Gentleman covets.

    Mr. John Smith : I deduce, Madam Speaker– [Interruption.]

    Madam Speaker : Order. If hon. Members wish to make interventions, perhaps they will resume their seats in the normal manner.

    Mr. John Smith : I deduce from that rambling and defensive answer that the right hon. Gentleman believes that a takeover is a sign of success. Why does he think that that view is not held in Germany, France and Italy, which care about keeping their own car industries?

    The Prime Minister : I deduce from that pre-prepared second question — [Interruption.] –that the right hon. and learned Gentleman did not listen to the answer. Is he suggesting– [Interruption.]

    Madam Speaker : Order. Prime Minister.

    The Prime Minister : I know that the right hon. and learned Gentleman– [Hon. Members :– “Reading.”]–does not like the fact that we know that he usually has all three of his questions written out, but is he suggesting that some form of protectionism is correct? Is he suggesting that we should have intervened to stop the sale? Is he suggesting that the ramshackle British Leyland that went into the private sector would have been the successful Rover that it is today but for that privatisation?

    Mr. John Smith : Is not the truth that the deal has been done not to further the long-term interests of the British car industry but to satisfy the short-term need of British Aerospace for cash? Is that a good reason for losing our only independent car producer? Did the Prime Minister know of the deal when he told business men in Leeds that he was “betting on Britain”?

    The Prime Minister : I was unfair on the right hon. and learned Gentleman. He should have stuck to his written question, which undoubtedly would have been a good deal better. BMW spent £800 million on Rover because it sees the potential for growth and prosperity. That would never have occurred if the right hon. Gentleman’s policy had kept Rover in the public sector. We would have had the drip, drip, drip feed of public expenditure maintaining British Leyland, not a privatised, world-beating company.

     

    European Council

    Q2. Sir Teddy Taylor : To ask the Prime Minister if he will raise at the next meeting of the European Council the level of public borrowing by member states and institutions of the European Union.

    The Prime Minister : The member states of the European Union have already recognised the need to avoid excessive budget deficits. That objective was included in the broad guidelines on economic policy adopted by the Economic and Finance Council last December.

    Sir Teddy Taylor : As the Prime Minister showed great courage in facing up to the unpopular task of resolving our national finances, will he, in the light of the recently published figures, seek to persuade his continental partners and the EC institutions to follow Britain’s splendid example of controlling borrowing instead of following the spendthrift policies promoted by Mr. Jacques Delors and the British Labour party?

    The Prime Minister : I shall certainly seek to do as my hon. Friend suggests. We have taken tough decisions domestically about public expenditure. I believe that those are the right decisions for the British economy. At Edinburgh, we took a step towards controlling Community expenditure. I welcome that step, which means tighter restraint and control. In answer to one part of my hon. Friend’s question, I am not sure whether I shall be able to persuade the Labour party. Last year, it called for a European recovery fund costing £77 billion, a public expenditure commitment which seems to have escaped the Leader of the Opposition and the shadow Chancellor.

    Mr. Spearing : Does the Prime Minister recall that on 29 November the House, by a rather arcane procedure, approved the establishment of a European investment fund, and that while that was under the auspices of the European investment bank, the people responsible for providing guarantees of £2,000 million for private and public purposes had positions of great patronage? In what way are those people responsible to the Government and to the House?

    The Prime Minister : Part of the funding to which the hon. Gentleman refers was funding that has for a long time been in the European Community budget. Those people are answerable through the Commission to the European Council and hence to this and other Governments.

     

    Engagements

    Q3. Mr. Pawsey : To ask the Prime Minister if he will list his official engagements for Tuesday 1 February.

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

    Mr. Pawsey : Will my right hon. Friend join me in welcoming the initiative of the Secretary of State for Education, who has today announced measures to combat truancy? Does he further agree that the main responsibility for ensuring that children attend school lies not with teachers but with parents?

    The Prime Minister : I agree with my hon. Friend about that. Truancy is a terrible problem in schools and one which needs increasingly to be tackled with the head teachers and with the staff in the schools. All too often, the child who is found loitering on the street subsequently gets into trouble with the law. That is a problem which we need to tackle, Government and schools together, and we are determined to do so. That is one of the reasons for publishing performance tables, which help to reveal the size of the problem. It is a pity, to put it mildly, that the Opposition talk about the problem but argue against one way of dealing with it.

    Mr. Ashdown : It is now some three weeks since the Prime Minister told us of his personal determination to open Tuzla airport–“as soon as possible”, in his words–for humanitarian aid to Bosnia. Is he able to tell us what steps he has taken to fulfil that commitment, and in what time frame we might expect it to happen?

    The Prime Minister : I also told the right hon. Gentleman that we would take the advice of the commanders on the ground. That is most certainly what we will do and the right hon. Gentleman will learn what is happening when we have had that advice and when we have taken the action that is appropriate.

    Sir Ralph Howell : May I remind my right hon. Friend the Prime Minister of the excellent and far-sighted speech that he made a year ago– [Interruption.] –at the Carlton club– [Interruption.] –in which he suggested that the unemployed might be offered work or even required to work? May I thank him for setting up the North Norfolk action pilot scheme, which has proved a great success and is already saving £1,500 a year per person engaged in it? If that scheme were introduced throughout the country, would not it save £4 billion? Could I ask him- – [Interruption.] –if he will now sanction the Fakenham right-to- work pilot scheme which, if operated throughout the country, would save at least £13 billion?

    The Prime Minister : As far as I could hear, my hon. Friend was welcoming the pilot schemes that were set up some time ago to help unemployed people. We are evaluating those schemes ; they are showing signs of being successful. We shall examine them and decide to what extent they may be extended.

     

    Q4. Mr. Etherington : To ask the Prime Minister if he will list his official engagements for Tuesday 1 February.

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

    Mr. Etherington : The Prime Minister will undoubtedly be only too well aware of the fact that only one in four crimes is being solved. Instead of following a path of retribution and vengeance, will he now consider crime prevention and the causes of crime? Instead of forever telling the House about rising crime trends in other countries, will he now do something for the citizens of this country, whom he purports to represent?

    The Prime Minister : We spend a great deal of time, trouble and effort on crime prevention, but I have to tell the hon. Gentleman that I also believe in the principle of punishment for crime when people are caught. The hon. Gentleman may have noticed the remarkable success of the Metropolitan police in dealing with burglary. Operation Bumblebee has cut burglary in recent months by around 15 per cent. That is but one illustration of a series of innovative policing efforts, which are increasingly successful, by chief constables.

    Mr. Lidington : Does my right hon. Friend agree that the protestations of Mr. Gerry Adams about his commitment to peace should be taken seriously only when he has been able to announce that the IRA will cease its violence for good?

    The Prime Minister : I agree with my hon. Friend. Neither Mr. Adams nor the Provisional IRA has given a commitment to end violence for good–a commitment which the House and everybody in the country and Ireland is waiting to hear. We should be clear about that central point. The joint declaration leaves no conceivable excuse for violence. All the words, all the prevarications and all the evasions of Sinn Fein will be utterly and completely hollow until they end violence.

     

    Q5. Mr. Mandelson : To ask the Prime Minister if he will list his official engagements for Tuesday 1 February.

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

    Mr. Mandelson : Is the Prime Minister aware of the deep anxiety among parents and local communities in coastal areas as far apart as Scotland, the north-east, the Isle of Wight and Cornwall about clusters of babies born with almost identical limb defects, in most cases without hands? Is not the best way to get to the truth of that disturbing development to set up a properly resourced, national investigation? Will he therefore ask the Secretary of State for Health to establish such a study without further delay?

    The Prime Minister : I will certainly seek advice from my right hon. Friend about the matter that the hon. Gentleman raises. Whether his proposition of how it should be dealt with is the right one needs further consideration. Clearly, it is a matter of concern, not only to the communities that he mentioned, but to others.

  • Mr Major’s Speech at Leeds Chamber of Commerce – 28 January 1994

    Below is Mr Major’s speech held at Leeds Chamber of Commerce on Friday 28th January 1994.


    PRIME MINISTER:

    When I sat down here at this top table this evening, I learned the moment I heard that remarkable Grace that this was going to be a special evening, a very classy evening, something perhaps just a touch out of the ordinary so I listened to what the Rector had to say and in the midst of that excellent dinner I thought I might reply for a moment in kind so let me have a crack at doing exactly that:

    The Rector spoke tonight in rhyme and captivated us all the time; It even made me forget that he in times past once worked for the BBC. [Laughter and applause]

    That made him feel distinctly odd but thankfully drove him back to God!

    So I thought I’d follow his lead and say my message in the very same way:

    My call tonight is clear and bright: “Don’t worry boys, the country’s all right!

    Interest rates down and inflation low, exports up and we’re ready to go.

    Things are better and they won’t get worse, we can even accept the Grace in verse! [Applause]

    So Rector, into the pulpit and say: “God Bless Britain, we’re on our way!” [Applause]

    You can go home now! That’s it! We may say it more elegantly, perhaps in better grammar, perhaps in a bit more detail but that’s it so those who wish to leave may decently do so and no offence will be taken!

    It is always a great pleasure to escape from that chattering circle around Westminster and find out what is happening in the real world (Hear! Hear!) – I see you have been there! [Laughter] – How wise of you to come back!

    I have had a most enjoyable and interesting day in the area and I’m delighted to be here this evening and to see, if I may say so, so many of my friends from the House of Commons on both sides of the House here this evening and I am delighted to see them all here.

    Your President mentioned David Curry, the new Minister for Leeds. I would simply single him out for this reason if I may: in Leeds centenary year what we have is one of our youngest and best Ministers to look after your interests at Westminster and I have not a shred of doubt he will discharge that responsibility admirably. [Applause]

    Over the years, like many people who were born down south, I have observed the changing face of the north but I am in no sense the only person to have done that. Consider, for example, the observations of an Italian journalist back here in Britain after ten years’ absence abroad and what did he find? He found here a Britain transformed for the better but with one big failing, a failing touched upon by your President. This is what he said:

    “The British seem unable to appreciate any of the achievements of modern Britain. Not once was I told how good British theatre or the BBC World Service still are or how impressive Marks and Spencers and British Airways have become. There are many examples of the British failing to appreciate what they do well and concentrating instead upon what they do badly. The British have managed to turn grumbling into an art form and are kilometres ahead in it than anyone else.”

    But this wise Italian had one shining exception. He went on:

    “The north of England has stopped moaning, has rolled up its sleeves, displaying some of the grit and determination which astonished the world 150 years ago.”

    Mr. President, I agree with that and today in this area I saw some of that grit and determination and I have not a shred of doubt about your future in this part of the country.

    But if an Italian can stand back and look at our country, so can we. It is our country, so let us for a few moments do that this evening and take a clear-eyed look at ourselves, focus on what we do best and then build on what we do best.

    My overriding priorities for 1994 are the economy, education and building a safer and more ordered society. These, Mr. President, are the basics and tonight I will concentrate on the first two.

    First, the economy. Getting back to the most basic basics of all, lower borrowing, lower unemployment, low inflation and more growth. As you so rightly said, Mr. President, we have to break the inflationary psychology which has so bedevilled our prospects in this country for so long and everyone must understand that competitiveness is the route of our future prosperity, that unless we in this country are the best others will take our markets and steal our profits and as a nation we must steel ourselves to do whatever it takes to win in those international markets.

    The underlying message is very simple. If business succeeds, Britain succeeds; if business fails, we will drift on but not with the same prosperity, not with the same enthusiasm, not with the same belief in ourselves and not with the same political clout in the world and above all the route to future success lies with low inflation. I have always believed that. If you have ever been in a position where you can’t pay the bills at the end of the week, then you feel strongly about inflation and that is why on the very first day I became Chancellor of the Exchequer I was determined to take action that would break the inflation habit for good.

    There is in this country what I personally believe is a cynical view, a cynical view that a little bit of inflation is good for you, people feel better, wages go up, benefits rise more, asset values go up and people have a little bit more money but if that little bit of inflation is higher than your competitors it isn’t good for you and if you are poor or on a fixed income it is deadly for you; like a drug, it makes you feel better for a while but then you need bigger and bigger doses and soon you are hooked on a very nasty addiction indeed.

    Curing that addiction has been very painful. I understand that perhaps as well as anyone in this room, perhaps as well as anyone in this country. During the recession, many businesses and many individuals have been hurt but we are coming through that and a very different prospect lies immediately before us.

    Inflation over the past year has been 2% or less. No-one under the age of 40 can remember when that was last the case and what is more, while it may rise a little over the months ahead, low inflation is here to stay and what does that mean? It means industry can now invest with confidence but if we, if you, the business people who make the wealth to raise the taxes to support this services of this country, if you are to benefit from low inflation we must also break the habit of paying ourselves more than we should. We have no business any of us – public sector, private sector, it makes no difference – to demand pay increases year after year regardless of productivity, regardless of the market and regardless of the competition.

    You in the private sector are keeping your labour costs down while so many of your competitors are seeing them rise. In the public sector too we are keeping tight control of our running costs. We are insisting that any pay increases must be financed out of increased productivity and efficiency. That doesn’t mean no pay increases for public servants; it does mean that the Government will only pay what can properly be afforded.

    Everyone in this country without exception wants the benefit of low inflation but no-one wants the costs of getting there. Getting to low inflation and keeping low inflation is the very stuff of political unpopularity but it is necessary. I can only say to you that no prime minister – certainly not me – is paid to be popular and just right now, Mr. President, that is probably rather a good thing, if I may make the point!

    I will tell you what I believe about that. I believe it is right to take the tough decisions today that will make everyone better off tomorrow. To bring Government borrowing down, we have had to put some taxes up. I would very much have preferred not to have had to do that but it was necessary because sound finances are the only basis for sustained economic growth. Spending must be paid for, it can’t just go on unless one is prepared to meet that discipline and that is also why we have taken some tough decisions on public spending.

    Public spending means either more borrowing or higher taxes or both. We intend to cut borrowing and I do not wish to see higher taxes so I propose to take no nonsense on taxes from politicians who have been handing out promises of extra spending on every street corner. Those promises could easily be made but if those promises are to be kept, they would have to be met by the taxpayer and I remember only too well when the taxman took 98 pence in the pound from savings income, 83 pence in the pound from earnings; remember when corporation tax was 52% and I just have to say this to this audience: tax rates like that cause acute damage to the economy and I believe we must never go back to them. [Applause] It is low direct tax rates that have made Britain a magnet for investment, for enterprise and for skill and that is why other companies are now moving from continental Europe and elsewhere to set up business here in the United Kingdom: low inflation, sound public finance. These policies are right, right for Britain and right for our future prosperity.

    Mr. President, lift your eyes from the everyday headlines that you see, stand back a little and just look at the circumstances that really apply in this country at the present time. Do that with a clear and an uncluttered eye and what do you see?

    You see, I believe, above all else that we now have in this country the conditions for long-term sustainable growth. Last year, the economy grew by 2% – double what people expected – and I quote: “The world’s largest economic survey shows Britain leading Europe out of recession.” That is official; that is what the British Chambers of Commerce say quite apart from what the Government believes. [Applause] We have interest rates at 5.5%, the lowest for 17 years and amongst the lowest in Europe. The time lost through strikes is now the lowest for over a hundred years since records were kept; unemployment down around a quarter of a million since last January. In the United Kingdom still one-in-ten still without work most of them [Inaudible]

    I am not in any way complacent about unemployment, neither do I dismiss for a second the effect that it has upon individuals and their families but that one-in-ten figure is now falling. In other countries that is not the case. In the United Kingdom one-in ten and falling, in France one-in-eight and rising, in Spain one-in four and rising, in the whole of the European Community one-in-nine and rising. We are the only country in Europe seeing more jobs and shorter dole queues and I intend to ensure that we see more jobs and shorter dole queues in the future as well. [Applause]

    Set against that background, it is hardly surprising that our flexible labour markets are the envy of many others in Europe. Your President spoke of the Social Chapter. It wasn’t easy to say No to the Social Chapter but it was right to say No to the Social Chapter and however it may come back to us, this year, next year, some time in the future, I shall say No to the Social Chapter again and I will tell you why: not just because it damages competitiveness though it does but because I think it is morally wrong to provide fresh help for those people in work and ensuring in so doing that those people out of work have an even smaller chance of getting back into work at some stage in the future. [Applause]

    We have at the moment in the economic circumstances that are coming together – and they have painfully come together, they have not magically appeared, they have painfully been brought together over the past two or three years – some unique opportunities and don’t let anyone kid you that we can’t take them.

    You spoke, Mr. President, of people not appreciating what was right in this country and sometimes knocking it. Well here perhaps are a few things that everyone should know:

    We export 20% more per head than Japan and 85% more per head than the United States of America; we have more companies listed in the top hundred European companies than any other country and Japanese and United States companies have chosen to invest in the United Kingdom more than in any other European country; they have shown with their cash, their investment and their hopes for their future that they have a vote for this country and the future of this country.

    We have seen in the last decade or so massive economic changes for the better. The average family today is taking home around £60 a week more after tax and after inflation. Twice as many of our people in this country have foreign holidays, there are twice as many two-car families. I could spread that list to the corners of this room and back again but it isn’t just the material improvement in our well-being that matters. How many of our young people now go on to higher education? They have more than doubled in the last decade or so. One in every three of our young people now have that opportunity. That was the target I set for the Government to be reached by the year 2000; we have reached that one-in-three target this year – that target has already been met.

    And then take another aspect of our lift in this country, charitable giving, again more than doubled and not least from those of you in business.

    But if the changes of the last fifteen years have been rapid [Inaudible] the world is changing, changing at a bewildering pace, becoming more competitive for you to operate in than at any time we have seen at any stage in the past. Our markets will change, Europe will change. The countries of eastern Europe may well be members of the European Union, markets for us but also competitors for us as well. The economies of the Pacific Rim will continue to grow rapidly.

    In this country, we, you, business are going to have to prepare for that. We have to keep asking ourselves the questions: “Are we meeting demand? Where are our weaknesses? Are others doing better than us? If so, why and crucially, what can we do about it to make sure we maintain our competitive edge?” Above all we need to give businesses more freedom, the freedom to succeed. I tell you what success means: success means keeping business taxes low, keeping business free of rules and regulations, backing British exports, investing in our infrastructure and investing in people and in skills.

    We have acted in each and every one of those areas and there is a good deal more still to be done. We have brought corporation tax down, our business taxes are the lowest in the European Union and I intend to keep them that way. But ask any businessman – in Leeds or anywhere else you like – what he really wants from Government! You have given me several answers tonight but if to take your example of the genie, you could have had only one wish, I bet you would have replied like this: “Right Government! Get off my back and get rid of the red tape!” That, I believe, is what business wants from the Government. [Applause]

    I agree and we are acting on it. We have a huge Deregulation Bill cutting excessive regulation across Government, in transport, in employment, in environment and in fair trading. The bonfire of the [Inaudible] an end to controls, to forms and to paperwork and I was delighted to hear of your support for that tonight, Mr. President.

    We are backing British exports – the opportunities are there and you are taking them. Just this morning, the trade figures have shown yet again that exports are running at record levels and now we have a GATT deal opening new markets all around the world and let me tell you this: very reserved we are we British, we don’t bang our own drum very often, not often enough in fact, so let me do it now:

    Mr. President, without Britain I doubt whether there would have been a GATT deal at all nor for sure would there have been a Single Market and yet today as the rest of Europe comes out of recession GATT opens up the world market and we have a Single Market of over 340 million people right on our doorstep. I am determined that the Government will help British exporters make the best of those opportunities. We have expanded insurance cover for exports and lowered premiums, you in business have loaned your whiz-kids to Michael Heseltine so that the DTI can provide the best possible export advice, our embassies abroad are putting more and more effort into helping British exporters large and small; more than ever promoting British interests means promoting British trade abroad.

    But business needs good back-up at home as well because to sell the goods you have to move the goods and that is why we are modernising British transport. For years we have had this ludicrous hang-up, this ludicrous belief that big projects can only be done by the State – rot! Who built the railways in the first place? The private sector built the railways – you did and you can do it again in the future.

    So we are now opening-up major projects to private sector investment and private sector expertise. The private sector will help to build the Channel Tunnel rail link and the new Forth Road Bridge, it will modernise the West Coast main line and there is a great deal more to add to that.

    But there is a bigger, longer-term issue that will determine whether Britain will lead the world into the next century. You cannot be competitive without the people to compete and they are moulded in our schools, in our colleges, in our universities as well as in the training grounds of British industry. In many respects, the position is good but in others it isn’t and we frankly cannot afford it not to be, quite literally can’t afford it. Illiteracy and innumeracy among the work-force cost you as employers around £5 billion a year and it costs the children themselves through stunted lives, opportunities missed and a life less rich than it should be and that is why getting back to basics in education must be at the centre of our programme.

    I intend to work with teachers to build a better educated society. The national curriculum backed by testing will ensure that all State schools concentrate on the basics of education, on grammar, on spelling, on maths, on science, on reading, writing and arithmetic – the three R’s. I believe that is what parents demand, it is what employers ask and it is what I am determined that the education system will deliver.

    But I believe there is more still to come. I still believe that we must get rid of the damaging distinction that some people make between white-collar skills and so-called blue-collar skills. What disruptive class-ridden nonsense those distinctions are! Every individual’s different skills and qualities count and they must be made to count in their interests and in our country’s interests and that is why we have improved the range and quality of vocational qualifications for pupils over sixteen.

    I now want to work towards opening-up those opportunities, opening them up for children from fourteen upwards who want to take them so that schools will have the chance to teach a mix of academic and vocational subjects each with equal value, each to fit the child and their own aptitude to build a better future for them and help them build a better future for all of us.

    That must be true for all young people. That is why we have abolished the false distinction between polytechnics and universities, it is why we have created modern apprenticeships to treble the number of young people skilled as technicians, craftsmen and supervisors.

    Mr. President, let me just make the point plain: what we are working for is nothing less than the re-skilling of Britain and anyone who has come up the hard way knows how many others there are who have talent but don’t have the luck, who have talent but don’t break through the barriers, who have talent but don’t have the chance to contribute all that they could from their skills and their will to work. I am determined to give them that chance in the future. Decent education first, good training later – that is the way to let everyone fulfil their potential regardless of who they are or where they may have started.

    None of this, Mr. President, is abstract stuff. It is for real. What is at stake is our future as a country and their future as individuals and here in your city of Leeds I believe you know this better than almost anywhere else.

    Thirty years ago – not all that long – Leeds could have settled for being just a declining textile city but you didn’t. You acquired new skills and you made the old skills pay. Textiles aren’t a thing of the past, they have a future and Leeds has some of the most advanced plants in Europe. The new industries have a future too: financial services, food processing, defence, medicine and high-tech industries, huge investments coming to Leeds, a massive vote of confidence with other people putting their money and their future in your city because you know here in Leeds what change means, you know you can ride it and you have proved it in the past and I think it is no wonder that independent estimates say that Leeds is the fastest-growing job magnet in Britain for the 1990s.

    Yes, competitiveness is about making Britain prosperous and powerful but it is more than that: it is also the means to provide all that is civilised in the life we love. Your two great universities here, your theatres, Opera North, the Leeds Piano Competition, your famous art galleries, you brought together here some of the finest public collection of Henry Moore in Britain if not in the world and I am even told the gallery has been eyeing-up the Henry Moore sculptures in Downing Street but much though I love you, you can keep your hands off my Henry Moore sculptures!

    As it is in the arts, so too in sport. Leeds home to Rugby League, football – and here my eyes mist over – cricket, Headingly. I don’t know, looking round this audience, how many cricketers may be here this evening. One or two and I bet every single one of you remembers that test match in Headingly in 1981. It seemed impossible for England but we won but don’t just remember the runs that Botham scored, the resistance of Dilley or the wickets of Willis; remember that it was that gritty Yorkshireman Chris Old who held the show together when it mattered and opened the opportunity for that victory. I still remember at the most difficult moment of all that great Australian fast bowler Dennis Lilley saying this: “I’m betting on England to win!” Well, looking round Leeds today and looking at all of you tonight let me tell you what I am doing: I’m betting on Britain to win and I’m confident that we will. [Applause]

  • PMQT Written Answers – 17 December 1993

    Below is the text of the written answers relating to Prime Minister’s Question Time from 17th December 1993.


    PRIME MINISTER:

     

    Policy Objectives

    Mr. Tracey : To ask the Prime Minister if he will list the policy objectives of the Government which have been fulfilled since the general election of 1992.

    The Prime Minister : Among the more important objectives fulfilled since the last general election have been getting inflation down and keeping it down so that it now stands at 1.4 per cent., the lowest level for 26 years; the continuing fall in unemployment, for the eighth month running this year; the achievement of a successful GATT deal which will benefit industry and consumers alike; the continuing rise in retail sales and manufacturing output; reforms of the education system to provide children with a better education and a wider choice of qualifications and parents with more information; an intensified fight against crime; the continuing progress with the citizen’s charter, with resulting improvements in public services; and further progress with NHS reforms and an increase in the number of patients treated.

     

    Thermal Oxide Reprocessing Plant

    Mr. Llew Smith : To ask the Prime Minister when he received a copy of the letter signed by members of the United States Congress, the Japanese Diet and right hon. and hon. Members appealing for a public inquiry on and review of the thermal oxide reprocessing plant at Sellafield.

    The Prime Minister : A copy of the letter was received in my office on Monday 13 December and has now been passed to my right hon. Friend the Secretary of State for the Environment for consideration.

     

    Regional and Urban Policy

    Mr. Stern : To ask the Prime Minister if he will detail the duties of sponsor Ministers in relation to regional and urban policy.

    The Prime Minister : The duties of sponsor Ministers in relation to regional and urban policy are set out in a note placed in the Library of the House by my right hon. Friend the Secretary of State for the Environment on 4 November, Official Report, columns 515-24, when he announced the package of urban and regional policy measures. A copy of that note has been sent to my hon. Friend. In carrying out their duties, sponsor Ministers will liaise as necessary with hon. Members.

     

    Scott Inquiry

    Mr. Llew Smith : To ask the Prime Minister what is his policy towards the correction of answers given to Parliament where civil servants responsible for drafting, or Ministers or former Ministers have told the Scott inquiry that they were inaccurate.

    The Prime Minister : Lord Justice Scott’s inquiry is still in progress : his conclusions will be published in the inquiry’s report. The Government will respond to the report when it is published and hon. Members will then be able to table questions on the report and on the Government’s response.

    Mr. Llew Smith : To ask the Prime Minister what contact, either by written communication or telephone or telefax, his office has had with Mr. Frank Machon of Glasgow in regard to matters raised at the Scott inquiry.

    The Prime Minister : Mr. Machon wrote to my office once during 1991, and once in 1992. In addition, the Member for Glasgow, Shettleston (Mr. Marshall) wrote on three occasions on Mr. Machon’s behalf during 1992.

     

    Ex-Ministers

    Mr. Matthew Taylor : To ask the Prime Minister, pursuant to this answer of 7 December, Official Report, column 143, if he will name (a) the Minister of State, Northern Ireland Office who received a severance payment on 14 April 1992 (b) the Minister of State, Northern Ireland Office who received a severance payment on 27 April 1992.

    The Prime Minister : Lord Belstead’s appointment as Minister of State, Northern Ireland Office, ceased on 14 April 1992. On 27 April, Lord Cavendish resigned as a Lord in Waiting, but was erroneously referred to as Minister of State, Northern Ireland Office.

     

    EC Directives

    Sir Teddy Taylor : To ask the Prime Minister pursuant to his oral statement of 13 December, Official Report, column 686, if he will publish a list of the 17 directives which the European Council agreed should be repealed, withdrawn or amended.

    The Prime Minister : The 17 directives are listed in an annexe to the Commission’s report on subsidiarity, which has been made available to the House. The Brussels European Council on 10 and 11 December called for early action to put the report into effect.

     

    Home and Justice Affairs

    Mr. Spearing : To ask the Prime Minister what matters were agreed in principle at the European Council in Brussels on 10 to 11 December concerning home and justice affairs; when such matters were debated in the House, or any of its Standing Committees; and when he expects publication of conventions of the European Union incorporating these matters.

    The Prime Minister : The European Council expressed its determination to use the new provisions of the Maastricht treaty on co-operation in the field of justice and home affairs to the full. It noted the work which had already been done in these areas and approved the action plan prepared by the Interior and Justice Council, in particular in relation to a number of specific areas. The Government followed the practice adopted for the former immigration/Trevi ministerial meetings and deposited in the Library of the House documents approved by the Interior and Justice Council on 29 and 30 November. The action plan and work programmes sent to the European Council have now also been placed in the Library. My right hon. and learned Friend the Secretary of State for the Home Department has made proposals for future parliamentary oversight of title VI work, which will include sending to Parliament important documents before they go to the Council. We look forward to the House’s reaction to these proposals and to putting an effective scrutiny procedure in place. Any conventions that are found to be necessary to achieve the aims of the interior and justice programme of work will be dealt with in accordance with this procedure.

     

    Correspondence

    Mr. Meacher : To ask the Prime Minister what proportion of correspondence received by (a) his office and (b) each of his office’s agencies receives (i) an acknowledgement within five days and (ii) a substantive reply within 15 days.

    The Prime Minister : My office aims to acknowledge correspondence within five days and provide a substantive reply within 15 days.

     

    South Africa

    Mr. Winnick : To ask the Prime Minister if it is Her Majesty’s Government’s policy to encourage South Africa under a majority Government to join the Commonwealth.

    The Prime Minister : While it will be for the new democratically elected Government in South Africa to decide on whether it should seek to return to the Commonwealth, Her Majesty’s Government and their Commonwealth partners look forward to welcoming a non-racial and democratic South Africa back into the association at the earliest opportunity.

     

    Civil Servants

    Mr. Steinberg : To ask the Prime Minister what Civil Service rules or guidelines exist in relation to contact between civil servants and hon. Members and their personal staff; whether there have been any recent changes to any such rules or guidelines; and if he will place copies of any such rules or guidelines in the Library.

    The Prime Minister : There have been no recent changes in guidelines concerning briefing of MPs by civil servants.

    It is an established principle that civil servants should not engage in activities likely to call into question their political impartiality, or to give rise to criticism that people paid from public funds are being used for party political purposes. Accordingly, the following rules apply :

    (a) civil servants in their official capacity are prohibited from attending conferences arranged by political parties;

    (b) they may not attend meetings of policy or subject groups of the parliamentary parties;

    (c) they may not attend all-party subject groups or committees except to accompany a Minister and to respond to factual questions;

    (d) these rules need not inhibit factual briefing by officials of MPs on overseas or regional visits;

    (e) Ministers may also arrange factual briefings by officials, for MPs of one party provided that a Minister attends the meeting and similar facilities are offered to MPs of other parties;

    (f) Ministers should always be present when MPs are to discuss sensitive areas of public policy with officials.

    Written briefing material provided by officials to Ministers may be distributed to Back-Bench Members provided that it would be released to any bon fide inquirer and that hon. Members of all parties may have access to it.

    The rules do not prevent agency chief executives and managers of local offices, with the Minister’s approval, from communicating with hon. Members about problems of individual constituents.

    The convention governing pre-election contacts between senior civil servants and Opposition leaders was set out in my reply to a written question by the right hon. Member for Manchester, Wythenshawe (Mr. Morris) on 27 November 1991, at column 527.

     

    Post Office Privatisation

    Mr. Gordon Prentice : To ask the Prime Minister when he received the report from the hon. Member for Gainsborough and Horncastle (Mr. Leigh) on the privatisation of the Post Office; and if he has now completed his consideration of it.

    The Prime Minister : I have received a number of papers from colleagues at the Department of Trade and Industry arising from the review of the structure and organisation of the Post Office, both before and since the departure from the Government of my hon. Friend the Member for Gainsborough and Horncastle. No decisions on the outcome of the review have been taken.

     

    Northern Ireland

    Mr. Marlow : To ask the Prime Minister if he will set out his views on the union between Great Britain and Northern Ireland.

    The Prime Minister : I support it and will uphold it for so long as it remains the democratic wish of a greater number of the people in Northern Ireland.

     

    Subsidiarity

    Sir Teddy Taylor : To ask the Prime Minister if he will publish the European Commission’s lists of (a) proposals which fail the subsidiarity test and will be dropped or changed and (b) Community laws which the Commission believes must be simplified or abolished, to which he referred in his oral statement of 14 December 1992, Official Report, column 24, on the European Council at Edinburgh; and what progress has been made in the past year on each of those directives.

    The Prime Minister : The lists referred to by my hon. Friend were included as an annexe to the conclusions of the Edinburgh European Council, copies of which were made available to the House. Details of progress are contained in the Commission’s report on subsidiarity, which has been made available to the House.

  • Mr Major’s Commons Statement on the 1993 GATT Negotiations – 16 December 1993

    Below is the text of Mr Major’s statement made in the House of Commons on 16th December 1993 on the GATT Negotiations.


    PRIME MINISTER:

    The Prime Minister (Mr John Major): With permission, Madam Speaker, I would like to make a statement on the successful conclusion of the world trade negotiations.

    In Geneva yesterday, trade negotiators from 117 countries reached the most wide-ranging agreement ever. After seven years of long, hard and often fraught negotiations, it is a superb outcome. It is a result for which industry, commerce and consumers alike have pressed; it is a conclusion for which this Government have worked tirelessly through many crises, when protectionism threatened British markets and British jobs.

    The new GATT settlement will help British industry by bringing down barriers to exports of manufactured goods and services. It will give manufacturers greater protection against piracy of their copyright, patents and designs. It will bring down prices for consumers – particularly of food, electronics and other manufactured goods; and it will strengthen the world trading system against unfair practices by individual countries.

    Britain is the fifth largest exporter in the world of goods and commercial services. We export more per person than either the United States or Japan. Our markets are already among the most open. We stand, therefore, to be one of the biggest gainers from cuts in worldwide tariffs, quotas and other restrictions.

    Sharp reductions in some very high tariffs in the United States and Japan will help Britain in strategic markets. The overall tariff reductions, across all countries of the world, will be around 40 per cent. An independent study by McGraw-Hill has indicated that a new GATT agreement could add up to 4 per cent. to our national output, generating up to 400,000 extra jobs over the next decade.

    The European economies, as a group, are estimated to be the biggest single gainer; so the GATT deal can be expected to give a much-needed boost to confidence and recovery in our biggest export markets.

    As late as last weekend, there was a real and frightening danger that negotiations might unravel. The world faced a choice between a retreat into protectionism, slump and higher unemployment, and free trade, growth and jobs. Happily, the right choice has been made. The director general of the CBI has rightly called this outcome ‘a momentous and welcome event”.’ This Government have fought consistently to keep the negotiations going. It has been a long struggle. Last year, we faced the prospect not only of failure, but of a lurch into trade war between Europe and the United States.

    Exports from Europe were threatened by new and punitive American tariffs. We were able to use our presidency of the European Community to get both sides back to the negotiating table and make progress on farm trade. We encouraged the new United States Administration to extend congressional authority in order to permit the GATT round to be concluded. We pressed for the agreement on tariffs at last summer’s Tokyo summit – another crucial meeting and another crucial building block in the final result.

    At this autumn’s Commonwealth summit, we launched a special mission to all the key Governments of the developed world. This sent the clearest possible signal on behalf of one quarter of the world’s population that free trade was a prize for developing countries too. Trade, more than aid, is the most certain route to economic development.

    I believe that very great credit is due to Sir Leon Brittan, the European Community’s negotiator; and to Peter Sutherland, the director general of GATT. But others have played a crucial part, including the United States negotiator, Micky Kantor. All three had the courage to take on their tasks at a time when it was far from certain that they would be rewarded by success.

    Let me outline the main features of the agreement. First, excellent progress has been made on industrial goods but final details are still being worked out. A number of our largest export markets will move towards the total abolition of tariffs in industries which include pharmaceuticals, steel products and spirits. For example, the Scotch whisky industry, which already has exports totalling about £2 billion a year, will benefit from the complete abolition of Japanese tariffs.

    Cuts in high United States tariffs on scientific equipment, chemicals, steel and ceramics, for example, will help in one of our biggest markets. Our textile manufacturers will gain from tariff cuts in the United States, and gain greater access to many economies along the Pacific rim.

    Secondly, for the first time agriculture will be fully covered by GATT rules. Tariffs are being cut and subsidies reduced substantially, offering families in this country the prospect of lower prices of staple foods. In Europe, we have already begun the process of reducing farm production subsidies. Overall, those subsidies cost every family around £20 a week. The changes to the common agricultural policy which are already agreed, should – if passed on to the consumer – over a period lead to price cuts equal to 20p off a pound of beef or 6p off a pound of butter. Under the GATT agreement, other countries – notably, Japan and the United States – will now have to cut their agriculture tariff subsidies as well.

    Thirdly, for the first time we have an international set of rules for free trade in services – the fastest growing sector of the world economy. Services account for two thirds of our output in the United Kingdom but only about one quarter of our exports; so, if we can break down barriers to trade, there is great potential for growth. The services covered range from insurance to consultancy. Many countries have made commitments on financial, telecommunication and transport services. This is only a start. Further negotiations with the United States must follow on maritime and financial services. But in the meantime we have maintained the City of London in a position in which it will attract new international business.

    Fourthly, with regard to so-called intellectual property, the law of the jungle still rules in too much of the world. Expensive research and development by British pharmaceutical companies can be pirated – in effect, stolen – by countries which offer no protection for patents. The same is true of Britain’s record industry, which estimates that as much as half of its market in the developing world is stolen by pirates. For the first time, we now have an agreed set of international rules on which we can begin to rely in our fight to give these industries the markets which they have a right to expect.

    Free trade increases the need for businesses to be internationally competitive, but in Britain, we have world-class companies ready for the challenge. This new GATT settlement removes the threat of collapse in the world trade system – a system on which economic growth has been based for nearly half a century. It extends the benefits of trading rules into vast new areas of business. It brings further welcome reductions in tariffs on British goods. it is a platform for recovery, growth and jobs in Britain, the European Community and the rest of the world. I commend it to the House.

    Mr. John Smith (Monklands, East) I thank the Prime Minister for his statement. The Opposition also welcome the successful conclusion of the Uruguay round. It has been a long and torturous negotiation, but the result, although long overdue, is an important step forward for the world economy. Having had responsibility for the Tokyo round, I know how difficult and detailed such negotiations can be.

    Preserving an open and fair trading system is vital for growth, jobs and prosperity not just in this country but round the world. The dangers of beggar-my-neighbour protectionism must always be resisted.

    The GATT agreement is, however, only a start. Does the Prime Minister agree that, for Britain to succeed, we must put far more effort into promoting our export performance in manufacturing and services? Will the Government recognise that following the deal, it is now even more vital that we invest in people and in their skills to ensure that we succeed in international trade by competing on the quality of the goods that we produce and the skills of our work force rather than on low wages and a self-defeating spiral of low skills and poor job security?

    On the details of the Geneva agreement, I welcome the new agreements on intellectual property, which tackle the piracy of counterfeit goods and provide security for British companies that invest in the research and development of new products.

    On the failure to reach a settlement on trade in financial services, is it the case that access to trade in those services in the United States will remain restricted? That is clearly a matter of considerable concern to the financial services industry in Britain. What steps do the Government intend to take to push forward negotiations to include financial services fully within the GATT framework?

    On the environment, will the new Multilateral Trade Organisation be given a remit to recognise the importance in the modern world of linking economic development with environmental protection?

    What changes have been made to the Blair house agreement to accommodate French agricultural interests? Can the Prime Minister assure the House that the deal in no way prejudices the urgent need to continue to reform and control the costs of the common agricultural policy? In relation to the proposed MTO, which will supersede the GATT secretariat, are we satisfied with the procedures for trade disputes? Can we be assured that the MTO will cover concerns for environmental protection and fair employment standards?

    Does the Prime Minister agree that steps should also be taken to strengthen the role of the International Labour Organisation, and in particular to encourage enforcement of its conventions on fair labour standards and especially to help stamp out child labour? Although we welcome the benefits to consumers at the prospect of reduced tariffs on textile imports, surely no one in this country wants to buy products made by children in sweatshops that have no concern for basic human rights.

    Although GATT offers important trading benefits for the developing world as a whole, do the Government recognise the special difficulties for Africa, which will probably gain little from this specific agreement? For that reason, can I urge the Government and the international community to do much more to reduce and write off the outstanding debts of the poorest countries? While trade is vital to the expansion of the world economy, can more be done to encourage new lending, investment and official aid so that all regions in the world can participate in the economic growth that we hope will occur?

    The Prime Minister Let me deal with the specific points that the right hon. and learned Member for Monklands, East (Mr. Smith) has raised.

    On the question of promoting exports, I am delighted to tell the right hon. and learned Gentleman that, at present, our exports are running at record levels. As he will know, we have provided more extensive and cheaper export cover to assist our export promotion. We have reorganised most of our overseas postings to ensure that greater assistance is given to British business men abroad.

    A large number of trade missions have been led by senior Ministers and others in the Government, most of whom have come back with substantial order books. At the moment, we are examining what further measures can be taken to provide an even better service for our exporters in the future. I have no doubt that, with the reduction of tariffs overseas and the increased scope in services and in manufacturing, there is a remarkable opportunity for British companies, at a time when they are competitive and in a position to take advantage of that opportunity. We shall certainly proceed with that.

    I share with the right hon. and learned Gentleman the regret that we did not get further on financial services, because it was not possible for the various countries to agree on a final conclusion. Some progress has been made. The sector is now covered by trade rules and there have been a number of major gains for United Kingdom companies. For example, United Kingdom banks and insurance companies will be guaranteed the right to do business in Canada on the same basis as United States and Canadian firms, although it is disappointing that a fuller result for that sector has not been achieved. We have fought hard to ensure that openness in the European Community market will be maintained and we won that battle in Brussels.

    There is no question that development will be at the expense of the environment, and I do not believe that anyone seriously imagines that that will be a problem.

    There were detailed renegotiations on Blair house at the margins some time ago. There were no changes to the Blair house agreement as a result of the European Community meeting over the weekend and expenditure on the common agricultural policy will be restrained under the ceilings that were agreed at the Edinburgh summit, in terms of the financial perspective of the Community.

    I do not have any quarrel with the outcome on the trade dispute mechanism. I do not have the same affection for the ILO as the right hon. and learned Gentleman – that is a difference between us, as I am sure that he knows – but I share his views about child labour–[Interruption.] I am about to tell the right hon. and learned Gentleman precisely what has been done about it, if he will listen. The activities of child labour lead to dumping. In the Community we have powerful mechanisms to act against dumping and they were improved so that action could be taken more speedily at the Foreign Affairs Council yesterday, which was attended by my right hon. Friend the Foreign Secretary.

    As for Africa, it is the view of the African states that this GATT round is of assistance to them. They made that perfectly clear at the Commonwealth conference where a large number of African states, both rich and poor – [Interruption.] Hon. Members may be interested to know that those members of the Commonwealth wholly support the outcome of the GATT round. The area of greatest difficulty, as the hon. Member for Hampstead and Highgate (Ms Jackson), who is not in her place, has said, is sub-Saharan Africa. As I said to the hon. Lady, if it turns out that the sub-Saharan countries face particular difficulty, our long historical connection means that we shall certainly do what we can to provide further assistance, both bilaterally and in other ways.

    To ensure that they get further assistance with their debt, Opposition Members may be aware of the Trinidad terms initiative that I launched in 1989-90, which is by far the most generous write-off of debt that the world has ever seen. We have written off a large amount of debt under than and we are still pressing some people in the Paris Club to do so. I believe that we shall be successful. It is the view of the countries that benefit under those Trinidad terms that it is by far the most comprehensive and most generous write-off of capital and revenue debt that has ever been proposed and carried through.

    Mr. Paul Channon (Southend, West) Is my right hon. Friend aware that it is a long time since the start of the negotiations, when I spent a happy week in Punta del Este with Mr. Alan Clark, among others? He has not yet described it in his diaries. May I congratulate my right hon. Friend and his colleagues on the achievements of the British delegation? I especially congratulate Sir Leon Brittan, as my right hon. Friend rightly did, and we must not forget Mr. Arthur Dunkel, who was the director general of GATT for many years, and who was a tremendous support in the early days of this round.

    In agreeing with my right hon. Friend about the importance of the conclusions to trade throughout the world and to prosperity, may I ask him to say a little more about what will happen to financial services? At the start of the negotiations, the American delegation was among the keenest that there should be freedom of trade in financial services. What has happened? Are there now proposals to proceed with the negotiations at a later date in some other forum? What will happen on financial services? It must be very much in the interests of Britain, as well as of many other delegations, that the process should not come to an end and that further steps should be taken.

    The Prime Minister I agree with my right hon. Friend about that point. He is right in his supposition that there will be further negotiations on financial services; I hope that they can be carried forward speedily. It is unsatisfactory that we did not get further on financial services on this occasion. Having voiced that disappointment, I believe that one should not lose sight of the fact that this is by far the widest and most comprehensive world trade settlement, with large areas previously not within GATT now brought within it. It provides for a much more liberal world trading system and it is the biggest single advance in free trade for many years.

    My right hon. Friend speaks with some knowledge of the matter. He was Minister for Trade and President of the Council of Ministers during the early stages of the GATT round. I join in his congratulations to Sir Leon Brittan and to Arthur Dunkel. They can both be proud of what they have achieved.

    Mr. Paddy Ashdown (Yeovil) The Prime Minister is right to say that this is a good day for the world and a good day for Britain. However, is it not the case that, for Britain to take advantage of increasingly open world markets, we shall have to do much more to build a high-value-added, high-investment, high-skill economy than has been done so far under this Government?

    The Prime Minister is right to welcome the extensive debt write-off and the development assistance. However, if third-world countries are to have access to the opportunities that the end of the Uruguay round has presented, more attention will have to be paid to that area.

    Many people will have greatly welcomed the Prime Minister’s comment to the leader of the Labour party that he recognised that development damaged the environment. Does he, therefore, agree that almost the first task of the new Multilateral Trade Organisation should be seriously to consider environmental factors and the means by which we can incorporate environmental costs into the world trading system?

    The Prime Minister The fact that our exports are growing at a remarkable rate while overseas markets are very flat, especially in the European Community, suggests that to an extent greater than that for which the right hon. Gentleman gives them credit, our British exports are adding substantial value and are penetrating markets deeply as a result. One illustration is the German market. It is in substantial decline at the moment, yet British exports to Germany have increased; we have taken a much larger share of a much smaller market. That is substantially because of our competitiveness and because of the high-value-added nature of so many British exports.

    There is sometimes a tendency – I do not attribute this to the right hon gentleman – to think especially of manufacturing in the old sense of large, labour-intensive manufacturing industries. In the constituencies of almost every hon. Member, there are now small, medium and high technology businesses which are, in essence, manufacturing industries. They now export around the world, not least to such places as Japan, against very stiff competition.

    I agree with the right hon. Gentleman about debt write-off. The original Toronto terms, introduced by Lord Lawson when he was Chancellor of the Exchequer, and the Trinidad terms have been well ahead of what the rest of the world was prepared to contemplate in terms of debt write-off at that time.

    The right hon. Gentleman referred to the third world. One of the most comprehensive ways in which we can help countries in the third world is not to close our markets to their exports. That is why I welcome so much of the Uruguay round outcome. It opens markets to the third world to a far greater extent than ever before. The outcome is not perfect; it does not go all the way. However, it does a great deal more than ever before and offers substantial incentives to third-world countries to develop their exports.

    Mr. John Townend (Bridlington) I congratulate my right hon. Friend on the enormous effort that he has put into the agreement which is of great benefit to Britain. Does he agree, however, that there is considerable resentment in this country at the intransigence of the French, who demanded compensation for their farmers from the Community budget as a condition of agreeing to the GATT talks? Will he tell us how much that that will cost the EC budget, and what our proportion will be?

    The Prime Minister A number of countries during the round were pretty intransigent from time to time, although perhaps the difficulties faced in France got rather higher profile publicity than most. I know that the GATT agreement has caused the French Prime Minister considerable domestic difficulties. I do not particularly wish to add to them now. It is worth looking at what the agricultural agreement does: it reduces Community tariffs by 36 per cent. and cuts exports subsidies substantially. That was the essence of the Blair house agreement, and that has been maintained despite what may be said in other capitals.

    Mr. Barry Jones (Alyn and Deeside) Where does the British aerospace industry stand? What is the fate of the airbus? Why was the issue of aerospace taken out of GATT? Is the vendetta by the American President against airbus now over?

    The Prime Minister The reason why those aspects of civil aviation were taken out of the round at the last minute was simply that agreement on them could not be reached. But the British aerospace industry will continue to be covered by the present Community and United States bilateral arrangements. That means that the position stays as it is now and that it has not – as the hon. Gentleman and many others feared–been worsened by the outcome of this round.

    It has been agreed that the Community and the United States will now negotiate for another year. I should say, for it might reassure the hon. Gentleman, that the United States has agreed to negotiate on the basis of the GATT Committee chairman’s draft text, which currently provides for a reduction in United States indirect support for its industry. The Commission, as our negotiator, will continue to insist on the inclusion of aero engines and indirect support. The outcome should protect United Kingdom interests. The hon. Gentleman need have no doubt that we will press our negotiators very firmly on that point.

    Mr. Edward Garnier (Harborough) My right hon. Friend will recall that my constituency in Leicestershire has many farmers and many people who are engaged in the knitwear, hosiery and textile industries. Does he recall that, following the Tokyo summit, he informed the House about his hopes for a reduction of the United States tariff barriers for British textiles? Will his hopes that we shared when he returned from Tokyo be realised following the GATT agreement? I join other hon. Members in congratulating him and his team, particularly Sir Leon Brittan, in their achievement.

    The Prime Minister The changes to the textile industry are helpful, but not as helpful as we expected them to be when we returned from Tokyo. The changes since Tokyo have meant that the extremely favourable changes that we had then are now less favourable. Securing improved market access for our textile exports was a priority for us in the negotiations.

    The agreement that the industry negotiated some months ago improved market access. We have been able to build on that in the Uruguay round and significant cuts have been agreed in a number of United States textile peaks. That is very valuable for our textile exporters and it is something that they have long sought. That is undiluted good news. It is not as good news as it looked as though it would be after Tokyo. Good news it is; superb news it is not.

    Mr. Bob Cryer (Bradford, South) Will the Prime Minister explain the phrase “unfair practices” which, according to his statement, are controlled under GATT? Does it, for example, include any control of child labour, or is he relying entirely on anti-dumping practices? He should know that, when dealing with the EC, most industries find it dilatory and inefficient in dealing with anti-dumping practices. Should not GATT have a social clause to give people in other countries health and safety at work rights, and trade union rights to ensure that they are employed under proper and decent working conditions? Are we not exploiting workers and child labour badly in order to receive their products in this country?

    The Prime Minister As I said in reply to the Leader of the Opposition, just today the Community improved its mechanisms for dealing with dumping, in terms of producing a more speedy response. I share the hon. Gentleman’s view that, sometimes, across the Community, it has taken longer to respond to dumping than might ideally have been the case. I believe that that was corrected in the agreements made by my right hon. Friend the other day. We are trying to deal with the problem. The other circumstances that he set out lead to goods being produced and then sold at below the proper world market level. That is the definition of dumping, so I believe that we shall catch the practices about which the hon. Gentleman is concerned.

    Mr. James Paice (Cambridgeshire, South-East) I add my congratulations to my right hon. Friend the Prime Minister on what has been achieved, particularly in agriculture, heralding as it does the end of competitively subsidised dumping on the world market and, we hope, the gradual phasing out of price support and the iniquitous set-aside scheme with which we in Europe have got stuck. While I recognise that it was probably inevitable, although regrettable, that the French had to be bought off with extra compensation, if necessary, for their small farmers, will he ensure that not only does that not exceed the guidelines already laid down for expenditure but that it is not paid out at the expense of compensation already agreed for British farmers?

    The Prime Minister Perhaps I should make clear to the House what happened with the French over the weekend. No agreement to provide the French with what I saw described in one Sunday newspaper as “billions of pounds” was made last weekend. The agreement reached was that the ceilings on expenditure in the Community will remain as agreed at Edinburgh before the Blair house agreement was renegotiated. The view of the Commission and most of the member states, is that the GATT agreement is compatible with common agricultural policy reform, so the question of extra compensation will not arise.

    Even if it were to arise, it is agreed that there is no question of increasing the sums of expenditure. It is a free expression to suggest that there will be billions of extra pounds for French farmers. That flatly is not the case. When asked, after the conclusion of the European Council, whether French farmers had won extra money during the Council, I replied, “Not a penny.” I reply again, “Not a penny.”

    Mr. Derek Enright (Hemsworth) I congratulate the Prime Minister on his recognition that sub-Saharan Africa will benefit little if at all from the GATT negotiations. That is a positive start. Will he look at the wretched rules of origin, which cause so many difficulties for such countries as Guinea-Bissau and Guinea-Conakry in terms of the export of their agricultural and fishery products?

    The Prime Minister I am not familiar with the details of that problem, but I shall seek advice on the rules of origin and have a look at them. To pick up the earlier point about the poorest countries – as I said, a large number of them are sub-Saharan countries – 19 of them have benefited from the reduction of $1.75 billion of their debt, under the Trinidad terms.

    Mr. Phillip Oppenheim (Amber Valley) Is European culture really such a pathetic withering little flower that it needs protection by the state? If French films are so good, surely people will flock to see them without state intervention. While the role of Great Britain and the Prime Minister in securing the GATT round was crucial, is it not a shame, given that we believe in free choice and open markets, that we backed that French demand which, in whatever sophistry it is cloaked, is nothing more than an unpleasant combination of censorship and protectionism?

    The Prime Minister As my hon. Friend knows, we would have preferred to have reached an agreement on audiovisual matters. A number of others would have preferred such an agreement to be reached. It was not possible. In the circumstances, the only option to protect the gains in the round was to take the audio-visual matters entirely out of the GATT agreement. Like my hon. Friend, I regret that. I hope that we can negotiate a satisfactory arrangement soon.

    Mr. Brian H. Donohoe (Cunninghame, South) Given the Prime Minister’s earlier answer to the question on the aerospace industry, can he tell us how small aircraft will be affected? There is a potential problem with Jetstream in the Ayrshire area. Will the Prime Minister assure us that that matter will be included in any negotiations with the United States?

    The Prime Minister Small aircraft and engines are included in the discussions. As I understand it, until those discussions are concluded there is no change from the present position.

    Sir Michael Grylls (Surrey, North-West) Does my right hon. Friend agree that this settlement of the GATT round comes at a crucial time to give the world economies that extra boost to get them moving again and that, as he has said, we shall benefit from it? Will he use his influence as Prime Minister to continue to encourage through the export services with the President of the Board of Trade the many – rather too many – small and medium-sized companies that could but do not yet export? If their hand were held a little, they might do that much better.

    The Prime Minister On that last point, my right hon. Friend and his colleagues are making a special effort through the business link scheme to do precisely that. My hon. Friend touches on an important point. One should make it clear that the GATT round now having been agreed is not immediately implemented. There will be a ministerial signing session, probably in April 1994. The final Act will need to be ratified by a number of countries. Then it will come into force, probably in late 1995 but conceivably as late as the beginning of 1996.

    Mr. Dennis Skinner (Bolsover) How can everybody be with us? There are 113 countries that have signed the agreement. Some are bound to be losers. Why does not the Prime Minister admit that the multinational companies are the driving force behind GATT? Britain will be gatted. Of the top 500 multinationals, 278 are either in the United States or Japan and the rest are divided between all the other industrial countries on the Pacific rim. It is a joke if the Prime Minister is trying to convey to the people of Britain that we will benefit. He said the same when the multinationals wanted the common market in 1973; unemployment increased. He said the same about the single market four years ago; again unemployment increased–

    Madam Speaker Order. This is not the time for speeches. This is the time for questions. If the hon. Gentleman has a question to put to the Prime Minister, he should do so and then sit down and let us hear the answer.

    Mr. Skinner Why does not the Prime Minister answer this question: since Britain’s manufacturing base is now down to 4 million, how on earth can this country leap across the boundaries to increase production? Why does not the Prime Minister tell the truth about what he said about jobs the other day? When I asked him how many jobs had been created, he said 400,000. Already he has stretched the number.

    The Prime Minister The hon. Gentleman has taken leave of what passes for his senses. I said 400,000 the other day and I said 400,000 today. He should get his facts right for a change. He is wrong again on other matters. Not only is he wrong, but he does not seem to carry with him his hon. Friend the Member for Livingston (Mr. Cook) or the right hon. and learned Member for Monklands, East (Mr. Smith), who have said precisely the reverse.

    Mr. Skinner So what? [HON. MEMBERS: “Oh.”] I shall be proved right.

    The Prime Minister If anybody else were as confident about anything as the hon. Gentleman is confident about everything, we would all be rather well off. I for once am prepared to make common cause with the hon. Member for Livingston. I entirely agree with him when, in welcoming the GATT trade deal, he said: ‘This will create substantial opportunities for developing countries.’ Not only does the hon. Gentleman think that, and he is entirely right, but so do the developing countries. But they, of course, also know less about their interests than the hon. Member for Bolsover (Mr. Skinner). If perhaps the hon. Gentleman had listened a little more carefully – he clearly did not listen the other day about jobs either – he would know that the developing countries in the Commonwealth sent a number of representatives to the main capitals to say how important it was for them to have a GATT agreement. Every single thing that the hon. Gentleman said was copper-bottomed, gold-plated rubbish.

    Mr. Nicholas Winterton (Macclesfield) I warmly welcome the successful outcome of the Uruguay round and pay tribute to the Government for the role that they have played in bringing it to a successful conclusion. Does my right hon. Friend accept that there is a downside to this agreement – he referred to it when answering some supplementary questions earlier? Does he accept that, if Britain is to be successful and competitive, it is important that for industries such as textiles and clothing – I could name others – the Government assist by providing an investment incentive? Will my right hon. Friend and my right hon. Friend the President of the Board of Trade do what they can to put pressure on the Treasury to ensure that there are incentives for investment so that British industry can take advantage of the Uruguay round and its successful outcome?

    The Prime Minister We certainly wish to ensure that British manufacturing industry both invests and exports. While my hon. Friend is right that the outcome for the textiles industry was less satisfactory than we had hoped it would be some time ago, the successful conclusion to the round does include a reduction in tariffs in the United Kingdom’s main export textiles markets, most crucially, of course, in that of the United States. Therefore there is a better circumstance for textiles, but, as my hon. Friend implied, it is not as good as we had hoped it would be.

    Mrs. Margaret Ewing (Moray) Does the Prime Minister accept that there will be a general and warm welcome for the decision to reduce tariff barriers against Scotch whisky – an important, high-quality export-winning product, not least in my constituency, where so many jobs depend on it? Is the Prime Minister aware that there is a need to build on the agreement to eradicate the internal excise discrimination in Japan, which continues to breach the 1987 GATT agreement because scotch is protected by a much lower level of tax than Scotch whisky? I believe that the differential between the two products ranges between six and nine.

    The Prime Minister The hon. Lady is right on both points. The tariff reduction on whisky in Japan is from 250 per cent. to zero – it has gone entirely. That is only part of the barrier against Scotch whisky exports in Japan. There are still substantial internal tax barriers. I raised those with Prime Minister Hosokawa when I was in Tokyo some time ago and we wrote to him again last week. We hope to see some movement in the comprehensive tax reform that the Japanese Government are now planning. The present position on internal tax discrimination against Scotch whisky is not satisfactory, and the Government continue to pursue it with the Japanese Government.

    Mr. Iain Duncan-Smith (Chingford) I congratulate my right hon. Friend on the successful conclusion to the GATT round, which is a great success for Britain, particularly Conservative Britain which believes and is foremost in free trade. May I press my right hon. Friend on the common agricultural policy? We all believe that the CAP is far too heavy and costs far too much. In many respects, that may have restricted our negotiating position on the financial services area. Will he assure hon. Members, particularly Conservative Members, that we will now press further for greater reductions and a greater freeing of the financial services business in the world?

    The Prime Minister We shall certainly press for greater freeing of financial services. It is very much in our interests. We are one of the world’s great providers of financial services, and the more that we can open up European markets – which is now happening – and Japanese and United States markets in particular, the greater the opportunity for the export of British financial services. My hon. Friend is quite right: it is a matter of critical interest to us and I give him my undertaking that we shall pursue it.

    Mr. Alan Simpson (Nottingham, South) May I pursue the downside a bit further and refer the Prime Minister to the McGraw-Hill study that he mentioned earlier? What did the study say about identifying the sector of British industry that can now anticipate job losses, and what will be the scale of those job losses?

    The Prime Minister As the hon. Gentleman knows, the net position is estimated to be a growth over 10 years of around 400,000 jobs. Beyond that, it is not really possible to identify in any great detail where there will be growth and contraction. That depends on too many factors for the statistics to have any real value. The calculation of 400,000 jobs is derived from the growth of world trade generally and the implications that that will have for manufacturing industry and the service sector in particular.

    Mr. Richard Alexander (Newark) I compliment my right hon. Friend on his mastery of his brief this afternoon. Many countries gain an unfair competitive advantage by subsidising their exports. Did the new GATT settlement deal directly with that hidden barrier to free trade?

    The Prime Minister Yes, there are new rules on subsidies, anti-dumping and safeguard action. There are texts in all those areas to deal with unfair practices. They are a good outcome for Britain in particular, and the EC more generally. Disciplines, including a reasonable constraint on developing countries, have been tightened, but the texts are a great improvement on the current GATT rules.

    Mr. John McAllion (Dundee, East) If, as the Prime Minister claims, the Government champion free trade as a means of helping the developing world, why did Britain abstain in the recent overwhelming vote at the United Nations condemning the United States Government for its illegal and inhuman economic blockade of the Republic of Cuba?

    The Prime Minister I am not sure that the hon. Gentleman is comparing like with like. I do not know of any country that would deny that this British Conservative Government is one of the most free-trading Governments, in philosophy and practice, of any Government in the world. I am pleased to see the hon. Member for Middlesbrough (Mr. Bell) nodding in agreement. He may not necessarily approve, but he does agree.

    Mr. Phil Gallie (Ayr) Will my right hon. Friend accept my congratulations on his outstanding statesmanship during the past two days? Does be accept that his earlier comments on aviation policy suggest that the advantage of current levels of launch aid for aircraft manufacturers who manufacture planes of 100 seats or fewer will remain despite strong USA pressure to do away with that? Does he further accept that my constituents will warmly welcome that on the basis that Jetstream Aircraft is a manufacturer of turbo-prop aircraft?

    The Prime Minister I can confirm that there will be no change and I reiterate that the Commission will continue to insist on the inclusion of aero engines and indirect support. As I said a moment ago to the hon. Member for Cunninghame, South (Mr. Donohoe), the outcome should be to protect the legitimate interests of the United Kingdom industry.

    Mr. George Stevenson (Stoke-on-Trent, South) I share the Prime Minister’s relief at the outcome of the GATT negotiations and his view of the need to reduce support and subsidies for agriculture, but how does that square with the fact that, on 15 November this year, the Government agreed to an increase of half a billion pounds in the draft EC budget for 1994, most of which will subsidise agriculture? Will the Prime Minister give us a clear commitment that there will be no extra support for French agriculture, either within the guideline or otherwise, and that, if there is any prospect of such support, it will not be transferred from other areas of the EC budget, such as the structural fund that is designed to encourage employment?

    The Prime Minister A number of other countries apart from the United Kingdom, such as Spain, Portugal and Greece, would strongly resist any suggestion that money to support agriculture should come from the structural or cohesion funds. In our discussions at the weekend at the European Council, Prime Ministers of some of the southern states made it perfectly clear that, were there any suggestions from any of the northern states-it would certainly not come from this northern state – that money to fund agriculture should come out of the structural or cohesion funds, they would strongly oppose that, and they would be right to do so.

    Mr. Jacques Arnold (Gravesham) Is not the consequence of the GATT that third-world countries will be able to earn far more foreign exchange for themselves and therefore far more self-respect? Is not that better than the begging bowl approach so favoured by the Opposition?

    The Prime Minister Yes, my hon. Friend is right. Independent calculations are that the gain to developing countries from opening markets under these GATT round considerations will be greater than the total amount of aid from all the western democracies and Japan added together.

    Mr. Roy Hughes (Newport, East) With all the euphoria following the GATT, may I remind the Prime Minister that, some ten years ago, there was a traumatic upheaval in the British steel industry, when many thousands of people were made redundant and whole communities were decimated? The same development does not appear to have taken place in Germany, France or Italy, where subsidies still abound. When will the Government take firm action to look after our steel industry and prevent further redundancies?

    The Prime Minister I am surprised that the hon. Gentleman did not draw the conclusion that most other people would have drawn, which is that British Steel is now a world-class company trading profitably because it is under private ownership. I hope, therefore, that there will be a good deal of support from Opposition Members in future for the privatisation of industries. The large number of industries that were in the public sector and very expensive to taxpayers are now in the private sector yielding resources to taxpayers.

    Several hon. Members rose –

    Madam Speaker Order. I am sorry, but we must now move on.

  • PMQT – 23 November 1993

    Below is the text of Prime Minister’s Question Time from 23rd November 1993.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Ward : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Ward : Will my right hon. Friend join me in welcoming today’s cut in interest rates, which will be a great help to industry? Does he agree that the most effective way of creating jobs is to have a flexible, deregulated work force and not to have artificial job sharing or 35-hour weeks? Will he continue to resist such proposals, whether they come from the socialists in Brussels or the socialists in Walworth road?

    The Prime Minister : I can join my hon. Friend in welcoming the latest reduction in interest rates. The last time interest rates were this low was in 1977– [Hon. Members :– “Under Labour.”] Exactly so, but at that time inflation was 13 per cent. and pensioners and savers were robbed of 7 per cent. So I am happy to repeat it : the last time the base rate was 5.5 per cent., inflation under Labour was 13 per cent. and savers were being robbed. I entirely agree with the other aspects of my hon. Friend’s question. The right way to create the new jobs we want is through the policies of deregulation, low inflation and making sure that British business is not overhampered with burdens. Telling people that they cannot work the hours they want and raising costs will simply destroy competitiveness and, with it, jobs.

    Mr. John Smith : Will the Prime Minister confirm that, as a result of the Bill announced in the Queen’s Speech which will increase national insurance contributions from 9 to 10 per cent., most wage earners in Britain will pay an extra £3 to £4 a week?

    The Prime Minister : Self-evidently, with an increase in national insurance contributions, people will pay more. That is certainly the case, but it is necessary to make sure that we reduce the fiscal gap about which the right hon. and learned Gentleman has spoken in the past. He pays lip service to reducing the fiscal gap, proposes extra expenditure and gives no indication of how it would be met.

    Mr. Smith : Why does the Prime Minister find it difficult to admit that the figure is £3 to £4 a week for most wage earners? Does he not recollect that, before the last election, he promised unequivocally that he would not increase national insurance contributions? Is this not yet another shameless betrayal of tax promises?

    The Prime Minister : The right hon. and learned Gentleman has a very selective memory. He forgets, for example, his own plans to extend national insurance right through the scale at substantially greater losses for millions of people.

    Mr. Smith : The Prime Minister said in the House at Prime Minister’s questions :

    “I have no plans to raise the level of national insurance contributions.”– [ Official Report, 28 January 1992 ; Vol. 202, c. 808.]

    On top of national insurance contributions, there is also increased VAT on fuel, the freezing of income tax allowances and the cuts in mortgage tax relief. Does the Prime Minister not admit that all the tax increases will amount to another £8.50 a week for a typical family in Britain from next April? What on earth has this to do with the Tory promises on tax?

    The Prime Minister : The right hon. and learned Gentleman came back from Brussels last week, having signed up to a range of extra environmental taxes, which means–if they mean anything–value added tax on fuel. Week after week, the right hon. and learned Gentleman has criticised the Government over VAT on fuel. It is no good his sitting smugly there when he goes to Brussels and signs up to the same thing.

     

    Q2. Mr. Thurnham : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Thurnham : Will my right hon. Friend carry out an inquiry into why the infant mortality rate in Bolton in the past five years has risen to twice the national rate, when infant deaths elsewhere have been falling? Will he reassure parents and publish an action plan to discourage expectant mothers from smoking?

    The Prime Minister : I understand my hon. Friend’s concern about the problem that he raises. Infant mortality is particularly heart-breaking. In the past 10 years, the number of children dying under the age of one has, thankfully, fallen by some 40 per cent. I understand that Bolton health authority agreed last Friday to appoint an additional consultant obstetrician and to provide additional neo-natal nursing staff. My hon. Friend will also be pleased to know that the health authority has just agreed to fund a study into the prevention of smoking in pregnancy, which will be carried out in Bolton. My right hon. Friend the Secretary of State for Health will publish an action plan setting out measures being taken by the Government to improve health targets.

    Mrs. Ewing : Does the Prime Minister remember that, as a junior social security Minister in 1986, speaking on the issue of fuel poverty, he argued that there should be clear rules for help, and a certainty and immediacy of response to people in those circumstances? Not only because we have a cold snap now, but because the Government plan to introduce VAT on domestic fuel, does he recognise that there is now a clear need to have automatic and continual payments to the most vulnerable in society throughout the winter months to eradicate the fear faced by many people?

    The Prime Minister : As the hon. Lady will know, we introduced the current cold weather payment scheme. It was a vast improvement on its predecessor, which we inherited from the previous Government. We also introduced automatic, quicker and more generous payments. In 1991, we made more than 6.5 million payments worth more than £39 million. That is a record of quick and efficient help given by the Government, on which we propose to build. We shall, of course, enhance the present cold weather payment scheme and the House will hear the details next week.

     

    Q3. Mr. Alexander : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Alexander : Is my right hon. Friend aware that, despite the knowledge that it is about to be privatised, British Coal is continuing with proposed colliery closures? Would any other industry about to be sold dispose of, give away or close a significant proportion of that industry before a buyer could be found? Will my right hon. Friend intervene to prevent the further desecration of a fine industry and the coalfield communities involved?

    The Prime Minister : As my hon. Friend knows, we all wish to keep pits open wherever practicable– [Interruption.] The Opposition, who have perhaps closed more pits than anyone else, may not accept that, but it happens to be the case. Under current legislation, the future of individual pits is a matter for British Coal, which has a commitment to offer to the private sector pits that it does not intend to keep in production. I expect it to do that.

    Mr. Hain : Is the Prime Minister aware that thousands of decent couples feel nearly suicidal because of oppressive and arbitrary claims for maintenance payments on second marriages by the Child Support Agency, often in defiance of court orders? My constituent, Mrs. Diane Eynon, is considering divorce in order to escape plunging her family into poverty because of a claim on her income through her husband. Surely the Prime Minister should intervene immediately, order a freeze on such maintenance payments and have a proper debate in the House of Commons on the future of the Child Support Agency.

    The Prime Minister : As the Opposition spokesman said when we introduced the regulations, the Opposition very much support the principle behind the Child Support Agency, which is that parents should contribute to the cost of bringing up their children. My hon. Friend the Under-Secretary of State told the Select Committee a day or so ago that we are looking at the comments and criticisms that have been made and testing them against the basic structure and principles that are in place. We intend to ensure that what was previously a very poor system becomes better. If, after examination, we think that we can make the scheme better, then we will do so. We are examining it at the moment.

     

    Q4. Mr. Ian Taylor : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Taylor : My right hon. Friend should be aware of the widespread support for his efforts to achieve an end to violence in Northern Ireland and to obtain a political settlement. He is absolutely right to explore new opportunities. Will he assure the House that it is not the Government’s intention to undermine the position of Northern Ireland within the United Kingdom?

    The Prime Minister : I am happy to repeat that assurance, yet again, to my hon. Friend. The Union is important to us. We are not in any way in the business of securing the break-up of the United Kingdom. As I made clear to the House a day or so ago, we are looking for peace if it is available, but we are not looking for peace at any price. I wish to know whether the IRA is prepared to end its violence for good and enter the political arena using only democratic means. It is right for us to put that question when there seems to be some suggestion that the IRA may be thinking of an end to violence. We need a clear and unqualified answer from the IRA which respects the vital principle that there can be no change in Northern Ireland’s status without the freely expressed will of its people.

     

    Q5. Mr. Alton : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Alton : Is the Prime Minister aware that, by the age of five, the average child in the United States will have seen 20,000 homicides broadcast on television? Does he not agree that in this country, too, the culture of violence involving television violence and videos showing horrific and graphic scenes is far too easily available? Does he feel that stringent measures should be taken by the broadcasters and those who make available these videos to stop young children having their minds infected by them? If there is not such a correlation between violence and videos and television violence, why does he think that advertisers spent £1.7 billion last year trying to promote their wares on television?

    The Prime Minister : I have considerable sympathy with what the hon. Gentleman has said. There are some responsibilities that rest with broadcasters–they accept some, but we may not always agree with their judgments. However, we must recognise that the principal responsibility lies with parents in the home to ensure that, first, the videos are not available to children and, secondly, that children are not in a position to watch them freely, as they frequently are at present. I accept some responsibilities for broadcasters and the hon. Gentleman was right to make that point.

     

    Q6. Mrs. Lait : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mrs. Lait : Does my right hon. Friend welcome the decision by the United States Congress on the North American Free Trade Agreement? Will that lead to an agreement on the general agreement on tariffs and trade? Can my right hon. Friend see the way forward for France on those negotiations?

    The Prime Minister : I warmly welcome the vote in the United States Congress in favour of the North American Free Trade Agreement. We have constantly stated our support for free trade agreements and I think that NAFTA will contribute to the liberalisation of trade. It will, of course, have to contribute to GATT rules. I trust that that vote will add to the impetus in the United States and elsewhere to ensure that we get an agreement in the Uruguay round by 15 December. There will be a number of important meetings in the next three weeks and I hope that they will lead to a satisfactory outcome in time for 15 December.

     

    Q7. Mr. Gordon Prentice : To ask the Prime Minister if he will list his official engagements for Tuesday 23 November.

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

    Mr. Prentice : Does the Prime Minister recall writing to me in July of this year, wishing Cleveland Guest Engineering well? Is he aware that today that firm, employing more than 100 highly skilled engineers in aerospace, called in the receiver? Is it not the case that every time the Prime Minister wishes a manufacturing company well, it is the kiss of death for that company?

    The Prime Minister : I am very sorry to hear of the difficulties faced by that company. Although the hon. Gentleman may have concern for that company in his constituency, might he just once forget the point- scoring and welcome the good news about employment? Unemployment in this country has fallen by 137,000 this year, and last month’s fall of 49,000 was the largest monthly fall for four years. Long-term unemployment fell in every region, among men and among women, and last year nearly half a million people left the unemployment register and found themselves work. Why does not the hon. Gentleman consider what is really happening to unemployment?

  • Mr Major’s Commons Statement on the 1993 European Council in Brussels – 1 November 1993

    Below is the text of Mr Major’s statement made in the House of Commons on 1st November 1993 on the 1993 European Council held in Brussels.


    PRIME MINISTER:

    The Prime Minister (Mr John Major): With permission, I shall make a statement about the special meeting of the European Council in Brussels on 29 October, which I attended with my right hon. Friend the Foreign Secretary, and also about my separate meeting in Brussels with the Irish Prime Minister. The documents issued by the European Council and the joint statement that I issued with the Taoiseach have both been placed in the Library of the House.

    Agreement was reached at the European Council on a number of important points. It was decided that, later this month, Finance Ministers would consider a draft White Paper by the European Commission, setting out proposals on growth, competitiveness and employment. The United Kingdom has already put forward suggestions for that White Paper. The European Council renewed its commitment to secure a global commitment in the Uruguay round before the December deadline. The Council agreed to provide extra help to small and medium-sized businesses by widening the criteria for loans by the European investment bank.

    The future location of a number of European Community institutions was decided. Some of those decisions were long overdue. Of the main institutions, it was agreed that the headquarters of the European Monetary Institute will be in Germany, the European Medicines Evaluation Agency in the United Kingdom, Europol in the Netherlands and the Trade Marks Office in Spain. The decision on the European Medicines Evaluation Agency should reinforce Britain’s position as the centre of the European pharmaceutical industry.

    On Bosnia, the Council agreed to try to improve access for aid supplies as winter approaches. We are seeking credible assurances from the warring factions that they will not block access routes. The Council is also looking for more funding and troop contributions from outside the European Community, to supplement the huge efforts made, in particular, by Britain and by France. Work on the further Yugoslavia was identified as one possible area for joint action in foreign policy. The European Council also asked Foreign Ministers to consider joint action in support of the middle east peace process and to contribute to election monitoring by the United Nations in South Africa and in Russia.

    Under the interior and justice pillar, the Council asked Ministers to bring forward proposals for co-operation in the fight against international crime and drugs, and over asylum and immigration problems. We agreed that the Europol drugs unit should be up and running within 12 months.

    No one at the council was in any doubt that our highest priority is to restore sustainable, non-inflationary growth and to increase employment across the Community. I argued that the European Community had to confront its own structural weaknesses, which had led to a falling share of world markets and, by comparison with the OECD average, the loss of an estimated 9 million jobs since 1980. The quickest boost to growth and employment will be to secure a GATT agreement. It was also generally agreed that the Community needed to make its labour markets more flexible, to cut red tape nationally and in Brussels, to encourage investment and to create the right climate for new and growing businesses.

    I believe that economic convergence is a helpful objective for each Community member state. It will assist in keeping inflation and interest rates as low as possible, as well as controlling public borrowing and debt.

    In our discussions, I again made clear that I considered the timetable for economic and monetary union stage 3–a stage to which we are, of course, not committed–to be unrealistic. Public opinion and the recession have changed attitudes within the Community. Subsidiarity, for example, now has very strong support. During the past two years, the European Commission has halved the number of proposals that it has brought forward for new Community rules and regulations. In December, we shall be looking for specific proposals to cut back existing European Community law. There is increasing emphasis on inter-governmental co-operation, with decisions taken by consensus on both foreign and home affairs. We operate by agreement and not only through the treaty of Rome and the European Commission. The European Council concerned to respond to criticisms that arose throughout Europe during the debate on the Maastricht treaty. The Council declared :

    “We wish to introduce greater transparency, openness and decentralisation in our procedures. We want a Europe close to the citizen and intervening only where necessary to pursue our common interests.”

    We have argued long and hard for that approach within the Community, and I thoroughly welcome it.

    Following the European Council meeting, I had a bilateral discussion with the Irish Prime Minister. Mr. Reynolds gave me an account of the report given to him by the hon. Member for Foyle (Mr. Hume), together with the assessment that the Irish Government have made in the light of it. He did not pass the report itself to me. We acknowledged the courageous efforts made by the hon. Member for Foyle, but agreed that the report could not in itself be a basis for action.

    We agreed that the two Governments should continue to work together on the following basis : Northern Ireland’s situation should never be changed by violence or the threat of violence; any settlement must depend on consent, freely given; negotiations on a settlement could only involve constitutional politicians; there could be no secret agreement or understanding between Governments or organisations supporting violence as a price for its cessation; and those claiming a serious interest in advancing the cause of peace in Ireland should renounce the use of, or support for, violence. If and when such a renunciation of violence had been made, and had been sufficiently demonstrated, new doors could open, and both Governments would wish to respond to the new situation which would then arise.

    The terrible events in Northern Ireland since our meeting last Friday have further underlined the urgent need for that process to succeed. As the House will know, last Saturday evening, two gunmen fired indiscriminately in a crowded bar in Greysteel, County Londonderry. Seven people died, ranging in age from 19 to 81, and 11 more were injured. A claim of responsibility for that appalling act was subsequently made by the Ulster Freedom Fighters.

    The Royal Ulster Constabulary, who acted with exemplary speed and skill, have arrested nine people in connection with the attack. That, like the Shankill road bombing and the six other terrorist murders in Northern Ireland last week, was a barbarous and despicable attack on innocent and peaceful civilians. The whole House will wish to extend its profound sympathy to the victims’ families and friends. Less than 24 hours later, an RUC officer was shot and critically injured in Newry. That once again reminds us of the enormous debt that we owe to the brave men and women of that force.

    Those murders will bring the terrorists no advantage, but only the prospect of long years in prison. Terrorism will not alter the constitutional guarantee that we have given the people of Northern Ireland. It will not defeat the security forces, and it will not deflect us from the search for a fair and lasting peace.

    The joint statement with the Irish Prime Minister provides a clear basis for progress. Both Governments are committed to the talks process. The principle of consent must be at the heart of any settlement–as the Irish Deputy Prime Minister made clear last week, when he acknowledged the rights of Unionists to give or to withhold that consent. That clearly points to constitutional reform in the Irish Republic at the right time and in the right circumstances.

    The Government will now intensify their efforts to find a basis for the constitutional parties in Northern Ireland to carry on the talks progress. My right hon. and learned Friend the Secretary of State for Northern Ireland will hold further discussions with the Irish Deputy Prime Minister in a meeting at the Intergovernmental Conference late this week. We are determined to do all that we can to bring peace to Northern Ireland. The further killings that occurred over the weekend make that search for peace all the more urgent.

    Mr. John Smith (Monklands, East): I thank the right hon. Gentleman for making a statement on both aspects. I welcome the European Council’s confirmation of the enlargement timetable for Austria, Finland, Norway and Sweden so that negotiations are completed by March 1994 and accession by 1 January 1995. I welcome also the commitment to achieving within the timetable a successful conclusion to the GATT talks, and the initiative proposed for closer police co-operation under Europol.

    As to the economic aspect, given the depressing realities of the economic situation in the Community, with 17 million unemployed, and with any recovery in Britain at best patchy and fragile, why is there not a greater sense of urgency on the part of the United Kingdom Government and other member states in taking more effective action to stimulate their economies and to bring down unemployment? With the Bundesbank having begun to reduce its interest rates, is there not a strong case for co-ordinating interest rates cuts across the Community–not least in this country, where manufacturing output has fallen and the construction industry remains dangerously weak? Although we welcome the modest extra help to small and medium-sized businesses that was promised at the European Council meeting, can the Prime Minister explain why initiatives agreed as long ago as last year’s Edinburgh summit have not yet been acted upon?

    The right hon. Gentleman will recall that it was agreed at that summit to establish a European investment fund in addition to the increased facilities available through the European investment bank. He will be aware also that, for the European investment bank to establish the new fund, it will be necessary to amend the new protocol to the treaty of Rome. Can the Prime Minister explain why, nearly one year after the Edinburgh summit, that has not been done by the United Kingdom and other member states? Will he give the House an undertaking that there will be no more delay in pursuing an initiative for which he claimed credit at Edinburgh?

    Will the Prime Minister explain why his Government are denying to areas of high unemployment and industrial decline in the United Kingdom more than £300 million of European funding because of spending restrictions on local authorities–an approach which is locking this country out of desperately needed investment funds? Will the right hon. Gentleman explain why, when his policy was to have Britain at the heart of Europe, the European Monetary Institute is to be placed at the heart of Germany? How will he explain to the City of London that latest triumph of his negotiating skills? Perhaps it is a case of game, set and match to the Bundesbank.

    On Bosnia, what evidence is there that the declaration will have any significant impact on Serbian and Croatian aggression? Why did the Council not insist on making effective United Nations Security Council resolution 824 on safe areas in Sarajevo and elsewhere in Bosnia? Will the airlift be significantly increased to provide desperately needed winter aid to the starving people of Bosnia? I join the Prime Minister in condemning without reservation the atrocities committed by the so-called Ulster Freedom Fighters in Greysteel, County Londonderry. Let me also express our concern at the shooting of an RUC officer in Newry by the IRA. Does the right hon. Gentleman recognise that these latest outrages have increased the powerful feeling, in Great Britain as well as on both sides of the border in Ireland, that efforts to find a political way forward must be pursued with renewed intensity? Is it not abundantly clear that a cessation of the horrific violence is what is passionately desired by the overwhelming majority in both Great Britain and Ireland?

    For our part, we would welcome an early resumption of the talks process. We believe that the elected representatives of the people of Northern Ireland have a moral obligation to return to the negotiating table without preconditions. Any resumption of the talks, however, should take place within the previous three-strand structure, and on the principle that nothing is agreed until everything is agreed. However, while efforts to persuade the parties to return to the talks will proceed, the two Governments have a responsibility to the peoples of these islands to attempt to develop their own institutional framework for peace. I urge the Government to examine carefully the broad thrust of the six principles outlined by the Irish Deputy Prime Minister ; they must accept, however, that those principles contain a fine balance between nationalist and Unionist aspirations, which should not be destroyed by their being treated selectively.

    Opposition Members recognise the courageous and imaginative work undertaken by the hon. Member for Foyle (Mr. Hume). We also recognise the political and personal risks that he has taken–not just recently, but over a long period–in an attempt to bring peace to the troubled situation. May I suggest to the Prime Minister that, whatever progress is made in talks between the constitutional parties in Northern Ireland, the United Kingdom Government and the Government of the Republic must continue to consider ways forward, and not hesitate to develop proposals themselves which could be put to the other parties. The public in both Britain and Ireland are looking in the first instance to their Governments to make and sustain a new initiative for peace.

    The Prime Minister: The right hon. and learned Gentleman touched on a large number of important points in my statement. I shall endeavour to respond to all his comments.

    I am grateful to the right hon. and learned Gentleman for welcoming enlargement, for which there was strong support from all the Heads of Government at the European Community meeting. There was also support for a completion of the GATT talks by 15 December, police co-operation on Europol and the general efforts to deal with money laundering and organised crime.

    As for the economic points that the right hon. and learned Gentleman made, 18 million people are indeed unemployed across the Community at present. It is estimated that that figure will reach 20 million as unemployment rises sharply, particularly in France and Spain, over the next 12 months. An urgent examination of the policies is indeed under way : that is precisely what the White Paper is doing. It will be considered by Finance Ministers in ECOFIN–the Economic and Finance Council–within the month, and then remitted to the Heads of Government for their meeting in Brussels on 9 December. I think that there is scope for interest rate reductions in some countries in Europe ; some have already been made. I said that when I spoke to the Heads of Government meeting on Friday last week. As for the initiative on the European investment fund, the right hon. and learned Gentleman is right to say that it needs legislative cover throughout the Community. Virtually no member state has yet completed the necessary legislative cover, but we shall be able to do so speedily. I look forward to support from the official Opposition when I present the legislation to the House. As for others, I cannot compel them to deal with it speedily, but I have told them in our discussions that I hope that they will be able to do so.

    I assume that, in expressing concern about the £300 million, the right hon. and learned Gentleman is referring to European Community funds. We made it clear to the Commission that we expect European Community funds allocated to the United Kingdom to be taken up by the end of this calendar year–not the financial year.

    The right hon. and learned Gentleman neglected to mention that many hundreds of jobs will come to London with the European Medicines Evaluation Agency, but I am sure that he will welcome the several hundred direct jobs and the large number of secondary jobs that will be created as a result of that institution coming here. The European Monetary Institute has gone to Germany. That was the consensus among the Community, and since we are not committed to stage 3, it is unsurprising that the consensus was that it should go elsewhere.

    The activities of the Opposition last year did not help our negotiating position. [Interruption.] We will take their attitude to Europe seriously when they cease to obstruct European legislation that they claim to be in favour of. They speak with one voice in Europe but another in the Lobby.

    I turn now to the right hon. and learned Gentleman’s comments on Bosnia. He has a touching faith in declarations. I am bound to say that he is not dealing with entirely civilised men in Bosnia who are seeking to block the humanitarian aid. We are seeking to open corridors to ensure that we shall be able to get the aid through this winter. That will involve a massive effort. The strain of the effort thus far has been taken by the British and the French. We hope that others will make a larger contribution, and that point was made forcefully in our discussions after the last day.

    I can agree with many of the right hon. and learned Gentleman’s points on Northern Ireland. Like him, I would welcome an early resumption of the talks under the three-strand process. I am less concerned about the format than the fact of the talks, but it is desirable to get the fact of the talks under way as soon as possible.

    There is a great deal in the Tanaiste’s six principles with which we can agree–not all of them, but they are a helpful contribution to the debate, and I am happy to acknowledge that that is most certainly so. We wish to work with people to ensure that the talks process is a success. The Government would be willing, if others would find it helpful, to bring forward proposals to provide focus and direction for new talks once they begin. It is a hopeful sign that there seems to be a greater willingness to return to talks. I hope that that willingness will become a reality.

    Mr. Norman Lamont (Kingston upon Thames): Is the Prime Minister aware that many people had seen this Council as an opportunity for greater realism on the part of the European Community? Will the Prime Minister explain to the House, given the views that he expressed in The Economist, given the break-up of the exchange rate mechanism, and given the views that he has expressed this afternoon about the timetable for monetary union, what is the purpose in going forward with a European Monetary Institute on the timetable envisaged in Maastricht? What will the EMI do? Are we not in danger of being drawn into a further bout of fantasy by the European Community, from which we shall find it difficult to extricate ourselves?

    Secondly, there will be support on both sides of the House for the Prime Minister’s initiative on Northern Ireland, but may I ask him for the assurance that there is no question of an amnesty for terrorists and no question of any negotiation with anyone who has been involved in terrorism in the past?

    Several hon. Members rose —

    Madam Speaker: Order. Before the Prime Minister responds, will he allow me to say that many hon. Members are seeking to ask questions? It will be impossible to call all of them unless questions are brisk and to the point, and answers equally so.

    The Prime Minister: I shall deal with my right hon. Friend’s second point first. There are no political prisoners anywhere in the United Kingdom, so the question of amnesties does not arise in any way.

    On the European Monetary Institute, there is indeed much greater realism across the Community, as the declaration from which I quoted a few moments ago illustrates very clearly. As my right hon. Friend will know, stage 2 in no sense infringes our monetary sovereignty and, as he will also recall, stage 2, which was negotiated by myself and my right hon Friend, was included in the Maastricht treaty and in our domestic legislation, and that treaty and the domestic legislation require it to commence on 1 January.

    Mr. Paddy Ashdown (Yeovil): It is a good thing that the Maastricht treaty is now at last in place, but it is, I regret, a bad thing that the Government, under the Prime Minister’s leadership, have once again at this special Council led Europe in its retreat from its responsibilities in Bosnia a failure over which many lives will be lost and which will cause much misery in the coming winter. On Northern Ireland, does the Prime Minister accept that, for whatever understandable reason, there has been a certain loss of political momentum following the breakdown of the cross-party talks a year ago? Does he agree that this is the moment when he and the Irish Taoiseach could take personal charge? I hope that his statement means that that is what they now intend to do.

    Does the right hon. Gentleman also agree that the six principles outlined by Dick Spring offer not only an appropriate way forward but some reassurance for the Unionist cause, and that the most important thing that could be done now to give impetus to progress towards peace would be if those who represent the Unionist cause could find it possible to utter some welcome, however guarded and partial, for those principles?

    The Prime Minister: I shall deal first with the right hon. Gentleman’s remarks on Bosnia. I find his continuing criticism of what has been achieved by this country, our voluntary services and our troops in Bosnia to be contemptible, and I use the word advisedly. It is time that the right hon. Gentleman stopped grandstanding on this issue and learned some of the facts about Bosnia and the realities of what can be achieved.

    On Northern Ireland, the Taoiseach and I certainly propose to take a very close interest in the development of these discussions. We are both committed to seeing a success and to doing everything that can realistically be done to bring an end to bloodshed and to bring peace to the people of Northern Ireland. I acknowledge again, as I did a few moments ago, the importance of the principles enunciated by the Irish Deputy Prime Minister a few days ago. They seem to suggest that, in the right circumstances, articles 2 and 3 can be repealed, or at least put to a referendum for repeal, in the Republic of Ireland. I think that that will be very reassuring and that it is a considerable contribution to the search for peace.

    Mr. Peter Temple-Morris (Leominster): Does my right hon. Friend accept that the horrors of Northern Ireland place an awesome responsibility on him, on the Government and, indeed, on us all? Does he also accept that a settlement, or at least agreement on progress towards a settlement, would be an achievement of historic proportions for him and for his right hon. Friends?

    The Prime Minister: I am grateful to my hon. Friend. I think that no one underestimates in any way the difficulties that lie in the way of progress in the present situation, but I do not believe that anyone who has observed what has happened in Northern Ireland–not only in the past three weeks, horrific though that has been, but in recent years–can be remotely satisfied with the status quo. Nothing that can realistically be done to bring peace and progress should be left undone.

    Mr. John Hume (Foyle) rose —

    Hon. Members: Hear, hear.

    Mr. Hume: May I join the Prime Minister in condemning the horrific slaughter in Greysteel on Saturday evening of so many decent people? May I also say that it is an insult to the memory of the decent people of the Shankill road who were murdered the previous week to use their murder as a reason for murdering others? Let no one be under any illusion : in a divided society, solutions can never be brought about by any form of violence or coercion.

    Given that that has been my position and that of my party for the past terrible 25 years, I say that it is the responsibility of all people– especially Governments–to do everything in their power to try to resolve the conflict and bring the violence to an end. Given that I say that, and note that throughout those 25 years 20,000 troops and 12,000 armed policemen on our streets and stringent security laws have not brought that peace; given that I take the responsibility, which is indeed mine, in circumstances in which I saw a real opportunity–and I mean my words–for achieving a total cessation of violence, which I say is the best opportunity that I have seen in 20 years; and given that the Prime Minister describes me in his statement as courageous and imaginative, why has the right hon. Gentleman rejected my proposals before he has talked to me about them?

    The Prime Minister: I think that millions will agree entirely with the hon. Gentleman’s remarks about Greysteel and Shankill. Nothing can justify the sort of action that we saw in Greysteel. As I indicated over the weekend, revenge simply breeds revenge–each death leads to another death–and that is no way forward for Northern Ireland.

    May I repeat what I said in the statement? I have a great deal of admiration for the persistence and the courage with which the hon. Gentleman has, through many years, pursued a settlement in Northern Ireland. I have not always agreed with the way in which he has pursued that end, but I have always admired his courage and his determination to do so.

    I have to make a judgment as to whether the actions that are taken will lead to the consent throughout every aspect of the community that is the irrevocable necessity if one is to have a settlement that will endure for a long period. I listened very carefully to what the Taoiseach had to say. The hon. Gentleman and I met some time ago. I believe that the hon. Gentleman has asked to see me again. I confirm to the hon. Gentleman that I am happy to meet him and I look forward to doing so, and to meeting also the leaders of the other constitutional parties in Northern Ireland. My door to them is open for constructive help towards reaching a settlement, from whatever source–any democratic source–it may come.

    But I had to make a judgment on whether I thought that the proposals reached by the hon. Gentleman, at this time, and in the fashion that he proposed them, would actually lead to progress and to a settlement. I reached the conclusion–after having been informed of them by the Taoiseach, as we said in our statement over the weekend–that that was not the right way to proceed, and for that reason I said earlier today that I believe the way forward is the way set out in the joint statement that the Taoiseach and I issued on Friday.

    Rev. Ian Paisley (Antrim, North): I should like to associate myself with what the hon. Member for Foyle (Mr. Hume) said in condemning without reservation all the murders that have been taking place in our land. There is no difference between the tears of Protestants and the tears of Roman Catholics. These murders come from hell and lead to hell and there can be no justification for them on any grounds whatever.

    Is the Prime Minister aware that the people of Northern Ireland will be listening carefully to what he is saying today? As he said in his statement that the document resulting from the Hume-Adams talks, as they are called, was not delivered to him but that the Taoiseach made some comments upon it, can he tell the House and the people of Northern Ireland what detail of that document led him to reject it? This House and the people of Northern Ireland should know that. May I also tell the right hon. Gentleman that many people in Northern Ireland are alarmed by the communique that was issued, especially point 5:

    “The Prime Minister and the Taoiseach agreed that any initiative can be taken only by the two governments”?

    Can the right hon. Gentleman explain to the people of Northern Ireland what difference there is between that and joint sovereignty? Surely the Government, and the right hon. Gentleman as Prime Minister, are the only people who can take an initiative in the internal affairs of Northern Ireland.

    The Prime Minister also told the House today that, when the time is ripe, there is going to be a change in the constitution of the South. The people of Northern Ireland will be asking the Prime Minister, now many more Shankill roads and Greysteels must we have to bring about the ripening of the time?

    The Prime Minister: To an extent, the hon. Gentleman answered part of his own question in the second part of his question. We need a settlement that will last. I do not think that the hon. Member for Antrim, North (Rev. Ian Paisley), any more than I or any hon. Member, is simply looking for a short-term ceasefire. We are looking for a permanent cessation of violence. That is what we are seeking. That means that some of the action–for example, the action that will bring comfort in the North on articles 2 and 3–must necessarily be taken by the Government of the Republic of Ireland and not by us. It is right that we should work together to see whether we can produce peace in Northern Ireland.

    So far as the document is concerned, I reiterate that I have not read it. Having spoken to the Taoiseach, I am aware of the document’s contents. As I said to the hon. Member for Foyle, I made the judgment, on the basis of that, that I did not think that it would lead to consent across Ireland and should not therefore be proceeded with in the form in which it existed.

    Mr. William Ross (Londonderry, East): The horrific assault at Greysteel in my constituency on Saturday night has rightly drawn down the universal condemnation of all right-thinking people in Northern Ireland and their public representatives. May I say to the Prime Minister that the people in the area were very glad to see the Secretary of State paying a visit there yesterday. He was very much welcomed.

    That atrocious attack spoke louder than words. Did the Prime Minister therefore ask Mr. Reynolds to close down places like the Republican News Bureau in Dublin, from which all the statements by the IRA are issued?

    Will the right hon. Gentleman now give the most careful attention to selective detention, to behead the terrorist organisations of their control and command structures? Before he starts that, will he read the excellent article that appeared in the Irish edition of The Sunday Times yesterday on that subject, which unfortunately was not printed in the British editions? That article will clarify everyone’s thinking. Does the Prime Minister also agree that swift and vigorous action is now necessary to restore confidence and to get rid of the massive fear that exists throughout Northern Ireland?

    The Prime Minister: The slaughter of the hon. Gentleman’s constituents in Greysteel was unforgivable. I hope that he will understand and pass to his constituents the depth of sympathy that exists in this House and across the country for the people who suffered in that attack and for their families.

    We are in constant contact with the Government of the Republic of Ireland about security matters. There have been substantial improvements in security co-operation and cross-border co-operation over recent years. That is a continuing programme. It is not something that is begun and ended. A whole range of matters are continually under discussion.

    As for selective detention, I have noted the public debate on the arguments for and against internment. This is, of course, an option which remains open to the Government. It would not, I think, at the moment be appropriate for me to comment on the circumstances in which that option might necessarily be used. It is there, and I do not rule it out.

    Sir James Kilfedder (North Down): I associate myself wholeheartedly with the political initiative by the Prime Minister. With the Irish Republic’s acceptance, if such be the case, that there can be no change in the constitutional position of Northern Ireland without the consent of the majority there, and the promised removal, if such be the case, of articles 2 and 3 of the Irish constitution, it would seem sensible and desirable that the talks between the constitutional parties should be resumed as soon as possible. Does my right hon. Friend agree that every public representative in Northern Ireland should now call upon the people unequivocally to support the security forces in their fight to defeat terrorism, which presents a bar to political progress?

    The Prime Minister: I entirely agree with my hon. Friend upon that issue. The Taoiseach has indicated acceptance of the principle of consent in Northern Ireland on the constitutional guarantee, and the Deputy Prime Minister in Ireland, of course, has indicated the possibility of putting a referendum on articles 2 and 3 to the people in the Republic.

    My hon. Friend is entirely right about the need for the security forces to have the complete support of the people and of the leaders in Northern Ireland. There must be within Northern Ireland people who have information about those who have taken part in terrorist activities over recent weeks. I would appeal to those people to come forward with that information. It requires an act of bravery to do so, but that bravery, if they do so today, may prevent more slaughter, mayhem, death and misery for other families at a later stage.

    Mr. David Winnick (Walsall, North): Is it not rather disappointing, to say the least, that the reaction of many Unionist politicians over the weekend to the constructive proposals that were put forward by the Irish Foreign Minister was to dismiss them as simply blarney? If agreement could be reached between the two Governments which accepts, of course, that the majority of the people in Northern Ireland have a right to stay in the Union but also makes other proposals leading to power-sharing in the North, would the Prime Minister carefully consider having a referendum in the United Kingdom as a whole? Although there might be a referendum in the Republic, the people of the United Kingdom could have an opportunity of deciding on those proposals prior to any parliamentary approval. Would not that be one way forward to overcome any veto by politicians in the North?

    The Prime Minister: I am not at all sure that it would be helpful to making progress to comment on every aspect of what the hon. Gentleman says, although I understand what compels him to say it. Perhaps I could make this point, which is relevant to the position in Northern Ireland : for too long the concerns of many people in Northern Ireland have been dominated by fears–some rational, some irrational–at each extreme of debate. What I think we have to do, if we are to work with the constitutional leaders in Northern Ireland to provide a settlement, is to try to offer the guarantees and certainties that will ensure that the extreme views that are so often put do not carry favour with the majority of people in Northern Ireland.

    Once those fears and uncertainties are put to rest, I believe that we will have a much better climate in which we can work with all the constitutional leaders in Northern Ireland and try to promote a settlement that will end the bloodshed. Therefore, the way ahead that we proposed is the right one, although I note the hon. Gentleman’s comments.

    Sir Teddy Taylor (Southend, East): Has any estimate been made of the expenditure involved in the many bodies that were set up at the Council meeting? Although I agree very much indeed with what the Prime Minister said about economic policy, does he accept that the best that we can now do in the House of Commons is to wish him well, observing that the European union requires that the broad outlines and guidance of economic policy will now be determined by the Council by majority vote under article 103, which applies to us as well as to other member states?

    The Prime Minister: As my hon. Friend will know, those are guidelines, and they were negotiated by my right hon. Friend the Member for Kingston upon Thames (Mr. Lamont) and myself in the Maastricht negotiations some time ago. On the substantive matter of the European union, the European union gives rise to a good deal of misunderstanding among people. It simply consists of the so-called three pillars–the European Community plus the arrangements for intergovernmental co-operation–I emphasise the word “co-operation”–in foreign and home affairs. “Union” is a way of describing that three-pronged structure, and it is nothing more than that. I cannot immediately give my hon. Friend, off the cuff, the costs of those new institutions. Many of the institutions were agreed in principle many years ago, and there has been a delay in establishing them until the matter of sites was concluded. My hon. Friend will agree, for example, to take but one illustration, that the advantage of establishing Europol, if it is successful in dealing with drugs and crime money, is expenditure that, for all the people of Europe, will be seen as well worth while.

    Mr. Tony Benn (Chesterfield): Is the Prime Minister aware that there will be great disappointment that he has rejected the proposals which my hon. Friend the Member for Foyle (Mr. Hume) has been discussing? Given that Mandela was convicted of terrorism and has just won a Nobel prize, that Arafat was once refused permission to enter America and has now entered into meaningful discussions with the Israeli Government, and that David Owen is in Yugoslavia talking with men associated with violence, is it not time to look at the proposal put forward by the Irish Government 25 years ago, that the United Nations might send a mediator who would be able to talk to everybody in Ireland? The Prime Minister’s refusal to have talks with everybody is now an obstacle to a peaceful settlement.

    The Prime Minister: The right hon. Gentleman’s implication is that he would talk to men engaged in violence. That is not a position that I or the leaders of any of the constitutional parties in Northern Ireland hold. It may be the right hon. Gentleman’s view, but in a democracy such as the United Kingdom, that is not the way to proceed. The right hon. Gentleman speaks almost for himself

    Mr. Dennis Skinner (Bolsover): No.

    The Prime Minister: Well, for himself and perhaps the hon. Member for Bolsover (Mr. Skinner)–not together a weighty crowd. I respect and admire the efforts of the hon. Member for Foyle–I mean that; I am not saying it as a matter of form but it is my view and that of the Irish Prime Minister that we cannot proceed with those proposals.

    Sir Peter Hordern (Horsham): As to the European Commission’s White Paper on growth and unemployment, will my right hon. Friend confirm that the Government’s opinion is that economic growth cannot be obtained by increasing public spending, still less by raising taxes? Will he further confirm that the best way to achieve economic growth is to cut European bureaucracy and arrive at a successful conclusion of the Uruguay round? Will my right hon. Friend say what success Mr. Delors and the Commission are having with the French on the latter matter?

    The Prime Minister: There was complete agreement at the Council that we need a satisfactory settlement of the Uruguay round by 15 December. There was no suggestion by any participating state that that was not a desirable goal. I hope that progress is being made in dealing with the particular difficulties of agriculture in France. There are difficulties in concluding the Uruguay round with other countries beyond the European Community.

    My right hon. Friend’s points about economic development are entirely mine, and I would not wish to add to them. He makes the point that it is supply side changes that will lead to further growth and more jobs in Europe, not an excess of centrally funded expenditure.

    Dr. Joe Hendron (Belfast, West): I join all other hon. Members in condemning the massacre in Greysteel, and the UFF/UDA. I hope and pray that the young policeman shot by the Provisional IRA in Newry makes a speedy recovery.

    Is the Prime Minister aware that, as long as murderers are stalking the streets of Northern Ireland, especially in west and north Belfast, people are living in terrible fear? It ill behoves anyone to criticise those who are trying to end murder. I do not wish to make political points about articles 2 and 3 or Select Committees; I am asking the House how we can end murder and slaughter on our streets. Of the 23 people murdered in the past eight days, 12 have come from the edge of west Belfast, the Shankhill road, or from the centre of my constituency, Kennedy way.

    My friend and colleague the hon. Member for Foyle has made courageous efforts to try to end the violence and the existence of one of the killing machines. Bearing that in mind, will the Prime Minister use his close relationship with the Official Unionist party to persuade its Members of Parliament and colleagues in local government to speak directly to the UFF, the UDA and the Democratic Unionist party, to try to persuade them to end their terrible campaign of violence?

    The Prime Minister: I have to say that I doubt whether the constitutional politicians of Northern Ireland have any authority over these murdering butchers. That is undoubtedly the case, whether those murdering butchers are members of the UFF or the IRA. We are dealing with people who are beyond the pale of civilised behaviour, and it does not lie within the remit of any hon. Member to be able to talk them out of their behaviour. I wish it were the case that hon. Members could, but events of recent years have shown that they cannot.

    The hon. Gentleman may have implied that I was critical of his hon. Friend the Member for Foyle. As I said earlier, I am not, and I am happy to reiterate that. The fact that I have chosen, for the reasons that I have set out, to say that we cannot take his hon. Friend’s proposals further in their present form does not imply a criticism of his hon. Friend’s activities or his courage in recent years. I happily make that point plain again.

    How are we to deal, asks the hon. Gentleman, with the fear that exists on the streets of west Belfast and elsewhere? The answer is to continue to give the fullest possible support to the security forces and the Royal Ulster Constabulary. Against the sombre background of the murders committed in the past few days, we should not lose sight of the many achievements of the security forces in recent months. This year, some 50 people have been charged with murder or attempted murder, 3,600 kg of explosives have been recovered–more than twice as much as in the comparable period in the previous year–and 164 firearms and 42 rockets and mortar launchers have also been recovered. Many attempted attacks have also been prevented. Three such attempts have been intercepted in the past three weeks, and six people have been charged as a result.

    The security forces are always in the light of public criticism when events of the type that we have seen in recent days occur, but we should also recall their many successes, not all of which can be made public.

    Sir Michael Grylls (Surrey, North-West): Does my right hon. Friend accept that most people in the country would recognise that he took exactly the right line at the European summit when he insisted on dealing with practical issues such as competitiveness rather than airy-fairy dreams for the next century? In that respect, would my right hon. Friend also agree that, since Britain and America have been far more successful in creating new jobs in recent years than continental Europe, he should continue to use his influence to press the other EC countries to lighten the burden on business–for example, by removing red tape, as he said earlier? That burden should be lifted particularly from small and medium-sized firms, because they will create the new jobs that we all want to see in Europe.

    The Prime Minister: My hon. Friend is quite right. That is why we took the initiative to help small and medium-sized companies with extra resources from the European investment fund. It is a fact that, if the Community had been as successful in the past 14 years in creating jobs as other countries in the OECD have been, we might have 9 million fewer unemployed in the Community.

    It is also the case that, in the past 20 years, the Community’s relative share of world trade has reduced. Part of that reduction was entirely to be expected as countries in the Pacific basin in particular began to industrialise, but the loss in the share of world trade implies a significant lack of relative competitiveness. That is a problem that we need to address.

    It is a striking statistic–one that I have used before, but it is worth repeating again–that, given the same growth in the past 20 years, the United States has created four jobs for every single job created throughout the European Community.

    Mr. Dennis Canavan (Falkirk, West): Would the Prime Minister remind supporters of internment that its reintroduction would almost certainly be counter-productive, because the last time it was tried, it turned out to be an effective recruiting sergeant for the paramilitaries, and the violence went from bad to worse?

    Does the Prime Minister agree that the best way in which to proceed in the quest for peace would be to invite all the interested parties to a constitutional conference and to make it absolutely clear, right at the outset, that, if a party or parties boycotted those talks, they would nevertheless proceed, with a view to finding a just and peaceful solution to end the appalling bloodshed?

    The Prime Minister: I set out my views on internment a few moments ago, and I have nothing to add. There are many lessons to be learned from experiences on previous occasions. Simply to call a constitutional conference with great hopes built up for it and then to see it fail may not be the most practical way forward. What is right, which is implicit in the hon. Gentleman’s question, is that we should continue discussions to find the maximum amount of agreement that exists between the constitutional parties, and then focus on the areas of disagreement and see how we can eliminate them. That is the intention of the talks that are proceeding, whether one calls them an intergovernmental conference or a constitutional conference. What is sought from them is what the hon. Gentleman was seeking with his proposal.

    Mr. Andrew Hunter (Basingstoke): Continuing with the question of Northern Ireland, does my right hon. Friend agree that constitutional uncertainty has been and remains a breeding ground for terrorism in Northern Ireland ? Does he further agree that Northern Ireland, de facto and de jure, is part of the United Kingdom because that is the democratically expressed wish of the people of Northern Ireland; and that, important though the search is for a political formula, it is equally important to assure the people of Northern Ireland and of Great Britain who has experienced terrorist outrage that the security response is commensurate with the increased threat of terrorism?

    The Prime Minister: We must certainly ensure that the security response is commensurate with the increase in terrorism, and we remain in close touch with the General Officer Commanding British forces and, of course, with the leaders of the Royal Ulster Constabulary. As chairman of the Back-Bench committee on Northern Ireland, my hon. Friend speaks with considerable authority of the difficulties that he sees in Northern Ireland. I confirm his observation that Northern Ireland is a part of the United Kingdom and that, under the constitutional guarantee, it will remain so until and unless a contrary view is taken by the people of Northern Ireland.

    Mr. Jim Marshall (Leicester, South): May I bring the Prime Minister back to the question of Northern Ireland and hope that I get an answer from him today? In answer to one question, the Prime Minister said that he still favours a three-strand approach. Does he accept the position that was adopted by predecessor some time ago–that there can be no agreement on any especial strand until there is agreement on all three?

    The Prime Minister: The answer to that question is yes.

    Mr. Patrick Nicholls (Teignbridge): Would my right hon. Friend agree that, if the Government of the Republic of Ireland are as committed to war against the IRA as Her Majesty’s Government, that offers an opportunity for the IRA and Sinn Fein to be proscribed in both countries, so that a proper military offensive can be conducted against them? Would not that mean that there would be no hiding place at all for them on the island of Ireland, and that, although it maybe a rather sombre assessment, it is likely to be more realistic than the courageous efforts by the hon. Member for Foyle, which would require us to sit at a bargaining table with terrorists?

    The Prime Minister: We remain in close consultation with the security forces in the Republic of Ireland, and that will continue. It is improving all the time, and I expect it to continue to improve; I would not wish to go further than that on this occasion.

    Ms Kate Hoey (Vauxhall): I welcome the Prime Minister’s call for constitutional parties in Northern Ireland to get round the table as quickly as possible. Does he agree that there is a huge democratic deficit in how we govern Northern Ireland at present, and that, while it is part of the United Kingdom, we should surely treat it in the same way as we treat other parts of the United Kingdom? Some hon. Members greatly support the setting up of a Select Committee on Northern Ireland. Did he discuss that with the Taoiseach? Did he have any views and if he did, what was the Prime Minister’s response to his views?

    The Prime Minister: I agree with a great deal of what the hon. Lady has said. I did not discuss the setting up of a Select Committee of this House with the Head of Government of the Republic of Ireland. That is a matter for the House. I certainly did not discuss it. It is a matter to be considered by the Procedure Committee. I understand that the Committee is examining it, and in due course, we shall consider any report that it may produce.

    The hon. Lady is entirely right about a democratic deficit in Northern Ireland ; there is a democratic deficit. It is precisely because we strongly share her views on that that we wish to make progress in the talks so that we can devolve a proper system of local government–an enhancement of democracy for local politicians in Northern Ireland.

    Mr. Peter Bottomley (Eltham): Does my right hon. Friend agree that the murderers need to be limited in their physical capability? It needs to be made clear to those on both sides that the violence and the killing will bring no advantage to them. It is important to go on working so that their supporters put pressure on them to reduce their capability. May I sum up by saying that each part of the community must protect the other just as much as it tries to protect itself? Is not that a welcome small silver lining in the ghastly cloud hanging over Northern Ireland?

    The Prime Minister: It is. One of the horrific ironies of the murders in Greysteel the other day is that members of both the Protestant and Roman Catholic communities were murdered in the attack. My hon. Friend is entirely right about that.

    On my hon. Friend’s first point, I can give a categorical assurance that there is no way in which the continued murdering and killing by anyone, whether from the Protestant side or from the Catholic side, will affect the Government’s policies and it will not gain anyone anything in terms of democratic advantage.

    Mr. Skinner: Is not the Prime Minister aware that when he speaks to my right hon. Friend the Member for Chesterfield (Mr. Benn) about dealing with terrorists, the people outside Parliament understand only too well that the Government have dealt with terrorists over the decades? They are dealing now with the Chinese Government who were responsible for the massacre in Tiananmen square only a few years ago.

    Will the Prime Minister understand that, if we are to follow the success of the Arafat-Rabin talks, we must have talks not in the Irish Republic or in Britain, but in a neutral country? The way to get things off the ground is not to deal with the Conservative Government, who are in league with the Ulster Unionists who deliver them votes in the House of Commons, or with those in the Irish Republic, but to start the process in a neutral country. Such a policy resulted in success in the middle east, and that is the only way in which success can be achieved now.

    The Prime Minister: As ever, the hon. Gentleman is very lucid, and as almost ever, he is entirely wrong. If the implication of his remarks is that we should sit down and talk with Mr. Adams and the Provisional IRA, I can say only that that would turn my stomach and those of most hon. Members; we will not do it. If and when there is a total ending of violence, and if and when that ending of violence is established for a significant time, we shall talk to all the constitutional parties that have people elected in their names. I will not talk to people who murder indiscriminately.

    Mr. David Faber (Westbury): In the course of his discussions on Bosnia, was my right hon. Friend able to bring to the attention of his European counterparts the remarks last week of the senior British officer in Bosnia, Brigadier Angus Ramsay, who described Croat soldiers as “scum”? Given the appalling atrocities that continue to be carried out by regular Croat army troops in Bosnia, was my right hon. Friend able to make any progress towards the long overdue sanctions against Croatia?

    The Prime Minister: The question of further sanctions anywhere in the former Yugoslavia did not come up in the discussions. It did not come up in the discussions between the Heads of Government. To the best of my knowledge–unless I am corrected by my right hon. Friend the Foreign Secretary–the question did not come up in the parallel discussions at Foreign Minister level.

    Mr. John Home Robertson (East Lothian): Everyone in Britain and in the island of Ireland desperately wants progress towards peace and a settlement in Northern Ireland. Is the Prime Minister aware that people find it difficult to understand why someone holding the office of Prime Minister in Britain is nit-picking about the proposals by my hon. Friend the Member for Foyle, which he apparently has not even seen yet? Can the right hon. Gentleman give an assurance that he will not allow his dependence on Ulster Unionist votes in the House to obstruct progress?

    The Prime Minister: I would have thought that, even by the standards of the hon. Gentleman, that was rather cheap. Let me remind him that the position that I took on the initiative of the hon. Member for Foyle was taken also by the Taoiseach, who is not a Member of the House and is not dependent on the votes of any Member of the House. As I said earlier, there are no special agreements or deals with any other parties in the House. That has been stated by me and by others. The hon. Gentleman may smirk like a juvenile, but he falls well below the level of events with that sort of remark.

    Mr. Ian Taylor (Esher): Does my right hon. Friend agree that we do not need to be defensive about the creation of the European union as of today, because it underlines the fact that the progress in the Europe of tomorrow will be on an intergovernmental basis and not just on a better defined set of Community institutions?

    Will my right hon. Friend put maximum emphasis also on the workings of the European Monetary Institute? Even if this country does not want to be part of a single currency, it is vital that we encourage the convergence criteria within the European Community so that we can benefit from the stability that will emerge. It is vital also that we underline the importance of the single market, because if that were ever questioned, through currency instability, jobs in this country would be at threat.

    The Prime Minister: My hon. Friend is entirely right. Co-operation by consensus, by universal agreement across the Community, is a sensible way of progressing whenever it is appropriate. That is what happens under the three-pillared approach that was agreed in the Maastricht treaty. It is not a question of compulsion; it is a question of agreement. Where that agreement can be reached, we are stronger collectively and individually.

    As far as the convergence criteria are concerned, they occasionally raise the hackles of some hon. Members, but the reality is that the convergence criteria are precisely the sort of sound economic policies that some of those who oppose them under the European label urge on me in other circumstances. The reality is that they are nothing more or nothing less than sound economic management.

    Several hon. Members rose–

    Madam Speaker: Order. We must now move on.

  • PMQT – 26 October 1993

    Below is the text of Prime Minister’s Question Time from 26th October 1993.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Meale : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Mr. Meale : In relation to the Bilsthorpe colliery disaster, in the light of new photographic evidence which refutes the report of the health and safety inspectorate into that disaster, will the Prime Minister now agree to a full public inquiry, as soon as possible, that is open to the public so that we can get over the whole of this nonsense which shows the difficulties that are hitting the coalfield communities of Britain?

    Mr. Major : I have not seen the photographic evidence to which the hon. Gentleman refers. I will certainly look at that photographic evidence and examine it. I believe that there has been a substantial inquiry. None the less, I will examine it and be in touch with the hon. Gentleman.

    Mr. Butcher : Does my right hon. Friend agree that one of the major impediments to reducing unemployment across Europe is high wage costs–not to be confused with high wages? We must continually draw a distinction between the high cost of employment loaded on top of paying high wages. Will he continue his efforts diplomatically within Europe to ensure that we in Britain win the argument that there is no contradiction between paying people high wages and seeking to reduce the costs of employing people generally?

    Mr. Major : I agree with my hon. Friend about that. I believe that that view is increasingly being taken by Governments and by employers right the way across western Europe and elsewhere. There is no doubt that the higher the sum total of costs, the larger the resultant level of unemployment will be both in Europe and elsewhere. At present, there are 18 million citizens unemployed across Europe. Estimates are that in Europe as a whole that may be 20 million in a year or so. We all need to look to see how we can get those costs down and people back in work.

    Mr. John Smith : I am sure that the Prime Minister is well aware of the revulsion and outrage felt throughout the whole of the nation when it learned of the appalling tragedy of Saturday’s bombing in Belfast. The violent and horrific aftermath, which has cost even more lives today, can only deepen and reinforce those feelings. Is it not absolutely clear that the response that the House of Commons must give to those who seek to impose their will by the bomb or the bullet is that they will not succeed in undermining this nation’s total commitment to the democratic process?

    Mr. Major : I am grateful to the Leader of the Opposition for making that clear. The whole House will agree with him in those sentiments, as I do without reservation. The perpetrators of sectarian violence have committed cold-blooded and premeditated murder. Let me say to the House that they will be hunted down and they will be subject to the full severity of the law. That applies equally to those responsible for the outrage in the Shankill road and to those responsible for the murders in west Belfast just a few hours ago. Such murders will have one effect and one effect only : they will deepen the bloodshed through revenge killings, and there will be more deaths, more misery and more years before Northern Ireland can return to the peaceful democratic future that everyone in the House wishes to see it have.

     

    Q2. Mr. Bellingham : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Mr. Bellingham : Is the Prime Minister aware that many Conservative Members were extremely pleased that he raised the question of the general agreement on tariffs and trade during the recent Cyprus summit? Will he find time today to contact the French members of the European Commission and tell them to spend less time worrying about creating a federal Europe and more time trying to persuade their Government to sign up to GATT?

    The Prime Minister : We had a substantial discussion on the Uruguay round at the Heads of Government meeting in Cyprus over the past few days. What was striking about it was that with some 50 countries there–some large and some small, some agricultural and some industrial–from every part of the globe, there was total unanimity on the desirability of agreement in the trade talks, and agreement by 15 December this year. We agreed at the summit to dispatch a small mission of Ministers from countries in different parts of the Commonwealth to call in on a number of capitals and make it clear how important we consider the trade talks to be.

    Mr. Ashdown : The Prime Minister will know that he has the backing of those in all parts of the House in his call for restraint to break the vicious cycle of tragedy and violence in Northern Ireland. He is right in saying that no British Government should ever be prepared to speak to those who will not abandon the bullet and the bomb. But does not effective action against terrorism also depend on the proper co-ordination of intelligence? Does the Prime Minister recognise that confusion between intelligence gatherers in Northern Ireland, and the fact that there are two lead agencies, on the mainland and in Northern Ireland, may lead–as it has in the past–to rivalry and squabbling, which undermine the battle against terrorism? Will the Prime Minister address that matter?

    The Prime Minister : We keep our counter-terrorist arrangements under very close review. The Security Service now devotes around 40 per cent. of its total effort specifically to countering Irish terrorism. There have been considerable successes, although it is in the nature of these matters that the successes are not often public, whereas the failures are all too public.

    I have looked at the question again in recent months, and I must say to the right hon. Gentleman that I am not persuaded that the creation of a new single national authority would of itself enhance the fight against terrorism. There is, I think, a danger that it would add yet another link in the chain of command. But I assure the right hon. Gentleman that I consider the effectiveness of our counter-intelligence to be vital and keep it constantly under review.

     

    Q3. Mr. French : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Mr. French : Does my right hon. Friend agree that police officers should not be hampered in their fight against crime by the burden of excessive bureaucracy and paperwork? Will he join me in congratulating the Home Secretary on his announcement that the amount of form filling will be seriously cut?

    The Prime Minister : I can agree not only with my hon. Friend and my right hon. and learned Friend the Home Secretary, but with the recommendations of the Sheehy report in this respect. Like all right hon. and hon. Members, I want to see police officers fighting crime on the streets, not dealing with paperwork in their offices. My right hon. and learned Friend the Home Secretary last week accepted proposals which, once fully implemented, will cut paperwork in half. They will also put something like 2,300 policemen back on the streets, where all of us wish to see them.

    Mr. Donohoe : Will the Prime Minister explain why the Government are this week to announce the winding up of the development corporation in my constituency, at a cost of £16.5 million, given that we have had announcements of some 700 job losses at Jetstream in Prestwick this month and of some 320 job losses in my constituency today? What logic is there behind the Government’s decision?

    The Prime Minister : The hon. Gentleman will know that, uniquely in western Europe at the moment, we are now in a position where unemployment has stabilised and is gently beginning to fall. In case the hon. Gentleman has not noticed, unemployment has fallen in six of the last eight months, by a total of 84,000. It is falling against a trend of rising unemployment elsewhere across the European Community and it is now below the European average, despite the predictions of some Opposition Members some months ago. The hon. Gentleman might have addressed the reality of what is happening for once.

     

    Fishing Industry

    Q4. Mr. Steen : To ask the Prime Minister if he will make an official visit to Brixham, south Devon, to discuss the future of the fishing and shellfish industry.

    The Prime Minister : I have no immediate plans to do so. However, my hon. Friend the Minister of State, Ministry of Agriculture, Fisheries and Food has made widespread visits to ports, including Brixham, to consult fishermen.

    Mr. Steen : The people of Brixham are well aware of the Government’s commitment to the west country, what with assisted area status for Torbay and an application to the European fund for 5b status for Brixham. But when my right hon. Friend the Prime Minister comes to Brixham, will he meet fishermen and assure them that he will not be pushed around by the Portuguese or Spanish, who want to seize our fishing stock and want more fish from our sovereign waters? Will he tell fishermen that he will not introduce a conservation measure until other European countries have similar conservation measures and until their policing of them is as good as ours? Finally, will he take a cup of tea at the Melville hotel so that he hear from Brixham’s hoteliers that if he reduced rules and regulations on the hotel industry it would do more for tourism than anything else?

    The Prime Minister : I will look forward not only to a cup of tea but, I suspect, something stronger by the time we have dealt with that agenda. I recognise the industry’s concern about access for Spanish and Portuguese vessels. The Commission’s proposals for rules from 1996 have now been announced, and we have made it clear that they must not lead to an increase in fishing effort. I attach great importance to strict observance of Community rules, including quotas. We therefore welcome the control regulations, which will help to ensure consistent enforcement. One of the areas of the Maastricht treaty perhaps not generally recognised by everyone is that it now gives greater power to ensure that everyone across the Community obeys Community regulations and can face substantial fines if they do not do so. [Interruption.] Hon. Members below the Gangway may scoff. They simply prove, as I have always suspected, that they have never read or understood the Maastricht treaty.

    Madam Speaker : I now call Mr. Jim Marshall : it is a closed question.

    Mr. Jim Marshall : Does the Prime Minister recall the speech that the right hon. Member for City of London and Westminster, South (Mr. Brooke) made on 9 November 1990, in which he said that the British Government have no selfish strategic or economic interest in Northern Ireland

    Madam Speaker : Order. I indicated to the hon. Gentleman that it is a closed question. It deals with Brixham, south Devon and the fishing industry. We must move on to Mr. David Sumberg.

     

    Engagements

    Q5. Mr. Sumberg : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Mr. Sumberg : Is my right hon. Friend aware of a proposal by the Department of Transport to build a new six-lane motorway adjacent to the existing eight-lane M62, which cuts through my constituency? This proposal would involve the demolition of more than 350 homes. It is creating widespread housing and planning blight and is regarded by me and the whole community as an environmental disaster. Will my right hon. Friend tell the Department of Transport to withdraw the proposals forthwith?

    The Prime Minister : I understand the concerns expressed by my hon. Friend and I know how vigorous he has been in expressing them on behalf of his constituents. I can undertake that the Department of Transport will take into account the views that have been expressed to me by my hon. Friend, and those of his constituents.

     

    Q7. Sir John Hannam : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Sir John Hannam : Given my right hon. Friend’s support and commitment to the people of the south-west, can he give any encouragement to our wish to see a slowing down in the programme of implementation of EC water directives and a lowering of future water charges for the hard- pressed people of Devon and Cornwall?

    The Prime Minister : As I think my hon. Friend knows, we are seeing what scope there is to apply the directives more flexibly and to minimise the cost that would otherwise fall on the water user in the south-west. We are therefore inviting our Community partners to re-examine priorities in the detailed implementation of the urban waste water treatment directive and also to consider whether the timetable for meeting the obligations is consistent with the current economic conditions in the Community. There is no quick or simple answer to this matter, but I can assure my hon. Friend that we are continuing to explore all avenues to try to minimise the costs that would otherwise arise.

     

    Q8. Mr. Boyce : To ask the Prime Minister if he will list his official engagements for Tuesday 26 October.

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

    Mr. Boyce : The Prime Minister talks about a recovery being under way, led by this country. How can he tell us that we must face reality when, in reality, jobs are haemorrhaging in our constituencies every day? The Prime Minister is aware that a steel works is to close in my constituency, with the loss of 260 jobs carried out by the most flexible operatives in the country, if not the world. What words of comfort has the Prime Minister for those people who have been thrown on the scrap heap?

    The Prime Minister : The hon. Gentleman needs to understand that unemployment is falling in this country, whereas it is not falling in other countries. Unemployment fell last month among both men and women in every region and in every part of the country. That month’s decrease confirms the underlying strength of the economy. As the hon. Gentleman perhaps does not know, long-term unemployment has fallen over the last six months ; long- term unemployment over longer periods has fallen ; vacancies have risen ; and the work force in employment have also risen. There is still a long way to go to get unemployment at the levels we would wish to see, but those Opposition Members who were keen to forecast 3.5 million unemployment just a few months ago had better stand up and admit now that it is under 3 million and falling.

  • Mr Major’s Article on the European Union – 25 September 1993

    Below is the text of Mr Major’s article on the European Union, published by The Economist on 25 September 1993.


    PRIME MINISTER:

    In the past year there has been a sense of malaise within Europe. The recession has played a large part in this. So has the debate in many countries about the Maastricht Treaty. So has Bosnia. But I believe the causes go deeper. The European Community has become ill at ease with itself and, for the time being, uncertain about its future course.

    A powerful view–still dangerously fashionable among some continental politicians–is that the fault of Maastricht lay in not going far enough; that economic problems require corporatist solutions that the free market cannot supply; that instability, East and West, requires faster progress towards integration; and that full federation is the grand vision of the future around which public opinion can unite.

    I believe profoundly that this view is wrong. It does not carry the hearts and minds of the electorates of Europe. They believe that decision-making in the Community must be brought closer to the people, not taken further away. Unless the Community is seen to be tackling the problems which affect them now, rather than arguing over abstract concepts, it will lose its credibility. Last year the Maastricht process nearly divided the Community. We cannot run that risk again.

    The debate over Europe has too often been conducted in extremes. Inevitably, those who take an extreme position for or against Europe do not discuss how best to improve the Community. For them it is too bad or too good to be properly considered–to some an article of faith, to others anathema. Yet the Community is no more than an instrument for improving the security and prosperity of European citizens. When it fails to measure up to that task, it lacks purpose.

    So I believe it is time to look afresh at the Community and consider the way ahead. Time to put away the old slogans, dreams and prejudices. All over Europe, what are people worrying about? Not to reduce the number of currencies, but to increase the number of jobs.

    We should focus first on the objectives of Europe, before debating its institutions. The concept of the Community has commanded support from right and left, right across Europe. The objectives of peace, stability, growth, prosperity and employment are shared by sceptics and enthusiasts alike.

    But from there on paths diverge. I do not want to caricature a debate full of subtle shades of opinion. But the prevalent view within the Community has been that unless the Community continued to march forward to ever tighter political and economic integration, ever greater uniformity, then its existing achievements would be eroded. The demons of nationalism would reassert themselves. Europe’s ability to compete with the United States, Japan and the Pacific rim would be undermined. The very future of the enterprise would be in jeopardy. Clinging to a false transatlantic analogy, they wanted to create a “United States of Europe”.

    There are, of course, some in Britain too who hold that view. There are, however, many more, myself among them, who do not; and not only in Britain. I believe it is that centralising vision that alarms so many voters in the applicant countries of Norway, Sweden, Finland and Austria. If their governments were to negotiate entry into the Community and then their electorates were to reject it, that would gravely damage the credibility of the Community and wreck–for a time–the development of a wider Europe.

    Community leaders should recognise that danger, and work to avoid it; not imply–as they sometimes do–that these EFTA (European Free Trade Area) countries are lucky to be able to apply. The Community is not Europe. A true European Community needs the EFTA countries and others.

    For the vast majority in Britain, the Community is still the best means of advancing Britain’s interests, political and commercial. After 20 years of membership, the overall balance sheet is positive. The disadvantages have been outweighed by the benefits: political stability throughout the Community and an economic prosperity in which we have shared.

    Successive Conservative governments have therefore supported the European Community as a way of securing peace, ensuring stability and increasing our standard of living. But we have opposed the centralising idea. We take some convincing on any proposal from Brussels. For us, the nation state is here to stay.

    Some differences in the Community are stark and simple. We counted the financial cost of our membership. Others counted their financial gain. We subjected each proposal to the scrutiny of Parliament. They relaxed in the sure knowledge that their public opinion uncritically endorsed the European idea. Hang the detail. Never mind the concession of power to Brussels.

    Maastricht changed all that. For the first time, the sort of questions that Britain had been asking were asked in other Community countries as well. The Danes wanted the safeguards for Denmark that I had secured for Britain. The German people did not want their government to sacrifice the D-mark. The French came within a whisker of saying “no” to the treaty their government had signed.

    Since then, the old complacency has taken a further jolt. Last autumn, when the pound left the ERM, I warned of the fault lines throughout the system. Some scoffed. The fault line was in British policy, they said. Not so. These policy fault lines lie across Europe; the ERM as a whole has foundered.

    I take no satisfaction in that. Exchange-rate stability is in the interests of business and thus of prosperity. But I am not prepared to sit down in Brussels in a few weeks’ time and pretend that Humpty Dumpty is whole and well. I care too much about the European Community to pursue sellotape policies–patching together the unmendable–or to play the politics of illusion–pretending that it was never broken. The good European does not cling to old nostrums, but seeks solutions to new problems.

    The most pressing item on the Community’s agenda is the GATT negotiations: the world’s last chance to complete the Uruguay round. Much now depends on the Community. The costs of failure would be very high. It is not only that we would pass up the benefits of a new, far-reaching and overdue trade agreement: lower prices, new markets for our exporters, a double boost to output and jobs. We stand to lose what we have now: international commitment to resist protectionist pressures. Only our joint interest in success in the Geneva negotiations on GATT has kept Europe and America back from trade war. Breakdown in those talks would threaten a repeat of the protectionism and isolationism of the 1930s when production fell by a fifth, investment by a half.

    Failure would lead to an immediate crisis within the European Community, and in its relations with the United States, countries of the Cairns Group and the whole developing world. It would fly in the face of Europe’s liberal economic principles; its commitment to free trade. It would confound the instinct for prosperity which drove us to break down national trade barriers and create our own single European market.

    The need for a new agenda

    In these circumstances, we cannot assemble for a special European Summit in October on the same, old, stale agenda. I hope my fellow heads of government will resist the temptation to recite the mantra of full economic and monetary union as if nothing had changed. If they do recite it, it will have all the quaintness of a rain dance and about the same potency.

    The troubles in the ERM are just a foretaste of the difficulties in moving to a full monetary union. There can be no question of Britain going back into the exchange-rate mechanism in the foreseeable future. And–while I always believed Europe’s ambition for monetary union later this decade was unrealistic–by now the folly of the artificial timetable has become glaringly apparent to many across Europe. The plain fact is that economic and monetary union is not realisable in present circumstances and therefore not relevant to our economic difficulties.

    So let us have a very serious debate based, not on wishful thinking, but on the real situation in Europe and the world. Let us look at workable ways of promoting economic convergence. Let us, above all, concentrate on people’s real economic concern– Europe’s shortage of jobs. To do that, we must address the decline in our competitive position.

    In June, I urged this on my colleagues at the European Summit at Copenhagen. The facts spoke plainly. Long-term unemployment is higher in the European Community than in either Japan or the United States. There is now increasing agreement that these problems stem from the inflexibility of European labour markets, from the tangle of regulations, from wasteful systems of welfare, from the burden of too high taxation, which Europeans have imposed upon themselves in the last 40 years.

    European labour costs rose by 4% a year during the 1980s, while barely changing amongst our major competitors. Europe spends proportionately nearly twice as much as the Japanese on public social security and health care, and over 60% more than the Americans. The problem will be compounded as the proportion of old people in our population increases. Unless we take action to contain costs, Europe’s taxpayers will be paying 30% more for social security and health–in real terms–by 2020. Unless we act to deregulate our economies, there will be too few earners in Europe to pay those tax bills.

    There has been increasing recognition from my colleagues since the Copenhagen European Summit that this analysis is correct. The Community must take practical decisions: to complete the single market for goods and services and make it work; to review and repeal many of the burdens on business and industry; to play our part in the conclusion of crucial world trade negotiations.

    A wider Europe

    Some critics may say that this is a typically British agenda: climbing the foothills when we should be scaling the peaks. This criticism is puerile. It ignores the arguments. The Europe I believe in extends far beyond today’s Community.

    The vision of the founders of the Community was a fine one. What we have seen in the last two years is not so much a swing against Europe as a demand for a different kind of Europe. The structures and strategies envisaged in the Treaty of Rome are the product of Europe in the 1950s. It is natural they should be clung to by a generation of European politicians whose views were moulded in the 1950s and 1960s. But the new mood in Europe demands a new approach.

    The new mood reflects new realities. The Treaty of Rome was designed for the countries of Western Europe; to enable them to compete with each other, not fight against each other. It was designed to help them stand up to that illusory economic might of the Soviet empire; to complement Western Europe’s defences against the real fear of nuclear war.

    The challenge to this generation of European leaders is to build a Community for the whole of Europe. That is a bigger vision. They must address three questions. How should the West Europeans organise their security? How should the Community extend its embrace to the EFTA countries and to Eastern Europe? And what do these questions imply for the Community and its institutions?

    During the Cold War, defence was costly but relatively simple. We knew what the threat was and where it came from. We could measure its military strength, and see what we had to do to meet it.

    Today the threats to our security are harder to define. But they are no less real for that. There is instability inside Europe and beyond. Some countries are collapsing into chaos, remain under the rule of dictators, or are pushing to acquire weapons of mass destruction. The North Atlantic alliance will remain our only effective instrument against the remote contingency of a direct attack against us. It will remain the only credible vehicle for a tangible American commitment to the security of our continent.

    But the alliance will have to adapt. It is already devising more flexible structures, developing its relationships with its former opponents from the Warsaw Pact. The West Europeans will take on greater responsibility for the European pillar of the alliance. There is a heavy agenda for the NATO summit this winter.

    In the 1970s Greece, Portugal and Spain turned to the European Community as the only firm anchor for their newly-founded democratic systems. Europe has been stronger and more authentic as a result. We have an equal duty towards the new democracies of Central and Eastern Europe. Not even the most advanced of them, of course, is yet ready for membership. Before they can sustain its obligations they must complete an economic as well as political revolution. But we can–and must–get ahead with dismantling the barriers to their exports. In the short term that will cause us difficulty. But freedom to trade is essential to the success of economic reform; and will in turn create opportunities for our own investors and exporters.

    The present Community is but a fragment of Europe. If we fail to bring the democratic countries of Eastern and Central Europe into our Community, we risk re-creating division in Europe–between the haves and the have-nots. Through Community membership we can consolidate democracy and prosperity across our continent. Without it, we risk turmoil among our neighbours in Eastern and Central Europe and endanger our own long-term prosperity and stability.

    This is an historic agenda. And it is for Europe’s leaders, not its bureaucrats. The heads of government should give a stronger lead through the European Council. They should set the priorities, as they did at Copenhagen. The commission should then get on with implementing that agenda. No decision should be taken in Brussels which can better be taken at national or local level: that is the principle of subsidiarity, endorsed by all, which we need to develop.

    I believe that this would reduce the scope for friction between the commission president and member governments. The president of the commission could play a more, rather than less, important role on behalf of the Community if he were seen to be operating more clearly within a framework laid down and supported by the elected heads of government.

    The role of the other commissioners should also change. They are people of high seniority and ability. But there are already 17 of them. This is too many, if we are to find space around the commission table for new EC members.

    We must ensure that Europe has the flexibility to tackle new problems–which means acting in different ways. The Community institutions do not have a monopoly on European co-operation. For example, we should provide the impetus, through the inter-governmental provisions of the Maastricht Treaty, for more effective common mechanisms to frustrate the criminals who are no respecters of borders: drug traffickers and financial swindlers.

    People are moving more freely, with fewer formalities, around Europe than ever before. However, partly because of changes outside the Community, partly because of the Community’s expansion, Europe faces migratory pressures which were not even envisaged a few years ago. We have to find an orderly way of dealing with them, and of managing our frontiers. And we have to find answers that respect national identities and concerns.

    A Europe of nation states

    The Treaty of Rome called for union among the peoples of Europe. After a phase in which “Europe” was too narrowly defined, and the peoples were taken too much for granted, we now have the opportunity to move back towards this founding principle.

    Britain successfully used the Maastricht negotiations to reassert the authority of national governments. It is clear now that the Community will remain a union of sovereign national states. That is what its peoples want: to take decisions through their own Parliaments. That protects the way of life, the cultural differences, the national traditions which the French and Germans, the Greeks and the Danes, hold as dear as the British. If anyone still thinks the Commission’s first Maastricht blueprint was the way to go, they will have learnt nothing from experience. And they are closing their minds to the future.

    It is for nations to build Europe, not for Europe to attempt to supercede nations. I want to see the Community become a wide union, embracing the whole of democratic Europe, in a single market and with common security arrangements firmly linked to NATO. I want to see a competitive and confident Europe, generating jobs for its citizens and choice for its consumers. A Community which ceases to nibble at national freedoms, and so commands the enthusiasm of its member nations.

    Such a Community would be a more genuine and lasting European union than anything we have now. It offers peace. It promotes security. It widens free trade. It preserves and enhances infant democracies. It marches with the instincts of free people in free nations. It is an ambition for the new century that dwarfs the dreams of the founders of the Community. The Treaty of Rome is not a creed. It is an instrument. We must tune it to the times.

  • Mr Major’s Speech in Kuala Lumpur – 21 September 1993

    Below is the text of Mr Major’s speech made in Kuala Lumpur on Tuesday 21st September 1993.


    PRIME MINISTER:

    Prime Minister, Mrs Mahatir, Honourable Ministers, Ladies and Gentlemen.

    I think I speak for everyone this evening, Prime Minister, in thanking you for your hospitality here this evening, you are very kindly entertaining us this evening and it is an evening, I know, that many of us have looked forward to for a very long time. I do not propose to repay your kind hospitality by an over lengthy speech, but I will try to respond to some of the points you have made and make one or two other points that seem to me of importance in our bilateral relationship.

    You spoke a few moments ago in your remarks about the Uruguay Round about the vital importance of achieving a satisfactory settlement of the world trade talks. The United Kingdom have taken the view from the outset: that if we are to see the re-engendering of confidence in the world trade outlook there is no single event more likely to produce it than the widening of free trade and a satisfactory conclusion of the Uruguay Round.

    That is the position we have firmly and consistently maintained within the European Community and I know there have been some concerns over the difficulties between the United States and the European countries on the subject of agriculture. I think the meeting that concluded not all that many hours ago in Brussels has made it perfectly clear that the Blair House accords cannot be reopened, the Community negotiators are now going to return unfettered to continue their negotiations and I believe we remain on track for a satisfactory outcome to the Uruguay Round by 15 December this year.

    The prize of success in that round is very great but I think it has to be recognised by every participant in the round, from whatever part of the world that they come from, that the price of failure in that round would also potentially be very great indeed. It is in no-one’s interest to see that failure, no-one’s interest to see free trade begin to shrivel, no-one’s interest to see the dangers of protection and retaliation, all of which potentially could occur if we did not have a satisfactory outcome to the Uruguay Round. I can give you a total assurance about the position that the United Kingdom will adopt.

    Prime Minister, you also mentioned the very distressing problem of Bosnia, a problem I think that has touched the heart, I know, of Malaysia and has touched the heart of my country as well. I would say to you, Prime Minister, that I and my Cabinet feel as strongly about the wickedness and the intolerance that we see daily in Bosnia, and have for some time, as anyone else. We have taken over the last year or so a whole range of practical steps to assist that on many occasions have led, not just the West, but I think the whole world in the actions we have taken. We sent at a very early stage, before I think anyone else, a substantial number of British troops to Bosnia to make sure that the humanitarian aid was securely delivered. I think it is fair to say that if we had not taken that action a year or so ago there are many tens, perhaps hundreds of thousands of Bosnians alive today who would not have been alive but for the voluntary aid effort and the activities of the British troops there.

    We are seeking, by the convening of the London Conference, a satisfactory outcome that is not going to lead just to a short term cessation of fighting followed by a reignition of the conflict at a later stage, it is with the intention of avoiding the misery that would follow that outcome that we have been so determined to try and seek a satisfactory political settlement.

    We have looked repeatedly at what action can be taken bilaterally with the United Kingdom and Bosnia, multilaterally with our partners in the Community, and on a wider sphere through the United Nations and others, and I am delighted at the fact that Malaysia will also be sending a contingent to join us in the United Nations protection forces. I look forward to discussing this problem with you further in our discussions tomorrow.

    It seems to me this evening a long time since I first came to Malaysia. It was indeed in the early 1970s and I recall it very vividly. I remember visiting – though I can’t recall precisely where it was – a fish restaurant at a lakeside that had a remarkable marketing appeal; you ordered your fish, you sat there and they rowed out on the lake and they caught it. It had a strong marketing appeal for this reason: you ordered your fish, you then waited and you became very hungry; By the time the fish arrived, you really enjoyed it and after you had eaten it, by golly, you told everyone how good that meal was and I am unsurprised that that restaurant was packed out month after month after month.

    Later I came as Foreign Minister to the Commonwealth Heads of Government Meeting. Tonight, I come for the first time as Prime Minister for us to have some bilateral discussions here in Kuala Lumpur and I. think one thing unites those visits across now more than 20 years; it is always a pleasure to step off the plane in Kuala Lumpur, to land among friends both old and new and to be in a particularly lovely country but one thing changes, one thing is always different – from one visit to the next at a truly breathtaking speed Malaysia changes. It may be a truism to say that Malaysia is one of the most dynamic countries in the world’s fastest-growing region but the point about truisms is that they do tend to be true and this makes Malaysia an invariably exciting country to visit.

    You, Prime Minister, have presided over a remarkable process of modernisation since you took the reins in 1981, a process that has seen manufacturing rise to two-thirds of your export earnings. You are well on the way to the target you set in your approach to Malaysia’s future “Vision 2020” and I look forward to seeing myself tomorrow one of the jewels in your industrial crown, the one you mentioned, the Proton car plant. I of course know its products already and I believe that the company sells more of its models in Britain than to any other country anywhere in the world.

    Of course, as any visitors to the great manufacturing areas of my own country can bear witness, there is often a heavy price to be paid for industrial growth but I believe Malaysia has succeeded in modernising without losing her charm and in fact quite the reverse, you are now attracting more tourists than ever; thousands of Britons come here for pleasure as well as for business; I come, I am delighted to say, for both and many of them like Prince and Princess Michael of Kent will now be following your example by taking a ride on the Eastern and Oriental Express.

    So the flow is two ways and just as Norma and I and Richard Needham, who is with us this evening, are accompanied by a team of eminent businessmen whom you have kindly invited to join you this evening, so Malaysian businessmen are ever-present and ever-welcome in the United Kingdom and so too – for you also touched upon this point – are your younger generation. We are proud and delighted that so many thousands of Malaysians are choosing to further their education and training in the United Kingdom. It gives us a unique part, I believe, to play in the building of your future and it means, I hope, that in that famous year 2020 British politicians and British businessmen will find themselves surrounded by old and good friends just as we do this evening.

    I hope those young Malaysians and the British friends they are making will grow up as strong supporters of a modern Commonwealth but the Commonwealth also has changed and Malaysia has been influential in that process of change. You have just played host to the Commonwealth Forestry Conference and I understand and am unsurprised to hear that it was a very great success. In a month’s time, you and I will join over 40 other friends in the Commonwealth Heads of Government Meeting in Cyprus and five years from now Kuala Lumpur will play host to the friendliest of all international tournaments, the Commonwealth Games and yet the Commonwealth, in some curious fashion rather like the British constitution, has always been hard to define; you know it is there, you know its importance; it is not an alliance, it is not an economic community; it is not a political bloc; it is not a geographical entity. It is a good deal easier to say what the Commonwealth is not than actually to set out what the Commonwealth is and it may be baffling to outsiders but I think that you and I know the answer to that. It is above all a network of friends. What happens outside our Commonwealth meetings, be they of foresters or lawyers or finance ministers, matters as much as the proceedings within those Commonwealth meetings. You meet a colleague, you don’t need much introduction; you speak the same language metaphorically as well as literally; you know that if you have a problem some time down the road you can pick up the phone and seek his advice or seek his help. You won’t always agree – that is not necessarily a part of the Commonwealth as we both know – you won’t always have the same approach but you should always retain that indefinable element of personal friendship that is so distinctive to the Commonwealth and so difficult to find in any other international organisation.

    So may I this evening very sincerely thank you for greeting us in that spirit of friendship. You don’t need me to tell you, I hope, that you and Mrs. Mahathir and all your colleagues will always be greeted in precisely the same spirit whenever you come to London. You mentioned at the outset of your remarks that relations between my country and Malaysia are in such good shape. In our discussions perhaps over dinner this evening and certainly tomorrow, I know that we will both work hard to keep them that way. It is a longstanding tradition we have, it is a tradition we cherish, it is a tradition I look forward to building upon so perhaps I may invite all your guests this evening also to join me in proposing, Prime Minister, a toast to you and Mrs. Mahathir and friendship between the United Kingdom and Malaysia.

  • Mr Major’s Joint Press Conference with Japanese Prime Minister – 20 September 1993

    Below is the text of Mr Major’s joint press conference with the Japanese Prime Minister, Morihiro Hosokawa, given on Monday 20th September 1993.


    PRIME MINISTER HOSOKAWA:

    I and Prime Minister Major had very candid discussions together with other representatives of Great Britain for a couple of hours and it is indeed a great honour that we have been able to welcome Prime Minister Major as the first: prime minister to visit as an official guest after I assumed the post of Prime Minister and I therefore express my warmest welcome to him.

    We covered the entire ground of our bilateral relations and discussed important themes for both of us and we reaffirmed the importance of our bilateral relations for each of us, We have seen the growth historically of very good relations between our two countries politically, economically as well as culturally and we both agreed that we must together work to further bring these relations to a mature state.

    In the economic sphere, “Opportunity Japan” and then its successor campaign “Priority Japan” are under way and we agreed that we must continue to promote such campaigns in order to bring our trade relations to a better balance of expanded two-way trade.

    We also agreed that early next year in January we shall hold a Japan-UK 2000 Conference with an eye towards the opening of a new era between Japan and Great Britain and I should like to have Foreign Minister and Deputy Prime Minister Hata attend that symposium if at all possible and deliver a keynote address together with Foreign Secretary Hurd. I also expressed my hope – and in fact I think we agreed that there shall be a regular Foreign Ministers meeting of our two countries at that time.

    Furthermore, in order to promote interchanges between our two countries at the intellectual level, we agreed to carry out an exchange of young diplomats between Japan and Great Britain and at the same time we confirmed that we shall together make an effort to achieve a successful conclusion of the Uruguay Round of the GATT talks before the end of the year.

    As far as the former prisoner of war question is concerned, I did confirm that legally, at the government-to-government level, this question has been settled but I took this opportunity to once again express my deep remorse as well as apologies for the fact that Japanese past actions had inflicted deep wounds on many people including former prisoners of war.

    Last but not least, we also saw eye-to-eye that we together must make an effort to make our bilateral relations even more mature with an eye set on the future and I believe that our talks today have been very meaningful and useful..

    PRIME MINISTER MAJOR:

    I won’t add a very great deal to what the Prime Minister has had to say except to say they were extremely useful talks and to touch briefly on one or two of the most important points amongst them.

    In his remarks, the Prime Minister spoke of a mature relationship between our two countries. I think that is exactly right. A close and friendly relationship has developed over the past fifteen years and it continues to develop both at an economic and at a political level. I think this first official visit is very well-timed; it has enabled Mr. Hosokawa and me to get to know one another. He is of course an old friend of the United Kingdom; he made a number of visits to Britain as a member of the UK-Japan 2000 Group but it is nonetheless valuable to develop a personal relationship.

    We spent some time discussing the Uruguay Round and related trade issues. I won’t go into all the technical details of those discussions except to say they were extremely useful and I set out the British approach to today’s Joint Council in Brussels. The Prime Minister set out the bilateral initiatives we have agreed today and I think there is nothing to add to that except in one respect: I think the UK-Japan New Century scholarship is a remarkably innovative idea and I would like to express my gratitude to the private sector British companies who sponsored the initiative; it will enable a number of Japanese post-graduate students to attend Oxford and I think that will be a matter of great help to both our countries.

    We discussed at some length the important trading and investment relationship between our two countries and the advantage that we both saw in continuing that: We touched on a range of international issues – China, the United Nations, Russia, the Middle East and political and economic reform in Japan.

    As the Prime Minister indicated a few moments ago, during our discussions I did make plain the strong feelings that exist in Britain about the issue of the former British prisoners of war. I said that very great interest had been aroused by Mr. Hosokawa’s formal expression of profound remorse and apology for Japanese actions during World War II. The Prime Minister said he wished to reiterate those sentiments to all those in Britain who suffered as a result of Japanese conduct. We noted that the question of compensation had legally been settled by the San Francisco Peace Treaty. I told Mr. Hosokawa that if in future the Japanese government contemplated taking steps to redress the matter, it would be necessary for the situation of those concerned in Britain to be fully taken into account. I informed Mr. Hosokawa that we were also examining whether non-governmental measures would assist in solving this problem. Both of us thought that this approach was worth examining. While we recognised that immediate solutions were not possible, we agreed to keep closely in touch about this matter and contact will therefore continue.

    The final word I wish to add before we take any questions you may have for a few moments is to say how much I welcome the initiative of holding the Japan-United Kingdom Conference in London in January 1994, We commissioned a certain amount of work for that Conference and I think it will prove to be an important landmark in our closer relationship but I think now, with the Prime Minister’s consent, we might be able to take a few questions.

    QUESTIONS AND ANSWERS

    QUESTION (Colin Brown, The Independent):

    Mr. Major, Mr. Hosokawa has said that he thinks that being in power for more than ten years breeds corruption. Do you think that after fourteen years in power it would be healthy for the Conservatives to have a spell in opposition?

    PRIME MINISTER:

    Neither healthy for the Conservatives nor the country.

    QUESTION:

    In Japan, for the first time in 38 years, we now have a new coalition government with an end to a one-party monopoly by the Liberal Democratic Party and I wonder how, Prime Minister Major, you assess the political change in this country?

    Secondly, having met the new Prime Minister here, Mr. Hosokawa, what are your personal impressions?

    PRIME MINISTER MAJOR:

    On the first point, it is not for any foreign politician to comment in too great detail about Japan’s government or Japan’s internal system, I can only say I have had very pleasant and cordial relationships with successive Japanese Prime Ministers and I have absolutely no doubt after today’s meeting that I will have pleasant and cordial relationships with Mr. Hosokawa and his government and I wish them and Japan every success in the political reforms upon which they are embarked.

    CHARLES WRIGHT:

    [Very indistinct but question regarding remarks of one of the businessmen accompanying the Prime Minister saying that the continuing doubt regarding the Prime Minister’s position was undermining the mission and making life difficult for the mission. Could the Prime Minister comment?]

    PRIME MINISTER:

    I made my views about that clear yesterday and I don’t see any particular need to reiterate them, I am concerned in making sure that this is a success. You must take your own samples but I suspect very strongly that if you talk to any of the senior businessmen who are here on the trip they are finding it a very worthwhile occasion. I think it is proving itself to be a success and I hope that will be their verdict at the end of our discussions here.

    QUESTION:

    There is much talk about what Japan might seek in the United Nations General Assembly that has just started with regard to a possible indication of its willingness to become a permanent member of the Security Council and that sort of thing. To date, Britain has not shown a forthcoming attitude on this question regarding Japan or the Federal Republic and I wonder what your current stance is on that issue and whether this matter was discussed in your meeting today?

    PRIME MINISTER:

    Yes, we did discuss it today and I set out the British position fairly comprehensively at a speech over luncheon. I think the prime concern we have is to make sure that the United Nations works effectively. There is now a debate about reform proceedings and as that proceeds I have no doubt that in one form or another Japan will be a beneficiary of that particular debate but the primary concern that we have had right the way through is to ensure the continuing efficiency of the United Nations, not to hold back reform either in the interest of Germany or Japan or anybody else. We are content with the debate about reform; we think it will come to a conclusion but as that debate proceeds – and I think Japan will benefit from that debate very materially – we must all the time have in mind the efficiency of the United Nations operation itself.

    QUESTION:

    Do you agree with your Chancellor, Kenneth Clarke, that your Government is still in a dreadful hole and if you do, how are you going to get out of it?

    PRIME MINISTER:

    I think you only have a partial quote from what the Chancellor of the Exchequer said. The Chancellor of the Exchequer made it clear we were now backing growth, that we would have the largest growth in the European Community this year and I strongly suspect the Chancellor shares my view that we will have the largest growth in the European Community next year. The point about the hole is that we are on our way out of it!

    QUESTION:

    [Indistinct but regarding whether Primo Minister Hosokawa, when he discussed the Uruguay Round, discussed the threatened French veto regarding the Blair House Agreement]

    PRIME MINISTER HOSOKAWA:

    We did in fact discuss matters related to the Blair House Agreement, In that connection, I might say that every country has its own difficult issues, especially the agricultural issue, and we mutually reaffirmed the need for efforts by all of us to override these difficulties and bring the Uruguay Round talks to a successful conclusion.