Tag: Inflation

  • PMQT – 22 November 1994

    Below is the text of Prime Minister’s Question Time from 22nd November 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Hutton: To ask the Prime Minister if he will list his official engagements for Tuesday 22 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. Hutton: Does the Prime Minister agree with the deputy chairman of the Conservative party that huge salary rises for the directors of privatised companies cause real public offence? What action is he going to take to stop these abuses?

    The Prime Minister: As the hon. Gentleman will have heard me say on many occasions in the past, I do not agree with excessive and unjustifiable salary increases. I have made that perfectly clear, but for companies within the private sector that must be a matter for their shareholders and not for the Government.

     

    Q2. Mr. Bellingham: To ask the Prime Minister if he will list his official engagements for Tuesday 22 November.

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

    Mr. Bellingham: Will the Prime Minister confirm that he will press ahead with extending choice in education? While welcoming the Opposition’s recent conversion to league tables, does he agree that the Opposition’s plans to abolish grant-maintained schools and assisted places means that they can never be trusted on education because they are still wedded to the failed policies of the 1970s?

    The Prime Minister: I believe that the performance tables have been a huge success. Anyone who looked at any of the national newspapers today would see the enormous interest in them. They are printed in many cases in full and I think that parents are very glad to have the information. I very much welcome the belated recognition by the Opposition that they are now in favour of performance tables. I regret that they opposed them for so long. I also regret the fact that they continue to oppose grant-maintained schools and the assisted places scheme and I look forward to yet a further U-turn in their education policy to adopt them in due course.

    Mr. Blair: Yesterday the President of the Board of Trade justified the grotesque increase of £200,000 to the chief of British Gas. Will the Prime Minister now join me in condemning it unequivocally?

    The Prime Minister: I indicated to the right hon. Gentleman’s hon. Friend just a few moments ago that I did not approve of excessive increases. I also made the point that in the private sector that was a matter for the shareholders of the company, not a matter for the Government themselves but, since the right hon. Gentleman asks for my view, I have made it clear.

    Mr. Blair: As a matter of fact, the right hon. Gentleman did not condemn the particular increase. Will he not understand that people want him to speak, not only for the shareholders but for the millions of British people who feel disgust and outrage at this excess and greed? Why will he not act to give the regulator the power to put a stop to this kind of abuse so that the privatised utilities, which are monopoly services that the public have no choice but to use, are managed as proper public services, run in the public interest?

    The Prime Minister: If the right hon. Gentleman is concerned about the monopoly aspect, presumably he will support the Gas Bill, which will introduce competition, later this Session. In the light of what he has just said, I look forward to his support for that. As for condemning the increase, I suggest that he looks again at what I have said on many occasions over the past few years. I fear that the right hon. Gentleman misunderstands the regulator’s position. The prices charged by utilities are legitimately a matter for the regulators but, as in all companies, boardroom pay is a matter for the shareholders. The sooner Opposition Members understand that, the better.

    Mr. McLoughlin: During his busy day, will my right hon. Friend consider the pay increase of about 200 per cent. for a person who is about to join the Commission gravy train? When that appointment was made, was it because the former Leader of the Opposition was the only candidate that the Opposition could put forward, or was there a shortage of candidates for the post, making such a pay increase necessary?

    The Prime Minister: The right hon. Gentleman to whom my hon. Friend refers is to be a Commissioner, and as such he will represent the United Kingdom. I think that he will do that fairly and honestly in the future, and I do not therefore have any criticism of his appointment.

    Mr. Ashdown: Why does not the Prime Minister see the 75 per cent. pay increase for the head of British Gas for what it is–a metaphorical V-sign to all the customers whose prices he has increased, to the employees whose jobs he has cut and to the Prime Minister’s begging and pleading for restraint? Is a weak whimper and a “Nothing to do with me, guv,” the best that the Prime Minister can do?

    The Prime Minister: The right hon. Gentleman, as usual, exercises before the House his customary ignorance of the way in which the private sector works. I have made it absolutely clear what I think about that rise, but what the right hon. Gentleman–and, no doubt, the right hon. Member for Sedgefield (Mr. Blair)–wants is a quasi-pay policy for some executives in the private sector. That, effectively, is what the right hon. Gentleman is asking for. The right way to deal with the matter is for the shareholders who own the company to take the action that they consider right.

    Mr. Budgen: In view of my right hon. Friend’s statement that the successful passage of the European Communities (Finance) Bill is a matter of confidence, will he confirm that he has discussed the Dissolution with the monarch? Will he further confirm that the monarch has told him that in the event of his asking for a Dissolution, it will be granted?

    The Prime Minister: As my hon. Friend, who has been here for a long time, should know, neither I nor any other Prime Minister is likely to discuss any conversation that he or she may or may not have had with Her Majesty the Queen.

     

    Q3. Mrs. Clwyd: To ask the Prime Minister if he will list his official engagements for Tuesday 22 November.

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

    Mrs. Clwyd: Has the Prime Minister anything to add to the Maples memorandum, which says that the Government have broken their promises and let down the electors, and that they are out of touch, stupid and blind?

    The Prime Minister: I am tempted to quote from the memorandum by the hon. Member for Durham, North (Mr. Radice), who had some very crisp things to say about the Labour party–but no doubt the hon. Lady would find that unfortunate. [Interruption.] Yes, I have something to add. I add that, with growth at more than 4 per cent., inflation at 2 per cent., unemployment falling and exports growing at record levels, the hon. Lady would be most unwise to assume what may happen in future.

     

    Q4. Mr. Alexander: To ask the Prime Minister if he will list his official engagements for Tuesday 22 November.

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

    Mr. Alexander: Will my right hon. Friend commend to the House the statement by my right hon. and learned Friend the Home Secretary over the weekend that there would no longer be an automatic right of temporary release for prisoners serving sentences? Does my right hon. Friend agree that, when a judge sentences someone to a term of imprisonment, the public do not expect to find that person taken out to dinner by prison officers and do not expect to find another person cycling through the community two years into a rape conviction, and that a sentence of imprisonment must mean just that?

    The Prime Minister: I very much welcome what my right hon. and learned Friend the Home Secretary said last week. It is the latest in a long list of measures, crowned by the introduction of the Criminal Justice and Public Order Act 1994, to protect the public and to punish the criminal — [Interruption.] I am sorry that the hon. Member for Workington (Mr. Campbell-Savours) seems unwilling to punish the criminal. That is not what I should have expected of him. We should certainly clamp down on any examples of abuse of home leave or temporary release. That is precisely what my right hon. and learned Friend has said he proposes to do. In that he will, I believe, have the overwhelming support of people throughout the country.

    Mr. Dalyell: Are the Government’s certainties hitherto about Libyan responsibility for the Lockerbie crime in any way dented by what President Mubarak said to the Prime Minister yesterday or, indeed, by the film of Mr. Alan Francovitch, a copy of which was delivered to Downing street on Sunday and which, I gather, the right hon. Gentleman has looked at?

    The Prime Minister: None of the evidence I have had and none of the conversations I have had dent in the slightest the position that I have set out before the House on many occasions.

     

    Q5. Mr. Nicholas Winterton: To ask the Prime Minister if he will list his official engagements for Tuesday 22 November.

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

    Mr. Winterton: Although I fervently hope that the Chancellor of the Exchequer in his Budget next week will give the necessary boost to manufacturing industry by introducing 100 per cent. capital allowances, will my right hon. Friend join me in welcoming the fact that unemployment is down by half a million, that inflation is at an all-time 27-year low and that growth in this country is currently at 4 per cent.? Will he ensure that that information forms part of a highly confidential Conservative central office memorandum so that the press and the Conservative yobs can give it the attention it deserves?

    The Prime Minister: My hon. Friend makes his point in his usual crisp manner. It is the case that the economy is doing extremely well, as my hon. Friend has set out. I hope that more people will begin to observe that as month succeeds month. There is no doubt that added to the list that my hon. Friend so accurately mentioned a moment ago are the facts that unemployment is falling and has been falling for around 20 months, that unemployment is lower here than in any other major country in western Europe and that unemployment is continuing to fall here while it is rising in many other countries. The economic opportunities that exist at the moment are extremely good and I have no doubt that they will get better.

     

    Cyprus

    Q6. Mr. Cox: To ask the Prime Minister when he last met the President of Cyprus; and what issues were discussed.

    The Prime Minister: I last met the President of Cyprus, Mr. Clerides, in October 1993 at the Commonwealth Heads of Government meeting. We discussed Commonwealth matters and the state of the intercommunal discussions on Cyprus. I shall meet the President again in January on his next visit to London.

    Mr. Cox: I note that reply. Is the Prime Minister, aware, however, of the scathing criticisms that the Secretary-General of the United Nations has recently made about Mr. Denktash and his total unwillingness to enter any meaningful discussions on Cyprus? As this country is one of the guarantor powers, when will the Prime Minister himself become actively involved in Cyprus affairs in the hope of promoting a settlement that both Mr. Denktash and his friends and supporters in Ankara will be expected to honour?

    The Prime Minister: I am, of course, aware of the report to which the hon. Gentleman refers, but I continue to believe that the main focus of our effort should be to support the United Nations Secretary-General’s mission. He has made some progress. The Security Council called for further effort on confidence-building measures in June, as the hon. Gentleman will know, and for a process of consultation. That latter aspect has been given effect by means of face-to-face talks between the two community leaders. I hope that those will continue. We will do all that we can to persuade both sides to continue talking, but until and unless they are themselves prepared to reach an agreement, it is difficult to see how one can be imposed.

     

    Engagements

    Q7. Mr. Jenkin: To ask the Prime Minister if he will list his official engagements for Tuesday 22 November.

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

    Mr. Jenkin: Will my right hon. Friend keep telling everyone about the low inflation, the falling unemployment and the strong growth? Will he also explain that we have achieved that by establishing an extremely successful economic framework and that, as night follows day, Labour would wreck it?

    The Prime Minister: My hon. Friend is entirely right, both in the scenario that he sets out and in the charge that he lays about such economic policy as the Labour party has yet divulged. There is no doubt that the present circumstance has come about because of a consistency of policy for some time designed to get inflation down. We made it clear in 1990 that getting inflation down to a low level had a very important, central part to play in economic management and we have achieved it. The Labour party achieved record high inflation. We are achieving record low inflation.

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Hon. Members: More, more.

    Dr. Robert Spink (Castle Point) rose —

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

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

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

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

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

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

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

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

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

    Mr. Blair: I must make progress.

    Several hon. Members rose —

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

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

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

    The former Chancellor of the Exchequer said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Mr. Blair: No, I am sorry.

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

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

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

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

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

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

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

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

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

    Mr. Duncan Smith rose —

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

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

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

    “the management of the National Health Service”.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The Prime Minister: I shall give way later.

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

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

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

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

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

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

    [Interruption.]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. John Reid (Motherwell, North) rose —

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. John Reid (Motherwell, North) rose —

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

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

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

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

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

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

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

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

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

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

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

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

    Mr. Tom Clarke (Monklands, West) rose —

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. Godman: Will the Prime Minister give way?

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

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

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

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

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

    Dr. Godman: Will the Prime Minister give way?

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

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

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

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

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

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

    Mr. Campbell-Savours: Tired old arguments.

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

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

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

    Mr. Campbell-Savours: Yesterday’s arguments.

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

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

    Dr. Reid: He said something about taxes.

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

    Mr. Campbell-Savours: Tell us then.

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

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

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


    My Lords and Members of the House of Commons.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Members of the House of Commons,

    Estimates for the public service will be laid before you.

    My Lords and Members of the House of Commons,

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

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

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

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

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

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

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

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

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

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

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

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

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

    My Lords and Members of the House of Commons,

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

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • PMQT – 30 June 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

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

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

    “We”

    that is the Labour party

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

    That is what the right hon. Lady does.

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

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

    Hon. Members : Answer.

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

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

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

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

     

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

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

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

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

     

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

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

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

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

     

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

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

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

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

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

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

     

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

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

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

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

     

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

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

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

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

     

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

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

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

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

  • PMQT – 16 June 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     

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

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

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

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

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

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

     

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

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

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

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

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

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

     

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

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

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

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

     

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

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

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

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

     

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

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

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

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

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

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

  • PMQT – 14 June 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

    Madam Speaker : Order.

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

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

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

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

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

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

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

    Hon. Members : Hear, hear.

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

    Mr. Ashdown rose

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

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

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

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

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

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

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

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

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

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

     

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

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

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

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

     

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

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

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

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

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

    MICHAEL HESELTINE:

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

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

    DAVID HUNT:

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

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

    QUESTION:

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

    MICHAEL HESELTINE:

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

    QUESTION:

    Prime Minister, why do you look so grim?

    PRIME MINISTER:

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

    QUESTION:

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

    DAVID HUNT:

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

    QUESTION:

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

    DAVID HUNT:

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

    QUESTION:

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

    PRIME MINISTER:

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

    DAVID HUNT:

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

    JOHN PATTEN:

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

    QUESTION:

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

    PRIME MINISTER:

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

    MICHAEL HESELTINE:

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

    QUESTION:

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

    MICHAEL HESELTINE:

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

    PANEL SPEAKER:

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

    QUESTION:

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

    PRIME MINISTER:

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

    WILLIAM WALDEGRAVE:

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

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

    KENNETH CLARKE:

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

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

    PRIME MINISTER:

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

    QUESTION:

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

    PRIME MINISTER:

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

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

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

    QUESTION:

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

    PRIME MINISTER:

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

    DAVID HUNT:

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

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

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

    QUESTION:

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

    PRIME MINISTER:

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

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

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

    KENNETH CLARKE:

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

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

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

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

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

    PRIME MINISTER:

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

    MICHAEL HESELTINE:

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

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

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

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

    JOHN PATTEN:

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

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

    QUESTION:

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

    PRIME MINISTER:

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

    QUESTION:

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

    DAVID HUNT:

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

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

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

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

    QUESTION:

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

    JOHN MACGREGOR:

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

    JOHN GUMMER:

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

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

  • PMQT – 24 May 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The Prime Minister : I think that it is

    Mr. Skinner : It is that lot behind me.

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

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

     

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

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

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

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

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

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

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

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

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

     

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

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

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

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

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

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

  • Mr Major’s Speech to Scottish Conservative Party Conference – 13 May 1994

    Below is the text of Mr Major’s speech to the Scottish Conservative Party Conference in Inverness on 13th May 1994.


    PRIME MINISTER:

    Today of all days I want to talk not of partisan politics, but of our country and its prospects.

    There are occasions when it is right to turn aside from the clamour of political differences.

    Yesterday, this conference adjourned to mark its respect for one of our country’s political leaders. An opponent, yes. A gifted and an honourable opponent. Undoubtedly. But a partner, too. A partner in that mission which is central to politics. The guest to build a stronger democracy, a better country, a richer life for all.

    All of us here are people to whom our families matter deeply. John Smith was a family man. And our thoughts and prayers go out, above all, to his family in their grief – in a time of loss for which no words suffice, and into which no-one should seek to intrude.

    The reaction to John’s death tells us much about our country. It showed the priceless asset of the essential decency of the British. We can weep for a good man – even an opponent – because we recognise his qualities.

    This reminds us that there are things higher than politics and, across all divisions, common bonds of humanity that unite us all.

    I liked John Smith. The nation saw us set up in artificial confrontation twice a week in the House of Commons. That was part of our political process – and I make no complaint of that.

    But people did not see behind the scenes. There is friendship in politics, there is decency, there are private relationships across all Parties, there is principle and there is respect and understanding for the beliefs and the convictions of others. What a shame it is that that becomes apparent so rarely.

    Mr President, I must confess to you that I often have little taste for the politics of point-scoring or for the belittling of others. I have none today. I care passionately for what I believe in. But I don’t care passionately for damning what other people believe in. If we could attack the policies of others, but respect their motives, then politics would have a fresher feel than it does today.

    Let us be truthful with ourselves. Across all Europe there is a lower regard for politics than I can ever remember. And, as democrats, we should worry about that.

    Politics isn’t just about power. As you grow more experienced you see the limits on the power of action, limits set by the need to persuade others and carry them with you. Limits set by the capacity of our country to create the wealth and resources needed to fulfil our ambitions.

    No, it isn’t just about power. It’s about ideals. Hopes. Ambitions.

    In politics you never lose the ideals of youth. You always travel in hope. And you never forget your long-term principles.

    There are twists and turns, moments of exhilaration and achievement, and times, too, of disappointment and despair. But you pick yourself up, take on the next task, and go on forward. Because you always have a long-term aim in view.

    Mr President, I sometimes wish that side of politics was more evident. I know politicians of all Parties. And they are not the cynical, power-hungry, self-servers that fiction so often portrays. There is such a thing as public service in this country. And our politicians generally subscribe to it.

    Too often our politics is rooted in old battles, not new opportunities.

    Of course we differ greatly in our philosophy; in our beliefs as to how to do the best for Britain. But sometimes, too, we share a common purpose.

    The War-time coalition and the Labour and Conservative Governments that followed all worked to strengthen the welfare state, develop the Health Service, put in place the modern system of education that Rab Butler had worked to create, and which culminated in his great Education Act of 1944.

    The achievement of Conservatism in the present generation has been to redress the balance between the state and the individual. To extend choice and ownership, to build the right climate for industrial growth and expansion, to set the ambitions, the hopes, and the capacity of every family free.

    I don’t believe those achievements either will ever be challenged or changed. We have created a special British cocktail of free enterprise, tempered with social justice. A wider ownership of homes, shares and pensions than almost any nation in Europe, but a free health service which those overseas envy and admire.

    That will never change. When my parents were old and unwell and without any money, they were well treated. It made an abiding impression on me that they had the security and comfort of mind to know that. While I am Prime Minister, that will never change.

    All of us in politics – national or local – have our role to play. Whether we are players on the stage, or supporters in the wings, or commentators in the front of house, we all have our responsibilities.

    Sometimes I feel – and I don’t only mean in the reporting of politics – that there is too much knocking, too much carping, too much sneering. Too much setting up of Aunt Sally against Aunt Sally.

    Being negative can be an addictive drug. It’s easy. Because we all know how easy it is to do something, if you don’t have to do it yourself. But like any drug it corrodes and destroys the body in which it exists. And one body it runs the risk of corrupting is the body politic of the nation itself.

    If politicians fight – in Party and across Party – like ferrets in a sack on every issue, is it surprising if the public turns away?

    Let’s not be negative here today. Let’s be positive. And look at what’s happened in Britain in the last two years alone, and at our prospects for the future.

    We have achieved an impressive revival from recession – well ahead of the rest of Europe.

    We have the lowest inflation and interest rates for a generation.

    We have growth in the UK – twice as high as anywhere in Europe, and set to continue next year.

    We have public services forced by the Citizen’s Charter to tailor their performance to the needs of the public and to raise their standards year by year.

    We have a National Health Service, in which local doctors have more say than ever, and in which we are treating more patients than ever before – and treating them better.

    We have set reforms in place to raise standards in our schools and to improve the quality of training for young people.

    One third of our young people are now going on to university.

    And crime is now falling in Scotland and throughout the UK.

    That is the reality of what’s happening.

    Mr President, I have not come here to hide the challenges we still face. On the back of a world-wide recession Government is a tough business everywhere. We often have to do things that seem perverse today because we believe they will be right tomorrow.

    Our job is to look long-term, plan long-term, achieve long- term. Set a framework for lasting prosperity. To ensure we don’t go through such difficulties again.

    Some people may not like some of the action we’ve had to take – but our duty is to make the right choices for Britain’s future. It isn’t our job to do things to court short-term popularity, if they have a long-term cost.

    Obligations are painful things. So are difficult decisions. But often they are necessary for the sake of future generations. So that their prospects are not just as good, but better than ours.

    But that is what we’re in Government for.

    “The elevation of the condition of the people”. That’s how Disraeli once put it.

    “The elevation of the condition of the people” – Mr President, that is why I am a Conservative – why we are all Conservatives. And why this party must always frame its policies, not by the yardstick of ideology, but by how closely they touch the everyday lives of the people.

    We mustn’t live in a world of theory. Our theatre must not be the academic clique or the Party caucus. Our theatre is the home, the family, the business, the voluntary group. That is the world from which Conservatism grows.

    Our Party is at its strongest wherever it strikes a chord with the commonsense of the British people. When Conservative canvassers came to my door in Lambeth all those years ago they spoke a language I and the people I knew could readily understand.

    The things they cared about were the things we all care about – how to get on in life, how to take our own decisions, how to acquire new skills, save money, own a home and leave a better start for our children and grandchildren than we ever had ourselves.

    Even to the dependent Conservatism spoke the language of independence. Even to the insecure it offered security.

    It did then. And it must today. Somehow we must break through the artificial frenzy that so often masquerades as political debate and focus attention once more on the essential concerns of the people we represent. That, I believe, is what people want and what our political system needs.

    The Conservative agenda

    Last autumn I spoke of a malaise that I saw creeping across our country. A cloud of unease and uncertainty in the face of constant challenges to the standards that people hold dear.

    I said that our first duty was to dispel that anxiety, answer the worries people have, and draw deep at the well of commonsense instinct as we did.

    I set out there my programme for the rest of this Parliament.

    First, to see through – come what may – our policies for a strong stable economy. That we are doing – through low inflation, low interest rates and falling unemployment.

    It is easy to write off now the importance of the fight against inflation. That is a mistake that I will never allow this Government to make.

    I know from experience what inflation does. What it is like at the end of the week if you’re not sure you’re going to have enough money left over to pay the bills. I grew up in a hard part of London. We shared the house with all sorts of odd characters. Inflation wasn’t our only problem – but it was one of the worst. I know what it is like at the sharp end, what it’s like to struggle on fixed incomes. And so long as I am Prime Minister containing inflation will continue to be a cornerstone of our policy and a touchstone of its success.

    The second goal I set in Blackpool was to bring about a seachange in our approach to crime. Shift the balance in criminal policy decisively against the villain after a generation of liberal ideas. Put punishment back on the agenda. Reject forever the fatal idea that crime can ever be excused.

    If you don’t give young people guidelines and rules you are not helping them. Children who start with a small offence and are not brought up short will commit a bigger offence and then a bigger one, and, before you know it, they’re into serious crime. It is no good if when a young criminal gets caught all he gets is a slap on the wrist and sent on his way.

    We have embarked on a shift in policy on crime, not to turn back the clock – of course not, Dickensian attitudes have no relevance today – but to turn up the heat on the criminal. I make not a shred of apology for that. The British people are heartily sick of the apologists for crime. And the crackdown that’s needed has only begun.

    The third target I have set for the ‘90s is to raise standards in our schools. Without that Britain will not be able to compete in the world. We need to sweep aside the progressive dogma that has done so much damage. Extend parents’ choice. Insist on the basics. Make sure we get the best results for every child. And see that those results are reported, and, what is equally essential, tested.

    Mr President, I simply do not understand opposition to testing. I sent my children to school to learn – so do all parents. You can’t just wrap children in cottonwool. Life itself is a test – and you have to prepare them for it. Compete is what children do naturally. Just put four small children together and see what they do. They see who can run fastest or jump highest. So we will be introducing more competitive games and we will stick to our guns on testing.

    Mr President, in the last six months we have taken huge strides in carrying forward the agenda I set out in Blackpool. Inflation is right down. We have the biggest crime-fighting bill for years before Parliament. And, through teacher training reform, we are putting the last pieces into the mosaic of education reform.

    That is the road this country must follow – and that is the road down which I and this Party will lead.

    Mr President, the mandate we won from over 14 million people was a mandate which runs for 5 years. We are not yet half way through – and I intend to complete it. And then I shall say:

    “Judge me on my whole term of office. All of it. You can’t judge a house when only the foundations are laid”.

    A changing world

    If we are to achieve our social objectives we must have strong economic foundations on which to build.

    There are new and ever greater demands on our resources. But there’s only one way to create the wealth that we need. Through business success.

    We have to lift our eyes from the short-term headlines. Look to the long-term. The world is changing faster than ever before. Just look at the changes there have been.

    Operations that 15 years ago were unheard of now happen almost every day. Young people today have opportunities that our parents’ generation wouldn’t have dreamed of. In future it will not be enough to learn just one skill at 16 and do the same thing all through a lifetime.

    People are living longer than ever before. More people are going into higher education than ever before. Those are all good changes, changes we’ve worked for, changes we want, changes that are making people’s lives better.

    But they all have a cost. We need to pay for them. But we don’t want high taxation. So the challenge for us is to make our economy as competitive as possible, so that we can generate the wealth that we need for the improvements we wish to bring about.

    For today we face a world more competitive than ever before. Not just from America and Japan but from new countries in the Far East, once our captive markets, now our active competitors.

    We must look forward to the world in which our children will live. In the 21st century we’re going to have a world dominated by Japan, the United States and China. The European Community has a choice to make – will it be with those players or will it not?

    The importance of Europe

    I hope it will be, but it is not certain unless Europe follows the right policies. I would give Europe this warning. Unless it makes the right choices about policy today – unless it adopts free market policies – and believes in them – Europe won’t be up there in the next century with the US, Japan and China. It will slide behind.

    That is why Britain must play its full part in Europe. Not just for our own sake, but for Europe’s too.

    Nearly 200 years ago William Pitt said Britain “has saved herself by her exertions, and will, as I trust, save Europe by her example.”

    I know that the issue of Europe runs deep in British politics. It touches emotions more profoundly than routine political differences. It raises concerns and fears that are too often played on too readily. For too long Europe has been the poison in the well of British politics.

    Here, too, far too many people present the European debate in fundamentalist terms.

    People are “for it” or “against it”.

    We “must do this” or “mustn’t do that”.

    Everyone, to paraphrase Gilbert & Sullivan, is either “a little Eurosceptic” or “a little Europhile”.

    This approach misses the real debate. The real debate must be about how we make Europe a success; how to make sure it raises enthusiasm, not resentment; how to make sure it raises the quality of our life and is not seen as threatening the nature of our life.

    What we are talking about in the debate on Europe is our national interest. Our jobs. Our future. And yet far too many people on both sides of the argument miss this wider point. They focus on narrow arguments as though we were fighting a holy war.

    So let us remember the fundamental economic realities.

    British business depends on Europe. Well over half of what we export, we export to Europe.

    We need a place in European Community if we are to continue to attract inward investors to Britain.

    And we need influence in Europe, if we are to make sure that our businesses have the right conditions in which to trade.

    Europe is absolutely fundamental to this country’s national interest. We cannot turn our backs on that. It would be the ultimate abdication, a supreme folly. Limit our horizons and we limit our future. A little country in a lost world.

    I am a Euro realist. I look at Britain’s interests with a cold and clear eye. Britain has a special place in the world. Alone of all nations we live and move in three distinct circles – NATO, the Commonwealth, and the European Community. Each and everyone is a shaping factor in our long-term foreign policy and our own national interest.

    We have a special feeling about America. We are intimately bound up with its history, language and culture. I am one- quarter American. My father lived in America for a number of years. But Americans are realists, too. They want a good relationship with Britain. But, today, one of the main reasons they do is because Britain is in Europe. If Britain’s commitment to Europe was in question, have no doubt – the Americans would look elsewhere for their closest allies – to Germany or to France. They are no more dreamy-eyed about international relations than we are.

    Diplomacy is a calculation of where long-term advantage lies. And, for Britain, that advantage is in Europe.

    Mr President, I don’t accept the argument that a British government, fully involved in Europe, cannot win the battle to shape and mould the future of Europe.

    Who says we can’t win the argument against centralism in Europe? We can and we must.

    Conservative Governments won on the rebate.

    Won on the Single Market.

    Won on subsidiarity.

    And we are winning on deregulation.

    Britain should be confident in Europe.

    One final point. I don’t believe the prevailing orthodoxy that if you disagree with current fashionable opinions in Europe that you are anti-European.

    That is not true. The good European does not rush like Pavlov’s dog to every European fancy.

    He judges what is right for Europe. What will attract the support of the people of Europe. What will retain their liberties – their traditions. And then he fights for it – and that is what we will do.

    Why Conservative?

    Mr President, for the moment the world of politics pauses.

    But in a short while the people of this country will be called, with the rest of Europe, to take up the work of democracy again. And in the European elections we shall put our case to the country on the kind of Europe we want to build.

    You know what I believe in.

    I want to see a wider Europe, which spreads the protective mantle of peace, security and prosperity to the troubled countries of the East.

    I want to see an open Europe in which the weight of bureaucracy and regulation is reduced, and we embrace wholeheartedly the goal of a great single market open for business, competition and trade.

    And I want to see a people’s Europe. One that is not the remote preserve of a circle of planners. But a Community that addresses the concerns of ordinary people – and never seeks to interfere where it does not need.

    Our guiding lights are the principles of free trade, free enterprise and free association.

    Our aim is still to build closer co-operation between a growing number of nations.

    But we shall stand always for individual choice.

    Cherish always national diversity.

    And never deviate for one instant from defence of Britain’s own national interest.

    Our vision remains as it ever has been – a strong Britain in a strong Europe. That vision is supported by all but a handful of the people in these islands.

    Conclusion

    Mr President, I am proud of what Conservative Governments have achieved for our country. And I am full of hope and confidence in what this country still can and will achieve.

    Over the last 15 years we have helped change Britain.

    When I entered Parliament Britain faced real and visible threats.

    Our economy was ravaged by inflation.

    Our industrial strength was sapped by trade union power.

    Our country was threatened by the armed might of the Communist bloc.

    Together we have seen that great external threat dissolve.

    And we have seen many of our internal problems so successfully resolved that many have forgotten the dragons that once stalked the land.

    Of course, in the modern world, new challenges constantly arise. And the pace of invention lays new opportunities and new ambitions in our path.

    But it is all too easy to forget how remarkably the face of our country has changed for the better.

    Today, a child growing up in Scotland is twice as likely to go to university, twice as likely to become a homeowner, and has far better job prospects. Not jobs in declining state owned industries, but jobs in growing industries – profitable businesses with better pay and better working conditions than we’ve ever known before.

    So whenever the storm blows, remember the successes we’ve had – and why we had them.

    We had them because, even when the going was toughest, we stuck to our last, stuck to our guns; we kept cool and we kept faith.

    Throughout all the ups and downs of the last 15 years – and together we’ve seen a few of them both – fashionable opinion has carped and criticised.

    I know many of you were with me in Edinburgh two years ago at that great rally in our General election campaign.

    We didn’t bow then to fashionable opinion. We took it on, shook it by the scruff of the neck, and turned it on its head.

    That Election was about something more profound than many before it. About the very structure and fabric of the nation state our ancestors fought to create. People saw clearly two great threats to our Kingdom – the siren songs of separation at home and surrender abroad.

    It was here in Scotland that we drew the line in the sand. We declared that we could not – we would not – whatever the cost, whatever the risk – compromise our deepest core beliefs, and put our nation at risk.

    We stand – by gut instinct – in defence of the ancient Union between four great nations. For one strong, united country whose voice is heard and respected abroad, as four small nations – however proud – could never be.

    The values we care about are the values that generation after generation in this country have lived for and lived by. I believe that Britain needs those values now, more than ever before.

    So, when the work of politics begins again, let us go out and campaign positively for what we believe in – with pride in our principles, confidence in our future, and faith in our country, the United Kingdom – that unique and special country – that means so much to us all.