Tag: Maastricht Treaty

  • PMQT – 24 March 1994

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


    PRIME MINISTER:

     

    Engagements

    Q1. Dame Jill Knight : To ask the Prime Minister if he will list his official engagements for Thursday 24 March.

    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.

    Dame Jill Knight : Does my right hon. Friend agree that qualified majority voting in the European Union should be considered strictly on its merits? Is not it right to argue robustly for a more democratic system and to fight our corner, instead of throwing away Britain’s hand as the Opposition parties certainly would?

    The Prime Minister : My hon. Friend makes a good point. We are strongly committed to enlargement of the Community and also to the long- term success of the European Union, but, to be successful, the countries of the Community must be responsive to the individuals and peoples in that Community.

    As I told the House on Tuesday, I believe that we are right to argue vigorously for principles that are important both for Britain and for Europe’s future, and that is what we are doing. We need a balanced decision that safeguards the rights of minorities. When we entered the Community, representatives of 30 per cent. of its population could be voted down : now the figure is 40 per cent. An automatic and unqualified extension to 27 would perpetuate that trend, and I believe that it should be checked now. In 1996, we need a proper, wholesale reform of the system.

    Mr. John Smith : On that subject– [Interruption.]

    Madam Speaker : Order. I call the hon. Member for Amber Valley (Mr. Oppenheim) to order.

    Mr. John Smith : On that subject, can the Prime Minister explain why there is such confusion–as revealed in the press this morning–over the Government’s policy on Europe? Is not it because the Prime Minister one day seeks to appease the anti-European faction in his party and on the succeeding day seeks to reassure the pro-European faction? Why is he, as usual, trying to face both ways?

    The Prime Minister : If anyone had the faintest idea where the right hon. and learned Gentleman stands on this issue, he might be entitled to ask that–perhaps he will tell us.

    It is absurd to suggest that arguing for better decision making in Europe, which is what I seek, is anything other than the right way to approach the negotiations. It is right to stand up for the principles that we think are correct. It is not thought anti-European when the Italians argue their case on milk quotas or when the French hold up the enlargement of the number of seats in the European Parliament for their interests. We are arguing for points of principle that we consider of importance, and we will continue to do so.

    Mr. John Smith : Does not the Prime Minister realise that it cannot be responsible to put at risk the enlargement of the European Community by a damaging dispute, which is at most about four votes out of 90? Why does the Prime Minister not realise that he is putting at risk the accession of four countries that are friends of Britain and are net contributors to the budget?

    The Prime Minister : As the right hon. and learned Gentleman knows, the British Government were foremost in creating the opportunities for those countries to enter the Community and we are strong supporters of their entry. That does not mean that we must concede each and every aspect of the allied negotiations to ensure enlargement. I said on Tuesday, and I repeat now, that there is time to resolve qualified majority voting without any delay to enlargement. In Brussels, my right hon. Friend the Foreign and Commonwealth Secretary described several possible avenues to a solution. So long as the political will is there, on the part of others as well as of the United Kingdom, the matter can be settled within a matter of days.

    Mr. John Smith : Is not the truth of this whole affair that the right hon. Gentleman is more concerned to protect himself and his position from attacks within his own party than to fight for Britain’s real and lasting interests in the European Union?

    The Prime Minister : That is unworthy of the right hon. and learned Gentleman. If that had been remotely true, I should not have stuck, as I did, to the importance of carrying the Maastricht treaty through the House despite the twists and turns of the right hon. and learned Gentleman and his party. The right hon. and learned Gentleman has demonstrated yet again that the moment something from Europe, whatever it may be, is put to him, he concedes. He has conceded the ending of our national veto, a minimum wage costing £20 billion, a 35-hour week costing £20 billion and every big spending plan to come out of Brussels. Europe cannot afford that, and Britain could not afford the sort of policies that the right hon. and learned Gentleman would accept.

    Sir Malcolm Thornton : In view of my right hon. Friend’s recent and very welcome statement in favour of sport in schools, may I commend to him a report called “A Charter for Sport in Schools”, which was launched this morning and which links sport firmly into the state of the health of the nation? May I also draw to my right hon. Friend’s attention the fact that, for the first time, this links together national sporting bodies, teacher associations and the medical profession? Will my right hon. Friend use his good offices to give the report all possible support?

    Mr. Skinner : You can hit that one for six.

    The Prime Minister : I am grateful to the hon. Member for Bolsover (Mr. Skinner) for his advice.

    I strongly agree with my hon. Friend about the importance of sport in schools, not least because not only is it a natural part of growing up for most youngsters but it instils a love of sport in people which they will carry with them for the rest of their lives.

     

    Q2. Ms Corston : To ask the Prime Minister if he will list his official engagements for Thursday 24 March.

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

    Ms Corston : On both 10 November 1992 and 4 February 1993, the Prime Minister told the House that claiming public interest immunity was a ministerial obligation which could not be waived. In view of today’s statement by the Attorney-General that Ministers have a discretion whether to claim such immunity, will the Prime Minister now retract his statements?

    The Prime Minister : I think that the hon. Lady may have been misled by some lunch-time news reports, supplemented by comments by the hon. Member for Livingston (Mr. Cook). Let me read to the House what my right hon. and learned Friend the Attorney-General said in his opening statement to the inquiry this morning. I quote : “Where documents or information fall into a class that has been recognised by the courts as attracting public interest immunity, the relevant Minister is under a duty to make a claim.”

    Mr. Mans : Given that unemployment is falling faster in this country than in any other European Union nation, is not the main lesson that other member nations can learn from us that deregulation of the market and the reduction of social costs encourage investment and create extra jobs?

    The Prime Minister : I believe that that can be seen, not just in the position between the United Kingdom and other European nations but in the position between Europe as a whole and Japan, the United States or the Pacific basin. There is absolutely no doubt that a deregulated economy is likely to create more jobs and that an economy that does not pile too many social costs on employers is likely to have a higher proportion of its work force in proper work.

     

    Q3. Mr. Barry Jones : To ask the Prime Minister if he will list his official engagements for Thursday 24 March.

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

    Mr. Jones : Does the Prime Minister know that in my constituency the production of the corporate jet aircraft is in danger of being transferred, lock, stock and barrel, to an American production line? More than 900 highly skilled and valuable jobs to Wales in my constituency are at risk. What intervention will he make and what guarantee can he give? May I show him a model of the aircraft to remind him that it is the best of its kind in the world? If he believes in British manufacturing, what will he do to help the workers in my constituency?

    The Prime Minister : I am grateful to the hon. Gentleman for giving me notice of the specific question that he raises this afternoon. I appreciate his efforts to keep those jobs in his constituency. I share that concern and so do the Government. My right hon. Friend the Secretary of State for Wales has pledged the full support of the Welsh Office and the Welsh Development Agency and my right hon. Friend the Minister for Industry will shortly be visiting the parent company in the United States. In recent years, Wales has made tremendous achievements in attracting jobs. In the past decade, it has secured more than 11,000 inward investment projects guaranteeing 110,000 jobs. It is an excellent haven for inward investment and jobs and we will do all that we can to help retain those.

    Mrs. Angela Knight : Does my right hon. Friend agree that the ultimate guarantee of Britain’s national interest and sovereignty is the national veto, which the Liberal and Labour parties would abandon in their desire to allow Brussels to rule us?

    The Prime Minister : Yes, I agree that the national veto, which is, of course, a separate matter from qualified majority voting, which we have been discussing, is an important matter. It has been conceded by the leader of the Liberal Democratic party and the Leader of the Opposition. He shakes his head, but he still has not read the socialist manifesto that he signed up to without reading and to which he is bound.

     

    Q4. Mrs. Ray Michie : To ask the Prime Minister if he will list his official engagements for Thursday 24 March.

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

    Mrs. Michie : On reflection, is the Prime Minister still not prepared to listen to the 1 million people who voted no to the Government’s proposals for Scotland’s water? Does he accept that the folk of Strathclyde sent a clear, dignified, civilised and democratic message not worthy of an abusive response and that his own Tory councillors in Scotland now advise that he and the Secretary of State for Scotland should take back the proposals and think again? If the Prime Minister wants his party to survive in Scotland, he should think again.

    The Prime Minister : The hon. Lady will, I think, understand that neither the referendum nor the opinion poll was particularly relevant because neither suggested any alternative structure for the industry. The status quo is obviously not an option, because Strathclyde will not exist as a local authority. There is, therefore, a need for an alternative and it is clearly nonsense to think that each of the new single-tier local authorities could be a separate individual water authority. For that reason, I said that the referendum was an expensive stunt and I still believe it to have been so.

     

    European Court —

    Q5. Sir Teddy Taylor : To ask the Prime Minister if he will raise at the next meeting of the European Council the extent to which European Court decisions are extending the powers of the European Union.

    The Prime Minister : My hon. Friend raises a serious point. It is important that the Court does not extend its powers beyond those established in the treaty. We expect it to use its jurisdiction responsibly and impartially to uphold the rule of law in the Community. We need it to ensure that all member states play by the rules.

    Sir Teddy Taylor : I appreciate that answer very much. Is not it worrying that the Commission is regularly using the Court as a means of stretching and extending EC powers, as we have seen recently on social legislation? Will my right hon. Friend find out from the Commission why on earth it announced last night that it will take action against us under the broadcasting directive, with particular reference to our national licensing system for overseas satellite stations? Should not we have less action and more unity of purpose to try to solve problems, instead of these foolish legal actions?

    The Prime Minister : I gather that there is a complex interaction in what is happening. The Commission has announced that it is taking us to the European Court of Justice over the implementation of the broadcasting directive. The point at issue is that the Commission wants licensing to be organised in one way, while we think that it is best done in another. We have defended our position robustly since the opening of infraction proceedings and will continue to do so. I do not believe that the Commission is seeking to spread its activities through the actions of the Court in the way that my hon. Friend suggests, and it would certainly need to operate within the treaty rights that it has been given.

  • Text of the Queen’s Speech – 18 November 1993

    Below is the text of the Queen’s Speech, given in the House of Lords by HM Queen Elizabeth II, on 18th November 1993.


    My Lords and Members of the House of Commons,

    The Duke of Edinburgh and I look forward to our tour of Caribbean countries next spring. We shall visit France to inaugurate, with the President of the French Republic, the Channel Tunnel in May; and to attend the ceremonies to mark the 50th Anniversary of the Normandy Landings, in June. We shall visit Canada to attend the Commonwealth Games in August.

    My Government attach the highest importance to national security. They will maintain full support for the North Atlantic Treaty Organisation. They will work to secure NATO’s adaptation to the changing security environment, and to continue developing the operational role of the Western European Union. My Government will work for full implementation of the Conventional Armed Forces in Europe Treaty, and for the entry into force of the Open Skies Treaty. Britain’s minimum independent nuclear deterrent will be maintained.

    My Government will work for the effective implementation of the Chemical Weapons Convention, to prevent proliferation of weapons of mass destruction, to promote the indefinite and unconditional extension of the Nuclear Non-Proliferation Treaty and to encourage international 2 responsibility in conventional arms transfers. They will take part constructively in negotiations on a verifiable and comprehensive Nuclear Test Ban. They will continue to help with the safe and secure transport of nuclear weapons for dismantling in the former Soviet Union.

    Now that the Treaty of Maastricht has entered into force, My Government will attach particular importance to implementing the new common foreign and security policy and intergovernmental co-operation in the fields of justice and home affairs. They will work to ensure that the principle of subsidiarity is applied to European Community legislation. My Government will promote financial and budgetary discipline in the Community. They will work within the Community for a successful conclusion to the Uruguay Round of trade negotiations.

    My Government will work for a rapid conclusion of accession agreements with Austria, Finland, Norway and Sweden, and will continue to put forward the case for European countries which are ready and wish to join the European Community.

    My Government will strive for a peaceful settlement in the former Yugoslavia. They will provide help for political and economic reform in the states of the former Soviet Union, and their integration into the international community.

    My Government will play a constructive role in strengthening the United Nations’ capacity to undertake peacekeeping and preventive action. They will work for full Iraqi compliance with Security Council Resolutions.

    My Government welcome the recent breakthrough in the Middle East peace process. They will continue to support efforts to bring lasting peace to the region.

    My Government will work for the long-term stability and prosperity of Hong Kong and to co-operate with China to implement the Sino-British Joint Declaration in the best interests of the Hong Kong people.

    My Government will play an active part in the Commonwealth. They will support construction of a democratic society in South Africa.

    My Government will maintain a substantial aid programme to promote sustainable development and good government.

    My Government will introduce legislation to place the Secret Intelligence Service and Government Communications Headquarters on a statutory basis; and to make further provisions for the oversight and accountability of them and the Security Service.

    In Northern Ireland My Government will continue their efforts to defeat terrorism through impartial and resolute enforcement of the law, to uphold the democratic wishes of its people and seek political progress by broadly based agreement, to strengthen economic progress and to create equality of opportunity for all sections of the community. They will maintain positive relations with the Republic of Ireland.

    My Government will maintain their fight against terrorism, throughout the United Kingdom and elsewhere.

    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,

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

    My Government will bring together tax and expenditure decisions in a unified Budget. Fiscal policy will 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. They will continue to promote enterprise and improve the supply performance of the economy.

    The Citizen’s Charter will remain central to My Government’s programme for improving public services.

    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.

    Legislation will be introduced to facilitate deregulation and to remove obstacles to contracting out by central and local government.

    My Government will continue to give priority to law and order. Legislation will be introduced to allow the courts to deal more effectively with young offenders and to make improvements in the criminal law.

    A Bill will be introduced to improve the organisation and management of the police so that they are better able to combat crime, and to strengthen the administration of magistrates’ courts.

    My Government will continue to develop their policies on social security so that help is concentrated on those most in need and expenditure is kept within 4 affordable limits. Legislation will be introduced to raise the National Insurance Contributions paid by employees.

    Legislation will be introduced to privatise British Coal.

    My Government will bring forward legislation to reform local government in Scotland and Wales.

    My Government will introduce legislation to establish new arrangements for funding teacher training in England and Wales and to reform student unions.

    My Government will bring forward a Bill to reform the law on Sunday Trading in England and Wales.

    Bills will be introduced to take forward Environment Agency planning, and to reform the law on trade marks.

    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 Commons Statement on the 1993 European Council in Brussels – 1 November 1993

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Several hon. Members rose —

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

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

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

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

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

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

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

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

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

    Mr. John Hume (Foyle) rose —

    Hon. Members: Hear, hear.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Mr. Dennis Skinner (Bolsover): No.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Several hon. Members rose–

    Madam Speaker: Order. We must now move on.

  • PMQT – 26 October 1993

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

     

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

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

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

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

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

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

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

     

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

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

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

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

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

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

     

    Fishing Industry

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

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

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

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

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

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

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

     

    Engagements

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

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

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

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

     

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

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

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

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

     

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

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

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

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

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The need for a new agenda

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

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

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

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

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

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

    A wider Europe

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    A Europe of nation states

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

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

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

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

  • Mr Major’s Joint Press Conference with the Swedish Prime Minister – 13 August 1993

    Below is the text of Mr Major’s joint press conference with the Swedish Prime Minister, Carl Bildt, held in Harpsund on Friday 13th August 1993.


    PRIME MINISTER CARL BILDT:

    Could I start by saying “Welcome!”. I have rarely seen such a distinguished and numerous collection of Swedish journalists this early in the morning so far away from Stockholm! Let me also say thanks to John and Norma Major for coming here and for making it possible to have such a nice and such a fruitful visit as I think we have had.

    We have now concluded a couple of days of formal as well as informal discussions covering a rather wide range of topics. We have discussed quite extensively of course the situation in former Yugoslavia and the joint initiative that we took the day before yesterday is now from our side well under way. We are ready to go into Sarajevo at more or less a moment’s notice and we are now awaiting clearance from the UNHCR. I think the Swedish Air Force aircraft is ready at Ancona and I believe the same to be the case on the British side. It has been working can I say on the Swedish side very smoothly. I am impressed by what has been done by all of the relevant Swedish authorities at such short notice.

    We also discussed developments in the process of European integration including the enlargement negotiations. We are united I think or share the same views on the need for a larger, more open, less intrusive Community in the future.

    We also discussed the situation in the Baltic countries where we have issued this morning a joint statement which I guess you have seen and the highlight of that is of course that we are concerned by recent strains that we have seen in Baltic-Russian relations and we call upon all sides to deepen the political dialogue and work towards a settlement of the outstanding disputes; in particular, we ask Russia to fulfil without further delay its commitment under the CSE Helsinki Final Act to withdraw the remaining troops from the Baltic States – this must be done without linkage to other issues. We also urge Estonia and Latvia to continue to build upon the recommendations by the CSE and by the Council of Europe when it comes to developing good Community relations with the non-Estonians in Estonia and with the non-Latvians in Latvia. We also express our joint will and eagerness indeed to continue to help them in the building of true independence and in the development of good relations with the Russians. I would guess that this is also going to be a topic for the discussion that. I am going to have here tomorrow with the Foreign Minister of Russia, Mr. Kosyrev.

    Let me just say it has been a very useful visit. We have, think, an outstanding bilateral relationship. If there has been one difficulty during this visit it has been how hard it is to improve upon a relationship that is already so good but we have tried and I think we have achieved some amount of success and I think that is symbolised both by the joint initiative we took on Sarajevo at the beginning of the visit and on the joint statement on the Baltics that we have done now as the visit comes to its end.

    PRIME MINISTER JOHN MAJOR:

    Let me first thank Carl and Mia for their hospitality in Sweden; it has been not only a very worthwhile but a very enjoyable couple of days as well. Some time ago, Carl accepted an invitation to attend the Conservative Party Conference in October and I will look forward to welcoming him there in due course.

    I won’t reiterate all the points that have been made thus far except simply to say that I endorse them. If I could say just a word firstly about the joint initiative on Sarajevo, we were both responding to the High Commissioner for Refugees’ plea for help for 41 seriously injured patients. That operation, both on the Swedish side and on the United Kingdom side, is now well under way, The British medical teams have now been assembled and I expect they will be flying out from Stansted to Ancona at around 4 o’clock this afternoon; they will then he in a position to transport the patients to Britain just as soon as they are ready to travel and that, of course, is a matter that is under way locally in Sarajevo. At the moment, the High Commissioner for Refugees is still assembling details both of the adult and of the child patients that they wish us to receive. I should say that the Overseas Development Association plane will also be taking out a substantial stock of antibiotics, anaesthetics and other urgently-needed drugs for the hospitals in Sarajevo.

    Let me make a further point about this as well. This is by no means the end of the operation. If needed, there will be a second plane standing by to bring out more patients when the United Nations staff have fully identified those and their relatives; this may take a little longer than originally envisaged and if that is the case there will be a second plane standing by to help.

    I should also make clear that the Overseas Development Association Senior Medical Assessor is currently in Zagreb but he will be in Sarajevo on Monday and will provide advice to us on what further supplies and arrangements are needed and if further medical supplies are needed, we will examine what we can do immediately to help in arranging for them to be provided.

    The Prime Minister spoke of the other discussions we have had during the last couple of days; just a brief word on those, if I may.

    Firstly, on European matters, as the Prime Minister made clear yesterday, we share the same vision of a larger, more open and less intrusive Community. We want that larger Community because it extends the area where trade will bind nations more closely together. We want that more open Community because that will mean more jobs and more prosperity for all the people within the Community. One-quarter of Britain’s and Sweden’s income comes from exports. Both Swedish entry and that of all the EFTAn countries will in my judgement help bias the Community in the future towards more openness and more free trade and I think that bias would be very welcome.

    I had the opportunity yesterday morning over breakfast of meeting a very impressive group of Swedish businessmen; it was a private meeting but a very worthwhile one. There were a number of messages I took from that meeting but I think the most important one was their complete conviction about the vital importance of concluding the Uruguay Round, the trade negotiations, by the end of this year. That, as you know, is a view that I very strongly share and it is my view and I think the Prime Minister’s view as well that that should be one of the Community’s highest priorities in the next few months.

    We have both spoken of a less intrusive Community. I think when the provisions of the Maastricht Treaty are in place we will be able to put more flesh on the bones of that dreadful word “subsidiarity”. That I think will be extremely helpful for everyone.

    We have discussed a range of other matters, the Baltic States, the position in Russia, a number of bilateral matters as well. I won’t reiterate all the points that have already been made but would conclude on this point about Sweden’s negotiations to enter the European Community: I believe it is in Sweden’s interest to enter but I also believe it is in the Community’s interest that Sweden should enter and I very much hope those negotiations will he satisfactorily completed and everything else satisfactorily concluded for Sweden to join the Community on 1 January 1995.

    QUESTIONS AND ANSWERS

    QUESTION:

    Mr. Prime Minister, which stumbling blocks can you see ahead in these negotiations for Sweden in Brussels?

    PRIME MINISTER MAJOR:

    I think that is a matter for the negotiators rather than me. There are always, in negotiations like this, a large number of difficult matters that need to be determined. You have of course twelve nations already members anxious to protect their national interests and Sweden quite properly will wish to protect their own vital interests when they join the Community so some of those negotiations will be quite tough, budgetary contribution clearly is one but there are a series of matters I think that are very familiar to people in Sweden. I believe all of them are capable of a solution. Negotiations will be hard but then they always are hard on occasions like this but I see no reason to suppose they can’t be satisfactorily concluded.

    QUESTION:

    What are the delays in putting the aircraft into Sarajevo to collect the injured people? Is it UN red tape?

    PRIME MINISTER MAJOR:

    No. The delay is assembling the patients in Sarajevo and making sure they are medically ready to travel and in the case of some of them where they need relatives to travel with them, that the arrangements can be made for the relatives to travel as well. It is a logistic difficulty. There are a great many logistics to overcome in Sarajevo to get the patients together. That is the only cause of delay.

    In terms of the availability of the aircraft and medical equipment, as both the Prime Minister and I have said, both on the Swedish side and on the British side that will be ready very speedily.

    QUESTION:

    When do you expect the injured people to arrive in Sweden and arrive in London?

    PRIME MINISTER MAJOR:

    I can’t be absolutely certain about that. I hope over the weekend but I will know more about that later today I hope.

    QUESTION:

    Prime Minister, this statement on the Baltic States, does that reflect a fear that if the different Baltic States don’t handle relations with their Russian minorities in a sensible and democratic way you could end up with another Bosnia just over the water from Sweden?

    PRIME MINISTER MAJOR:

    No, I don’t think that we believe that that is likely. What does concern us is the desirability of the Russians meeting their commitment to remove their troops out of the Baltic States as speedily and as comprehensively as possible and secondly, of course, of ensuring that the Russian citizens who will continue to live in the Baltic States are treated fairly. We know there are tensions, we know there are difficulties; what we are saying is that those need to be seriously addressed and overcome very speedily.

    QUESTION:

    You don’t see it as a tinder-box?

    PRIME MINISTER MAJOR:

    No, I don’t see it as that sort of tinder-box, no.

    QUESTION:

    Do you think it is realistic for Sweden’s negotiations to be concluded by 1 January 1995?

    PRIME MINISTER MAJOR:

    I do indeed. I don’t see that a longer timetable would be likely to lead to a more satisfactory conclusion. My experience of the Community over the last few years is that the best way to get an outcome is to set a deadline and I think that probably applies to other organisations as well as the Community. I am quite certain it is a realistic proposition to negotiate within that time frame and that is the view of the Community as a whole and I believe it is the view of the Swedish negotiators and the Swedish government as well.

    QUESTION:

    You both said you shared the vision of a more open Europe, a more open Community. I would like to ask Prime Minister Major when will Britain abolish border controls or will you ever?

    PRIME MINISTER MAJOR:

    We are talking about trade when we are talking about an open Community. We have special arrangements on border controls; an island is different and I think that is generally recognised. We are talking about the desirability of open trade and I think in terms of the prosperity and growth of Europe that is very important; it is one of the reasons of course that the conclusion of the world trade talks is so very important for Europe. Europe tends to concentrate a great deal on the agricultural aspect of those trade talks but of course what is often overlooked as people do that is the very great importance to Europe of the industrial and commercial agreements that have already been reached in the Uruguay Round; they are vitally important to the future prosperity of Europe.

    It is also important I think for the general development of free trade in Europe for two reasons: firstly, the jobs and prosperity point that I made a moment ago but secondly – a quite different point and perhaps a moral point in a sense – most of the European nations are relatively generous with overseas aid to less-developed and very underdeveloped countries. I think that is right and they should be but it is an oddity that on the one hand Europe is providing aid to those countries and on the other hand Europe seems to be closing its markets to exports from those countries which would leave them for ever dependent upon overseas aid. That is a second reason why there is a great imperative to open markets and free trade.

    QUESTION (SAME LADY):

    But does that mean that the Fourth Freedom – freedom for people – doesn’t apply for Britain?

    PRIME MINISTER MAJOR:

    No, it doesn’t mean that at all.

    QUESTION:

    Do you accept with regard to what you said about the Baltic States that they, the Russians, have a very practical problem in providing accommodation for the troops that you want withdrawn?

    PRIME MINISTER MAJOR:

    I think they have referred to that practical problem; I think there is some reason to believe there is a practical problem there. What we are saying is that it needs to be addressed and we think there can be movement on both sides, certainly assurances as to Russian minorities in the Baltic State and perhaps the Russians looking more expeditiously at removing their troops from the three states as well.

    PRIME MINISTER BILDT:

    The practical problem, if I might add, is a rather limited one. If you see that in relation to the movement that is there of different military units around in Russia and from, say, Western Europe or from Central Asia or in and out of the Caucasus, the need to provide accommodation for the remaining troops coming out of the Baltic countries is a very very small portion so all of the practical problems there tends to be a tendency in certain Russian quarters to use that as an excuse and I don’t think that is acceptable.

    QUESTION:

    Prime Minister Major, you said you and Prime Minister Bildt share the vision of an open, larger and less intrusive Community but Britain has made exceptions from the Maastricht Treaty on the social dimension so don’t you share the vision of the inner organisation of the Community?

    PRIME MINISTER MAJOR:

    I think you need to understand why I refused to accept the provisions of the Social Chapter. What is the greatest problem facing the whole of Western Europe at the moment? I guess most people faced with that question would say it is the need to provide jobs through growth and to increase prosperity. What we do see over the past: twenty years – and I think this illustrates the point very clearly – is that the amount of growth in Western Europe as a whole and the United States as a whole has been broadly the same but how many jobs has that created? In the United States, the same amount of growth has created four times as many extra jobs as have been created in the European Community. Why is that? The answer predominantly is the social on-costs of one sort or another that prevail in the European Community. It is not sensible to the people who are unemployed and who want jobs to introduce new provisions that will make it more difficult for them to get employment in the future.

    That was the case, it is the case and that is why I have consistently opposed the provisions of the Social Chapter and still do.

    QUESTION:

    Have you been discussing the future of the European Monetary Union and what could be done to solve the problem?

    PRIME MINISTER MAJOR:

    Well we only had two days! Others have tried for longer. We discussed present difficulties but we didn’t on this occasion advance specific solutions. It may be necessary to take some time to pause and reflect.

    QUESTION:

    As two Prime Ministers who both have floating currencies, do you conceive a situation where we might have to go back to, say, having the Gold Standard or some way of bringing order to the fold to increase the power of governments individually and collectively against the problems caused by all this huge amount of money which can be moved around by large investors and speculators and so on?

    PRIME MINISTER MAJOR:

    That is not a matter we discussed over the last couple of days. Clearly we have to reflect upon what has happened to the Exchange Rate Mechanism. I said after Sterling left the Exchange Rate Mechanism last September that I thought there were fault-lines in the system. Many people at that stage said: “We don’t think there are fault lines in the system, it is a particular problem with Sterling!” Well now of course it is clear to everyone that there are fault-lines in the system and it was not simply a problem with Sterling. Now we need to examine what, if anything, may be done to deal with those fault-lines.

    What is certainly true from the point of view of business is that stability of exchange rates, whether through successful economic management in a floating situation or through some form of management of rates, is something that business cherishes and helps the movement of goods and trade so I think the politicians must examine how best to achieve that but I don’t think I have a snap judgement to offer you on that this morning.

    SAME MAN:

    What about the Gold Standard?

    PRIME MINISTER MAJOR:

    No, I don’t think that is likely.

    QUESTION:

    Mr. Major, you recently revived your proposal for a hard ECU alongside the existing currencies. Did you discuss that question and if so, what is the Swedish opinion of it?

    PRIME MINISTER MAJOR:

    No, we didn’t discuss the hard Ecu and I read with some interest that I revived the suggestion. I think every country is actually looking at what series of options may exist in the future. I haven’t placed the hard Ecu back in the middle of the European debate again; it is in the European debate, it was put there some time ago but I haven’t especially floated it again; I read with some interest that I had but I haven’t.

    QUESTION:

    Do you think that Great Britain is moving towards a faster economic recovery right now?

    PRIME MINISTER MAJOR:

    Yes. I think we are moving towards recovery. Recoveries are always patchy. You get a series of statistics that are extremely good, then occasionally you get some that are less good and think that will be the pattern of the United Kingdom recovery as well.

    Over the past five months or so, the overwhelming volume of statistics have been pointing in the direction of recovery and growth of some significant size this year but rather larger next year. That seems to be the position. It is bound to be patchy. I think it is patchy but I think there is no doubt whatsoever that the United Kingdom economy is now back on the road to growth.

    QUESTION:

    Do you think that Carl Bildt should learn anything from your way of handling the financial problems?

    PRIME MINISTER MAJOR:

    You had better ask Carl that!

    PRIME MINISTER BILDT:

    You have to draw on the experience of all different countries. You can’t really compare the economy of one country with the economy of another country totally but I think it is very clear when you look at the figures coming out of. the British economy that among the European economies the British one is the one that clearly is in some sort of recovery and I think that is encouraging not only from the British perspective but also from the wider European perspective because we clearly need some countries to recover from the economic problems that they are having now.

    We are starting to see the same signs in Sweden although we are behind. We see industrial production picking up, we see orders coming into industry. When I talk to leaders of industry now after the summer, after the vacation, when they see what is happening in the markets they are fairly encouraged with the interest rate coming down so I think that we will see Sweden developing into recovery along the lines of Britain but we are somewhat behind no doubt.

    QUESTION:

    Have you been discussing any kind of European strategy when it comes to solving the unemployment situation?

    PRIME MINISTER MAJOR:

    The European Community discussed that at some length at Copenhagen and we are submitting proposals towards growth and how to deal with the particular present problems of Europe for a White Paper that the Community will produce later on this year. Britain is submitting her own proposals, other countries will be doing the same and I hope we will be able to discuss that in detail at the Brussels summit in December.

    PRIME MINISTER BILDT:

    In addition to that, we are going to have a meeting of the Nordic Finance Ministers and the Nordic Prime Ministers to see what we can do from the Nordic side to join with the European initiatives that are necessary. I think it is very obvious that the economic problems that we are having throughout Europe and primarily the problems that we are having with growth and long-term employment need also European solutions. We can’t just act as nations individually; we have to pool efforts and develop joint policies and that will have to be done within the framework of the Community but not the side of the Nordic nations we are going to try to do whatever we can to join in.

    QUESTION:

    Mr. Prime Minister, you are also a Conservative Tory Party leader. Your Parliamentary group in the European Parliament has joined the Christian Democratic parliamentary group. How do you see this merger, and do you also consider your Tory Party both as a Conservative and a Christian Democratic party?

    PRIME MINISTER MAJOR:

    My party in the United Kingdom is a Conservative Party and remains a Conservative Party.

    As far as the European Community is concerned, I very much wish to see a right-of-centre European Parliament rather than a left-of-centre European Parliament and all the right-of-centre parties have joined together in a loosely-knit arrangement but it is a loosely-knit arrangement, not a marriage; it doesn’t imply complete uniformity of every aspect of policy and it doesn’t imply uniformity in any other respect as well but certainly there is a great deal of common ground between the parties and to that extent they have this loose arrangement and the Conservative members of the European Parliament have joined their other right-wing colleagues.

    PRIME MINISTER BILDT:

    But I don’t think it is proper to say that it a purely Christian Democratic political grouping because it does include parties coming from different political traditions; they are somewhat different in the Nordic countries, in Britain, in Germany, in France. Take a country like Greece, it comes from a different tradition but joins into the European Peoples Party so it is a grouping that brings together the major forces of the centre-right in Western Europe and as such is important but you can’t put a specific ideological label to it.

    QUESTION:

    Yet they call themselves Union of Christian Democratic Parties.

    PRIME MINISTER BILDT:

    No. That is another organisation. The Union of Christian Democratic Parties does exist and that only includes Christian Democratic parties. If you talk about the group in the European Parliament, the European Peoples Party group, it does include other parties as well that are not members of the Christian Democrats and I don’t think are seeking membership of that union either.

    QUESTION:

    Prime Minister Bildt, do you share Prime Minister Major’s opinion on the social dimension of the European Community and what importance does this have for Sweden?

    PRIME MINISTER BILDT:

    I think it is important for Sweden that there is a social dimension to the Community in the sense that the Community also tries to develop policies to get growth back and employment and all of that; that is what is normally in the Swedish debate referred to a sort of social dimension. But we also think that broadly speaking welfare policies of different sorts should be national. I don’t see any reason why a lot of the social welfare policies that we have developed in Sweden – rightly or wrongly, we can have different points of view on those and there is a heated debate going on in the country – that they should be made into European policies. We should solve at the European level only the questions that can’t be solved on the national level and I think that most of the social policy issues are better dealt with at the local, regional or national level.

    QUESTION:

    What is the current state of play as you see it between the Americans and the Europeans as regards the use of military action? I think Mr. Christopher was saying the other day it is a top priority for US security to halt the advance of the Bosnian Serbs.

    PRIME MINISTER MAJOR:

    We reached an agreement, as you know, at the NAC a few days ago and that agreement stands, it remains the same.

  • Mr Major’s Statement on the ERM – 30 July 1993

    Below is the text of Mr Major’s statement on the ERM, made on 30th July 1993.


    PRIME MINISTER:

    The events of last week and the weekend vindicate our decision to suspend sterling’s membership of the ERM last September. As I said then, there are fault-lines in the system, which have now affected all the other currencies.

    What we hope will emerge from the weekend’s changes will be conditions that will promote economic recovery in Europe. 60 per cent of our exports go to EC countries, so the opportunity for lower interest rates and a stimulus to economic growth is welcome.

    It is not in the UK’s interests to see currency instability in Europe. So I understand the decision to widen the bands and stick to existing parities, rather than suspend the ERM itself.

    The fault-lines in the system have clearly been exposed, and the Community will have to consider carefully in the longer term what the lessons and the implications are.

    As the Chancellor has made clear, there is no prospect of the UK returning to the ERM in the near future, and we shall continue to set monetary policy by what’s right for the United Kingdom.

    We have always made clear that we did not believe the time-table for EMU set in the Maastricht Treaty was right or practicable. As I said in a speech in the House of Commons on 9 June:

    “In the negotiations at Maastricht I sought and secured an opt-out on the single currency because I was sceptical of its economic impact across Europe and its artificial deadlines … When I was negotiating at Maastricht, the idea of monetary union in 1997 looked ambitious, perhaps even a little dubious. I have to tell the House it looks wholly unrealistic today.”

    I stand by every word of that. The EMU time-table looks totally unrealistic now.

  • Mr Newton’s Statement on Maastricht – 27 July 1993

    Below is the text of Mr Newton’s Commons Statement on Maastricht, made on 27th July 1993. Tony Newton was the Leader of the House of Commons and Lord President of the Council.


    TONY NEWTON:

    Following the decisive conclusion last Friday of the Parliamentary processes on Maastricht, Parliament goes into its recess this week after a highly productive session, with well over 30 Acts put onto the statute book so far.

    Despite a total of 40 days of debate in the two Houses on the European Communities (Amendment) Act, the Government has also successfully moved ahead with the programme put before Parliament fifteen months ago.

    Of the 15 Bills promised in the Queen’s Speech, 12 are expected to have been passed by this evening – achieving, for example, further improvements to trade union law; important reforms of leasehold, the rights of council tenants and the arrangements for urban regeneration; a firm basis for the continued success of personal pensions; paving the way for coal privatisation; and underpinning our educational reforms. Other significant Bills, including the Railways Bill and the National Lottery Bill, are well on the way to completion before the new session begins later this year.

    In addition, over 20 other Government Bills have been passed, for example, to restrain increases in business rates; to establish a new basis for the Independent Living Fund which helps very severely disabled people; to assist with insurance costs arising from acts of terrorism; and to abolish car tax.

    With the Maastricht debates behind us, and the economy now moving ahead, there could be no clearer evidence that, under the Prime Minister’s firm and determined leadership, the Government is achieving its objective.

  • Mr Major’s Joint Press Conference with French Leaders – 26 July 1993

    Below is the text of Mr Major’s joint press conference with President Mitterrand and Prime Minister Balladur, made in London on Monday 26th July 1993.


    PRIME MINISTER:

    We have had this morning a series of discussions. I have had the opportunity this morning of discussions with President Mitterrand and the Prime Minister. During the time we have held those discussions eight of our Ministerial colleagues have been discussing their own particular areas of responsibility. At the conclusion of their discussions the whole team came together for a plenary meeting and then had the opportunity of discussing matters again over lunch.

    When I became Prime Minister some time ago one of the particular objectives I had was to develop relationships between Britain and France. It seemed to me that our countries had a substantial pool of common interests, there was a great deal of scope for cooperation waiting to be tapped. I think what today’s summit shows, with a much larger participation I think than we have ever had before amongst other Ministers, is that we have travelled a very long way down that road of cooperation.

    Today’s summit follows months of intensive work, Prime Minister Balladur’s visit to London in early May, my own visit to Paris at the invitation of President Mitterrand later on that month.

    Let me set out in very brief terms prior to your questions some of the results of those discussions.

    May I turn first to foreign policy. I think it is undeniable that we are working more closely today on international problems than ever before. We have discussed Bosnia at different meetings today, we have agreed that the key points that support the efforts of Dr Owen, and Mr Sholtenberg to reconvene the negotiations in Geneva this week. We clearly are concerned to help Sarajevo, to support UNPROFOR’ s efforts to create a ceasefire, to restore water, to restore power and to secure access for the relief convoys. We also want to sustain the humanitarian relief efforts as long as conditions permit and to accelerate the implementation of the safe areas resolution, including the provision of air support.

    We discussed a number of matters relating to the European Community, including of course the joint Franco-British exercise on subsidiarity. France and Britain have now agreed a list of 24 items of Community legislation, many of them substantial, that need to be repealed, withdrawn or amended. Examples of that include tax directives on stock exchange transactions, directives on drinking water and pollution which in our judgment are much too detailed and much too prescriptive. Both our countries will also be collaborating with Germany which has drawn up a list of substantial items of its own. The aim of this work is to present the results of it, jointly, to the European Commission in the autumn as part of the preparation for the December European Council decisions.

    We have had some discussions this morning also on joint defence interests. We set up last autumn the Franco/British Joint Commission on Nuclear Policy and Doctrine, the objective is to coordinate our approach to deterrence, to nuclear doctrines and concepts, anti-missile defences, arms controls and non-proliferation. We have decided today to make this Joint Commission a permanent standing body with a substantial amount of work to continue into the future.

    We have looked also at joint defence projects, we reviewed collaboration in defence projects, Britain and France at the moment are working together on 21 separate projects, some of them also involving other countries as well. We have more British projects with France than with any other single international partner.

    We discussed also briefly the Channel Tunnel and I am pleased to announce that Her Majesty The Queen and President Mitterrand will jointly open the Channel Tunnel on 6 May 1994.

    We discussed also science and technology, we have decided to reconvene a Franco/British conference to explore fresh approaches to science policy. I think it will be a wide ranging conference, it will look at questions such as technology transfer, how to ensure that research leads to better product development and far better public explanation of scientific questions.

    We also looked at the question of D-Day and its 50th anniversary. Next year is a very remarkable part of our joint history with the 50th anniversary of the D-Day landings. Britain and France are planning to commemorate this historic event in an appropriate way, there will be very substantial celebrations to commemorate that and Ministers have been appointed in both countries to supervise the preparations. Those Ministers will be meeting shortly in order that we can bring those preparations to fruition. I expect we will be able to announce details of the commemorative events in the autumn.

    We have covered a range of other issues but rather than running through them in great detail I will try and pick up any points of interest to you in the question period we will have shortly.

    PRESIDENT MITTERRAND:

    I will not add anything really to the list of issues that have been discussed, what you have heard is a very complete list and this gives you an idea of the subjects we have talked about. It will be for you to ask the questions you want to ask.

    So I think it is more a question of the general spirit and atmosphere that I would like to talk about. We have had great pleasure in coming here to London and meeting our British partners and exchanging with them our positions and thinking and arguments on the problems on which we have diverging opinions and also we have been able to note that there were more and more points on which our views were the same.

    In the field of foreign policy where our two countries have very long standing experience going back many many years, in Europe in particular, well there it was easy for us to reach common conclusions. On the new problems that are coming up, new in relation to this generation, in relation to history, in other words the setting up of the European Community and its consequences, its impact, its effects, and the development of world trade, on those matters we still have to define more closely our actual positions but we are delighted with the efforts that have been made successfully by the British government in order to enable the development of the Maastricht agreement. Of course each country will operate according to its own style and on the basis of the text which is the basis of the European Agreement.

    What has just been said about the commemoration of the 50th anniversary of D-Day, well we all know what we owe to the United Kingdom and on the French side we will do all that should be done in order that people representing political and military spheres should meet with the warmest and the most grateful welcome possible. It is an important date, it was an important date in the relationship, as you know, which have become now very friendly relations, which became very friendly relations between our two countries at the beginning of the century.

    M. BALLADUR:

    At this stage I have got nothing further to add to that, thank you.

    QUESTION (La Tribune):

    Did you talk about the EMS this morning and has Mr Major any views on the chances of its survival and has Britain any particular interest in the EMS? On the French side, can we be told if the chances of escaping shall we say the British model with a more competitive currency at a lower rate of interest with more creation of jobs, is that likely to happen, or are the markets going to impose the same thing on France as it imposed on Great Britain last year?

    PRIME MINISTER:

    We certainly spent some time discussing this matter this morning and I think the statement issued this morning by France and Germany, the Franco-German statement, reaffirms support for the existing parity and close cooperation within the European Monetary System. I do not think it is in anyone’s interest to have continuing currency turbulence in Europe, it damages the prospect for economic recovery in everyone’s export markets so I hope the possible turbulence will settle down, but I have nothing further to say than that.

    M. BALLADUR:

    I would like to add something on that. Firstly, you asked the question in a way to elicit a certain response, I have never heard of a more competitive currency, a reference to that, what is important is that economies be competitive with one another. In France we have achieved good results on that, we are very much attached to monetary stability, we do everything we can to try and ensure it, and I note that the Prime Minister has just said that the English too want this monetary stability maintained in Europe and that they do not consider that there would be any advantage in greater instability.

    QUESTION (….Liberation):

    What did you discuss on GATT? How did both sides look to the future in the negotiating process on trade agreements?

    PRIME MINISTER:

    We had some discussions on the Uruguay Round this morning and our Agriculture and Trade Ministers also spent some time discussing it; it is clearly a matter of immense importance. All of us are agreed on the importance of the GATT Round and of a successful outcome on agriculture. We know that France has some particular difficulties with the Blair House Accord and it must be examined in more detail by the Community, hence the request for a Joint Council in September and I think in particular the constraints which Blair House would impose on internal management of the CAP, on growth in EC exports, erosion of Community preference, those are problems that France have raised and that the Community will have to discuss.

    We all agreed that a durable and balanced agreement is necessary. I know in the discussion between Agriculture Ministers that Gillian Shepherd emphasised that in our view the Blair House Accord was a good one for the Community but these are matters we need to discuss. What is a matter of agreement between us is the overall desirability of a satisfactory and balanced GATT agreement.

    PRESIDENT MITTERRAND:

    We come back to an idea which already has been expressed at least a hundred times but I think should be reiterated with strength and that is that the GATT negotiations – world trade negotiations – are not only on agriculture. I think that one of the mistakes made by people who started the discussions – I have in mind particularly our American friends – way back in 1985 was that they were totally obsessed with agriculture and that gave the impression that people wanted to get agreements which would be good agreements where it was possible for that particular country to find that beneficial leaving out areas where one might not be able to reach such favourable agreements for oneself. This was Mr. Reagan’s sign of the times – the way we interpreted it anyway. That is why France is talking about a global comprehensive agreement.

    To come back to agriculture itself, the important thing is that the agreement should be a balanced agreement. You can’t have an agreement which is one-sided. If there is a compromise solution found, it must be beneficial to all the parties concerned.

    Concerning Blair House, this is a point of friction naturally because we think that the agreement needs to be revised because it happened under conditions which we think questionable. In any case, the only thing that really counts is the political decision, the actual political decision taken by the countries concerned; that carries much more weight than the purely technical discussions that take place beforehand.

    That is why we are quite prepared to say and repeat that an overall balanced and lasting agreement would be a good thing for international trade but it would be a bad thing if it turned out that those agreements were based on a grave injustice that we just don’t want which I think people can easily understand.

    QUESTION:

    Can I just add a further question? Can one say that there has been progress today on GATT?

    PRESIDENT MITTERRAND:

    It seems to me that there has been progress on two areas, firstly I feel that we better understand one another – at least I for my part better understand the British position and secondly I think we agree and consider that a meeting of Foreign and Agricultural Ministers should be held in September which will be very important and it will be there that we will be able to discuss agriculture and the general organisation of world trade so we must prepare very actively for that meeting in September. Our British friends have agreed that that would be an important date.

    QUESTION (Adam Boulton, Sky News):

    I wonder, in view of the reported comments in the Sunday papers this weekend, if Mr. Major could tell us how much longer he thinks he is going to be able to cohabit with some of his Cabinet and what advice the President and M. Balladur would give on cohabitation with ideological opposites. [Laughter].

    PRIME MINISTER:

    It seems to work very well.

    QUESTION (David Langton, Bureau of National Affairs):

    Of course, no illegitimate questions from me at all!

    On GATT, last week we had the Director-General, Peter Sutherland, hoping to knock out a conclusion by the end of this year. Have you got any good or bad news for him?

    Secondly, the French Foreign Minister, Alan Gerait [phoentic], was calling for trade policy instruments to be strengthened. Did you discuss the strengthening of trade policy instruments today, particularly in relation to, say, US anti-steel dumping provisions?

    PRESIDENT MITTERRAND:

    Yes, we did. Mr. Major asked me questions about that and I gave him a certain amount of detail about what we would wish. The problems, as I said, will be dealt with in the documents that we will send to Brussels in the forthcoming weeks.

    PRIME MINISTER:

    We have to find a solution to anti-dumping and countervailing actions – there is no doubt whatever about that. I expressed the view this morning that the long-term solution to problems of international trade in steel lies in the conclusion of a multilateral steel agreement and we will continue to stay in touch to discuss that particular matter.

    QUESTION (Tony Bevins, The Independent):

    Have you apologised to the bastards, Mr. Major?

    PRIME MINISTER:

    We have been discussing Anglo-French matters this morning, Tony, Anglo-French discussions.

    QUESTION (Keith Rockwell, Journal of Commerce):

    Mr. Balladur and Mr. Major, was there any discussion of the EC’s policy with regard to the import of Japanese cars and was there any discussion at all of Britain’s role in all of that, whether British-made Japanese cars might be subject to any further restrictions?

    PRIME MINISTER:

    No, that wasn’t discussed in our discussions this morning and don’t believe it was raised when the Trade Ministers met.

    QUESTION (Carol Walker, BBC TV News):

    Given the attack on the French base in Sarajevo, was there any further discussion about the possible use of air strikes?

    PRESIDENT MITTERRAND:

    It is a subject that we started to deal with several weeks ago when the so-called “safe areas” were decided upon within the UN and the point being made that respect for such safe areas is for mainly Muslim citizens in Bosnia and that the protection of such zones could require means that would be used in order to protect the populations if they were threatened and this is what is happening right now in Sarejevo in particular.

    QUESTION:

    I would like first of all to ask you about the latest escalation in the Lebanon and the latest Israeli aggression of the sovereign state of Lebanon. How do you see the effect of this on the peace process in the region?

    My second question is addressed to the French President, M. President, changes in immigration in France have created an atmosphere of uncertainty among the immigrants in France and in particular among Arab immigrants and North African immigrants. Are you aware of this new atmosphere in the immigrant community and do you envisage any change that would take account of this situation which is unstable?

    PRIME MINISTER:

    On the first point, we did not discuss Lebanon this morning. On the second point, I will let the President respond directly.

    PRESIDENT MITTERRAND:

    I would have preferred to have answered the first question as a matter of fact but when people fight each other on both sides of a frontier you can’t expect the sovereignty of each country to be fully respected and once that situation obtains then it is very natural that both sides have to accept the consequences of such a conflict and that conflict will necessarily make the peace process more complicated. There is an inherent contradiction in all this which is pretty obvious.

    On the immigration legislation, you are talking about French political affairs there and I have not come here to London to talk about internal French political matters – that is rather the same as Mr. Major’s answer a moment ago when there was some mention of the necessity of talking about our Franco-British meeting and avoiding a sort of British-British discussion or a discussion internal to Britain as we say Franco-French on our side. You say the same thing? Anyway, I don’t think that the immigrants in France when they are in a completely lawful situation that is accepted, when they have been legally admitted to France following a certain number of procedures which on labour matters come under the Ministry of Labour and it can be the Ministry of the Interior when it is a question of permits and so on so foreigners who are living in normal conditions, when they are legally present on French soil, must be treated normally.

    If they are not present legally on French soil – if they are illegal immigrants – then they can hardly expect to be treated exactly in the same way so it is their natural fate to be taken back home sooner or later. Now there the discussion does start of course within France and with other countries to see what safeguards and guarantees should be granted to these men and women because they deserve respect even if they have gone against the law and we have to see with other countries too what should be done in order to respect their own individual human rights but this is an internal French affair quite honestly and there is no point in having a discussion among ourselves here in Great Britain.

    QUESTION (France Two):

    Mr. Prime Minister, have you discussed the future of the EBRD and is Britain going to support a French candidate to support M. Atteli [phoentic]?

    M. BALLADUR:

    The future of the EBRD for the moment is a matter of choosing a president for the institution. As you know, France has an excellent candidate and for the rest you must ask Mr. Major what his views are.

    PRESIDENT MITTERRAND:

    If Mr. Major allows, I will recall some memories perhaps which are more personal memories for me than for him because at the time when the various seats and headquarters and offices were negotiated among a number of international bodies, including EBRD, it had been understood that if the headquarters were to be in London then at least the first presidency and the first term of office would be a French presidency. If it isn’t the same president nevertheless I think it would be right and only natural that it should be the same country and this would be accordance with the original agreements.

    PRIME MINISTER:

    [Inaudible] excellent candidates. The Community are seeking a unified candidate. We have expressed our view to the President of the Community and I hope will reach a conclusion shortly.

    QUESTION (George Jones, Daily Telegraph):

    Could I ask the Prime Minister and the President, given what looks like the imminent collapse of the Exchange Rate Mechanism and all the turmoil there has been in France over Maastricht and in the British Parliament, whether they think the treaty is still relevant or should probably be torn up and the Community should start again on a more realistic and perhaps lowered-expectation treaty for European union?

    PRIME MINISTER:

    I don’t think the treaty should be torn up. The British Parliament has passed the treaty, it is now an Act, it has got Royal Assent subject to one outstanding court case which I hope will be swiftly cleared away and it will come into effect and I welcome that fact self-evidently since we have just taken it through Parliament. I think there is much in this treaty that is good for Europe and good for the United Kingdom and I believe it was right to take it through the House of Commons.

    PRESIDENT MITTERRAND:

    On my side, of course, I submitted the Maastricht Treaty to a referendum in France, in other words it is the French people that voted and who chose finally what to do and there was a political battle which was a pretty difficult one where some important and very often excellent arguments were expressed on both sides. This was a national debate of considerable magnitude but the rule of democracy was applied and France adopted the Maastricht Treaty by popular vote and now the Maastricht Treaty is our rule. I was in favour of it, as you know and therefore I was delighted that this was the decision taken and the decision that was taken I would not say was more important than a vote by Parliament because I am very much in favour of representative democracy – France is a representative democracy. Because under our legislation a referendum was perfectly possible, it was a very important way of getting this really firmly established in our history and this has been done and is behind us and the government also very much hopes that the agreement will be successful.

    Your somewhat hasty definition, if I may say so, of the fact that now the time had come to tear up the treaty and that the EMS is completely excluded I think is subject to examination. We are precisely working through this and it is difficult but France’s determination is unquestionable and we think that the future of Europe is important. We have different conceptions very often on this but we certainly will coordinate our efforts to the same goal and in my view at any rate it would be very harmful and very sad if the remarkable progress made among the Twelve should be into question whereas the prospect before us is that in a few years now we will have a single currency.

  • Mr Major’s Comments on Party Unity (II) – 23 July 1993

    Below is the text of Mr Major’s comments on the unity of the Conservative Party, made during an interview held in London on Friday 23rd July 1993.


    QUESTION:

    [Mr Major was asked why he had resorted to a vote of confidence].

    PRIME MINISTER:

    We have now concluded the Parliamentary procedures on this particular piece of legislation, why has it been so difficult? One of the reasons it has been so difficult is that although the Labour Party and the Liberal Party support the principles of that legislation, in a wholly unscrupulous manner they have voted against it again, and again, and again, voted against what they have said and what they believed in – that was what eventually drove us to a confidence motion. In the interests of this country we needed to remove this debilitating dispute, we have done, we have done it in a fashion that has given us a very substantial majority, we can now draw a line under that and move on to other matters.

    QUESTION:

    [Mr Major was asked if the rebellion in the Conservative Party on Europe would continue].

    PRIME MINISTER:

    There has been a small number of people in the Conservative Party who do not like European policy for 20 years, there is a rather larger number in the Labour Party who do not like it, there is even a closet anti-European in the Liberal Parliamentary Party, that stretches across all the Parliamentary parties. In Parliament there is a very large majority for the Government’s European policy. What happened was that the Labour Party and the Liberal Party, for their own party political purposes, ignored what was right for the country and formed an alliance across the House to try and defeat this particular piece of legislation, it was, as I say, unscrupulous, but they have lost.

    QUESTION:

    [Mr Major was asked if he needed to strengthen his leadership over the Conservative Party].

    PRIME MINISTER:

    I think the matter is now behind us, we have drawn a line in the sand, the atmosphere in the Conservative Parliamentary Party today was superb, as you would have seen, a much larger majority than anyone imagined, everyone was back in the fold. They now know that this dispute is behind us, there is lots else we want to do: we want to get on to our agenda to deal with law and order matters, the centre-piece of the next legislative programme; the economy is now beginning to grow far faster than most people imagined, figures released today indicate yet again it is growing at quite a significant rate now. So there is a lot of work that we need to do, that we want to get on to and over which the Conservative Party is absolutely united and now we will get on with that.

    QUESTION:

    [Mr Major was asked if his leadership looked under strain and also whether people would be unhappy about VAT on fuel].

    PRIME MINISTER:

    People have been saying this sort of thing for some time. They said when I went to Europe I could not negotiate this treaty, I did; they said I could not get an opt-out from the social chapter or the single currency, I did; they said I could not get this legislation through Parliament, I did.

    As far as VAT on fuel is concerned, it is not all that long ago, whenever he speaks to an environmental audience in fact, that the leader of the Liberal Party says we must end for good the anomaly of not having VAT on fuel, they are in favour of VAT on fuel, the Liberal Party, the Labour Party too are in favour of taxes of that sort. I think we need a bit more straightforwardness about this, it is no good them saying one thing when they are speaking to an environmental audience and quite something else in Christchurch or elsewhere.