Tag: Single Currency

  • Sir John Major’s Article on Fiscal Union – 26 October 2011

    The text of Sir John Major’s article on fiscal union, published by The Financial Times on Wednesday 26th October 2011.


    SIR JOHN MAJOR:

    The crisis in the eurozone was inevitable but has been accelerated, and worsened, by the banking collapse. It will not be solved easily or quickly. When it is, it may lead to a very different European Union.

    The root of the present chaos can be traced back to bad politics taking precedence over sensible economics. At Maastricht, which I attended as prime minister, the assumption was that – before the euro was born – the economies of member states would converge: that is, operate at broadly the same levels of efficiency. Safeguards were set: it was agreed national fiscal deficits should not exceed 3 per cent of gross domestic product. Later, a Stability & Growth Pact was enacted to ensure sound fiscal policies. Yet, when the founder members launched the euro in 1999, the wise preconditions were ignored.

    After the birth of the euro, some southern states over-indulged on low interest rates and racked up debts. So did their citizens, without hindrance from their governments who basked in the popularity of the boom. When Germany and France over-stepped the criteria on debt without any penalty by the commission, the criteria became toothless. Debt soared. This would have led to a crisis on its own, but it was hastened by the 2008 meltdown.

    Hindsight is often graceless. But it is a fact that sterling did not enter the euro because we foresaw flaws in its structure. We believed monetary union without fiscal union was risky; that convergence of the powerful northern economies with southern Europe was unlikely (especially once Germany had absorbed her Eastern lender). I had a political objection as well: that entry into the euro, and the abolition of sterling, would remove key policy options from the British government. That is why, at Maastricht, I opted out of the euro.

    It was not easy. The opt-out was only obtained by threatening to veto the treaty. Our European partners were unhappy. Some thought we were acting in bad faith: they had agreed to the British initiative of a single market, and argued that monetary integration was necessary to accompany trade integration. They were upset that we had implicitly endorsed monetary union in the Single European Act of 1986 and, in 1988, had appointed the Governor of the Bank of England to help the Delors Committee examine it. All this was true. But, on the euro, our interests diverged from theirs which caused a policy schism. That may be about to happen again, with far-reaching consequences.

    As I write, the eurozone has an immediate dilemma. Policymakers must stabilise the eurozone banks, permit Greece to default and remove market fears of other defaults. Agreement on this is essential, but insufficient. The euro’s flaws will remain. The powerful German economy is still locked within the same currency as weaker economies. She racks up huge trade surpluses within the eurozone while others have comparable deficits. Since Germany has an estimated 30 per cent currency advantage within the euro, this seems likely to continue. It is undesirable and unsettling.

    In a sensible world, the southern states would devalue to become competitive – but they cannot. They are locked in a single currency. And because they cannot devalue their currency, they must devalue their living standards and promote reforms to enhance efficiency. This will take years. Meanwhile, wages must fall, unemployment will rise and social unrest will increase. The severity of this medicine may not be bearable in a liberal democracy.

    Most obviously, this has an impact on Greece. Of course, it has behaved foolishly. But that does not mitigate the present pain. As salaries are cut, new taxes are imposed and other taxes rise. It is no wonder people are frightened. Some ask: why is Greece in the eurozone at all? The ease of her entry exemplifies the follies of the founders. France insisted: “You cannot say no to the country of Plato.” Maybe not, but every European is now paying the price for admitting an economically unfit nation to compete in the eurozone.

    To safeguard the eurozone in the longer term requires a fundamental change of policy. It must become a fiscal union; a union of transfer payments to off-set regional disparities; or it must shrink. The latter option – essentially expelling Greece – has political consequences.

    There is no mechanism to do it. What would Greece’s future be? Would she remain democratic in the chaos that might follow? Pushing Greece out is not a risk-free option.

    Nor is a transfer union. Germany would hate it and transfer payments would institutionalise inefficiencies. That leaves fiscal union as the most likely destination. But it has huge political consequences. It implies a far greater level of integration, and is an escalator to a federal eurozone. This may be sensible economically, but it is profoundly undemocratic. It would drive voters and decision-makers dangerously far apart. More top-down Europe imposed by a remote elite could provoke a powerful antipathy.

    A more integrated eurozone will also provoke non-euro members of the EU by driving them further away from core decision-making. They will react adversely – which is why an early announcement of fiscal union is unlikely. Instead, judicially enforceable controls over deficits, early harmonisation of corporate taxes and a permanent chairman of the eurozone are likely early moves. We are drifting towards full fiscal union: only the timescale is flexible.

    This has consequences: non-euro members will not wish to be marginalised and may sniff suspiciously at euro-core proposals, rendering decision-making even more of a hurdle. If the eurozone integrates and co-ordinates policy, non-euro members may co-ordinate too. Confrontation looms. Deeper eurozone integration may encourage non-euro member states to seek to repatriate key policies they can’t influence. The UK will not be alone in this. In the next decade, a federal eurozone will change Europe’s mosaic. Within the eurozone it will become more prescriptive; outside, a looser union could emerge. A pattern of variable alliances is likely. EFTA countries may move closer to non-euro members. One thing is certain – the EU will not remain the same.

    In the UK, and elsewhere, many are pressing for their nation to leave the EU. This is an extreme option that would throw up far more problems than it would solve. For the UK it would be a dangerous mistake but, even so, our relationship within the EU will shift. Cool heads and clear minds are needed: our future depends on it.

  • Sir John Major’s Comments on the Financial Situation – 9 October 2011

    The text of Sir John Major’s comments on the financial situation, made in an interview on 9th October 2011.


    QUESTION:

    [Sir John was asked if the economy was in a serious state].

    SIR JOHN MAJOR:

    I think it’s pretty serious, but I think if you can reach a conclusion to the Eurozone crisis you’ll change the level of confidence and I think that will make a material difference. But at the moment you have the Eurozone pretty flat as an economy, you have American flat, you have the Chinese economy slowing and we don’t know how much it will slow, and you have the British economy teetering between no growth and tiny growth, so plainly it’s serious. And it is a different sort of recession from before because of the debt overhang.

    So yes, I do think it’s very serious.

    QUESTION:

    [Sir John was asked if the Bank of England Governor was right in saying the recession was worse than in the 1930s].

    SIR JOHN MAJOR:

    I think he’s looking at the scale of debt, if you actually look at the United Kingdom as an example, in 1997 – to pick a date at random – we had a national debt of about 350 billion, by 2010 it was 900 billion and on unchanged policies by 2014 it would be 1.4 trillion. So you begin to see the scale of the problem, and the fact it is absolutely unavoidable that you make changes in order to bring down that level of debt, because that overhang could be with us otherwise for generations.

    QUESTION:

    [Sir John was asked if everyone would have to work harder and cut back].

    SIR JOHN MAJOR:

    Certainly for a while, I don’t think there’s any doubt about that. There’s no point in pretending that the situation is suddenly going to magically come good with a bit of growth. I’m afraid we need a good deal more than that. And we’re going to have to restructure a great deal of what has happened, not least in the Eurozone which is crucial to us because we are not part of the Euro because, as you rightly say, I opted out in the Maastricht Treaty, but the Eurozone is 40% of our exports and the rest of the European Union as a whole is 50% of it, so their health is crucial to our health.

    QUESTION:

    [Sir John was asked if the Germans would transfer more money in].

    SIR JOHN MAJOR:

    I think it’s very unlikely, and the Germans have expressly been told that they won’t move towards a transfer union which is essentially what is being talked about.

    QUESTION:

    [Sir John was asked if the Eurozone would fracture].

    SIR JOHN MAJOR:

    I think it’s extremely unlikely that the European Union will fracture with nations dropping off the edge.

    QUESTION:

    [Sir John was asked if Greece would default].

    SIR JOHN MAJOR:

    It’s conceivable.

    QUESTION:

    [Sir John was asked if Greece would default within the Eurozone].

    SIR JOHN MAJOR:

    I think that is exactly what will happen and should happen. But I think that it is unlikely that the Eurozone will toss out a member, it’s conceivable that it could happen, but it would certainly be against their wishes.

    I think by far the most likely proposition, firstly you have to look at the short-term problem and then the longer-term problem. In the short-term the banks needs to be recapitalised and Greece needs to default. The sooner that happens and Greece defaults, the sooner you remove something, the overhang in the markets.

    QUESTION:

    [Sir John was asked what would happen if Greece defaulted].

    SIR JOHN MAJOR:

    What would happen is that if Greece defaulted and couldn’t pay its debts, all the Greek bonds that are held in other banking systems across Western Europe would suddenly have no value. You could, as a knock-on effect, create a banking crisis in Western Europe and French and German banks have most of the bonds. That would be absolutely catastrophic if that happened. So the Greeks mustn’t default until the Western European banks are in a position to absorb any losses that there might be without creating a banking crisis.

    QUESTION:

    [Sir John was asked if banks would be given money to fund this loss].

    SIR JOHN MAJOR:

    I think the way they may do it, I think there are two things that they could do, the first thing I think they could do is turn the European structural facility from a structural facility into a bank, give it a banking licence, let it leverage.

    QUESTION:

    [Sir John was asked if this would mean a new European Central Bank].

    SIR JOHN MAJOR:

    No, it would be quite separate from the European Central Bank, let it borrow money as banks normally can from the European Central Bank and either buy up the Greek bonds to remove the danger, the contagion from the Western banks, or use the resources to recapitalise the banks so they can bear the losses.

    That seems to me to be the first thing that has to happen, and then it would be thoroughly desirable, in my view, to get the Greek default out of the way. It’s a terrible overhang in the market, it’s partly priced-in, let’s get it done and then we can move on to the longer term.

    QUESTION:

    [Sir John was asked why he didn’t join the Euro].

    SIR JOHN MAJOR:

    There were three arguments, the first was that if you had a monetary union without a fiscal union it’s like a two-legged dog.

    The second argument, at Maastricht we produced some safeguards – although I opted out at Maastricht, we produced some safeguards – one of them was that no European nation would have a fiscal deficit of more than 3%, and the second was that before the Euro was formed the economies of those nations going into the Eurozone should converge, and by that piece of jargon we meant that they should operate at broadly the same level of efficiency. That didn’t happen.

    In the late 90s the French and Germans began to worry whether the Eurozone would ever happen, so they went into the Euro without the convergence. That was the tragic mistake, it shouldn’t have happened.

    Thirdly, when the Germans and the French went beyond the 3% deficit, the Commission took no action against them and everybody else did too, so you got this burgeoning level of debt that began to spread everywhere.

    QUESTION:

    [Sir John was asked if the Euro would change].

    SIR JOHN MAJOR:

    It will have to change, I think it will have to change.

    QUESTION:

    [Sir John was asked about the flapping of white coats].

    SIR JOHN MAJOR:

    No, the flapping of white coats was on a quite separate matter – and I don’t withdraw the remark. The substance of the argument is exactly the same as I advanced at Maastricht.

    QUESTION:

    [Sir John was asked whether the Euro-sceptics had been right].

    SIR JOHN MAJOR:

    They were partially right, but only partially right, and I will come to the situation as I saw it. The need for fiscal union is something we foresaw at Maastricht, which is why we opted out at Maastricht, that was right and is right.

    What is now I think going to happen, albeit in a crab-wise fashion, I think the Eurozone members will have to move towards a fiscal union. I don’t think they will suddenly say they are going into full-scale fiscal union, it would need a treaty and all sorts of other things.

    What I think they will do is produce legislation within the European Union that makes the control of fiscal deficits, the harmonisation of tax and matters like that, much more controlled from the centre. So they will be moving towards a federal state within the Eurozone and they will be moving to it out of failure and not out of success, that is the point.

    It then gets to the position where you have an inner-core within the Eurozone that is operating much more deeply and closely together than the rest of the European Union. And if you remember in the 1990s, Douglas Hurd and I, we called it variable geometry, and we saw a much looser European Union in which people opted in instead of opting out, and it wasn’t such a tremendously prescriptive union which everybody had to be a part of.

    That is the direction over the next decade, slowly, in which I think we will be going.

    QUESTION:

    [Sir John was asked if there would be a referendum on a new treaty].

    SIR JOHN MAJOR:

    There won’t necessarily have to be a treaty in this country for fiscal union. In terms of fiscal union it is conceivable that there will be a treaty just among the members of the Eurozone, so don’t overlook that possibility.

    QUESTION:

    [Sir John was asked if the referendum could be about a federal Europe that Britain wasn’t a member of].

    SIR JOHN MAJOR:

    I think that is conceivable. There are a dozen different ways in which this could unwind and frankly nobody can be certain which way it will go at the present time.

    But it is possible that there will be a fiscal union amongst the Eurozone members, they would have their own treaty. But at some stage there will be another treaty because if there’s fiscal union in Europe, it changes our relationship with Europe. That is the fundamental point.

    QUESTION:

    [Sir John was asked if powers should be transferred].

    SIR JOHN MAJOR:

    I think it gives an opportunity for two things, firstly, it gives us an option to negotiate for the looser form of Europe that I would like to have seen in the 1990s and we got no traction when Douglas Hurd and I argued for that then. I think it presents that opportunity. And secondly, I think there are some areas that are worth looking at, and this isn’t anti-Europeanism or Euro-scepticism. There are some areas which it would be worthwhile to repatriate.

    Fishing is one. There are elements of employment law, it used to be in the Social Chapter and has now spread, you will recall that I opted out of that in 1992 because I saw it as a job destroying mechanism. Now it has changed but the things like the working time directive, which I think is a very foolish piece of legislation, we could look at repatriating part of it.

    Clearly, financial services is another area. There has been a lot of talk about the financial transactions tax, I don’t think that will happen, for a range of complex reasons, but even so, financial services are crucial to the well-being of the British nation, it is what drove our growth – over-drove it as it happened – over the last twenty years or so.

    We really don’t want a whole series of restrictive notions damaging our financial structure in this country.

    QUESTION:

    [Sir John was asked if this was a new opportunity for Britain].

    SIR JOHN MAJOR:

    Europe changed fundamentally when the Europeans ignored the safeguards in the Maastricht Treaty and proceeded to an unsafe Eurozone, which they did in 1999 without any bark of protest from the United Kingdom. That changed it, that changed everything, because the Eurozone was no longer going to be a stable instrument, we were going to be outside it, but it could have been stable and it wasn’t. And that was a significant change and now I think there is an opportunity.

    I don’t see this as a Euro-sceptic attack on Europe, I see that with 27 nations within the European Union it has to change. It cannot be the same as with 15 nations or with 6.

    QUESTION:

    [Sir John was asked whether quantitative easing was right].

    SIR JOHN MAJOR:

    It isn’t George who has just quantatively eased as it happens, it’s the Governor of the Bank of England, and I think the Governor is right to do so.

    When you consider how much of our economy is driven by exports and you then see what is happening to our markets overseas, I think the Bank of England are right to quantatively ease. I think he is right. But more valuable might be the proposals put forward by the Chancellor himself to direct money specifically to parts of industry.

    QUESTION:

    [Sir John was asked about Liam Fox and what the Prime Minister should do].

    SIR JOHN MAJOR:

    It’s extremely difficult to handle these, either natural justice requires that you have to wait a long time and you’re then said to be incapable of making decisions if you operate under natural justice. Or you move too speedily and you’re said to be ruthless, so I don’t know what the situation is, the Prime Minister has asked for the facts to have a first look on Monday, and I think that is right.

    From the Prime Minister’s perspective he has to balance natural justice and the truth, rather than the gossip, the rumour and things that may be true, but I’ve no idea whether they are or not.

    QUESTION:

    [Thank you].

    SIR JOHN MAJOR:

    Thank you, my pleasure.

  • Sir John Major’s Ditchley Annual Lecture Speech (Ditchley Foundation) – 9 July 2011

    The text of Sir John Major’s Ditchley Annual Lecture speech, made at Ditchley Park in Oxfordshire, on Saturday 9th July 2011.


    SIR JOHN MAJOR:

    First, let me add my welcome to Jeremy and Anne Greenstock and John and Penny Holmes.

    Jeremy and Anne have been great servants of Ditchley; John and Penny are already showing they will be. We are lucky to have them.

    When John invited me to speak to you today, I was very reluctant to accept. I was dismayed that, once again – with impeccably bad timing – the Ditchley Lecture clashes with a Test Match. I also recalled some outstanding Lectures at Ditchley over recent years. I nearly said – No.
    I didn’t, because there are things to be said, questions to be asked – and ideas to be floated – that can more easily be done by a former politician than a current one. And where better than Ditchley – for so long a home for rational thought and considered debate? An oasis of calm in a world of frenzy.

    Every time I come here I am reminded of our debt to David Wills – and now, Lady Wills and Catherine.

    I just want to say to Eva and Catherine: we owe you more than we can repay.

    In preparing for today, I took to heart GH Hardy’s observation that one ought never to waste time stating a majority opinion. I will try and follow that advice.

    Accepted opinion is often wrong. Even more often, out of date. And, frequently, complacent.

    Let me say at the outset that nothing I say should be taken as a trial balloon for anyone else. I speak for myself alone and – reluctantly but possibly – will offend political friend and foe alike. Nevertheless, I shall set out what I believe Western Governments must do to secure our well-being, in a world that is moving faster than we are.

    This world is digitalising, urbanising and ageing. It is also migrating. The age of the single language, single culture state is over. Medicine, science and technology are carrying us where we have never been before. Social networks can elect Presidents and foment revolution. Global markets have outstripped the control of nation states.

    The world of 20 years ago, let alone 50, has long since vanished. In every field of human endeavour – and nearly every aspect of life – yesterday’s certainties are today’s imponderables and tomorrow’s dilemmas.

    The future raises uncomfortable questions, and even more uncomfortable answers. Some challenges are domestic, others can be resolved only by collective action. And, even if they are faced, and even if there are successful outcomes – and these are two big “ifs” – they will merely head off future problems.

    Pain now for gain later has never been an easy sell for politicians and, in a social climate that expects instant gratification, it becomes even harder. It was easier being a politician yesterday than today. And it is easier today than it will be tomorrow.

    The core question is: what must our Governments do to ensure our future prosperity? Must we change our policies, our expectations, our tribal politics – or all of these? It simply defies logic that the whole world can turn upside down, while we meander on in the same old way.

    At stake is our material well-being – and our status in the world – in 20, 40, and 50 years’ time.

    Some may say the battle is lost – that this will be China’s – and Asia’s – Century. I don’t believe that is pre-ordained. China, in particular, has many problems. The Communist philosophy is discredited. Her Government is not elected. Its only legitimacy is growth.

    In China and Asia, we are already seeing that rising living standards will bring greater demands – for social welfare, pension and much else besides – that will eat away at their present competitiveness.

    So this economic triumph of the East isn’t assured, but we do know they will be formidable competitors. So how are we placed to respond?

    Our present position, to put it mildly, is uncomfortable. It is axiomatic that every generation has an obligation to pass on to its successor something better than they themselves inherited. In recent times, we have failed.

    We have spent tomorrow’s money on yesterday’s gratification, and there is something immoral in that. And we have presided over a systemic financial collapse that has forced the prudent to bail out the reckless. There is something unjust in that.

    This is a sharp reminder that our democracy doesn’t guarantee efficiency. The democratic checks and balances we so cherish can become roadblocks. The tyranny of the electoral cycle can push politicians to short-term decisions.

    Equality replaces quality. Sound-bites stand in for home truths. It feels odd to point up the short-comings of democracy, when it has achieved so much – but if we don’t recognise them, we can’t correct them.

    Democracy has entrenched an enviable liberty of thought and action and presided over a quality of life our forebears could not have imagined. We are safer and, until now, richer. It has had a civilising influence. We have learned that decent people come in all colours. We abhor racism and bigotry. We have developed good human instincts of care and compassion.

    In due time, electors can vote Governments out and mostly they depart peacefully into Opposition. No wonder it is widely admired and copied. It has served us well but, on its own, democracy will not secure our place in tomorrow’s world.

    ECONOMY

    The financial crisis has highlighted a reality the West can no longer ignore: our days of easy economic supremacy are over.

    The drift is undeniable. The West has lost its competitive edge against China, India, Indonesia and Brazil as well as many smaller countries, notably in Asia and Latin America. Financial firepower is moving from West to East. Thirty five years ago, the fifteen core countries of the EU accounted for broadly 36% of global GDP, and Asia only 16%. Projections suggest that, in twenty years’ time, that will almost precisely have reversed. As we stutter, the rest of the world grows.

    America has, largely, held decline at bay: but, even so, her share of global GDP has fallen from 26% to 23%. Economically, in one lifetime, the world will have turned on its head.

    It’s easy to see why. Where ambition confronts complacency, ambition wins. In countries that are one generation away from poverty I see a passion and drive for success that sweeps away barriers. Even if we are aware of the tidal wave of competition that is coming, we have not prepared for it. We are falling behind and at risk of falling further.

    We shouldn’t deceive ourselves this is simply the fall-out from the financial crisis. It is a long-term trend.

    Some see no danger. They argue that the West can be sanguine about Eastern competitiveness because our quality of life is so far ahead.

    Such people should get out more. Let me cast an unforgiving eye on that complacency: the UK first.

    In terms of GDP, the UK is the sixth most wealthy country in the world. But our national Balance Sheet carries many liabilities. Our physical infrastructure is old. Our health service is creaking. Whilst the best of our education – especially higher education – is world-class, some of it is unforgivably awful.

    We are up to our ears in debt. The Exchequer is empty. The Gold is gone. The post-dated cheques are accumulating interest. We are over-taxed. We have an under-class: poorly educated, poorly housed and unmotivated.

    We are no longer an Empire, nor will be ever again. Today, we are a shrinking military power. By choice, and with majority public approval, we are semi-detached members of the EU. And even America – for so long our closest ally who generally sees the world as we do – is turning her face to the East, as self-interest determines she must.

    There is absolutely nothing here to be complacent about.

    America faces many similar problems – most obviously debt, which was 40% of GDP in 2008, 69% in 2011, and is projected to be 85% by the end of the decade – and rising. Yet only about one-half of the population pays federal income taxes.

    The risk remains of the US Treasury defaulting on its debt as it runs up against the legal limit it can borrow. I daresay a compromise will be reached, but this flirting with brinkmanship is dangerous. The collapse of Lehman Brothers was catastrophic. A Treasury default could be as bad. I hope those playing political games realise that the effect of their actions could spread far beyond America.

    In the foremost free market economy in the world, average household debt comfortably exceeds average annual income. And a rising proportion of that income now comes from the State.

    About 45 million Americans now receive food stamps: the modern equivalent of bread lines. Medical costs threaten to spiral out of control.

    Huge housing debts held by Banks are not written off: if they were, there would be lower profits, and lower bonuses. Total mortgage debt has quadrupled in 20 years. Today, there are two million mortgages not being paid.

    And so the merry-go-round continues: Banks are still lending 95% mortgages on a falling market at a multiple of income: admittedly now – they say – only to more credit worthy customers. No one should assume the financial crisis cannot be repeated: it certainly can. But, if it is, it will be unforgiveable.

    EUROPE

    As for Europe – the word is engraved on my heart. Northern Europe is healthy but Southern Europe is sunk in debt and uncompetitive. The EU as a whole is divided on how to handle budget deficits, the crisis in the Eurozone, control of the Central Bank, nuclear policy, as well as how to react to Libya, Afghanistan and the Arab/Israeli conflict.

    Twenty years ago, led by France and Germany, a confident EU was paving the way for the Euro. The assumption in the European Council was that, before the Euro could be launched, the economies of nations wishing to be part of it would converge: by that piece of jargon, we meant operate at broadly the same level of efficiency.

    But that didn’t happen. It was politics – not economics – that launched the Euro in the late 1990s. Sterling did not join because, in 1992, I had opted out of the Euro at Maastricht. I didn’t do that out of sentimentality for the Pound – nor to placate sceptic opinion. If I’d wished to do that – with my Party or the Press – my life would have been much more comfortable. I didn’t. It wasn’t – because I thought then, and argued then, that the concept had flaws.

    Today, Germany – with its powerhouse economy – is locked within the same currency, at the same exchange rate, as the weaker economies of the Southern European States.

    In a sensible world, the Southern States would devalue but – of course – they can’t and so, to become competitive and stay in the Eurozone, they must devalue internally. Unemployment will rise, wages must fall, and so must living standards.

    This threatens Greece, Portugal, and – possibly Spain and Ireland – with many years of austerity. As we see in Greece, the scale of that austerity may not be acceptable in a liberal democracy. Meanwhile, others power ahead.

    It is not immediately clear how Europe will resolve this dilemma. But the present position is unsustainable. Either the EU becomes effectively a Union of transfer payments to offset regional disparities (as happens in Canada), or it creates a mechanism to shrink the Eurozone. Nothing else makes long-term sense.

    Germany and France will not permit – cannot afford to permit – a reprise of the present crisis. In Germany, in particular, it is causing immense political agony. When the President of the ECB proposed a European Ministry of Finance with power to intervene in national economic policies, he caused commotion. But something will have to be done. Somehow, binding rules will be imposed on debtors.

    Despite Eurozone members insisting they will not surrender fiscal sovereignty, it is not hard to look ahead and imagine a Eurozone with fiscal – as well as economic – union, in practice if not in name. I don’t like this – it was a prime reason for not joining the Euro – but, if it happens, it may have the effect of pushing the UK further away from the mainstream of the EU.

    The UK is often accused of being half-hearted over its commitment to Europe. Continental politicians bemoan our caution. “If only the UK took up its responsibilities” … it is a familiar theme, and we will hear more of it.

    Let me respond. I am not anti-European. I am not a sceptic in the accepted sense. I never have been. I see the nobility of intent in binding together nations that fought one another over many centuries.

    I see the economic advantages of the single market, and the political advantages of extending democracy to nations that were locked in the Soviet embrace. But I am wary of many European policies. If they are flawed, or unworkable, or alien to our instincts, our Government has a duty to question them.

    Where we can work together, let us do so. That is sensible. But the Union cannot succeed if nations are – sullenly and resentfully – bound into policies they believe are damaging to their national interest. Far better to plan for a multi-speed Union, with nations opting-in to policy rather than opting-out. In a 27 Nation Union, I believe we will come to that, although it is far from the ambitions of some of our partners.

    If the UK is semi-detached, that is only, in part, because of British scepticism: it is also because the EU has chosen, time and again, to go in a direction they know Britain cannot follow. Every recent Prime Minister has ended up less European than he – or she – began.

    As to the future – it is difficult to see where Europe is going. Some would like to break away entirely from the EU. In a world in which many policies need collective action, that would be folly. If we are drifting apart, there is cause to beware: it is time to take stock.

    GOVERNMENT/POLITICAL SYSTEM

    In the search for future well-being that is true of our political system as well. At the moment, neither American nor British politics is in a state of grace. It has become too inward-looking. Too short-term. Our systems embrace politicians, and carry them off to a world the rest of us don’t inhabit. It’s time to bring them back. And focus them on the far distance as well as tomorrow.

    There is a fault line in our national policy-making processes:

    When do politicians have time to think?

    There is time to do, based on advice.

    There are policies to advocate, based on conviction.

    There are people to placate, based on necessity.

    But, in Government, too often, senior politicians are fire-fighting yesterday’s problems instead of thinking how to fore-stall tomorrow’s.

    Would it not be better to carve out sufficient time so that – routinely – they can frame policies to safeguard our future in 20/50 years from now?

    And – if they did think and plan far ahead – it would give them time to explain, to cajole and to carry electorates with them in controversial policy. That’s never easy – as we see today.

    To help bring this about, we should encourage governments to devolve more and do less: in some areas, we are ludicrously over-governed. The nanny state may be well-meaning, but it is also stifling.

    I am one-quarter American, so I hope I might be forgiven for speaking bluntly. At the moment, the American political system is dysfunctional.

    It is easier to stop good policy than to pass it. Bi-partisan co-operation is grudging and limited. Moreover, it is getting worse as re-warding of congress and district boundaries makes seats safer for Republicans or Democrats: the inevitable effect is fewer “middle of the road” candidates being elected. The first loser is compromise. The ultimate loser is sensible, non-ideological policy.

    The power of special interest lobbies is excessive. There have been 27 Bills affecting Energy over recent years where the representatives of six States, irrespective of Party affiliation, have voted for the Coal lobby position on over 80% of votes. In the Senate, this has been sufficient to block anything the industry does not favour. This is not in the national interest. It is naked self-interest. Sadly, it is not the only example (in domestic or foreign policy).

    I remember former Presidents bemoaning the introspection of Congress – my expression, not theirs – and their concern that only a minority of its Members travelled overseas to see the world for themselves. Since American foreign policy affects us all, this is lamentable.

    But it’s easy to see why. A competitive election contest in New York, or New Jersey, home to the most expensive media markets, could cost a candidate $10 million. On average, candidates must raise over $1.3 million to fight each campaign. And campaigns come every other year.
    To fight these elections, the average candidate must raise over $50,000 each and every month. No wonder they don’t travel. Such frequent elections also create obligations to donors – and lobbies. They put a premium on short-term populist policies.

    It would make for far better decision-making if elections were less frequent and there were limits on spending. This might also cut down on negative campaign advertisements, the net effect of which is simply to damage the reputation of politics.

    I claim no superiority for the British system.

    For generations, Britain has basked in the glory of our Parliamentary system. Much of the world flatters it as an example of a mature democracy, a supreme Parliament, an independent Judiciary and an impartial civil service.

    I cherish the traditions that add majesty to Parliament. Yet even I, who look at Parliament with affection, can see it must be made more efficient.

    We could begin by widening the pool of talent prepared to enter politics, by removing some of the disincentives to do so.
    I would pay MPs a fixed and generous salary, and cut out all living allowances. This is not entirely fair to Members with remote constituencies, but life is not fair – and such a system would avoid the recent scandals that have done so much harm to Parliament.

    We need, also, to attract to the Commons men and women at the top of their profession. It is one of the oddities of democracy that fundamental policy choices are made by men and women who, apart from the legitimacy of election and a native intellect, have no qualifications to make them.

    How many MPs can bring direct knowledge to how banks should be regulated? Or how hedge funds work? Or are familiar with e-money? Or nuclear energy? Or the social and medical implications of embryology?

    We would benefit from our legislators having more practical knowledge.

    Of course we can hire specialist advisers, but that can never be as effective as influential, knowledgeable voices speaking with expertise in the Chamber, in the Committees, in the tea rooms, in Party meetings.

    There is no solution to this dilemma that doesn’t cut across our traditions, and so I would do just that. Why not elect fewer Members of Parliament and appoint, on a basis pro rata to votes cast in the General Election, a similar number of Members without constituencies?

    I know the familiar arguments against this – a few years ago I would have used them myself forcibly – but, on reflection, I now believe enhancement of the talent pool is so vital it justifies the changes.

    If the Commons baulks at a further reduction in its Members then, as Douglas Hurd and I have argued before, let us appoint unelected Ministers, answerable to Parliament, but without being Members of it. Or, of course, let us do both. Douglas and I have argued also for fewer Ministers and fewer PPSs: we have far too many of each: they could be severely cut back.

    At the moment, all three major Parties are committed to an – at least partly – elected House of Lords. The Lords does need reform. It has too many inactive Members. It is too big and unwieldy. But election is the wrong reform.

    The case for election is democratic legitimacy. However, if we want an efficient legislature, the case against is far more compelling.

    An elected Upper House would cease to be a revising Chamber and would demand more powers that could only come from the Commons.

    There would be confusion and conflict. We should be reducing the number of politicians and adding to their quality. An elected Lords would add more politicians and reduce their quality. That is a bad bargain.

    Does anyone imagine that Chiefs of the General Staff, Cabinet or Permanent Secretaries, Captains of Industry, Chancellors of Universities, Professors of Medicine would stand for election?

    Of course they wouldn’t, and elected replacements could never bring such a depth of knowledge to the scrutiny of legislation. If the answer is more elected politicians, we are asking the wrong question.

    A better reform would be to improve Parliamentary procedures. Cut the number of whipped votes. And reform PMQs to discourage its vaudeville element.

    I offer only one further of many options. Parliament’s workload leads to legislation being poorly scrutinised, and often shown to be defective. In Criminal Justice alone, 68 sections and 25 schedules of 19 Acts remain unimplemented: many because they are unworkable.

    Why not subject all mainstream Bills to Select Committee scrutiny and public evidence before final drafting? If we did so, we would get better, more relevant, and more coherent, new laws.

    And must the Westminster Parliament oversee so much? I think not. It would be more efficient if it were less over-burdened.

    DEVOLUTION OF POWER

    There are options:

    Pass fewer laws – which is attractive, and to be hoped for: though I’m not holding my breath.

    But we could contract more to local government and devolve more to the Scottish, Welsh and Northern Ireland Assemblies. In a cautious and incremental way, the Coalition is taking action to do this. I welcome that and encourage them to go further.

    Some years ago, I opposed the creation of local Mayors. I was wrong. Mayors do put in place a dynamic and – as successive Mayors of London have shown – they can be effective megaphones for our big cities. But under present plans, Mayors will only inherit the existing powers of Council leaders: in future, I hope their remit can be widened.

    There is one caveat: their power of decision should be real, not illusory, and this implies a funding responsibility to pay for – at least the majority of – their policies. When next we look at local authority finance that should be the objective.

    Devolution can also reduce the Westminster workload. But there is some groundwork to be cleared first. The present quasi-federalist settlement with Scotland is unsustainable. Each year of devolution has moved Scotland further from England. Scottish ambition is fraying English tolerance. This is a tie that will snap – unless the issue is resolved.

    The Union between England and Scotland cannot be maintained by constant aggravation in Scotland and appeasement in London. I believe it is time to confront the argument head on.

    I opposed Devolution because I am a Unionist. I believed it would be a stepping stone to Separation.

    That danger still exists. Separatists are proud Scots who believe Scotland can govern itself: in this, they are surely right. So they point up grievances because their case thrives on discontent with the status quo. But even master magicians need props for their illusions: remove the props, and the illusion vanishes.

    The props are grievances about power retained at Westminster. The present Scotland Bill does offer more power to the Scottish Parliament.

    But why not go further? Why not devolve all responsibilities except foreign policy, defence and management of the economy?

    Why not let Scotland have wider tax-raising powers to pay for their policies and, in return, abolish the present block grant settlement, reduce Scottish representation in the Commons, and cut the legislative burden at Westminster?

    My own view on Scottish independence is very straightforward: it would be folly – bad for Scotland and bad for England – but, if Scots insist on it, England cannot – and should not – deny them.

    England is their partner in the Union, not their overlord. But Unionists have a responsibility to tell Scotland what independence entails.

    A referendum in favour of separation is only the beginning. The terms must then be negotiated and a further referendum held.

    These terms might deter many Scots. No Barnett Formula. No Block Grant. No more representation at Westminster. No automatic help with crises such as Royal Bank of Scotland. I daresay free prescriptions would end and tuition fees begin.

    And there is no certainty of membership of the EU. Scotland would have to apply, meet tough criteria, await lengthy negotiations and would find countries like Spain – concerned at losing Catalonia – might not hold out a welcome for Separatists. And, even if Scotland were admitted, they would find their voice of 5 million is lost and powerless in a Union of 500 million.

    But it must, ultimately, be their choice.

    SOCIETY

    Reforms within politics can – I believe would – improve policy-making, but it is the guts of policy that really matters. I simply observe that in considering future policy every Minister should ask one question: does this improve our long-term ability to compete and grow? If it does – good; if it doesn’t – think again.

    Growth is not just a matter of economic policy. Social policy is a part of the competitive structure – not apart from it. To grow, we need to improve our human infrastructure.

    EDUCATION

    Education and skill attainment are as crucial to economic success as cash investment. In the ancient world, Plato taught Socrates who taught Alexander.

    Rather more recently, Tony Blair famously declaimed “Education, Education, Education”. I had the same priorities but in a different order.

    Neither of us was original. Lenin first said it in 1917.

    And we were all right – except that we failed. And among the alienated and the under-educated, how much talent is lost? How many lives are wasted and unfulfilled? How high is the social and economic loss? Money has been put into education but the return on investment has been disappointing.

    It is a reproach to every Government over the last 40 years that employers routinely bemoan the numeracy and literacy of far too many school-leavers. As a Nation, we can’t afford that.

    A recent OECD survey, based on science, maths and literacy, put America – once top – at 26th, and the UK even lower: eight of the top ten performers were emerging Asian States. This isn’t some remote trend we can ignore: our children and grandchildren will be in direct competition with these young Asians.

    One reason for Asian success seems to be that they have invested heavily in teachers. Paid them well. Trained them well. And built up their prestige and social standing. As a result, they have attracted their brightest and best into the profession.

    Parents, too, have a responsibility for their child’s education. Too many opt out – none should.

    Events in California, in 1996, are suggestive. After positive discrimination had resulted in low graduation results and high drop-out rates, “Proposition 209” banned any reference to race, sex or ethnicity in University admissions.

    Students were selected purely on their Grades. Admissions from Asian Americans soared. The only explanation for this was parental influence. There is a lesson here. However good teachers may be, the role of parents remains the single most important input into any child’s life opportunity.

    If, as most of us accept, the economic future of the West lies, in part, with maintaining a technological advantage, we must produce the relevant skills. But we are just not doing so. China is producing over three times as many engineering, science and IT graduates as the United States. And over three times as many Chinese graduates at the top-most level with PhDs.

    In the UK, in the decade to 2007, there was a fall of nearly one-third in single honours chemistry courses, and 14% in physics. The West had better focus on the fact that Asian manufacture is already moving up the value chain.

    No Government is always right. Or wrong. In the UK, I applaud warmly the high ambition of Ministers in the previous Government who argued for long-term social reform. My only regret is that others, more senior and less far-sighted, sometimes over-ruled their efforts.

    “Thinking the unthinkable” was ditched. That was a pity.

    I welcomed their early ideas – as indeed I should: many of them were my ideas long before they were theirs, and – in some cases – Margaret’s before they were mine.

    That doesn’t matter. In a good cause, I welcome policy kleptomania. As someone who was opening Academy Schools 20 years ago, I was genuinely delighted when Andrew Adonis developed the policy and successfully carried it forward.

    Education is not our only social policy failure over decades. In our broadly prosperous country, there are still far too many graffiti-ridden slums, on soul-less Estates, in run-down areas, that dis-incentivise those who live there.

    There are too many neighbourhoods where unemployment has become a way of life; where an existence on social benefits seems normal.

    For too many people, self-determination has morphed into a belief in self-entitlement, where no-one is responsible for anything, and welfare is a legitimate career choice. America has problems that are similar in character.

    The Coalition is now embarked on reforms to health, education and social security that are long overdue, controversial and necessary. As Labour built on Conservative policy, now Conservatives will build on Labour’s.

    I hope everyone, irrespective of Party, who agrees with these reforms will support them publicly when Ministers face the inevitable protests that are to come. It will be a lost opportunity if they are sacrificed to our adversarial political system.

    Within the compass of my direct experience, I have tried to look forward. I have focused on what is not working well. But I am optimistic.

    The Western democracies always over-estimate what they can do in the short-term and under-estimate what they can achieve in the long-term. If we accept what needs to be done – we can do it. But – as Goethe noted – “until one is committed, there is hesitancy”. We must be committed.

    I would like to see a senior Minister, of Cabinet rank, given responsibility for “The Future”. His or her role would be to cast an independent eye on what needs to be done that is not being done; and what is being done that could be harmful in the future.

    Such a Minister would be the voice of the next generation. The conscience of the Government. The guarantor of the legacy. To do the job well, he or she should be an enormous irritant to Departmental Ministers and the Treasury but, with the backing of a committed Prime Minister, would ensure the interests of the next generation are not sacrificed on the altar of immediate consumption.

    Mr. Chairman, time is a tyrant and I have only skimmed the surface of policy for tomorrow.

    I have not touched on traditional foreign policy issues – much as I wished to: that must await another occasion. On that, and on so much else, there is a great deal to be said and – as my Grace Note – let me observe that those of us gathered here are well-placed to say it.

    CONCLUSION

    We are, or were, the Establishment – or part of it. Some still are. We are winners in the Ovarian lottery. Gathered here are intelligent, civilised men and women, skilled at diplomacy and dispassionate judgement. If the late John Osborne were to categorise us, it would not be as “Angry Young Men or Women”, but as “Mellow Old Achievers”.

    We are, many would say, the past: Neanderthals from the pre-internet age. But we have one huge advantage: we have seen the world as few others have seen it. So I want to end with a plea. It is that – in an age that glorifies youth – we should use our collective experience to help signpost a path for the future.

    We may have a shorter lease on that future than the young, but they are our young, and we have an obligation to care about their future.

    Whether British, or American, or Continental European, the task facing our respective Governments is herculean. We can stand aside, shrug our shoulders and smile benignly on their efforts, our own work done. Or we can pitch in and help them.

    That, surely, is the right thing to do.

  • Sir John Major’s Speech to the Mexico Chamber of Commerce / COMCE – 13 September 2010

    The text of Sir John Major’s speech to The Mexico Chamber of Commerce / COMCE, held at the Torre Mayor in Mexico City, on Monday 13th September 2010. The speech was entitled “UK and Mexico – Partners in a Changing World”.


    SIR JOHN MAJOR:

    It’s always a pleasure to visit Mexico – and never more so than to represent the British Government at your Bicentennial Celebrations.

    For two countries – half a world apart – we have much in common, both in the past and – more important – in the future. We were the first European nation to recognise Mexican independence. British engineers helped Mexico’s early development and – I believe – even introduced football – soccer – to your country.

    Today, we still have much in common. We’re both democracies. We’re free-traders. We work together to solve problems of climate change and sustained development. We both wish to reform out-of-date international institutions – especially financial institutions.

    I could easily extend this list – it would be easy, and comfortable, to do so.

    Instead, I want to refer to one other aspect we have in common: the fact that neither one of us has made as much of the Mexican-British relationship as we could – and should.

    Yes, trade and investment is growing. Yes, we exchange students. Yes, the political relationship is perhaps closer than ever before. I, myself, am here today at the specific request of the Prime Minister – who could not travel here at this time. Proof positive of the UK Government’s wish to increase the personal links that we know are so important in taking our overall relationship further.

    But we could – and should – do so much more. Nor should we be inhibited by the real problems of security and drugs. Both countries are – apart from a few restrictions – open for business, and the opportunities are huge.

    Mexico is, for example, far easier to do business with than China, Brazil or Russia. The UK is the 5th largest economy in the world. Mexico is the 14th, and moving up rapidly. The scope for doing so much more is self-evident.

    And it is in both our national interests to do so, as the recent economic downturn has made clear. Mexico becomes less reliant on the US; the UK returns to a traditional Latin American market it has ignored for far too long. As a result, we both widen our markets.

    In a global market, this could happen spontaneously. But we should not leave it to chance. That is why I am delighted that both our Governments are keen to promote greater mutual trade and investment, and I want to commend our Ambassador, Judith McGregor, and the British Embassy, Pro-Mexico, COMCE and the UKTI, for the work they are already doing in this endeavour, not least with our “Think Britain” and “Mexico Matters” initiatives.

    Why is it so important that we act now? Because the world is re-shaping rapidly.

    Today, change is brutally swift. The leaders with whom I once worked are now part of history, although I still see many of them, including your former President, Ernesto Zedillo – a good friend whom I cherish.

    Another was Boris Yeltsin. Alas, no longer with us. Market economics were a mystery to Boris. Once asked him to tell me “State of Russia” in one word. “Good”, when asked in two words, “Not good”. Today we’re passing through a “not good” phase.

    Let me look around the world in which Mexico and the UK must compete: The East, which was not highly indebted, is moving forward swiftly. The West, which was – is not.

    A recovery of sorts has been stimulated – but it has left many Western Governments drenched in debt. What does that mean for the years ahead?

    Some of this is becoming clear.

    America first – since she is crucial to Mexico. The recession ended last autumn, but growth is still weak – and much of it driven by artificial stimuli that will soon be gone. So there is a risk – unlikely, but a risk – that the up-turn will stall – or even fade away.

    The UK and the EU are in a similar position, with one important difference which I will come to later.

    The UK has a new Government – a novel coalition of Conservative and Liberal-Democrats. It is unknown political territory but it does know what needs to be done – and has the Parliamentary majority to do it.

    Economically, the UK – like other nations – is in a difficult situation, and hard decisions will have to be taken in order to stimulate our long-term recovery.

    The new Government is already taking these tough decisions, and has made it clear that we see the emerging markets as playing a key role in that recovery.

    Thanks to the UK opt out from the Euro, we do so against a more positive backdrop than our European partners, who have the additional dimension of Greece – and Spain, Portugal, Italy and Ireland – all facing debt crises, but who cannot stimulate their economy by devaluing their currency because they are in the Euro. The pain of the recession for them is being felt in slow growth, unemployment and business failures. Some have forecast Greece will leave the Euro or, more dramatically, the Euro will break up. I very much doubt that.

    A bail-out package for Greece has been agreed. Personally, I’m not convinced it will prevent a default or a restructuring – but it buys time for other euro debtors to begin to put their finances in order. Nor will Greece leave the Euro – inside its situation is dire: outside it would be catastrophic.

    As for the Euro, too much political credibility has been invested for it to be abandoned. I don’t say this as a euro-enthusiast.

    In 1991, as Prime Minister, I refused to commit Sterling to the Euro-zone because I did not see how monetary union could work without economic convergence: and I did not believe Greece or Portugal or Italy would match the economic efficiencies of Germany. Nor have they.

    It is due to that 1991 opt-out that the UK is now in a much stronger position for recovery than the Euro-zone.

    Elsewhere, there is a brighter picture. Although the collapse in Western demand hit the Eastern economies, the larger countries – China, India, Indonesia – were not highly leveraged, and have emerged in good order.

    Latin America has changed dramatically for the better over the last two decades. It is now a Continent of increasingly stable democracies. It is not deeply in debt. Its economic fundamentals are stronger much of the developed world: its foreign exchange reserves are at an all-time high.

    Its collective GDP is – to within a whisker – the same as China, and three and a half times that of India. Latin America is in a good position to bounce back from the economic crisis.

    In the Middle East, North Africa and the Gulf, some countries were barely affected by the financial turmoil: indeed, most grew around 5% despite the steep drop in the oil price.

    What can we expect as we look forward?

    In the West – more regulation and control. Higher taxes to cut deficits and – in due course – higher interest rates to fund them. Public spending will fall.

    So will private spending, as the impact of high unemployment – and record levels of personal debt – encourage the consumer to save more and spend less. All of this suggests a muted recovery.

    Over recent years, the world has looked enviously at the energy-rich countries – especially in the Gulf – and the spending power of their Sovereign Wealth Funds.

    When oil fell to US$40, OPEC cut output to sustain the price. It has since risen to US$70-80 for two reasons:

    – rising demand as growth returns; and
    – a growth in investment in oil as an asset. In the medium-term, it is more likely to rise further than fall. This is also crucial to Mexico.

    What risks lie ahead?

    Of course, the risk of a double-dip into recession, but that is very unlikely, although growth may slow.

    A greater risk is protection, which is always a danger at times of high unemployment.

    Mini protections – hidden protections – exist almost everywhere. A recent study identified 192 Protectionist measures in OECD countries, with a further 148 in the pipeline: fortunately, many are not obvious or inflammatory. It is gratifying to see that Mexico – under the leadership of President Calderon – continues to promote Free Trade and fight against protectionism in all its forms.

    If protection gets out of hand it is dangerous. It risks retaliation: it was, after all, what caused the problems of 1929/30 to become the prolonged slump of the 1930s as world trade fell by two-thirds. The dangers of protection should always be in our mind.

    It is easy (and fashionable) to be gloomy about the mature Western economies and to look too much to China and the East. We shouldn’t overdo this: the West may not be able to compete on labour costs but while they continue to lead the technological revolution they will remain the key economic players.

    I am here to celebrate the bicentenary of Mexico, but let me touch on some of the areas where there are great shared opportunities for us over the next 200 years:

    Consider science: the first integrated circuit – invented by Jack Kilby in America in 1958 – proved to be the fore-runner of silicon chips containing – literally – billions of microscopic circuit elements. Nothing in the 20th century has so accelerated change; it led to the computer revolution; to the Digital Age. Without that circuit there would be no Silicon Valley; no Internet; no laptop; no Google; no iPods; no Blackberrys, no PlayStations – and none of the hundreds of millions of jobs they have created.

    As science changes how we live, medical science is changing the quality and length of our lives. A hundred years ago, no-one knew of blood groups, hormones or barbiturates. Since then, medicine has given birth to whole new industries. New technologies are delivering better drugs, healthy food, new pesticides, the control of pollution, and advances in forensic medicine.

    Scientists are now examining how to combine computer chip technology with pharmaceutical research so they can target drugs to treat specific parts of the body. Imagine – for example – chemotherapy with only minimal side-effects.

    Such science is leading a revolution in medical care: advances in engineering techniques have given us insulin pumps for diabetes; cochlea implants for deafness; and there are realistic prospects of repairing nerve cells for sufferers of Parkinson’s and Alzheimer’s disease. It may soon be possible to replace heart muscle cells.

    A few years ago, all this would have seemed like Black Magic. Soon, fantasy will become reality, with commercial prospects that are simply staggering.

    One continuing headache will be energy supply and energy security.

    We know that coal, oil and gas are going to dominate energy supply for decades to come – irrespective of any advances in solar energy, advanced bio-fuels, fusion and other renewables.

    Since this is so, we need to develop carbon capture and store the carbon residue where it is safe – probably for centuries. This R&D challenge is daunting – and so is the cost – but energy security is a policy no-one dare ignore.

    So is the risk of climate change. Because hard-to-ignore science tells us the risks of global warming are real. Most scientists expect global warming of between two to five degrees. This sounds small – but isn’t: in the depth of the last ice age, the temperature fall was – five degrees.
    Energy security is not the only long-term challenge. In the last fifty years, world population has grown from less than 3 billion to over 6.5 billion. At the birth of Christ, world population was – probably – 300 million. By 1900 – 19 Centuries later – it had grown by something over one billion. We now grow by nearly one billion every decade.

    World population is projected to reach 8 or even 9 billion by 2050. This is like absorbing two more nations the size of China. It offers social threats and economic opportunities.

    We live in a fast-moving, ever-changing, uncertain world, with many risks and challenges ahead – yet there are so many opportunities.

    Over two decades, China and the US have developed a huge inter-locking economic relationship. Japan and China are beginning to repair old scars. Latin America has become a Continent of Democracies. And – until the recession – Africa was growing faster than at any time in our lifetimes. Europe has moved the free market eastwards and southwards.

    In a preface to some famous essays, an English philosopher flatteringly observed to his patron that “You have planted things that are likely to last”.

    As have the UK and Mexico, by working closely together in:

    – Pursuing a global deal on climate change;
    – Fighting protectionism and promoting free trade;
    – Creating a low-carbon global economy.

    But we could do so much more and – by doing so – we will forge a closer, more meaningful relationship between our two nations – for the next 200 years and beyond.

  • Mr Major’s Letter to the Daily Telegraph – 15 September 2003

    The text of Mr Major’s letter to the Daily Telegraph on the subject of the Single Currency, published in September 2003.


    JOHN MAJOR:

    Sir,

    The Swedish rejection of the Euro re-emphasises the unlikelihood of our Government holding an early Referendum on the same subject. They will not do so for they know they will lose.

    In 1991, at Maastricht, I obtained an opt-out from the Euro. Later, I persuaded Cabinet to offer a Referendum prior to membership – a commitment the Blair Government had no choice but to inherit. I am therefore – at least in part – responsible for Sterling not yet having been abolished and the Euro adopted. It has always been my view that circumstances might arise in which it would be in our interests to join, but I have yet to see any that are imminent.

    The belief of the euro-sceptics that I offered a Referendum to appease them is both fatuous and wrong (as official documents will reveal in time). I did so because entry to the Euro would have a personal impact on every citizen and was therefore an issue upon which I felt they should have the opportunity to express an opinion.

    The same principle applies to the proposed European Constitution. The Government are resisting a Referendum on the specious grounds that Margaret Thatcher did not have one on the Single European Act and nor did I on the Maastricht Treaty. This line of defence does not stand up to examination.

    In neither instance was such a clear and fundamental point at issue. Moreover, at Maastricht, I opted out of the two greatest concerns – the single currency and the Social Chapter. I also agreed a negotiating position with Parliament and held to it in every particular. The present Government are not in this position with the proposed European Constitution.

    Another difference is relevant too: in the 1980s and 1990s, referenda were not commonplace, hence my difficulty in getting Cabinet to agree to one since many colleagues did not like the wider constitutional implications. Labour, however, have used referenda frequently.

    The Government should stop hiding behind a half-truth and offer a public poll on the European Constitution without further delay.

    Yours faithfully,
    JOHN MAJOR.

  • Conservative Party Election Broadcast – 18 April 1997

    The text of the Conservative Party Election Broadcast, shown on 18th April 1997.


    PRIME MINISTER:

    Good Evening.

    This election is about jobs, it’s about education, it’s about health. It’s about people’s prosperity both at the moment and in the future.

    But there is becoming one central defining issue that is raised on door-step after door-step: and I would like to address it this evening. Is Britain going to join a Federal Europe or is she not? I am not in favour of a Federal Europe. I am not in favour of a Federal Europe because it takes decisions away from the British Parliament that are property those for the British Parliament. If we in Parliament make mistakes – and sometimes we do – Parliament can reverse those mistakes. It can repeal the wrong laws. If we pass powers to Europe so that those laws are made on a European basis and they turn out to be wrong, they are irreversible. There is no chance of repealing. For that reason and for many others, I don’t believe we should hand our employment policy and matters affecting British jobs and British prosperity to Brussels. So no, I am not in favour of a Federal Europe. I am flatly opposed to it.

    And then there is the wider and deeper question that I know concerns many of the people watching this broadcast. Should sterling enter a single currency if our European partners decide to proceed with it? Are there advantages in it? Yes, there are. There are advantages in it. If a single currency were to be formed and if if it were to be successful, it might extend a zone of low inflation permanently right across Europe.

    But are there risks? Yes, there are very deep risks and we have to consider those as well. What is the core element of a single currency that gives rise to such caution amongst the British nation? I believe it’s the fear that inexorably, sometimes almost invisibly, we are being dragged further and further into a position where more and more decisions are being taken away from the British Parliament and decided collectively by the European heads of government in Brussels. I have not a shred of intention, neither has any member of my Cabinet or any member of my Party so far as I am aware, of surrendering the responsibility for taxation or expenditure to our European partners or indeed to anybody else – they are matters for our Parliament and for so long as I am leader of the Conservative Party, for so long as The Conservative Party is in government, there is no question of such powers remotely being transferred away from the British Parliament

    I said this was a central issue. I think it is a defining issue as well. I will negotiate for Britain in these negotiations, firstly at Amsterdam on a Federal Europe and later on a single European currency. l am therefore in a different position from anybody else in this country when I conduct those negotiations. When I have concluded those negotiations – and do not ask me to set out every aspect of how I will negotiate now, for you will tie my hands in dealing with our European partners if I set out precisely what I would do in detail they would know precisely how to respond to it. Everybody in this country who plays cards would never put their cards face up on a table and then expect to win the game. But when I have finished the negotiations, I will come back and I will make a recommendation about a single European currency, whether we should join or whether we should not join, to the British Cabinet. The Cabinet will accept that or reject it. If it accepts that we should proceed for example, they will ask Parliament If Parliament accepts we should proceed, then that would not be the end of the matter.

    For this is a matter of such overriding importance – there has been no matter like this in peace time, in the living political memory of anyone. This is of such importance that in those circumstances, there would be a referendum on the single question of whether we should enter a single European currency or not. It would be a referendum open to every adult in the country.

    I will not take Britain into a single currency. Only the British nation can do that. Upon that, you may be certain.

  • Mr Major’s Comments on the Single Currency – 16 April 1997

    The text of Mr Major’s comments on the single currency, made on 16th April 1997.


    PRIME MINISTER:

    It would be splendidly decisive they say, so splendidly decisive, you would send a British Prime Minister naked into that conference chamber with nothing to negotiate and nothing with which to wring the best deal for the United Kingdom. What I am saying is that no-one in this room doubts that these are the most important negotiations we’ve had. Whether you agree with me or disagree with me, like me or loathe me, don’t bind my hands when I am negotiating on behalf of the British nation.

  • 1997 Conservative Party Manifesto – 2 April 1997

    Below is the text of the 1997 Conservative Party manifesto.


    Foreword

    The Conservative administrations elected since 1979 are among the most successful in British peacetime history. A country once the sick man of Europe has become its most successful economy. A country once brought to its knees by over-mighty trade unions now has industrial peace. Abroad, the cold war has been won; at home, the rule of law has been restored. The enterprising virtues of the British people have been liberated from the dead hand of the state. There can be no doubt that we have created a better Britain.

    Why, then, do we still need a Conservative Government? Because resting on what we have achieved is not enough. To stand still is to fall back. Our goal must be for Britain to be the best place in the world to live.

    We live in a tougher, more uncertain world. A fast-moving global free market is emerging. New economic powers are rising in the East. Family life and social attitudes are changing. Europe is adjusting to the end of communism. The European social model is failing. The nation state is under threat. We must respond to these challenges.

    We have turned around our economic fortunes. We have fewer people out of work and more in work than any other major European economy. British people now have the opportunity of a prosperous future. But that prosperity cannot be taken for granted. We have to compete to win. That means a constant fight to keep tight control over public spending and enable Britain to remain the lowest taxed major economy in Europe. It means a continuing fight to keep burdens off business, maintaining our opt-out of the European Social Chapter. If we relax for one moment, our hard won success will slip away again.

    We have strengthened choice and personal ownership for families, and rolled back the state from areas where it was interfering unnecessarily in our lives. But we now have the opportunity to achieve a massive expansion in wealth and ownership so that more families can enjoy the self-respect and independence that comes with being self-sufficient from the state. Our far-reaching proposals for personal pension funds are central to achieving this – so too are our plans to increase support for the family in our tax system. Our aim is to spread opportunity for all to succeed, whoever they are and wherever they come from, provided they are prepared to work hard. To turn the “have nots” into the “haves”. To support the family in providing security and stability.

    We have modernised and reformed many of the areas where the state still has a vital role. But we now have to build on these reforms to deliver even better services. We must continue providing the resources to invest in our modernised health service. We can now provide parents with a hard-edged guarantee of standards in schools. We need also to widen choice in areas where state bureaucracy has constrained it.

    We have pioneered new ways of building partnerships that engage the private sector in areas previously dependent on the public purse. We now need to capture private sector investment on a massive scale to regenerate our cities, transform our crumbling local authority housing estates and modernise other public assets.

    The only way to secure this future of opportunity is to stick with the Conservative programme of continuing reform. Now would be the worst possible moment to abandon the pathway to prosperity on which we are set. We must keep up the momentum.

    At the same time we must maintain the security that a stable nation provides in an uncertain, fast-changing world. We must protect our constitution and unity as a nation from those who threaten it with unnecessary and dangerous change. And we must stand up for our interests in shaping a free-market Europe of sovereign nation states.

    There is, of course, an alternative on offer: to load costs on business while calling it “stakeholding”; to increase the role of the state, while calling it “the community”; to succumb to a centralised Europe while calling it “not being isolated”; to break up our country while calling it “devolution”.

    To risk this alternative would be a disaster for our country. We have come a very long way. We must be sure that we do not throw away what we have gained, or lose the opportunities we have earned.

    Our Record

    The UK is on course to grow faster than both France and Germany for the sixth successive year in 1998 – a post-war record.

    Inflation has now been below 4% for well over 4 years, the longest period of low inflation for almost half a century.

    Mortgage rates are at their lowest levels for 30 years.

    Unemployment has fallen to its lowest level for 6 years. We now have a lower unemployment rate than any other major European economy. Youth unemployment in Britain has fallen to less than 15% whereas by contrast, in France it has risen to 27% and in Italy to 33%.

    A higher proportion of our people are in work than in any other major European economy – 68% against a Continental average of 57%.

    The UK is the favourite location for inward investment into Europe, attracting around one third of inward investment into the European Union.

    We have the lowest tax burden of any major European economy, with the government taking almost 8% less of national income than the European average.

    Public borrowing has averaged 3.4% of GDP since 1919 compared with 6.8% (and a peak of 9.5%) under the last Labour Government. Our level of public debt is now one of the lowest in the European Union – whereas it was one of the highest in 1979.

    In 1994 the UK lost 300,000 working days through strikes, the lowest figure ever recorded; in 1979 the figure was 29,500,000: nearly 100 times that figure.

    Britain ranks fifth in the world in international trade, and exports more per head than America or Japan. Exports account for 28% of GDP as against 9% for Japan, 11 % for USA and 24% for Germany and France. Britain’s current account is broadly in balance, reflecting our increased competitiveness and improved trading.

    1. Doubling Living Standards

    The free market is winning the battle of ideas the world over. From Russia to Vietnam, from China to Romania, people are realising that the socialist model has failed. This is not just an economic triumph. It is a triumph for human freedom. Britain helped to secure it. We should take pride in it.

    The spread of the free market heralds a new age of global competition. That means new markets for British goods and services, but new competitors for British companies as well.

    If we try to protect ourselves from these challenges with more regulations, public subsidies and a cosy dependence on government then Britain will fail. But if we boldly embrace these new opportunities by pushing forward the economic revolution we began in 1979, then we will enter the next millennium with boundless prospects for growth and prosperity.

    That choice – between stagnation and dynamism – is the choice which faces Britain at this election. It is a stark choice between the British way – of trusting the people and unleashing enterprise – and the failing social model, practised on the continent, which the Labour Party wants to impose on us here under the guise of “stakeholding”.

    Hard economic evidence shows how great is the divide between these two strategies. Britain is now in its fifth year of growing faster than France or Germany. Unemployment in Britain has fallen to less than two million, while it rises across Europe. Britain attracts nearly forty per cent of all the American and Japanese investment in Europe. Our aim now is to safeguard these achievements and build on them, so Britain becomes the unrivalled Enterprise Centre of Europe.

    A Low Tax Economy

    For enterprise to flourish, the state must get out of the way of the wealth creators. We are the only party that can cut taxes because we are the only party which is serious about controlling public spending. The choice between the two economic philosophies is clean In the years before 1979, public spending in Britain kept pace with the average for Europe as a whole. Since then, it has continued rising on the continent, while we have restrained public spending here. Now, public spending takes about 40% of our national income as against an average of 50% on the continent. We have broken free from a trend in which the rest of Europe is still trapped.

    Conservative government will keep public spending under tight control and ensure that it grows by less than the economy as a whole over the economic cycle. At the same time we will continue to spend more on the services which matter most to people – hospitals, schools and the police.

    Over the next parliament, we will achieve our goal for the government to spend less than 40% of our national income.

    That means we can reduce the amount government borrows too, and meet our aim of moving towards a balanced budget in the medium term. Our plans show how we can virtually eliminate public borrowing by the year 2000.

    Thanks to our success in controlling public spending, Britain is now Europe’s low tax economy. This is one of the reasons why we are becoming the Enterprise Centre of Europe.

    Our aim is to ensure Britain keeps the lowest tax burden of any major European economy.

    In the election manifesto of 1992, we promised that “We will make further progress towards a basic income tax rate of 20p”. Since then, we have cut the basic rate of income tax from 25p to 23p, and extended the 20p band so that over a quarter of all taxpayers now only pay income tax at the 20p rate. Achieving our public expenditure goals will mean we can sustain permanently low tax levels.

    Over the next parliament, our aim will be to achieve our target of a 20p basic rate of income tax, while maintaining a maximum tax rate of no more than 40p.

    Stable Prices

    Inflation has to be kept firmly under control for an economy to thrive. Britain is now enjoying the longest period of stable prices for almost fifty years. We are on target to reach our goal of 2½% inflation this year.

    Low inflation has delivered lower interest rates whilst preserving the value of people’s savings. Homeowners are now enjoying mortgage rates at the lowest levels for 30 years.

    It has taken tough decisions to break free from our reputation as a high inflation economy. No Conservative government will jeopardise this achievement.

    During the next parliament, we will maintain an inflation target of 2½% or less.

    Rising Living Standards

    The only secure base for rising living standards is a strongly growing economy, low levels of public spending and taxation, and stable prices. That is exactly what Britain is achieving. People are reaping the rewards of their hard work as their take home pay increases. Between 1974 and 1979, the take home pay for a family on average earnings rose, in real terms, by just £1 a week in today’s prices. Since 1979 it has increased by £100 a week; this year alone it will increase by £7 a week.

    The goal which we set ourselves in 1995 is to double living standards over 25 years.

    We are on course to achieve our goal.

    2. Jobs and Business

    Our priority is to create jobs. This is not just an economic priority, but also a social and moral one. Jobs and enterprise are the best ways of tackling poverty and deprivation.

    Britain is succeeding. 900,000 jobs have been created over the past 4 years. By contrast the European social model is stifling job creation on the continent by imposing regulations and burdens on business. In the United Kingdom unemployment is much lower than in the rest of Europe and falling whereas in Germany, France, and Italy it has risen to its highest level for a generation. This is no accident. It is because we have pursued very different policies from those on the Continent.

    Curbing the power of trade unions, opening up markets and cutting red tape, have given us a low strike, low cost economy: and as a result Britain is the number one location for foreign investment in Europe.

    Never have such policies been so important. For the first time this century we face a world full of capitalist competition. The only way Britain will be able to compete and win in world markets is by sticking to the Conservative policies that are delivering success. We can earn prosperity as one of the world’s most successful global trading nations. We should not risk this progress by adopting the very policies that have made the continent uncompetitive and have increased unemployment in Europe by 4.5 million over the past 5 years.

    Small Businesses – Britain’s Risk-takers

    Governments do not create jobs. Businesses do. The source of tomorrow’s jobs will be small businesses, the seedcorn of Britain’s prosperity. Over the last 15 years, small businesses have created over 2 million jobs. By the year 2000, over half the workforce should be working in companies which employ fewer than 50 people. Back in 1979 only a third of the workforce did.

    Entrepreneurs often risk everything when they set up their own business. We have already helped them: raising the VAT threshold, cutting employer’s national insurance contributions, simplifying audit requirements and much more besides. Now we intend to go further, tackling the remaining problems they face.

    High taxes and rates deter enterprise. Our low tax structure has been crucial to our industrial revival. We already have the lowest corporation tax of any major industrialised country. As we want small businesses to flourish, we will go even further.

    We will cut the small companies rate of corporation tax in line with personal taxation as we move towards a 20p basic rate

    Investment and enterprise are deterred if the taxman takes too much of the capital that is built up by a successful business. Capital is ever more mobile, flying around the world to places where the tax on it is low: Britain must be one of those places.

    We will continue to reduce the burden of capital gains tax and inheritance tax as it is prudent to do so.

    One of the heaviest burdens small businesses face is business rates. At the moment, this bears more heavily upon small businesses than large ones.

    In the next parliament, we will reform business rates to reduce the cost that falls upon small businesses.

    No businessman has time to fill out reams of forms. We will continue to simplify the administration of NICs and PAYE for small firms, allowing them to concentrate on satisfying customers not bureaucrats. We are also tackling a problem that hits small businesses particularly hard – the late payment of bills. On top of our programme to ensure government departments and local authorities pay on time we have legislated to require companies to publish their payment policy and to report their record on how quickly they pay their bills to small businesses.

    We have already abolished over a thousand regulations. New regulations must only be introduced if it is clear that their benefits exceed their costs and they do not place an undue burden on a small firm.

    We will introduce “sunset” requirements into new regulations whenever appropriate so that they are automatically reviewed or dropped after a specific period.

    Many businessmen suffer regulatory burdens imposed by local government and quangos.

    We will therefore insist that the whole of the public sector adopts the same stringent rules that we require of central government in justifying the benefits of new regulations against their costs.

    Reducing the Burden on Companies

    Jobs depend on British firms winning orders: the difference between success or failure can be wafer-thin. Any extra burden on business will destroy jobs.

    Britain is enjoying more jobs and record investment, thanks to the competitive edge we have over other European countries. We are a low cost economy But that does not mean we are a low pay economy. Our competitive advantage comes from the lower costs facing our businesses. It can be measured by the social costs an employer has to pay on top of every £100 of wages: in Germany it is £31, in France £41, but in Britain, it is only £15.

    Many countries in Europe have tried to cocoon themselves from global competition behind layers of red tape and regulation – such as the Social Chapter and a national minimum wage. This provides a false sense of security, playing a cruel trick on working people. It also excludes the unemployed from work. As companies in the rest of Europe have grown more uncompetitive, employers have found it too expensive to employ new workers, investment has gone elsewhere, and the dole queues have lengthened. The European social model is not social and not a model for us to follow. But if Britain signed up to the Social Chapter it would be used to impose that model on us – destroying British jobs.

    No Conservative government will sign up to the Social Chapter or introduce a national minimum wage We will insist at the Intergovernmental Conference in Amsterdam that our opt-out is honoured and that Britain is exempted from the Working Time Directive: if old agreements are broken, we do not see how new ones can be made

    We will resist the imposition of other social burdens on the work place through a new European employment chapter.

    Welfare into Work

    Although governments cannot create jobs, they can help people train and find work. We now have in place a battery of schemes working with Training and Enterprise Councils to provide targeted help and training, including remedial education in literacy and numeracy. We are also developing new incentives, alongside Family Credit, to help people move off benefit into work.

    We will always help those in genuine need: in return, the unemployed have a responsibility to look for work and accept a reasonable offer That belief underpins our new Jobseeker’s Allowance which ensures that no-one can refuse reasonable work opportunities and remain on benefit.

    As unemployment falls, we want to focus on those who have been unemployed for some time. At present, Project Work is helping 100,000 people who have been unemployed for more than 2 years in cities around Britain. They are first given help in finding a job – which includes giving employers incentives to take them on. Those who do not find jobs are then required to work for a specific period on a community project. This helps them regain work habits and ensures they are available for work.

    As Project Work succeeds and demonstrates that its costs can be met by the savings from getting people into work, we will extend the programme to cover the long-term unemployed nationwide

    We will also develop an innovative “Britain Works” scheme which uses the experience and ingenuity of private and voluntary sectors to get people off welfare into work.

    Britain has one of the most mobile economies in Europe. People move on, and up, into better paid jobs more easily than on the continent.

    The Information Society

    Britain is at the forefront of creating tomorrow’s information society Already we have exposed domestic telecommunications to competition and stimulated investment in cable and satellite entertainment systems. And by opening up international telecommunications we will continue to encourage companies worldwide to base their global operations here. We will make sure that the digital revolution comes to Britain first.

    We are launching an ambitious programme with industry to spread “IT for All”, giving every adult the opportunity to try out and learn about new IT services. We will work with industry to ensure that all schools are connected to the information superhighway.

    We will use the Millennium Lottery Fund to transform the computer facilities and information links available in schools, libraries, museums, voluntary organisations and other public places after the turn of the century.

    This will give the public much wider access to information services in the years ahead. We will also take advantage of information technology to transform the way government provides services to the public.

    We will keep Britain in the vanguard of new mobile service development – including mobile telephone and information services – by introducing a pricing system for the radio spectrum to achieve more efficient allocation of radio frequencies.

    We will maintain a strong, free and competitive broadcasting and press environment at both national and local level, while continuing to be vigilant in monitoring whether action is needed to curb breaches of standards, and prevent unacceptable press intrusion.

    Science

    British science enjoys a worldwide reputation for excellence and cost-effectiveness, which makes Britain an attractive base for many domestic and overseas companies. We will continue to invest in science and target funds at basic research, which would not otherwise be funded by industry. At the same time we will provide an enterprising environment which encourages firms to invest with confidence in applied science.

    2020 Vision

    There is no part of the globe which has not been reached by British enterprise and British culture. We have always looked out beyond these shores, beyond this continent. Our language, our heritage of international trading links, our foreign investments – second only to America’s – are historic strengths which mean we are ideally placed to seize the opportunities of the global economy.

    Thanks to Conservative policies of liberalisation and privatisation we are strong in industries of the future such as telecommunications, financial services, and information technology. These are the industries that will benefit from opening up trade around the world. We will push for completion of the European Single Market and continue to pursue the objective of transatlantic free trade against the background of world trade liberalisation.

    Our aim is nothing less than tariff free trade across the globe by the year 2020.

    Free competition is important for free markets. Companies should not make agreements that restrict competition and hence result in poor value for consumers. We have set out proposals to give companies greater protection against price fixing, dumping, and other restrictive practices by larger competitors.

    We will introduce a Competition Bill to take forward these proposals in the first session of the next parliament

    We are committed to pushing forward our competitiveness agenda which is making Britain the Enterprise Centre of Europe.

    Opportunity and Ownership for Individuals and Families

    Our Record – Opportunity

    The right to buy has allowed 1.5 million council tenants to become homeowners. There are over 4 million more homeowners today than in 1979.

    The Government has spent £6 billion through housing associations to provide homes for rent. Between 1992 and 1995 housing associations provided 178,000 new lettings – 25,000 more than promised in the 1992 Manifesto.

    There are now around 10 million private shareholders, up from about 3 million at the time of the last Labour government. 2.5 million people now have tax free savings in PEP accounts, and 4.5 million in TESSAs.

    Since 1979, the success of private pension provision has raised the average income of pensioners by 60% more than inflation. Almost 90% of recently retired pensioners now have incomes over and above state benefits.

    Savings in private pension funds have increased to £650 billion –more than 4 times the level in 1979. Their value is greater than the pension funds in all other EU countries added together.

    Over the period 1979 to 1995, education spending per pupil rose from £515 to £1,890 – an increase in real terms of 48%. Real spending on books and equipment per pupil rose 56%. Teachers’ real pay rose 57%: from £270 per week in 1979 to £420 in 1995.

    In 1979, 40% of three and four year olds attended nursery school; in 1995 the figure was 59%. Our nursery vouchers now give this opportunity to every child.

    The proportion of sixteen year olds staying on in full-time education rose from 4 out of 10 in 1979 to 7 out of 10 in 1995.

    Almost 1 in 3 young people now go on to university, compared with 1 in 8 in 1979.

    The proportion of adults with no academic qualifications has halved since 1979 and the proportion of adults with a degree or equivalent has more than doubled rising from 5% to 12%.

    3. Choice and Security for Families

    The family is the most important institution in our lives. It offers security and stability in a fast-changing world. But the family is undermined if governments take decisions which families ought to take for themselves. Self-reliance underpins freedom and choice.

    Families are stronger if they have the money to look after themselves: that is why we are shifting power and wealth back to working families and away from the state. We have already achieved much – the average family’s disposable income has gone up by 40% since 1979. But we want to go further. The next Conservative government intends to reform the tax system so that it gives substantially more help to families.

    We also want to encourage people to save so they have the security and self-respect that comes from being able to rely on their own resources rather than immediately turning to the state. We have already made much progress here too with widening ownership of homes, pensions, and the new PEPs and TESSAs. We now propose further radical measures for more saving for retirement.

    Families and Tax

    We believe families should be left with as much of their own money as possible. They know better than politicians how to spend it. We have already cut the basic rate of income tax from 33p to 23p, and our aim is to get it down to 20p, benefitting 18 million taxpayers. We intend to do even more to help families in particular

    At the moment, if one spouse does not take paid work in order to look after children or dependent relatives, they not only give up earnings but may also be unable to benefit from their personal tax allowance. Yet this is the time at which their income is often most stretched.

    We believe our tax system should recognise and support the crucial role of families in their caring responsibilities. We will give them that support.

    We will give priority to future reductions in personal taxation that help families looking after dependent children or relatives by allowing one partner’s unused personal allowance to be transferred to a working spouse where they have these responsibilities.

    This will provide a targeted reduction in the tax bill to those families who need it most. Around 2 million one-taxpayer couples with dependent children, or looking after elderly relatives and others needing care, would gain up to £17.50 a week – around £900 a year

    Family Savings

    In the old days people just depended on the weekly pay packet or money from the state. But no job can be secure and the state cannot provide for every eventuality. It is ownership which brings true security and genuine independence from the state. That is why Conservatives have long dreamed of a property-owning democracy. Now we are delivering it in practice. Home ownership is up by 4.7 million. 10 million people own a direct personal stake in our economy. 16 million are gaining shares in their building societies thanks to our deregulation of them. We intend to carry forward our vision of a people’s share. This is a significant increase in personal security. It is the Conservative vision of security through personal savings – not a socialist vision of security through the state.

    We want people to enjoy Britain’s success – especially by owning shares in the companies for which they work. We have already introduced a number of schemes to encourage employee share ownership. To encourage a further expansion of worker shares, our new Share Match Scheme will allow employees to be rewarded with additional free shares if they acquire a stake in their company.

    Our goal is that by 2000, more than half of the employees of Britain’s larger companies will own shares in those companies.

    Four and a half million people now benefit from tax free TESSAs and 2.5 million from PEP schemes to encourage the accumulation of long term saving. We will continue to build on this success by exploring ways in which existing tax exemptions for savings can be developed – allowing individuals to secure their future and protect their families against unexpected contingencies.

    We will continue to raise the threshold for inheritance tax as it is prudent to do so.

    People are not just saving for themselves but for their children and grand-children. These savings should not be penalised by the tax system.

    For many people their biggest asset is their pension. Thanks to the steps we have already taken to encourage occupational and personal pensions, we now have £650 billion invested in private pensions – more than the rest of the European Union put together We now plan to build further on this achievement.

    We will make it easier for small employers to set up personal pension plans for groups of employees.

    We will create more flexibility for people who save in personal pension plans to continue investing in those schemes if they subsequently move to jobs with company pension schemes.

    We will also create flexibility for employees with savings in Additional Voluntary Contributions (AVC) schemes to take part of that pension earlier or later than their main company pension.

    But we believe the time has now come to plan for another important step in improving Britain’s pension provision. Britain is already much better placed than many other countries to afford state pensions in the future, but we want even more people to be able to look forward to properly funded pension that grows with the economy and is free from dependence on taxes paid by future generations. We now propose a practical way of achieving a gradual transformation of the state pension scheme.

    At the start of the next parliament we will set out proposals to provide all young people entering the workforce with a personal pension fund paid for through a rebate on their national insurance contributions. At retirement they would be entitled to the full pension earned by this accumulated investment. This could give them a pension significantly higher than they would currently receive from the state. But they will be guaranteed a pension at least equal to the current bask state pension, increased in line with inflation.

    This will be one of the most significant improvements in the state pension system since it was introduced.

    Older people currently in the workforce would be unaffected – they will continue to contribute as now and receive the normal state pension when they retire.

    This policy would come into effect early in the new millennium. Gradual phasing in of the new system over 40 years will make the impact on public finances affordable. Even at its peak, the net revenue forgone will be only a fraction of the savings from the recent Pensions Act. And eventually, the new policy will produce massive public expenditure savings.

    This far-sighted idea is in the best Conservative tradition. The growing wealth of the nation will provide for the next generation through private funding, underpinned by a state guarantee. British people will be able to look forward to retirement with even greater confidence. And our young people will have a pensions opportunity unrivalled in the world.

    Support for Families

    Conservatives believe that a healthy society encourages people to accept responsibility for their own lives. A heavy-handed and intrusive state can do enormous damage.

    Some families need help to cope with their responsibilities. For them, Social Services play a vital role. They help with children where parental care has failed. They deliver an ever wider range of services to people with learning difficulties or who are mentally ill. Our community care reforms have given them a central role ensuring that elderly people get care of the highest quality: and in their own homes where possible. We need to ensure that role is properly fulfilled.

    Early in the next Parliament we will introduce a Social Services Reform Bill which will create a new statutory framework for social services. The Bill will provide for greater openness and accountability in social services.

    We will provide new guidance to ensure social workers properly reflect the values of the community – focusing their efforts on those families who most need support, and minimising unnecessary interference. Social workers working with children will receive special training to cope with the often heart-rending cases they face.

    We will raise standards through a new regulatory framework which will apply the same standards in both the public and private sector.

    We will also remove the power of local authorities to operate care homes where this is in the best interests of the people for whom they are responsible.

    We believe that families who use social services should be able to exercise choice wherever practicable. We have given cash payments to disabled people to purchase the services they need directly.

    We also want new ways of reinforcing individual choice where possible. We will therefore ensure no barriers stand in the way of local authorities wanting to issue their users with vouchers to buy certain services.

    We will review the direct payment scheme, and provided it has been cost effective, we will extend it to other users of social services.

    Above all, we want to help families to help themselves. Caring for older – or disabled – relatives is one of the most natural human instincts. We recognise the crucial and often demanding role carers play, and will help them more.

    We will introduce a Respite Care Programme. This will enable family members with heavy responsibilities caring for a relative to take a much needed break. We will also offer more practical advice for carers who want to go back to paid work.

    But in some cases, elderly people need more care than their friends or relatives can provide. Financing long term care worries many families. We will create an imaginative, fair partnership between individuals and the public sector to resolve this problem.

    In the first session of the next Parliament we will implement our partnership scheme for long term care, making it easier for people to afford the cost of care in old age without giving up their lifetime savings.

    Good preparation for marriage can be an important aid to a successful family, while timely help in meeting difficulties can often avoid family breakdown. These are matters for voluntary effort, not the state, but we will continue to support such effort.

    We need to make sure efforts to help struggling families does not turn into unnecessary meddling.

    When the state goes too far, it is often the children who suffer They become victims of the worst sort of political correctness.

    We will introduce legislation to remove unnecessary barriers to adoption and introduce new rules to make adoption from abroad more straightforward.

    We will also monitor the workings of the Children Act, and act if necessary to ensure it maintains a proper balance between the rights of children and the responsibilities of adults.

    Social Services departments are now the fourth arm of the welfare state. Most people will need them at some point in their lives. We will ensure that the Conservative revolution in public services now reaches Social Services.

    Disabled People

    We have quadrupled real spending on long term sick and disabled people since 1979, to £22 billion.

    We have introduced the Disability Discrimination Act. This is the first legislation of its kind anywhere in Europe and it provides positive proof of our commitment to disabled people. We will monitor it to ensure it continues to meet its objectives.

    We are also providing a continuing fund to enable the most severely disabled people to stay in their own homes.

    Security in Retirement

    Pensioners continue to make a positive contribution to society in retirement. They give more of their time in charitable work than any other age group. They lift some of the pressures on their own families. They help keep our nation’s history and traditions alive.

    They have paid their National Insurance contributions and taxes and rightly expect us to continue to protect the value of the basic state pension against price rises. We will do so. We will also ensure that less well off pensioners continue to get extra help on top of the basic pension.

    At the same time as protecting the state pension, our encouragement of private pensions is already transforming the living standards of pensioners. The average net income of pensioners has risen by 60% since 1979. This has been achieved by our encouragement of saving for retirement.

    The tax system must help pensioners who have saved. Our new lower 20p rate on income from savings directly helps 1.7 million pensioners and the special age allowances raise the point at which pensioners start to pay income tax.

    A Better Social Security System

    People in need can rely on our continuing support. To ensure that taxpayers are

    willing to go on paying for that support, we have shaped a social security system we can afford, taking a steadily declining share of our national income. We are doing this by focusing benefits on those most in need, helping people off welfare and into work, and curbing welfare fraud. These policies are underpinned by our measures to help families help themselves.

    Social Security must be there to help families, pensioners and people in need. We will protect the value of Child Benefit and Family Credit which help with the cost of bringing up children. This is our Family Benefits Guarantee.

    We will bring the structure of benefits for lone parents into line with that for two-parent families. We will continue to help lone parents obtain maintenance, and assist with childcare in work: both these measures help lone parents obtain work. We will pilot our “Parent Plus” Scheme that gives special help to lone parents who want to work, and extend it if it proves successful.

    Social Security fraud must be stamped out.

    We will intensify our current initiatives of inspections and checks, including more home visits, to crack down further on benefit cheats. We will introduce benefit cards across the country. We will establish a Benefit Fraud inspectorate to monitor local authorities’ performance. We will also improve the sharing of information between government departments to catch more fraudulent claims.

    To ensure as much of the Social Security budget as possible goes into benefits, we will continue to improve the efficiency of administration, using the best mix of public and private sector operations.

    Housing

    Owning one’s own home is an aim shared by millions of people. Over the last 18 years, the number of homeowners has increased by 4.7 million – including 1.7 million who have bought their home under the right to buy scheme. Over the next 10 years, we expect to see another one and a half million people buying their own homes – some 3,000 every week. To meet that demand, we will continue to allow local authority and housing association tenants to buy their homes, or move to houses which they buy.

    We will also carry through our draft Bill, creating the option for those buying flats to choose a new form of commonhold ownership.

    For those who wish to rent their home, we are encouraging a thriving private rental market, building on the success of housing investment trusts and protecting assured tenancies.

    Easier renting will help us meet our target of reducing the proportion of empty homes below 3%. The number of empty houses has fallen in each of the last 3 years. But nothing is more frustrating for people who need social housing, than the sight of a suitable property owned by the public sector boarded up and empty. We will stop that.

    Public landlords will have to sell houses which are available for occupation yet have been left empty without a good reason for more than 12 months.

    Housing associations and housing companies will continue to receive help in building new homes, and we will encourage more public-private partnerships. Together, these policies will help meet the demand for new public housing and make sure that there are decent homes for those in need.

    Opportunities for Women

    Women are succeeding in Britain. More women have jobs in Britain than in almost any other European country. Women have a better education, more financial independence and more opportunities than at any other time in Britain’s history.

    This success reflects the efforts and determination of many women. Government’s role has been simpler – to level up the playing field, whether in education, where girls are now doing better than boys, or in the workplace, where opportunities for women are the best in Europe.

    But we know our job is not yet done. Some women still face barriers to doing well. Some still do not have the financial security they deserve. And crime, and the fear of crime, often affect women more than men.

    We will ensure women have equal opportunities in education and the workplace. This can best be achieved by keeping our economy buoyant and our labour markets flexible. And our proposals to bring crime rates down further will help women especially.

    But many women – and some men – face a particular problem: how to juggle job and family. For those who need or want to work, we will seek further ways to minimise the barriers to affordable, high quality childcare. For those who wish to be full-time parents, our proposals to enable them to transfer their unused personal allowance to their spouse will be worth up to an extra £17.50 a week.

    We also want to give women more financial independence, particularly when they retire. We propose, as explained elsewhere, to improve flexibility in saving for retirement and to allow courts to split pensions on divorce.

    Looking Outwards

    The spread of share ownership, the transformation of pension provision, and the sale of council houses are revolutionising our nation. Personal prosperity and property ownership are not selfish or inward-looking.

    People who are secure at home can look out for others in their community. Over two thirds of adults engage in some form of voluntary activity. By the end of 1997 all young people aged between 15 and 25 who want to volunteer will be helped to find an opportunity to do so.

    We will make it easier for those receiving incapacity benefit to volunteer by removing the 16 hour weekly limit on their voluntary work.

    We will encourage voluntary work by others living on benefit while continuing to insist that those who are capable of work should actively seek employment. We will also develop accreditation for voluntary work to encourage employers to see it as preparation for a paid job.

    It is wrong to imagine that compassion must be nationalised and that we can only help our fellow man through state action.

    4. Education and Opportunity

    All children dream of what they might do when they grow up. Our task is to help them turn those dreams into reality whatever their background may be. It is an exciting world, full of new opportunities for inquiring minds: it should be open to every child. Their future – and Britain’s prosperity – depends on the quality of their education.

    Our Education Guarantee

    A good education is the birthright of every child. Literacy is the building block of all future learning: English is the global language of commerce and, much more, a thing of beauty. Without basic science and mathematics, the modern world is incomprehensible. Every child therefore must be taught to read, write and add up from an early age.

    Years of mistaken, progressive education in the 1960s and 1970s denied these precious skills to too many children. We have worked ceaselessly since 1979 to put that right. Our decision to test children and publish the results has allowed standards to be measured and exposed. We have reformed the curriculum, toughened inspections, and given more information and power to parents. Our many excellent teachers now know what is expected of them, and already standards in schools are rising. But they are still not good enough. We must do more.

    Building on what we have done, we can now offer a new pledge to parents – a guarantee of education standards.

    First, we will set national targets for school performance that reflect our objective of ensuring that Britain is in the top league of international standards across the whole spectrum of education.

    Second, we will require every school to plan how to improve its performance, and to set targets which relate to similar schools and national standards.

    Third, we will give all parents full information on the performance of their child’s school

    Fourth, to underwrite our pledge, we will ensure action is taken to bring any under-performing school up to the mark.

    We will meet this pledge by using the full set of levers for improved standards that we have put in place.

    We are revising and simplifying the National Curriculum in primary schools to emphasise high standards in the basic skills.

    Parents and teachers must have an overview of not just how much a child has learnt while at school, but how the school performs against others. Poor schooling must not be protected by a veil of secrecy. Parent power is a vital force for higher standards.

    Regular tests and exams are essential if teachers are to discover how much their pupils have learnt, and parents are to know how much progress their children are making against national standards. That is why children are already being tested at 7, 11 and 14.

    We will publish all school test results, including the results of tests of 7 and 14 year olds.

    We propose also to assess every child at five.

    This will give teachers and parents a benchmark against which they can measure future progress. To give a better measure of pupil’s performance, marks out of 100 will be made available to parents as well as the broad-brush levels.

    We will also introduce a new test for 14 year old children that covers the whole National Curriculum – assessing progress before they choose subjects for GCSE.

    Tests and exams need to be rigorous and demanding. We will insist that they establish children’s command of spelling, punctuation, and grammar in English tests. Children will sit arithmetic tests without calculators. We will not allow such extensive use of open books in tests and in GCSE exams. We will establish an English Language GCSE. We will continue to uphold the gold standard of A-levels, and ensure that the great classics of our literature are studied at A-level. At the same time students should have the chance to study more subjects in the sixth form.

    Rigorous tests show how individual children and schools are performing and expose schools that are not giving children the education they deserve. To underwrite our guarantee, we will then take action to improve standards. We cannot tolerate schools that fail their pupils.

    By this summer every secondary school in the country will have been inspected by independent inspectors, and by summer 1998, every primary school will have been inspected as well. We have the power to take over failing schools directly and close them if necessary We will now go further and require every school to set, and publish, regular targets, and plans for improving their academic results. Independent inspectors will monitor the results of weaker schools and their plans for improvement at regular intervals.

    Sometimes, though, schools are failing because the local education authority which runs them is failing. The authorities with the worst GCSE results and the worst results at Key Stage 2 (11 year olds) are run by Labour. Those children need our help.

    We will allow for on independent inspection of education authorities and intervene directly to raise standards where education authorities are letting children down.

    Failing authorities will be required to set out their plans to raise standards, and work with education teams – directed by independent inspectors – to implement those plans.

    The vast majority of teachers do an outstanding job. They have played a key part in implementing the reforms that we have introduced. A few, though, let their pupils down.

    We will establish a more rigorous and effective system of appraising teachers, which reflects how well their pupils perform in tests and exams: this will identify which teachers need more help and, where necessary, which teachers need to be replaced.

    Many feel that the professional standing of teachers would be strengthened by the creation of a single body which could speak with authority on professional standards. We will consult with teachers and other interested parties about the possible role of such a body.

    The school should be a place of stability and stimulation for children, especially if they come from a hostile or turbulent environment. To improve standards in future our new teacher training curriculum will stress traditional teaching methods –including whole class teaching and learning to read by the sounds of letters. We will also encourage more teachers to enter the profession through practical training schemes focused on classroom experience such as the Graduate Teacher Scheme. A child is likely to learn more in a well-ordered school. Teachers must have the powers they need to maintain discipline. We will give teachers greater power to set detentions, to exclude disruptive pupils and to use reasonable physical restraint where necessary.

    Schools also have an important role to play in spiritual and moral education. We will take steps to ensure that every school fulfils its role of providing religious education and collective worship.

    Choice and Diversity

    When we came to power in 1979 the school system was totally dominated by one type of school – the monolithic comprehensive. The system failed our children. It treated every child the same. It told parents where to send their children. It did not give schools the freedom to run their own affairs.

    Since 1979 we have created a rich diversity of schools, to serve the varied talents of all children and give parents choice within that diversity, because we believe that parents know what is best for their children.

    That is why we – and only we – are committed to giving the parent of every four year old child a voucher for nursery education so they can choose the pre-school education they want for their child, whether in a play-group, a reception class, or a nursery school in the private or state sector.

    We will give more talented children, from less well-off backgrounds, the opportunity to go to fee-paying schools by expanding the Assisted Places Scheme to cover all ages of compulsory education, in line with our current spending plans. We propose to develop it further into a wider scholarship scheme covering additional educational opportunities. The freedoms and status of fee-paying schools will be protected.

    Grant-maintained schools have been popular with parents across the country –whatever their politics. We will encourage more schools to become grant-maintained and will allow new grant-maintained schools to be set up where there is sufficient local demand. We will give all grant-maintained schools greater freedoms to expand and to select their pupils.

    Grant-maintained schools are leading the way. Local authority schools are also benefitting from our policy of local management of schools. Our ultimate objective is that all schools should take full responsibility for the management of their own affairs. In the next parliament we will take another step towards giving them that freedom.

    We will extend the benefits of greater self-governance to all LEA schools. We will require local authorities to delegate more of schools’ budgets to the schools themselves. We will give them more freedom over the employment of their staff and over admissions. And, where they want it, we will allow them to take over ownership of their assets, so they can make best use of the resources.

    Local authorities will continue to be responsible for their schools’ standards. They will provide funds, and compete with other organisations to provide services to schools. We would expect the increased responsibility of head-teachers, and their role in achieving efficiency-savings, to be recognised by their pay review body.

    Schools are stronger and more effective where head-teachers and governors can shape their own distinctive character Sometimes that means developing a speciality in some subjects. Sometimes it means selecting children by their aptitudes: where parents want this we should not stand in their way. Special abilities should be recognised and encouraged.

    We will continue to encourage the establishment of more specialist schools in technology, arts, languages and sport. We aim to help one in five schools become specialist schools by 2001.

    We will allow all schools to select some of their pupils.

    We will help schools to became grammar schools in every major town where parents want that choke.

    The high standards, real choice and genuine diversity which we have introduced will produce the best results for all our children.

    Lifetime Learning

    Lifetime learning is a reality in Britain today. Over a half of all students in universities, and seventy per cent of those in further education colleges, are adults who have returned to education later in life. We will continue to create new opportunities for more people to participate.

    There has been a revolution in further and higher education. Three and a half million people are in further education –up from just half a million in 1979. The number of young people going to university has risen from one in eight to one in three over the same period.

    We will ensure consistently high standards and will consult on the development of higher education when we receive the results of the Dearing Review. We have world class research in British universities which we will continue to support.

    Every young person should have the opportunity to continue in education or training.

    We will give students between 14 and 21 a learning credit which will enable them to choose suitable education or training leading to recognised qualifications up to A levels or their equivalents.

    We will also introduce National Traineeships and encourage employers to offer more work-based Modern Apprenticeships to young people. Objective external assessments of a proper syllabus will be made a part of all National Vocational Qualifications.

    We will continue to support the network of Training and Enterprise Councils, which have created a valuable partnership between business and government. We will encourage more employers to become involved in “Investors in People”, with the public sector matching the performance of the private sector.

    Competitive markets demand high skills. If Britain is to win, we need to encourage learning and give people the opportunity to go where their interests and inquiring minds take them.

    World Class Health and Public Services

    Our Record – Health and Public Services

    Government spending has concentrated on priorities, not wasteful bureaucracy and overmanning. Despite tough overall public spending plans, real spending on the NHS has risen nearly 75% since 1979 , on schools by 50% and on the police by more than 100%.

    The Health Service is treating over 1 million more patients each year than before our reforms.

    The number of people waiting over 12 months for hospital treatment has fallen from over 200,000 in 1990 to 22,000 last year. The average wait has fallen from nearly 9 months to 4 months.

    The Government has set up the Citizen’s Charter to provide first class public services for all citizens. Nearly 650 organisations have received a Charter Mark for meeting demanding standards of performance, customer satisfaction and value for money.

    There are now 55,000 more nurses and midwives and 22,500 more doctors and dentists than in 1979. For every senior NHS manager, 77 people are providing direct patient care.

    Nurses average earnings have grown 70% in real terms: from £68 a week in 1979 to £325 in 1995. Doctor’s pay has risen by a third. Under Labour both were cut.

    Infant mortality has fallen from 13.2 to 6.2 per thousand over the last 18 years.

    Deaths through road accidents are now the lowest since records began in 1926. Since 1979 road deaths and serious casualties have fallen by 43% despite an 85% increase in motor traffic.

    The government has invested record amounts on transport – more than £26 billion since 1979 in investment on motorways and trunk roads; £16 billion in investment on railways; and £8 billion in investment on London Transport.

    Privatisation is delivering better services at lower costs. BT’s main prices are down by more than 40% in real terms. Average household bills for gas and electricity have also fallen in real terms since 1990.

    5. Security in Health

    We have been the guardians of the NHS for most of its life, improving its services and securing its funding. The benefits can be seen in our rising standards of health. 1993 was for example the first year in which no child in this country died of measles. Between 1979 and 1995 life expectancy at birth in England has increased from 70.4 years to 74.3 years for men and from 76.4 years to 79.6 years for women. We are getting healthier and we are better looked after when we are sick.

    Growing Resources for a Modern Health Service

    This progress has been possible because we have increased spending since 1979 by nearly 75% more than inflation, to almost £43 billion. And we are not stopping there. The next Conservative Government will honour a firm guarantee to the NHS.

    We will continue, year by year; to increase the real resources committed to the NHS, so NHS spending will continue to share in a growing economy

    Under Labour there have been years when resources for the NHS actually shrank – something that would be inconceivable with the Conservatives.

    Money is only really a means to an end: better patient care. Now we are treating 9.2 million hospital in-patients and day cases as against 6.9 million in 1992 and 5.1 million in 1979.

    Investing in Skilled Staff

    We are committed to expanding the medical staff of the NHS. We shall therefore increase medical school intakes to 5,000 a year by the year 2000 and are ahead of schedule in reaching the target.

    Good nursing is the bedrock of the NHS. In particular we will increase the number of nurses with specialist qualifications in paediatric intensive care,emergency care, and cancer care. The number of nurses qualifying each year will increase by 2,500 within the next 5 years as we continue to expand Project 2000 training.

    Higher Standards of Service

    We are tackling the problem of long waiting times which can cause so much worry; distress, and pain. We have set tough targets under the Patient’s Charter and as a result average waiting times for in-patient hospital treatments have fallen from more than 6 months 5 years ago to 4 months last year.

    Patients no longer put up with being kept in ignorance. They want to know more.

    We will publish more information on how successfully hospitals are treating patients so that they and their GPs can make more informed choices between services in different hospitals and help stimulate better performance

    Better Primary Care

    Our vision of the NHS is one in which hospitals and family doctors gain greater power to run their own affairs. That is why we will continue to encourage the spread of fundholding among GPs. Labour by contrast would destroy the new freedoms that fundholding doctors enjoy by imposing a new layer of bureaucracy on top of them.

    However, we do not want the benefits of better healthcare to be confined to patients of GP fundholders. Our proposals to shift more healthcare towards family doctors are open to all

    We shall implement the new Primary Care Act which will enable all family doctors to provide a broader range of patient services within their surgeries. This will include (“super surgeries” and practice-based cottage hospitals that can offer faster and more local treatment.

    We expect to see the number of nurses working in GP practices continue to grow, as will the number of GPs.

    We will extend nationwide our plans to enable more nurses to prescribe a wider range of drugs for patients, recognising their contribution to primary care.

    Mental Health

    The last decade has also seen major changes in the care of mentally ill people. We will continue to develop a full range of services – including 24-hour nursed hostels and secure units – that can care for them in a way which is most appropriate to them and the interests of the wider community.

    We will not close any long-stay mental hospitals unless it can be shown that adequate care services exist in the community.

    We will strengthen co-operation between health and social services in the delivery of mental health services. Our recent Green Paper showed how this can be done. And we will monitor the progress of Health Authorities in developing proper mental health care plans.

    Health of the Nation

    A modern health service is not just about treating illness, it is also about keeping people healthy. This is why we launched the Health of the Nation strategy in 1992 – the first time England has had a strategy for health. Its aim is to reduce illness and premature death by identifying common causes of ill health, like excessive smoking and obesity. Different groups in and outside the health service then work together to tackle the problems.

    We are already seeing progress. Between 1990 and 1994, deaths from coronary heart disease among the over-65s, the suicide rate, and the number of teenage pregnancies fell substantially And last year we announced that environmental targets would be added to Health of the Nation.

    Improved general health means fewer people requiring attention in hospitals and GP surgeries – and more resources available for patients who need them. Our Health of the Nation strategy is a vital part of our vision for creating a health service fit for the 21st Century.

    A Modern Health Service

    Healthcare is changing fast. Modern technology is constantly increasing the range of treatments which are available. Conservatives believe that the benefits of these advances should be made available to patients on the basis of their clinical need, without regard to their ability to pay.

    Furthermore we also believe that the NHS must have access to sufficient resources to allow it to invest in the facilities required to deliver up-to-date healthcare. Since 1979 capital investment in the NHS has proceeded at an unprecedented rate. In the future we believe these requirements will be best met in a partnership with the private sector which allows the private sector to improve the facilities in which NHS healthcare is delivered.

    We will promote the Private Finance Initiative which will unleash a new flow of investment funds into the modernisation of the NHS.

    The NHS is a British success story. It commands universal support in Britain. It is widely admired all over the world. Conservatives are proud of the part we are playing in improving the NHS still further.

    6. Better Public Services

    The public sector is being transformed the world over. Britain is in the vanguard. Everyone else wants to learn from our vision of a smaller state doing fewer things and doing them better.

    Old style public services were centrally planned with little information or choice for the public who used the service. Our reforms have made these services more responsive to the public by breaking up cumbersome bureaucratic structures and shifting power to small responsive local institutions and the people who work in them. The schools, hospitals and police have all been transformed in this way. We support the people who do, not the people who plan.

    In order to get better standards we are liberating services from centralised control over capital. We will push forward our Private Finance Initiative to break down these old barriers.

    We have made public services genuinely accountable, with useful information and real choices for the people who use them. We set tough standards and they will get tougher. The Citizen’s Charter has raised standards of customer service. When these high standards are reached we recognise and reward excellence through our Charter Mark initiative. There are now 647 Chartermarks and we will aim for more than 2000 Chartermarks by the year 2000.

    We will require all government agencies to apply for Chartermarks.

    The days of the bureaucratic paperchase are behind us. The future is “government direct”. We will harness the latest information technology to place the public sector directly at the service of the citizen. People will be able to use simple computer terminals to enter information directly. This will transform time-consuming transactions like completing a tax return or registering a new business.

    Privatisation and Competition

    In 20 years, privatisation has gone from the dream of a few Conservative visionaries to the big idea which is transforming decaying public sector industries in almost every country in the world. Britain has led the way with this new industrial revolution: we can be proud of what we have achieved.

    In 1979 the Government inherited a range of businesses which had come into the public sector for different reasons. Many were known for their poor standards of service, and most were making large losses.

    Over the past eighteen years that situation has changed substantially. Privatisation has enhanced productivity, improved customer services, raised safety and environmental standards and substantially reduced prices.

    Telephone, gas and electricity bills to the customer have fallen as never before. Telephone waiting lists are unknown, and water, gas and electricity disconnections have fallen dramatically. Nearly £40 billion in private sector funding has been committed to a major investment programme to meet higher quality water standards. We can now look forward to water prices falling over the years ahead.

    Service standards have improved substantially. Before privatisation published service standards did not exist. Now industry regulators monitor legal requirements to provide quality services in a competitive environment. Refunds may be made when performance standards are not met.

    Privatisation has benefitted – and will continue to benefit – consumers, shareholders, employees, and taxpayers. In 1979 the then-nationalised industries required a £50 million per week subsidy from the taxpayer In 1996 those now privatised companies paid taxes of £60 million per week.

    We will ensure private ownership, competition and regulation continue to deliver lower prices and better services for consumers.

    We will extend competition for domestic gas users, and introduce competition in the water industry, starting with large users.

    The Post Office occupies an important part in national life. It comprises Counter Services, the Royal Mail and Parcelforce. The network of sub-post offices is vital and most are already run as private businesses. The Royal Mail provides a universal service at a standard price in every part of the United Kingdom. No one can imagine a stamp that does not bear the Queen’s head. These characteristics must continue, but reforms are needed to allow the services to develop. The Royal Mail must face up to the challenges and opportunities that are arising from increasing competition and the international liberalisation of services.

    We will guarantee to preserve the national identity, universal service and distinctive characteristics of the Royal Mail, while considering options – including different forms of privatisation – to introduce private capital and management skills into its operations.

    We will transfer Parcelforce to the private sector whilst ensuring that every Post Office in the land continues to provide a full parcel service at an economical price

    Privatisation works. We will therefore continue to pass government activities into private ownership where this can bring benefits to consumers and taxpayers.

    Local Government

    We are developing a new vision for local government.

    We believe local government should take a lead in the planning and development of their communities. To achieve that, we have encouraged them to work in partnership with central government, with private enterprise, and other organisations in their community. The impact of local government is multiplied when they work in this way.

    To encourage this partnership, we have developed the new approach of Challenge Funding. We set up a fund to meet a particular objective and then invite competing bids for the money. Those who form effective partnerships are far more likely to win those bids. The Single Regeneration Budget Fund, for example, has stimulated many working partnerships that are bringing new life to their communities.

    We will push Challenge Funding further to reward effective local government.

    This innovation has the potential to transform the financing of the public sector.

    In addition, we are encouraging higher standards and more cost-effective provision of local services. Local authorities can enable things to happen rather than necessarily running them themselves. They must look after the interests of users of their services – and that is often best done by being a purchaser, not an employer.

    Standards of service are rising in many local authorities. There are, however, still great disparities between the best and worst performers, as the Audit Commission shows in their thought-provoking reports.

    We will keep up the pressure for higher standards and improved value for money by insisting on compulsory competitive tendering.

    The development of Challenge Funding and the shift in the role of local authorities from direct employers to purchasers of services will transform local authorities over the coming years. In the meantime we will, for so long as is necessary, retain the power to cap local authorities to protect taxpayers.

    Strikes in Essential Services

    Industrial relations in this country have been transformed. In so far as there is a still a problem it is concentrated in a few essential services where the public has no easy alternative and strikers are able to impose massive costs and inconvenience out of all proportion to the issues at stake. We will protect ordinary members of the public from this abuse of power.

    We will legislate to remove legal immunity from industrial action which has disproportionate or excessive effect Members of the public and employers will be able to seek injunctions to prevent industrial action in these circumstances. Any strike action will also have to be approved by a majority of all members eligible to vote and ballots will have to be repeated at regular intervals if negotiations are extended.

    Transport

    Our railways are already improving now they have been liberated into the private sector Passenger numbers are up: more people are using the railways every day. Investment is up: Railtrack plans to spend £4 million each day on improving stations and maintaining and renewing the network. The new train operators are committed to investing £1.5 billion in new and refurbished rolling stock. And key fares are set to fall in real terms for the first time in a generation, with guaranteed price controls keeping fare increases below the level of inflation until at least 2003. We intend to build on this growing success story to create a thriving railway network for the new century.

    We will complete the successful transfer of British Rail into the commercial sector

    We now want to draw in private investment to modernise London Underground and improve services to passengers.

    We will bring forward plans to privatise London Underground. Proceeds from privatisation will be recycled in order to modernise the network within 5 years – creating an underground system to serve the capital in the 21st Century. We will regulate fares so they rise by no more than inflation for at least 4 years after privatisation. We will also protect services – including the Travel Card and concessionary fares.

    After completing the modernisation of the network, the majority of the remaining surplus from privatisation will be channelled into additional support for transport investment in London and elsewhere in the country.

    We will continue to encourage public transport. In particular, we will use the existing funding for local authorities to promote developments which make it easier to interchange between bus and rail.

    We recognise the needs of road users, and will continue to work with the private sector to sustain our road building and maintenance programme. Already under the Private Finance Initiative the private sector is contributing some £1 billion to investment in roads and achieving significant savings in construction costs. We will also tackle road congestion by introducing new regional traffic control centres, by extending the use of variable speed limits, and by ensuring that local authorities have the necessary powers to act. We will promote a cleaner environment by supporting a Europe-wide reduction in vehicle emissions, and encouraging the manufacture of more fuel-efficient vehicles.

    We will continue to build on our record of improving safety on roll-on roll-off ferries and cargo ships through higher standards of survivability and the measures in the Merchant Shipping Act.

    We will continue to make it easier for people to travel by air Already over the last 5 years opening up the market in Europe has led to more services and lower fares. We will build on that success in negotiations with the United States and other countries. We will also continue to encourage the development of regional airports offering new direct services to the rest of the world in the same way that we have already opened up new regional links with Europe and the United States. We will privatise the National Air Traffic Service because it will be run better in the private sector.

    Competition and enterprise are the best way to improve our transport system.

    A Safe and Civil Society

    Our Record – A Safe and Civil Society

    Spending on the police has doubled since 1979 after allowing for inflation. There are now about 16,000 more police officers than when we took office. 2,360 more constables have been recruited since the last election and the Government is giving Chief Officers the resources to recruit 5,000 police constables over the 3 years to 1999.

    Recorded crime has dropped in each of the last 4 years. It is now over 10% down on 1992 levels – more than half a million fewer offences – the biggest drop since records were first kept.

    There are now 153,000 Neighbourhood Watch schemes in England and Wales – 38,000 more than in 1992 – covering 5.5 million homes. We have helped fund over 4,000 closed circuit TV schemes over the last 2 years for additional security.

    Our national DNA database – the first in the world – now has over 112,000 samples on it. 3,300 matches have so far been made between suspects and crime stains.

    The Government has increased the maximum penalty for taking a gun to a crime and for attempted rape to life imprisonment. Since 1985 the average sentence for violence against the person has risen by a third and for sexual offences by nearly 40%.

    The number of cars stolen has fallen by nearly 20% in the last four years – that is about 100,000 fewer cars stolen.

    We have built 22 new prisons since 1980. Slopping out has ended. No prisoners now sleep three to a cell designed for one. Prison escapes have fallen by 80% since the last election.

    Mandatory drug testing has been introduced throughout the Prison Service. Home leave has been cut back – down by half in two years.

    We have made witness intimidation a crime. 500 people were charged with that offence in 1995 alone.

    We have stepped up the fight against drugs and organised crime, giving the Security Service powers to support the police and Customs and Excise in tracking down the serious criminals.

    7. Law, Order and Security

    People have a right to sleep safely in their homes and walk safely on the streets. Governments have a duty to maintain that security.

    Our reforms are aimed at ensuring that crime does not pay. And they are working – the pessimists and the scoffers are wrong. Recorded crime has fallen every year for the last 4 years. It is now 10% lower than it was in 1992. That is over half a million fewer crimes – the biggest drop since records were first kept in the middle of the 19th century.

    But crime is still too high. We must do more. Our aim is to keep crime falling over the lifetime of the next parliament. This is what we will do.

    Safer Communities

    Anti-social behaviour and petty crime disrupt communities and spread human misery. The police are rightly now vigorously tackling problems such as graffiti vandalism and drunkenness. Where such behaviour goes unchecked more serious crimes will follow.

    We will support chief constables who develop local schemes to crack down on petty crime and improve public order.

    Closed circuit television has proved enormously successful in increasing public safety.

    We will fulfil the Prime Minister’s pledge to support the installation of 10,000 CCTV cameras in town centres and public places in the 3 years to 1999. We will provide £75 million over the lifetime of the next parliament to continue extending CCTV to town centres, villages and housing estates up and down the country that want to bid for support.

    We will also continue to take other steps to improve the safety of our streets and communities. In this parliament we have given the police power to seize alcohol from under-18s caught drinking in public. The police have been given the power to stop and search in a specified area for up to 48 hours if they reasonably believe people to be carrying knives.

    Identity Cards can also make a contribution to safer communities.

    We will introduce a voluntary identity card scheme based on the new photographic driving licence it will, for example, enable retailers to identify youngsters trying to buy alcohol and cigarettes or rent classified videos when they are under age.

    Tackling Juvenile Crime

    A fifth of all crime is committed by under-18s. We are encouraging schools to reduce truancy through the publication of league tables and by supporting local projects to tackle the problem. We are developing a network of local teams to identify children who are at risk of turning to crime and to take early steps to address the factors which put them at risk.

    We will encourage these local child crime teams to refer children from primary school age upwards who are at risk of, or who are actually, offending to programmes to tackle their behaviour and fully involve their parents.

    The courts would be able to impose an order – a Parental Control Order – on the parents of children whom they believed could keep control of their children but were refusing to do so.

    Courts will be given the power to attach conditions to Parental Control Orders. Conditions might include a requirement to keep their children in at night, taking their children to and from school, attending a drug rehabilitation clinic or going to sessions to improve their skills as parents. Parents who breached these conditions – in defiance of the court – would face a range of possible sanctions.

    Appearing before a youth court should be a daunting experience for the juvenile concerned. All too often it is not. At the moment about a third of all juveniles appearing before the youth courts are discharged without any punishment at all This sends all the wrong signals to youngsters – particularly first time offenders – who then feel they can get away with crime.

    We will give the courts the power to impose speedy sanctions on youngsters, involving wherever possible an element of reparation to the victim. The probation service – rather than social services – will be responsible for enforcing community punishments for under-16s.

    Persistent juvenile offenders need to be properly punished. We are piloting a tough new regime, with a heavy emphasis on discipline, at a young offenders institution and at the military prison in Colchester In 1994 we doubled the maximum sentence for 15-17 year olds to 2 years detention in a young offenders institution. We have given the courts the freedom to allow the publication of the names of convicted juveniles. We will give the courts the power to detain persistent 12-14 year old offenders in secure training centres once the places become available.

    We have given the courts the power to impose electronically monitored curfews on 10 to 15 year old offenders. We will introduce pilots to test their effectiveness. If successful we will consider extending them nationwide.

    Catching, Convicting and Punishing

    We back the police every inch of the way. There are now about 16,000 more police officers – and over 18,000 more civilians helping them – than when we took office. We are providing chief constables with the resources to recruit 5,000 extra police constables in the three years to 1999.

    We support police initiatives to target the hard core of persistent criminals. Intelligence is crucial for this.

    We will establish a national crime squad to provide on improved nationally coordinated approach to organised crime.

    Once caught, criminals must be convicted and then properly punished. The public needs to be protected. We have reformed the right to silence, despite opposition from Labour. The number of suspects refusing to answer police questions has nearly halved as a result.

    We have piloted curfew orders for adult offenders. They have been shown to keep criminals indoors – curbing their freedom as a punishment – and keeping them out of trouble in the meantime.

    We will extend electronically monitored curfew orders nationwide for those aged 16 and over.

    Persistent offenders account for a high proportion of all crime. Prison works – not only as a deterrent, but in keeping these criminals off the street. Those sent to prison are less likely to re-offend on release than those given a community punishment. We will provide another 8,500 prison places by the year 2000.

    We will introduce minimum sentences for violent and persistent criminals to help protect the public more effectively, reversing Labour’s wrecking amendments to our tough Crime Bill.

    Anyone convicted of a second serious sexual or violent crime, like rape or armed robbery, will get an automatic life sentence.

    Persistent house burglars and dealers in hard drugs will receive mandatory minimum prison sentences of 3 and 7 years respectively.

    We will restore honesty in sentencing by abolishing automatic early release.

    Support for Victims

    Concern for the victim must be at the heart of our entire approach to the criminal justice system. We will continue to give strong backing to Victim Support.

    We will give courts in all cases the discretion to allow witnesses to give evidence anonymously if they believe them to be at risk from reprisal.

    We will also take action to allow a judge to stop a defendant from personally questioning the victim in rape cases and other cases where the victim is particularly vulnerable.

    Conservatives are on the side of the victims not the criminal.

    Strengthening the Fight Against City Crime

    Crime that takes place through manipulation of financial accounts and markets is as serious as crime on the street.

    The City’s unchallenged position as Europe’s most dynamic and successful financial centre owes a great deal to its reputation for honesty and fair dealing. We will help ensure that this reputation is maintained.

    We will bring forward in the next parliament a package of measures designed to modernise the current systems for dealing with City fraud.

    This will include legislation to allow the Inland Revenue to pass confidential information to the police, the Serious Fraud Office and the financial regulators to assist in the investigation of cases involving serious financial fraud. We will also remove the remaining legal obstacles to the controlled exchange of confidential information between the police and the regulators in this kind of case.

    Faster Justice

    Justice delayed is justice denied. It is wrong that people who are innocent should face an excessive wait before the start of their trial. The guilty must be held to account for their actions promptly. And victims should be given the chance to draw a line under their experience as quickly as possible. We are determined to speed up justice without diminishing the genuine rights of every citizen to a fair trial.

    Last October the government set up a review of delays in the criminal justice system. It made a series of detailed recommendations. We see merit in those recommendations and will seek the views of interested parties. We believe that taken together they could dramatically speed up the prosecution process, bringing the guilty to justice and acquitting the innocent more quickly.

    All defendants would appear in court the next working day after they were charged. At least half of them would be convicted the next day compared with just 3 per cent at the moment. And the time taken to bring juveniles to court would be cut from 10 weeks to a matter of days.

    Civil Justice

    The civil justice system of this country is a vital part of its competitive economy and has a high international reputation. The commercial courts attract substantial litigation from all over the world, generating significant foreign earnings. We will work to maintain the high standing of these courts.

    We have greatly improved the service the civil courts provide for the aggrieved citizen. The simple procedure for small claims has been extended to claims up to £3,000. For large claims the county court now provides an efficient local service with specialised courts in many locations around the country leaving the High Court to deal with the more complex and difficult issues.

    We will push ahead with the major reforms now under way which will greatly speed up the process and improve the delivery of justice without imposing additional burdens on the taxpayer.

    The Legal Profession

    We will ensure that the framework in which the legal profession operates is responsive to the changing needs of our people and is one in which unjustified restrictions have no place. We have, for example, given most solicitors rights of audience in the higher courts under appropriate conditions.

    Legal Aid

    People are rightly concerned about the rising costs of legal aid. We have taken many steps to control the burden and to deny access to legal aid to the “apparently wealthy” – those who qualified technically, but whose lifestyles suggested they should not.

    But more is required:

    We will change the structure of legal aid to ensure that it, like other vital public services, functions within defined cash limits.

    This will enable us to identify priorities and serve them much more efficiently than the present system.

    Drugs

    Drugs are a menace to the very fabric of our society They ruin the lives of addicts and their families. They can destroy whole neighbourhoods. The promising youth of today can too easily become the sad dropouts of tomorrow turning to crime and violence.

    The Conservative Government has a comprehensive strategy, launched in 1995, committed to fighting drugs in communities and in schools. It is tough on criminals and vigilant at our ports. It is respected throughout the world. We spend over £500m every year in tackling all aspects of drug problems.

    We will continue the fight against drugs through a coordinated approach: being tough on pushers; reducing demand by educating young people; tackling drug abuse at local level through Drug Action Teams; saying “No” to legalising drugs; and working with international agencies and foreign governments to resist the menace spreading.

    This pernicious evil has to be fought by all of us.

    A Confident, United and Sovereign Nation

    Our Record – The Nation

    Many of our old cities have been rejuvenated through a partnership of public and private investment.

    The area of green belt has doubled since 1979.

    Water and air quality in the UK have improved significantly.

    We are one of only a few nations on course to meet our commitment to return emissions of all greenhouse gases to 1990 levels by 2000.

    The Lottery has been established as the most successful in the world – raising £3 billion for good causes in a little over 2 years.

    More support is now given to arts and heritage than at any time in our nation’s history. We now provide nearly 20% more for the arts than the last Labour Government, over and above inflation.

    British talent was this year nominated for 30 Oscars. British music is again receiving international acclaim. The industry is worth £2.5 billion, more than shipbuilding or electric components: one in 5 CDs and records sold anywhere has a British connection.

    There is record investment in our sports facilities. Already the Lottery has provided £480 million for sport, including the planned British Academy of Sport, English National Stadium and, for the first time, direct funding for British athletes.

    We have continued to stand up for British interests in Europe, protecting our opt-out from the Social Chapter, maintaining our border controls, and preserving our budget rebate – worth £18 billion since it was introduced.

    We have the most professional armed forces in the world. We have modernised our nuclear deterrent by replacing Polaris with Trident.

    8. The Best Place in the World to Live

    Britain is admired the world oven Every year, millions of tourists travel here to enjoy our heritage and culture, our cities and countryside, our way of life. Our nation’s history is an anchor in a sea of change. We need to protect, cherish and build upon what is great about our country so our children grow up in a better Britain. We also must make sure that everyone, wherever they live, has the support of a strong, tolerant and civilised community.

    Our aim is for this generation and future generations to take pride in Britain as the best place in the world to live.

    Britain’s Cities

    London is one of the world’s greatest cities. It is livelier than even Our vision of its future is set out in a separate manifesto.

    Many of our cities have undergone a complete transformation over the last decade. We have promoted partnerships –through schemes such as Urban Development Corporations, the Single Regeneration Budget and City Pride – to attract private enterprise and investment back to inner-cities. These initiatives are bringing hope, opportunity and prosperity to what were once wastelands of urban decline.

    As the country thrives and becomes more prosperous, one of our central tasks is to apply the same approach in transforming the legacy of soulless, decaying public housing estates. They are places that suffer from the very worst kind of poverty – poverty of aspiration.

    We have already made a start – spending more than £2bn over the last 10 years on improving 500 of the worst estates. And we have shown how it is possible to tackle the economic and social problems alongside new investment in buildings – where possible, bringing in a greater mix of public tenants and private housing to recreate a more balanced community. Now we will extend this approach, focusing the Single Regeneration Budget to launch a combined attack on crime, unemployment and under-achievement, and developing the government’s partnership with the private sector to help fund the massive investment that will be required.

    Over the next decade, we aim to raise some £25bn of new private investment in housing estates by encouraging tenants in more than half of the remaining public sector housing stock to opt for transferring their homes to new landlords. These transfers will only occur where tenants choose this mute to improve theft estates.

    We will use this approach to regenerate the worst housing estates and transform the lives of those who live in them –targeting support for programmes to improve education standards, employment and crime prevention alongside new private sector investment.

    As well as this attack on poor housing, we will continue to help the homeless. We will carry through our planned extension of the Rough Sleeper Initiative from London to other big cities.

    We will provide sufficient hostel places to ensure that no-one need sleep out on the streets.

    Rural Communities

    Britain is blessed with some of the most beautiful countryside in Europe.

    We need to protect the best of the countryside whilst ensuring good jobs and living conditions for people who live there.

    We have to strike a balance: our rural communities must not become rural museums, but remain vibrant places to live and work. We will make sure government departments work together to ensure that balance is kept.

    We will continue to protect the green belt from development, making sure that derelict and under-used urban land is developed in preference to greenfield sites.

    We will use the planning system to ensure that more new homes are built on reclaimed sites in our towns and cities. We will aim for more than 60 per cent of all new homes to be built on derelict sites.

    This will reduce the pressure to build in our countryside and expand choice where it is needed most.

    We will support our rural communities, by giving special rate support to small village shops and post offices. The planning system can do more to help too.

    We will introduce a new Rural Business Use Class to encourage job creation in the countryside.

    We will increase support for schemes which promote care for the countryside – like Countryside Stewardship.

    We believe participation in traditional country pursuits, including fishing, is a matter for individuals. A Conservative Government will not introduce legislation that interferes with the rights of people to take part in these activities.

    We will also encourage managed public access to private land – in agreement with farmers and landowners – but strongly resist a general right to roam, which would damage the countryside and violate the right to private property.

    We aim to double Britain’s forest cover over the next fifty years. We will continue to encourage tree planting by targeting grants, encouraging investment in wood processing, and using new freedoms with the reform of the Common Agricultural Policy.

    Agriculture and Fisheries

    We will continue to provide robust support to the British beef industry through the BSE crisis until its long term strength is restored. We will vigorously pursue the eradication of BSE in the United Kingdom, as we have been doing successfully for the last eight years. We will spare no efforts in our fight against the unwarranted ban on British beef exports.

    Public health and food safety have been the government’s top priorities throughout the BSE crisis.

    We will tighten up control over food safety by appointing a powerful and independent Chief Food Safety Adviser and Food Safety Council to advise government

    We will continue to push for fundamental reform of the Common Agricultural Policy, moving away from production support to measures that will give our farmers the opportunity to compete while safeguarding the rural environment. We will ensure that no change to the Common Agricultural Policy unfairly disadvantages British farmers.

    Fishing is a vital industry in many parts of coastal Britain. We will continue our fight to secure a prosperous long term future for the industry and sustainable management of our fish stocks.

    We will insist at the IGC and elsewhere on measures to stop quota hopping and prevent the vessels of other countries from using UK fishing quotas.

    The integrity of our 6 and 12 mile fishing limits is not negotiable. We reject any idea of a single European fishing fleet.

    We believe that fishermen should have more say in decisions affecting their industry We will press the European Commission to establish regional committees to give fishermen a direct influence in fishing policy. We will use these committees to develop new ways of managing quotas and regulating fisheries which are more sensitive to the industry’s needs.

    Animal Welfare

    A civilised society respects animals. Britain will continue to take the lead in improving standards of animal welfare in Europe. In 1995 we secured a major breakthrough in the treatment of animals in transport; in 1996 we won victory in our campaign to ban veal crates throughout the EU. We are determined that standards should continue to rise and that all EU countries should have to meet them.

    We will seek to ensure that all European countries have to raise animal welfare standards.

    We are not going to take any risks with rabies. There may however be ways other than quarantine which maintain or increase protection for public health, while improving the welfare of pets and reducing the costs to travellers.

    We will publish a Green Paper on rabies protection, setting out all the options including the existing controls, early in the new parliament.

    Britain’s Environment Britain has an enviable track record in protecting our environment. Our rivers, beaches and water are cleaner and we are using our energy more efficiently. We are leading the world in reducing the level of the “greenhouse gases” that cause global warming and pressing for policies that will enable the world to sustain development without long-term damage to the environment. Our Green Manifesto is published separately.

    We have clear objectives to build on this record. We will set tough, but affordable targets, with published environmental strategies to improve air quality and banish city smog – with tighter standards on vehicle emissions and pollution crackdowns around the country We aim for sustained improvements in water quality, at a pace which industry and consumers can afford. We will develop labelling of products that gives consumers information to show the environmental impact of how they were made.

    In addition, we will continue to use the tax system and other incentives to encourage the use of vehicles and fuel which do not pollute the environment. And we will continue to explore policies based on the principle of polluter pays: those who contaminate land, pollute the environment or produce harmful waste should be made responsible for their actions and pay for the consequences.

    Britain – A Tolerant Country

    Tolerance, civility and respect have always been hallmarks of our nation. It is thanks to them that we have an excellent record in race relations.

    Everybody, regardless of colour or creed, has the right to go about his or her life free from the threat of intimidation. We are taking tough action to tackle harassment. Under proposals in the Protection from Harassment Act 1997, it will be a crime to behave in a way which causes someone else to be harassed. The maximum penalty will be 6 months in prison.

    Firm, but fair, immigration controls underpin good race relations. We will ensure that, while genuine asylum seekers are treated sympathetically, people do not abuse these provisions to avoid normal immigration controls.

    A World Leader In Sports, Arts and Culture

    Britain is enjoying a cultural renaissance. British music, films, television, fashion, art and food are winning plaudits the world oven They add excitement, fun and enjoyment to our lives. Our success brings pride to everyone.

    The National Lottery, which John Major set up, will pump billions of pounds into Britain’s good causes. Its proceeds will weave a new, rich thread of opportunity and charity into the tapestry of British life. In addition to benefitting major national institutions, about half of the awards are for amounts under £25,000 – benefitting local communities up and down the country. We will encourage new ways of distributing awards to support the performing arts – through support for amateur productions and community events, providing more musical instruments, and helping productions tour round the country.

    The National Lottery will also help us train and promote British sporting talent. The English National Stadium and British Academy of Sport, funded by the Lottery, will be new focal points for sporting events and excellence. We will encourage more young people to play sport by ensuring every school plays a minimum level of sport, including competitive sports, and developing a network of Sporting Ambassadors – sporting celebrities who will visit schools to inspire young people. We will also encourage the Sports Council to use Lottery money to employ over 1000 additional community sports coaches to assist in schools.

    We will encourage the use of Lottery money to train young athletes and artists, with revenue funding for bursaries, concessionary tickets to professional performances and support for young people’s organisations and productions.

    The development of young talent is important in all fields.

    The Lottery will also fund our Millennium celebrations. They will be inspirational as well as enjoyable. We want these be a showcase of British excellence. Britain will be able to look back on past achievements with pride, and look forward with confidence.

    9. Europe and the World

    Britain is a world leader as well as a European nation. Our economic strength, our history and our language make us a global trading nation with links right around the world. Only the United Kingdom is a member of the European Union, the United Nations Security Council, the Commonwealth, NATO and the Group of Seven leading industrial nations. In the Gulf, Bosnia, Cyprus and Northern Iraq, John Major has shown how our nation can contribute to world peace.

    We will continue to work with international partners to secure peace and stability in areas of tension such as former Yugoslavia; in Kashmir; in Cyprus; and in the Middle East. We will promote reform of the United Nations to make it a more effective organisation for securing international stability. Britain will continue to deploy our outstanding Armed Forces as peacekeepers under the United Nations. And we will support the aspirations of the Poles, Czechs, Hungarians and others to join the European Union and NATO.

    After the transfer of Hong Kong, we will work under the terms of the Joint Declaration to help sustain the prosperity and way of life of the people of Hong Kong and build on the substantial British interests that will remain.

    We will continue to support the Commonwealth, our unique global network, to encourage the spread of democracy; as set out in the Harare Declaration. We will focus our aid programme to encourage sustainable development in countries that are growing towards self sufficiency under democratic government. We have taken the lead in alleviating the burden of debt for the world’s poorest countries. We also have significant flows of private investment to developing economies. We are more than achieving the long term UN target of 1% of GDP for the transfer of wealth to less developed countries. We will continue to maintain a significant bilateral and multilateral aid programme reflecting the aspiration of meeting the UN’s target of 0.7% of GDP for aid as a long-term objective.

    We will also continue to provide leadership in Europe and internationally on environmental issues, building on the Rio Conference to encourage sustainable development – meeting our commitment to reduce Carbon Dioxide (CO2) emissions by 10% on 1990 levels by 2010 to prevent climate change. The Prime Minister has committed himself to attending the next UN Environmental Conference in June.

    Britain and the European Union

    We believe that in an uncertain, competitive world, the nation state is a rock of security. A nation’s common heritage, culture, values and outlook are a precious source of stability. Nationhood gives people a sense of belonging.

    The government has a positive vision for the European Union as a partnership of nations. We want to be in Europe but not run by Europe. We have much to gain from our membership of the European Union –in trade, in co-operation between governments, and in preserving European peace. We benefit from the huge trade opportunities that have opened up since Britain led the way in developing Europe’s single market. We want to see the rest of Europe follow the same deregulated, enterprise policies that have transformed our economic prospects in Britain.

    However, in June, the nations of the European Union will gather in Amsterdam to negotiate possible amendments to the Treaty of Rome. It is a moment of truth, setting the direction in which the European Union will go. It will also be crucial in ensuring that we have a relationship with the rest of Europe with which we can be comfortable.

    A Conservative Government will seek a partnership of nation states. Some others would like to build a federal Europe. A British Conservative Government will not allow Britain to be part of a federal European state.

    The diversity of Europe’s nations is its strength. As more nations join the European Union, it needs to become flexible not more rigid We must also ensure that any developments which only include some members do not work to the disadvantage of others.

    Our priorities for Europe’s development will be enlargement of the Community, completion of the single market, reform of the European Court of Justice, and further strengthening of the role of national parliaments. We will seek more co-operation between national governments on areas of common interest – defence, foreign policy and the fight against international crime and drugs. We also believe the European Union itself should do less, but do it better. So we have proposed incorporating the principle of subsidiarity – that the European Union should only do that which cannot be done by member states acting alone – into the Treaty. This is how we are approaching the Inter-Governmental Conference.

    We will argue for a flexible Europe which fully accommodates the interests and aspirations of all its member states and where any new proposals have to be open to all and agreed by all. We will not accept other changes to the Treaty that would further centralise decision-making, reduce national sovereignty, or remove our right to permanent opt-outs.

    We will retain Britain’s veto and oppose further extension of qualified majority voting in order to ensure we can prevent policies that would be harmful to the national interest. We will defend the rights of national parliaments and oppose more powers being given to the European Parliament at the expense of national parliaments.

    We will take whatever steps are necessary to keep our frontier controls. We will resist attempts to change the inter-governmental nature of co-operation in justice and home affairs. We will not accept the development of new legal rights that extend the concept of European citizenship.

    Britain’s rebate has so far saved British taxpayers £18bn and we will protect it.

    One of the greatest challenges Europe faces is to cut unemployment and make its businesses competitive. Here Britain is leading the way. We will continue to argue for deregulation and lower costs on Europe’s businesses, the policies that have helped give Britain one of the strongest economies in Europe. We will not put that achievement at risk by signing up to the Social Chapter, which would open the door to imposing the high costs of the European social model on British business. Once Britain accepted the Social Chapter we could not stop many of these damaging policies being imposed on us by qualified majority voting.

    We will insist that any new Treaty recognises that our opt-out from the Social Chapter enables Britain to be exempt from the Working Time Directive, and prevents any abuse of our opt-out. And we will not accept a new employment chapter in any revised Treaty, which would expose British businesses to new costs.

    We made it clear in the previous chapter that we will continue to work for further reform of the Common Agricultural Policy and the lifting of the worldwide ban on British beef and will insist on measures to stop quota hopping by foreign fishing vessels.

    Protecting Britain’s interests demands tough, experienced negotiation. John Major has proved he has these qualities – including the resolve to say no when necessary even if that means being isolated. Labour have said they would never let Britain be isolated in Europe: they would damage Britain’s success by undermining our veto, signing up to the Social Chapter and following in others’ footsteps – even where they lead in the wrong direction. They support policies that would fragment the United Kingdom’s influence within a Europe of Regions. The Liberal Democrats welcome the end of the nation state. Only the Conservatives can be trusted to stand up for Britain in Europe: our national interest must be protected.

    A Single Currency: Our Referendum Guarantee

    The creation of a European single currency would be of enormous significance for all European states whether they are members or not. We must take account of all the consequences for Britain of such a major development of policy.

    John Major secured for us at Maastricht an opt-out from the commitment to enter a single currency. It is only because of this opt-out that we have the right to negotiate and then decide whether it is in Britain’s interest to join.

    It is in our national interest to take part in the negotiations. Not to do so would be an abdication of responsibility. A single currency would affect us whether we were in or out. We need to participate in discussions in order to ensure the rules are not fixed against our interests. The national interest is not served by exercising our option – one way or the other – before we have to.

    For a single currency to come into effect, European economies will have to meet crucial criteria. On the information currently available, we believe that it is very unlikely that there will be sufficient convergence of economic conditions across Europe for a single currency to proceed safely on the target date of January 1st 1999. We will not include legislation on the single currency in the first Queen’s Speech. If it cannot proceed safely, we believe it would be better for Europe to delay any introduction of a single currency rather than rush ahead to meet an artificial timetable. We will argue this case in the negotiations that lie ahead.

    We believe it is in our national interest to keep our options open to take a decision on a single currency when all the facts are before us. If a single currency is created, without sustainable convergence, a British Conservative government will not be part of it.

    If, during the course of the next parliament, a Conservative government were to conclude that it was in our national interest to join a single currency, we have given a guarantee that no such decision would be implemented unless the British people gave their express approval in a referendum.

    Defence in an Unstable World

    The old rivalries of the Cold War have been replaced by new tensions. Britain must be able to react rapidly to protect our security and interests around the globe.

    Our armed forces are the most professional in the world. We have cut unnecessary bureaucracy and increased efficiency, and directed money to support our Services in the frontline. We have made the changes necessary to adapt our Services to the threats which we might now face. We have set out defence plans based on stable levels of funding. There is no need for a defence review, which would raise fear and uncertainty about the future.

    We will continue to ensure the Services have the modern weapons they need to guarantee their superiority against potential aggressors. We will make sure we can conduct military operations throughout the world, and develop our capability to deploy the three services together and rapidly, including the ability to transport heavy equipment into an operational zone. We will take part in ballistic missile defence research so we can decide whether we should procure any such system for the United Kingdom.

    We will continue to target our efforts on recruiting for the armed forces. We will set up an Army Foundation College, which will provide 1,300 places for 16 and 17 year olds who want to join the Army. We will also enable the reserve forces to play a more active role in operations. We appreciate the enormous value of cadet forces, and our current plans include resources to encourage their further development.

    We will continue to support Britain’s defence industry, and we will work with companies to identify the technologies of the future.

    NATO will remain the cornerstone of our security. We will resist attempts to bring the Western European Union under the control of the European Union, and ensure that defence policy remains a matter for sovereign nations.

    10. The Constitution

    Alone in Europe, the history of the United Kingdom has been one of stability and security; We owe much of that to the strength and stability of our constitution – the institutions, laws and traditions that bind us together as a nation.

    Our constitution has been stable, but not static. It has been woven over the centuries – the product of hundreds of years of knowledge, experience and history.

    Radical changes that alter the whole character of our constitutional balance could unravel what generations of our predecessors have created. To preserve that stability in future – and the freedoms and rights of our citizens – we need to continue a process of evolution, not revolution.

    Conservatives embrace evolutionary change that solves real problems and improves the way our constitution works. In recent years we have opened up government, devolved power and accountability, and introduced reforms to make parliament work more effectively. It is that evolutionary process that we are committed to continue.

    Open, Accountable Government

    In recent years we have taken significant steps to open up government to public scrutiny, and give individuals more information to hold government and public services to account.

    We have introduced a code on access to government information, policed by the Ombudsman. We have published information on the workings of government previously held secret –including the composition of cabinet committees, and the structure of the security and intelligence services. We have introduced a new civil service code, and reformed the process for public appointments. We are pledged to legislate on the commitments in our 1993 White Paper on Open Government, including a statutory right of access by citizens to personal records held about them by the government and other public authorities. And we have set up the Nolan Committee and have implemented its proposals to ensure that the highest standards are maintained in public life.

    But our reforms go even wider than that. We have transferred power from central bureaucracies to local organisations such as school governors and hospital trusts. We have introduced the Citizen’s Charter We have also required them to publish information on their performance – information which enables the local community to keep a check on standards and apply pressure where needed. Wherever possible, we are widening competition and choice in public services. We showed in Chapter 6 how we wished to push this agenda forward.

    Regional government would be a dangerously centralising measure – taking power away from elected local authorities. We wish to go in the opposite direction, shifting power to the local neighbourhood – for example, by giving more power to parish councils.

    Parliament

    Parliament – alongside the Crown and our legal system – is one of the three key institutions that uphold our constitution. The supremacy of parliament is fundamental to our democracy, and the guarantee of our freedoms. The last 17 years have seen many changes to strengthen parliament and make it more effective – the flourishing of select committees, new procedures to scrutinise European legislation, reform of parliament’s working day, and a budget that brings together tax and spending.

    We have therefore already done much to improve the way parliament works and will do more. We have accepted the proposal from the Public Service Select Committee and put before the House of Commons a clear new statement of the principles underlying ministerial accountability to parliament.

    All these developments have made parliament open to the citizen, and the government more accountable. In the next session of parliament we will continue this careful reform.

    To give parliament more time to consider legislation thoroughly we will extend the Queen’s Speech to cover not only legislation for the immediate year but also provisional plans for legislation in the year after that

    This will mean that more draft bills will be subject to public scrutiny before they reach the floor of the House of Commons. It will give select committees more time to take evidence and report. And this should also mean better legislation.

    We do not believe there is a case for more radical reform that would undermine the House of Commons. A new Bill of Rights, for example, would risk transferring power away from parliament to legal courts – undermining the democratic supremacy of parliament as representatives of the people. Whilst this may be a necessary check in other countries which depend upon more formalised written constitutions, we do not believe it is appropriate to the UK.

    Nor do we favour changes in the system of voting in parliamentary elections that would break the link between an individual member of parliament and his constituents. A system of proportional representation would be more likely to produce unstable, coalition governments that are unable to provide effective leadership – with crucial decisions being dependent on compromise deals hammered out behind closed doors. This is not the British way.

    We have demonstrated we are not against change where it is practical and beneficial. But fundamental changes which have not been fully thought through – such as opposition proposals on the House of Lords – would be extremely damaging. We will oppose change for change’s sake.

    The Union

    The Union between Scotland, Wales, Northern Ireland and England underpins our nation’s stability. The Conservative commitment to the United Kingdom does not mean ignoring the distinctive individuality of the different nations. On the contrary, we have gone further in recognising that diversity than any previous government. We are publishing separate manifestos for Wales and Scotland.

    While preserving the role of parliament at the centre of the Union, we have given new powers to the Scottish Grand Committee and Welsh Grand Committee – enabling Scottish and Welsh MPs to call Ministers to account and debate legislation which affects those countries – something that would be impossible with separate Assemblies. For the first time, Welsh members of parliament can ask their questions to Ministers in Welsh in Wales. Most recently we have similarly extended the basic powers of the Northern Ireland Grand Committee.

    We believe this is the right way to go. By contrast, the development of new assemblies in Scotland and Wales would create strains which could well pull apart the Union. That would create a new layer of government which would be hungry for power. It would risk rivalry and conflict between these parliaments or assemblies and the parliament at Westminster. And it would raise serious questions about whether the representation of Scottish and Welsh MPs at Westminster – and their role in matters affecting English affairs – could remain unchanged.

    Nor do we believe it would be in the interests of the Scottish or Welsh people. A Scottish tax-raising parliament, for example, could well affect the choice of where new investment locates in the United Kingdom.

    In a world where people want security, nothing would be more dangerous than to unravel a constitution that binds our nation together and the institutions that bring us stability. We will continue to fight for the strength and diversity that benefits all of us as a proud union of nations.

    Northern Ireland

    While we cherish the Union and Northern Ireland’s place within it, we recognise that there exist within the Province special circumstances which require further action to be taken.

    After a quarter of a century we wish to see the unique and originally temporary system of direct rule ended and a successful restoration of local accountable democracy achieved. We want to see this brought about in a form which carries the broadest agreement possible. And we want to see the rights, traditions and interests of all parts of the community recognised within any such agreement.

    We will accordingly continue to pursue a policy of dialogue and negotiation with and between the democratic Northern Ireland parties. We will continue to underpin such negotiations with the guarantee that the constitutional position of Northern Ireland cannot and will not be changed without the broad consent of the people of Northern Ireland. At the same time we will continue to take whatever security measures are required to protect the people of Northern Ireland from those who seek to achieve their political goals by violent means.

    We seek peace. But we will never be swayed by terrorist violence nor will we ever compromise our principles with those who seek to overthrow the rule of law by force.

    A Choice of Two Futures

    At this election the British people face a stark choice. A choice of two futures.

    They can elect to continue down the road of success and achievement. An opportunity that has been hard won by the efforts and sacrifices of the British people. An opportunity that has only come about because successive Conservative governments have been determined to face up to the long term problems facing Britain, and take the tough steps needed to arrest our slow decline.

    Or they can elect to take a huge risk with that future – the future of themselves, their children, their nation – by handing over the government of the country to politicians who have fought, opposed and denigrated every step that has been taken to restore Britain’s economic health and standing in the world. Politicians whose own declared policies would burden the United Kingdom with new spending and taxation, new regulations, and new threats to the stability and sovereignty of the nation itself.

    You can only be sure with the Conservatives.

    Our Vision for Britain:

    25 Pledges for the Nation

    The Enterprise Centre of Europe

    TAX AND SPENDING. keep tight control of public spending priorities, aiming for our target of a 20p basic rate of income tax over the next parliament.

    PRICES AND MORTGAGES. Stick to the policies which have delivered the lowest inflation levels and mortgage rates for a generation, meeting our inflation target of 2½ % or less.

    JOBS. Protect jobs by keeping Britain out of the European Social Chapter; build on our record of falling unemployment; and help get the long term unemployed back to work – including by requiring those on benefit for some time to undertake work experience on a community project.

    ENTERPRISE. Support growth and investment by keeping Britain the lowest tax major economy in Europe. pursuing Britain’s global trade opportunities. and curbing unnecessary regulations.

    SMALL BUSINESS. Reform business rates to help small businesses.

    THE FUTURE. Keep Britain ahead in the technologies of the future, encouraging new entertainment and information services and using the Millennium Lottery Fund to give people access to new computers and information links in schools, libraries, and other public places.

    Opportunity and Ownership for Individuals and Families

    HELP FOR FAMILIES. Give priority to reducing tax bills for families looking after dependent children or relatives by allowing one partner’s unused personal allowance to be transferred to a working spouse where they have these responsibilities.

    HELP FOR CARERS. Help family members with heavy responsibilities caring for a relative to take a much needed break through a new Respite Care Programme.

    OWNERSHIP. Encourage schemes that help employees build a shareholding in the company they work for, alongside tax benefits for other savings schemes.

    PENSIONS. Transform pensions by providing all young people entering the workforce with a personal pension fund paid for by a rebate on their national insurance contributions, while maintaining a state pension guarantee.

    CARE IN OLD AGE. Make it easier for people to afford the cost of care in old age without giving up their house and savings.

    SCHOOL STANDARDS. Guarantee school standards by intervening directly to raise standards where schools or local education authorities are letting children down.

    SCHOOL CHOICE. Widen choice and diversity in schools, with more freedom for schools to develop their own character, more specialist schools, and a grammar school in every town where parents want that choice. We will also maintain our nursery voucher scheme offering a choice of places for parents of all 4 year olds.

    World Class Health and Public Services

    NHS FUNDING PLEDGE. Continue, year by year, to increase the real resources committed to the NHS, so NHS spending will continue to share in a growing economy.

    FAMILY DOCTORS. Enable all family doctors to provide a wider range of services in their surgeries and in practice-based cottage hospitals – offering faster and more local treatment.

    CITIZEN’S CHARTER. Continue to improve the standards and value for money of Britain’s public services, giving those who use them more information and, where possible, wider choice.

    ESSENTIAL SERVICES. Introduce measures to protect the public against strikes that cause excessive disruption to essential services.

    A Safe and Civil Society

    PUBLIC SAFETY. Support local police schemes to crack down on petty crime, and continue our funding for the installation of TV security cameras in town centres and public places that want them throughout the next parliament.

    JUVENILE CRIME. Give the courts power to impose speedy sanctions on youngsters, including an element of reparation to the victim; and continue our war against drugs.

    PERSISTENT CRIMINALS. Ensure persistent house burglars and dealers in hard drugs receive mandatory minimum prison sentences.

    A Confident, United and Sovereign Nation

    QUALITY OF LIFE. Continue the renaissance of our towns and cities, in particular harnessing private capital to regenerate the worst public housing estates; continue to protect our countryside and heritage; and use the National Lottery to help promote British sports, arts and culture.

    THE ENVIRONMENT. Maintain our international leadership role in protecting the environment, and continue improving air and water quality at home alongside effective conservation of our wildlife.

    THE NATION. Maintain the unity of the United Kingdom and preserve the stability of the Nation through an evolutionary – rather than revolutionary – approach to constitutional change.

    EUROPE. Seek a partnership of nation states in Europe, and not allow Britain to be part of a federal European state.

    THE POUND. Guarantee that Britain will not join a single currency in the next parliament unless the British people give their express approval in a referendum.

  • PMQT – 20 February 1997

    Below is the text of Prime Minister’s Question Time from 20th February 1997.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. O’Hara: To ask the Prime Minister if he will list his official engagements for Thursday 20 February.

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

    Mr. O’Hara: Is the Prime Minister aware that, despite all the Government’s attempts to massage and manipulate the figures, national health service waiting lists are again at record levels? There is a waiting list of 179,000 in my area of the north-west alone. Could it just be that the Government’s policy of replacing 50,000 nurses with 20,000 managers and doubling the price of bureaucracy has something to do with this crisis?

    The Prime Minister: I am afraid that the hon. Gentleman is mistaken.

    Mr. Mackinlay: No, he is not.

    The Prime Minister: Yes he is, and I will explain precisely why.

    Waiting lists are broadly the same as last year. They have fallen very dramatically during the present Parliament. If the hon. Member for Knowsley, South (Mr. O’Hara) would care to look at the figures for the period before the health reforms and the patient’s charter, he will see that more than 200,000 people had waited for more than a year, of whom 80,000 had waited for more than two years. At the end of December, only 2 per cent. of patients-22,000-had been waiting for more than a year, and the number who had waited for more than 18 months was down to 123.

    The fact is that more people are being treated, they are being treated more swiftly, and they are being treated better.

     

    Q2. Mr. John Marshall: To ask the Prime Minister if he will list his official engagements for Thursday 20 February.

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

    Mr. Marshall: Will my right hon. Friend confirm that last month the Treasury repaid £6,000 million of debt? Will he also confirm that, if anyone sought to spend an extra £30,000 million of public money, they could do so only by increasing taxes, increasing borrowing and increasing interest rates, all of which would put an end to the economic recovery that is the envy of the whole of the rest of western Europe?

    The Prime Minister: My hon. Friend is correct on both counts. Certainly, if anything remotely approximating to £30,000 million were spent in the next Parliament in addition to current spending plans, taxes and interest rates would rise, and I have no doubt that it would have very severe effects on the economy as a whole. As for debt, I was delighted to see that £6 billion had been repaid in the past month-

    Mr. Skinner: Who put it up?

    The Prime Minister: I will just remind the hon. Gentleman that we have a lower debt ratio than any other major economy in Europe. I will remind him that, in every single year since we came to power, the debt ratio has been lower than in any single year in which he supported a Labour Government.

    Mr. Blair: Does the Prime Minister agree with his Chancellor that although, of course, the Government are hostile to a single currency on a non-convergent basis, the Government-I quote the Chancellor-

    “doesn’t have a hostile attitude to the single currency . . . The position remains that we have an open option.”

    Those words were repeated by the Deputy Prime Minister. Can the Prime Minister repeat those words and say that he agrees specifically with his Chancellor and his Deputy Prime Minister?

    The Prime Minister: Of course, if there were not arguments in both directions, we would not have kept our options open. Of course I agree with my right hon. and learned Friend.

    Mr. Blair: The Prime Minister has said in very clear terms that he agrees with the Chancellor of the Exchequer. Will he disown Conservative central office, which has been briefing that, in effect, he has closed the option of joining a single currency?

    The Prime Minister: No one has been briefing to that effect. The Cabinet set out its position some time ago. It has been reaffirmed on a number of occasions. I reaffirm it again today. It was set out perfectly clearly. The right hon. Gentleman can forget the minor textual exegesis and stick with the facts: that the policy was set out perfectly clearly and that that remains the policy. I hope that the leader of the Labour party might now care to examine the different statements of members of his shadow Cabinet over recent weeks.

     

    Q3. Dr. Goodson-Wickes: To ask the Prime Minister if he will list his official engagements for Thursday 20 February.

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

    Dr. Goodson-Wickes: Will my right hon. Friend join me in paying tribute to the superb and often inadequately recognised work carried out by the Prince of Wales’s group of charities? Quite apart from offering practical help to more than 150,000 young people, it has established more than 60,000 jobs. Will my right hon. Friend endorse the project that I visited in my constituency this week, where the Prince’s Trust rehabilitated a park? By such projects young people take practical steps to serve their local community, while at the same time establishing self-reliance.

    The Prime Minister: I am happy to do that. Voluntary service plays a very important part in the fabric of life in this country, and I know of no nation in the world in which the sum total of voluntary service matches that of the United Kingdom. The work done by the Prince’s Trust and other voluntary bodies is absolutely magnificent, and the Government will continue to give their support to it.

    Mr. Ashdown: Let us see. Last week, the Health Secretary told us that the Conservatives would abolish a Scottish Parliament and the Scottish Secretary said, oh no, they would not. Yesterday, the Foreign Secretary said that the Government were hostile to a single currency and the Chancellor said, oh no, they were not. Has it yet occurred to the Prime Minister what is so plain and evident to everybody else-that his divided Cabinet has given up fighting for the interests of the country and has started instead to fight for his job after the election?

    The Prime Minister: The right hon. Gentleman’s commitment openly and certainly honestly-I concede that-to put up the rate of income tax will certainly help to keep me here on this Bench after the election.

    Mr. Duncan Smith: Does not my right hon. Friend have sympathy for the victims of the failed cultural revolution? In Islington, for example, it is estimated that up to 50 per cent. of children are educated outside the borough. What does he have to say to those poor parents who are now driven to flee from a Labour administration and become educational refugees across the face of London?

    The Prime Minister: I think that it was the leader of the Labour party who said, “You can’t tell what a Government is like until it is in power.” In Islington, Labour is in power, and my hon. Friend points out vividly what it is like. If parents are fleeing Islington, as we understand they are, it certainly is a new version of the term “school run”.

     

    Sanctions (Libya)

    Q4. Mr. Dalyell: To ask the Prime Minister if he will discuss with President Clinton the consequences for (a) the imposition of sanctions on Libya and (b) the case against Libyan nationals of the dismissal of James Thurman from the service of the United States Government.

    The Prime Minister: I have no plans to do so. The case against the two accused Libyans does not depend on any evidence that Mr. Thurman might give.

    Mr. Dalyell: Has Thurman been reassigned to other duties for fabricating forensic evidence?

    The Prime Minister: I am certainly not aware that that is the case. If the hon. Gentleman has any information that it is, or any information that he thinks bears on this matter-

    Mr. Dalyell: It is in the New York Times.

    The Prime Minister: If the hon. Gentleman will forgive me, I am not an avid and daily reader of the New York Times. If he has any information that is pertinent to this case, and would care to provide me with it, I will certainly undertake to have it carefully examined.

    Sir Teddy Taylor: As senior Scottish advocates have said that it would be impossible for the two accused to have a fair trial in Scotland because of press publicity, and as the Libyan Government have now stated that they will hand over the two accused to the Arab League for committal to trial in The Hague or anywhere else, would it not help those who lost their relatives and friends at Lockerbie to have the issue resolved? My right hon. Friend is, as we all know, basically a straight, decent person, so will he endeavour to solve the problem and stop simply engaging in the throwing of insults? Could we not solve it in the interests of those who lost their relatives and friends at Lockerbie?

    The Prime Minister: I certainly want a solution to this problem. We would like a solution as much as the relatives, but we need a proper criminal trial and there are genuine and practical difficulties in trying to establish such a trial in a third country. I think that many hon. Members, including-if my hon. Friend will permit me to say so-me, would, on grounds of principle, find a trial in a third country very difficult to accept. [Hon. Members: “Why?”] I shall tell hon. Members why. It could suggest that a trial in Scotland or the United States would not be fair.

    I am not prepared to accept that premise in terms of a trial in Scotland. Nor do I think that it would be remotely attractive for us to allow alleged terrorists to dictate where they may or may not be tried. That would be a bad principle. The Security Council resolutions say that they should be tried in Scotland or the United States-two countries with a particular interest in the matter.

    I have to add that I am very doubtful that the Libyans would deliver the accused for such a trial, even if one were to be set up, but, for the reasons that I have set out, the trial should be either in Scotland, which would be the preference, or in the United States.

     

    Engagements

    Q5. Mr. McKelvey: To ask the Prime Minister if he will list his official engagements for Thursday 20 February.

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

    Mr. McKelvey: Does the Prime Minister share my genuine concern about the outrageous activities of the directors of Camelot in attempting to take gambling on the lottery into every home in the land and extend their links with rather devious gambling projects abroad? Would it not be possible for him to stop this development? Otherwise, he will leave a legacy of children who were brought up in the midst of gambling mania.

    The Prime Minister: As the hon. Gentleman knows, the lottery is very tightly regulated and there will be no changes to the structure or content of the constituent games without the specific involvement of the director general. The Government have no intention of allowing the good name of the lottery to be jeopardised. I think that the hon. Gentleman would share my pleasure at the sheer scale of the resources produced by the lottery for good causes. Today, for example, the heritage lottery fund is awarding £140 million to 24 of the nation’s best loved museums.

    Mr. Stephen: Does my right hon. Friend agree that efficient professional administration is vital to the success of the national health service? Does he recall that, when we decided to modernise the system by getting rid of the whole regional tier of NHS bureaucracy, the Labour party was against it? What does he therefore think of its promises to save money on NHS bureaucracy?

    The Prime Minister: I agree with my hon. Friend that there were substantial savings to be made by the abolition of the regional health authority tier, and that those savings were opposed by the Labour party. The health service is one of the most efficient health services in the world and, in terms of management expenditure, it is now 25 per cent. more efficient than in 1979.

     

    Electoral Registration

    Q6. Mr. Barnes: To ask the Prime Minister if he will introduce proposals to encourage registration on supplementary lists of those missing from electoral registers before the announcement of the date of the general election.

    The Prime Minister: I see no need to do so. The vast majority of eligible electors are registered and a well-established claims procedure exists for those who are not.

    Mr. Barnes: Why will the Government not publish the number of people who are currently on electoral registers? What have they got to hide? Are the figures as bad as they were last year, when at least 2 million people were missing from the registers? Why cannot we have a massive campaign to put people on supplementary lists, which could be added to lists of those who are eligible to vote at the general election? The Halifax building society organised a massive campaign for what it called its “big vote”. The general election is the biggest vote of all, and all our people should be entitled to exercise their vote.

    The Prime Minister: I, of course, agree with that. The Conservative party has done all it can to ensure that people are registered to vote at the general election. As for the figures for which the hon. Gentleman asked, the 1996 electoral registers for the United Kingdom contained just under 44 million names-the highest number ever. New registers came into force on 16 February, and the figures for them should be available by the end of March.

  • Mr Major’s Joint Doorstep Interview with the French Prime Minister, Alain Juppe – 3 February 1997

    Below is the text of Mr Major’s joint doorstep interview in London with the French Prime Minister, Mr Alain Juppe, held on Monday 3rd February 1997.


    PRIME MINISTER:

    Good afternoon. Let me firstly say what a pleasure it is to welcome the Prime Minister again to the United Kingdom. Over the last couple of years, or perhaps longer, we have had the opportunity of a number of meetings, they have always been immensely enjoyable and very constructive and I think I can say that of our meeting here again today.

    We had a pretty wide agenda, I will run through the heads of it, invite the Prime Minister to speak and then we will take your questions.

    I think if I went into the detail of all we had been discussing, we would be here until a very late hour this evening. We discussed a number of bilateral matters before turning on to the European agenda, concentrating most comprehensively upon the Intergovernmental Conference, but also discussing the prospects for economic and monetary union and communal European interests with the rest of the world.

    We also looked at a number of specific issues – enlargement of the European Union, enlargement of NATO, the present situation in a number of overseas countries, we also looked at the problem in the Great Lakes and a number of international issues of that sort about which we have a mutual interest.

    In many of the European matters we have a common view, in others I think, as is well known, we have a different view at present but are trying to see to what extent we can bring divergent views together and I think we had a very useful explanation, one to the other, of the areas of difficulty we both see in the Intergovernmental Conference.

    I think I will leave the details for your questions and invite the Prime Minister to say a few words.

    M JUPPE:

    [Interpretation inaudible].

    QUESTION:

    Prime Minister Juppe, do you think the single currency will come into effect on 1st January 1999 and why do you think it would be in Britain’s interest to join on that date?

    M JUPPE:

    I am deeply convinced that the single currency will be implemented next year, in 1998, and as you know France will be ready at that time to enter the single currency. Our budget policy, our anti-inflation policy and so on will allow us to meet the criteria and those criteria are wise criteria, as you know. We also think that it will be in the interests of all our partners, and especially of Great Britain, to join us, but I think that John Major has reason to explain this better than I do, but I wish that either in the first wave or in the second wave Great Britain will join us.

    QUESTION (Adam Boulton, Sky News):

    Is the British government now in favour in principle of the single currency, as the Foreign Secretary has accused Mr Blair of being and M. Juppe, what do you see as being the significance of this possible division between the Labour Party and the Conservative Party?

    PRIME MINISTER:

    I think you know very well our position on a single currency. We are not absolutely certain that it will be ready for 1999 and there is a difference of view between our European partners and us upon that about whether the convergence criteria will be clearly sustainable at that particular date. Clearly the importance of the economic criteria are such that if it isn’t sustainable we are very dubious about the desirability of it proceeding.

    And I will comment on the Labour Party’s position when I have been discussing the Labour Party’s position and not after I have been discussing the British Government’s position with the Prime Minister.

    M JUPPE:

    No comment on domestic affairs of course.

    QUESTION:

    M Juppe, does the existence of the social chapter in France present an obstacle to job creation?

    M JUPPE:

    I don’t think so. I think there is no relation or no link between those two elements. I think that our main objective to create jobs in France is to consolidate our budget and financial situation and I think we are making very interesting progress on this way. As you know unemployment has decreased in France during the last month of December and we have many signs of an improvement of the situation of our companies, especially our small businesses and as you know small business is likely to be the place where jobs can be created most efficiently in France.

    QUESTION (Tom Burrows, Market News):

    A story in the Independent today says that France and Germany have come close to an agreement on some kind of stability council, that would be some kind of counterpart to the European Central Bank. Given the concerns about this, particularly from some quarters both here and also in Germany about what this would mean for the Central Bank’s independence, where do you both stand on the issue of such a council and what its status should be?

    M JUPPE:

    We obviously respect the independence of the central banks, of the French central bank, of other European central banks and of course of the European central bank when EMU will be in effect. But it is also absolutely necessary to have a cooperation dialogue between the countries which will participate in EMU and the Council of Stability and Growth is the place where this cooperation must take place. It is in the spirit of the Maastricht Treaty and there is no question of stopping the independence of the Central Bank in such a project.

    QUESTION:

    [Indistinct] of a Labour Government?

    M JUPPE:

    I have already answered that question saying there is going to be no comment on domestic affairs and you can just use this answer to all the following questions on the same issue.

    QUESTION:

    Did you discuss defence matters and are you in agreement that it should be the Western European Union rather than the European Union that should proceed to control those [Indistinct].

    PRIME MINISTER:

    We discussed defence matters in some respects, we discussed for example the NATO Summit and we discussed the desirability of developing a European defence identity as the European arm of NATO. We did not discuss the organisational question to which you refer.

    QUESTION:

    Did the British Prime Minister give the French Prime Minister any useful home recipes as to how to manage the economy, and if so what are you going to do about it?

    M JUPPE:

    [Interpretation inaudible].

    QUESTION.

    [Indistinct] intervene in the current situation in Serbia with regard to the local elections?

    M JUPPE:

    [Interpretation inaudible].

    PRIME MINISTER:

    That is my view as well.

    QUESTION:

    Could you just make a comment on Serbia in English for the international press?

    PRIME MINISTER:

    As the Prime Minister just said, we are concerned that the legitimate outcome of the elections is honoured and that has been a European Union position, I think it is very well known. We spent some time looking at the position both in the short term and the long term in Serbia and also in Bosnia Herzegovina and clearly there is a great deal to be done. I don’t wish to go into the details of what we discussed.

    QUESTION:

    Since Prime Minister, you said that you talked about a number of international issues, did you talk about Algeria and if so what did you say?

    M JUPPE:

    [Interpretation inaudible].

    QUESTION:

    Can you comment on England’s World Cup row with Germany?

    PRIME MINISTER:

    The last time we played Germany we lost on penalties, it was an extremely good game and I think we were very unlucky to lose but it was a very good one. Whether we will lose as far as 2006 is concerned is a long way away. We think that the United Kingdom could stage the World Cup with skill and style and the Football Association will have the Government’s full support in its bid to do so.