Tag: Unemployment

  • John Major’s Commons Statement on the 1996 European Council in Florence – 24 June 1996

    Below is the text of Mr Major’s Commons Statement on the 1996 European Council held in Florence, made on 24th June 1996.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major): With permission, Madam Speaker, I shall make a statement on the meeting of the European Council in Florence on 21 and 22 June, which I attended with my right hon. and learned Friends the Foreign Secretary and Chancellor of the Exchequer and the Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Boothferry (Mr. Davis). I have placed the conclusions of the Council in the Library. I shall deal first with beef, then with the other issues discussed.

    In my statement on 21 May, I shared with the House the Government’s frustration that, two months after an unjustified ban on our beef exports had been imposed, some member states were still unwilling to address on a rational, scientific basis a clear path to lift the ban. I accordingly announced a policy of non-co-operation until two specific objectives had been achieved: the lifting of the ban on beef derivatives and agreement on a clear framework leading to lifting of the wider ban. In accordance with that policy, we subsequently blocked 74 decisions that required the unanimous approval of member states.

    The first objective was achieved on 10 June, when the ban on beef derivatives was lifted. That was followed on 19 June by unanimous approval of our bovine spongiform encephalopathy eradication plan by the Standing Veterinary Committee. In Florence on 21 June, the second objective was achieved when the European Council unanimously accepted the framework and procedures put forward by the Commission for lifting of the wider ban, which were based closely on our proposals. Both objectives were secured in precisely one month. I have no doubt that the policy that we reluctantly adopted was the decisive factor in ensuring that result in such a short space of time.

    The framework sets out steps for lifting the ban in stages. The Florence conclusions make it clear that decisions on each stage will be taken

    “only and exclusively on the basis of public health and objective scientific criteria and of the judgement of the Commission”.

    That is what we insisted upon above all. I was therefore able to lift our non-co-operation policy once the framework had been agreed. It is now up to us to meet the conditions for lifting the ban set out in the framework. There are five stages for that.

    We aim to be in a position to tell the Commission by October that we have met the necessary conditions for decisions to lift the ban on two of the five stages–that is, certified herds and animals born after a specified date and their meat. That is subject in particular to clearance of the backlog of animals awaiting slaughter in the 30-month-plus scheme, and a start to the accelerated slaughter of cattle particularly at risk of developing BSE.

    Removal of the ban in those two areas would reopen to our industry an export market worth initially about £100 million a year, increasing rapidly thereafter as the certified herds scheme gains momentum. Also by October, I expect a Commission proposal on a third stage–embryos–subject to the scientists giving them a clean bill of health. I believe that we should have met the conditions necessary for a decision to lift the ban on the fourth stage–meat from all animals under 30 months–by November.

    Securing agreement on those steps would restore the position on beef exports to what it was before 27 March, except in the areas where we have prohibited sale in the UK. In other words, we would be in a position of being able to sell for export to the EU young animals and all the beef that could then be sold in the UK. That would open the way for exports worth some £530 million per year. The only remaining category is meat from animals over 30 months except, of course–as I indicated to the House a moment ago–for that from certified herds, which should be lifted in October. Meat from animals over 30 months is still banned in the UK because of the greater incidence of BSE in older animals.

    The targets that we have set are ambitious. It is now up to us in this country–the farming and ancillary industries and the Government–to ensure that we meet them. The point is that this timetable is essentially in our hands. When we have met the conditions, the normal procedures for such decisions, involving the Standing Veterinary Committee in particular, will apply. But we have the firm commitment from all Heads of Government in Florence that those decisions will be taken only on the basis of scientific and objective criteria.

    One aspect not adequately covered in the Commission framework is the early export of British beef to third countries. That was complicated in the minds of our partners by their concerns about the possibility of re-export to the EU, and by the European Court of Justice case against the Commission. We believe that our case against the ban on exports to third countries is particularly strong, and our court application for interim relief should be decided in the next few days.

    We none the less secured a presidency statement–accepted, it has to be said, reluctantly by the other member states and the Commission–that the Commission will consider individual requests from third countries to buy British beef exclusively for their domestic markets. If such requests come forward soon, I hope that, either through Commission procedures or the European Court case, exports from Britain to third countries will begin to flow.

    We have a lot to do in a short time to meet the conditions necessary to enable the EU and world markets to be fully open again. But I believe that we have taken a great step forward in the past few days. We shall go on doing everything possible to protect public health, restore consumer confidence and secure the interests of the British beef industry. Our overriding aim remains, as it has been from the start, the eradication of BSE from Britain.

    Let me now refer briefly to the other main issues discussed in Florence–the intergovernmental conference, employment, economic and monetary union and the Europol convention.

    The European Council agreed that the intergovernmental conference should now turn from analysis to negotiation. We need to move from exchanging ideas to considering texts. I was therefore happy to lead the call for an outline treaty text to be prepared in time for the Dublin European Council in December. The Government’s position on the substance remains as set out in the White Paper, “A Partnership of Nations”. In Florence, I set out once again our policies in key areas such as qualified majority voting, and the need for flexibility as the EU further enlarges.

    We also discussed employment. At the Essen European Council in 1994, we agreed an approach that recognised the primacy of action by member states and recommended a number of lines of action reflecting this Government’s approach. In Florence, the European Council confirmed the priority attached to tackling unemployment and agreed to carry forward the Essen approach, taking account of the initiative taken by the President of the Commission on a confidence pact for employment. There are some good things in this document, but others that we cannot accept.

    Unemployment in this country is now the lowest of any major European competitor. We have created more jobs over the past three years than Germany, France, Italy and Spain–indeed, we have created more than Germany, France, Italy and Spain added together. That is because we have followed policies that help job creation. That is why we will not sign the Maastricht social chapter or accept European Union measures that would damage competitiveness or inhibit our ability to pursue our own successful policies.

    Florence was not a decisive stage in discussions on economic and monetary union. The European Council considered a report from Economic and Finance Ministers on work done since Madrid. That included the relationship between those inside and those outside any potential future single currency. It covered the proposal to create a new exchange rate mechanism. Most of our partners favour creating such arrangements. Let me assure the House that it has been confirmed that any new scheme of that sort will be voluntary, and I reaffirm that this country will not rejoin any new ERM.

    The European Council also reached agreement on the role of the European Court of Justice in the Europol convention. I said at the Cannes European Council that the ECJ would not be the arbiter in any case relating to Europol which involved the United Kingdom Government or arose in the courts of the UK. Other member states saw a need for a role for the ECJ on questions of interpretation of the convention arising in their national courts.

    The outcome allows other member states the option of providing such a role for the ECJ for themselves. The United Kingdom and our courts will not be bound by that in any way. That is a satisfactory outcome and a further example of the EU developing in flexible ways.

    Finally, the European Council confirmed that enlargement negotiations with central European countries should open at the same time as with Cyprus and Malta–that is, six months after the intergovernmental conference ends. It also agreed a number of statements on external issues, the most important of which were on the middle east and Russia.

    The Florence European Council marked a decisive turning point in our efforts to protect the interests of the hundreds of thousands of people working in the British beef industry. The issue will now be dealt with on a proper, rational basis, with the timetable for the lifting of the ban dependent on our own efforts. That has enabled the restoration of normal business in the European Union.

    This has been a difficult episode in this country’s relationship with Europe and not one that I was seeking. We were right to stand up for our interests, but I now look forward to working with our partners on our positive vision of Europe as a strong partnership of nations.

    Mr. Tony Blair (Sedgefield): I shall confine my remarks mainly to beef. First, on dates, the Prime Minister chose his words with elaborate care. Can we be clear as to what he is saying? Is he saying that he can give dates and that the ban will finally go in total in November?

    Some Conservative Members are now shaking their heads, but that was the clear impression–they are now all shaking their heads, but if one was listening to the Prime Minister, that was the impression–[Hon. Members: “The right hon. Gentleman was not listening.”] I was listening.

    If the Prime Minister is now saying that those are definite dates, why were they not in the European Union agreement? I suspect–perhaps he will confirm this–that all that he is really saying is that he will table proposals by October and November, but the decision will be taken through the process of the veterinary committee, inspection, verification and so on.

    So, can we return to the question that we have consistently asked the right hon. Gentleman? When will the ban finally be lifted, so that people in Europe can eat British beef under the same conditions as people in Britain?

    Secondly, will the Prime Minister confirm that–again, contrary to the impression that he sought to give–there is no automatic link under the agreement between the steps that Britain must take and steps towards lifting the ban? We are obliged to do certain things in Britain, but other member states are simply obliged to follow certain procedures. There is no binding agreement on them, merely an agreement to consider. As for stating that he has won an undertaking that they would refuse consent only on scientific grounds, is not the committee that we have to satisfy the very same veterinary committee with which we had the problems in the first place? It has always ostensibly said that it was acting on scientific grounds; it has never said that it was acting on political grounds. The Prime Minister is no further forward on that.

    If the basis is supposed now to be science, why have we agreed to a massive additional slaughter policy when we say that it is not scientifically justified? I suspect that the principal changes that the Prime Minister got were made once the British Government had submitted a programme for eradicating BSE and taken it round the European capitals–which, frankly, is something that they should have done a couple of months before.

    Thirdly, as for the much vaunted concession on the third country ban, I agree that the ban is completely unjustified, but will the Prime Minister confirm: that it is only an undertaking from the Italian presidency and not an undertaking from the European Union; that it has no legal force; and that within minutes of it being given, a Commission official said:

    “it didn’t commit the Commission to anything”?

    Foreign Ministers have said that the third country ban will remain. Is that right or not?

    Fourthly, will the Prime Minister confirm that the extra compensation at Florence was for all European Union farmers and that British farmers will see only a small part of it? Will he confirm also that this country’s bill, net of European Union payments, for the BSE crisis will be well in excess of £2 billion in the years to come? Is that not the price that the British people will pay for the utter incompetence with which the matter has been handled from the very beginning: the failure to intervene in the way necessary when BSE began; the failure to compensate and inform farmers when the crisis was under way; the failure to announce the link with Creutzfeldt-Jakob disease, with proper consultation; and now the failure to secure the lifting of the ban once one was imposed?

    The Whitehall farce even continued at Florence, where we had the spectacle of the Government trying to hang on to one Minister who was threatening to resign and hanging the poor Minister of Agriculture out to dry to try to get him to resign. [Hon. Members: “Where is he?”] There appears to be a notable absentee from our deliberations.

    This has been an object lesson in the Government’s capacity to turn any crisis into a catastrophe. The truth is that whatever fig leaf the Prime Minister has today, the damage will be with this country for many years to come.

    The Prime Minister: The right hon. Gentleman has just illustrated that he is not interested in what is right for this country. In this House, he claimed to support our policy of non-co-operation because he did not have the guts to criticise it. In Germany, he criticised British policy because he did not have the guts to defend it. He has spent half his time claiming that we have been too hard in our relations with Europe, and then jumped to the other side of the fence and claimed that we have been too soft. He has invented objectives that we did not set and then criticised us for not meeting them. It is my job to look after the interests of the British beef industry, and despite his obstruction and his determination to do anything or say anything, irrespective of the damage to the beef industry, in his own interests, that is precisely what I have done.

    Let me reiterate the points that were clearly made in my statement, which the right hon. Gentleman then asked about again, having failed to understand them. First, there is no massive additional slaughter policy, as I have explained to him repeatedly on many occasions. I hope that he now fully understands that. On the mechanism for the future, the great new European is effectively saying that he distrusts the word given to Britain by the European Heads of Government and by the European Commission. He distrusts it, despite all that he has said. Let us be clear about what he is about.

    Let me deal with some of the other points. As I explained repeatedly in my statement, we have set out what we sought at the outset: objective criteria that we can meet in order that the ban can be lifted. The dates for lifting therefore lie in the hands of the British agriculture industry and the British Government; I have set out the dates by which we think that they will be met on each and every part of the agreement over the past few minutes. It is a shame that the right hon. Member for Sedgefield (Mr. Blair) failed to understand that. [Interruption.] I invite hon. Members to read the statement when it is printed in Hansard tomorrow; if they did not understand it when I made it, perhaps they will understand it when they read it.

    We sought an agreement that that matter would be dealt with objectively, without politically blocking the correct scientific judgment. That is what has happened in the past; that is the political commitment that we have achieved; that is the commitment that we expect our partners to meet.

    Mr. Douglas Hurd (Witney): Given that the Government adopted a legitimate, even familiar, tactic for a specific and limited objective that they have now obtained, will my right hon. Friend the Prime Minister take no notice of the Leader of the Opposition’s confused mischief making? Does my right hon. Friend accept that the best service that the House, particularly we on the Conservative Benches, can do in the difficult times that lie ahead is to take what may be the last chance in this Parliament to give united and effective support for the policy which my right hon. Friend set out last week and which is also set out in the Foreign Secretary’s White Paper, published in the spring?

    The Prime Minister: I am grateful to my right hon. Friend, who is certainly right about the Leader of the Opposition’s capacity for mischief against the national interest. It is equally true that we have set out in our White Paper what we believe is the right way for future developments in the European Union in this country’s interests. We have set out a clearer definition of that than any other country that will be negotiating in the intergovernmental conference. It is precisely so that we can get down to the details that I invited the Irish presidency to introduce detailed texts, so that we can begin to look at the details of what people specifically expect to be agreed at the intergovernmental conference rather than deal with the generalities, which have been the subject of the debate so far.

    Mr. Paddy Ashdown (Yeovil): I am glad that the puerile policy of posturing masquerading as war on Europe is now over. When the Prime Minister announced it, I told him that it would achieve nothing that could not be achieved by other means. The damage that has been done to Britain’s influence and respect will be great. The Prime Minister tells us that he had to take the action as Europe had been obstructive for eight weeks; is not the truth that the Government did nothing for eight weeks, which is why nothing happened? The Prime Minister tells us that we have set hurdles that were not originally set. Does he remember the statement made by his Downing street spokesman on 22 May, the day after he announced the policy in the House of Commons? Presumably speaking on the Prime Minister’s behalf, the spokesman from No. 10 Downing Street said:

    “Nothing short of a full timetable for the phased lifting of the entire beef ban will be sufficient.”

    Is it not true that no such thing has been achieved?

    The Prime Minister said that he was looking for binding commitments from our partners in Europe. Is it not true that every one of the steps must be validated through the Commission, the Scientific Veterinary Committee, the Spongiform Encephalopathy Advisory Committee–“super-SEAC”–and the Standing Veterinary Committee–the very people who, the Prime Minister claims, obstructed the actions in the first place? Far from our achieving success in lifting the third country ban, is it not true that, within minutes of the Foreign Secretary announcing that success, a Commission spokesman,in whose hands the matter is supposed to be, said that any beef that we were not able to sell to Germany or France could not be sold to South Africa?

    We shall judge the package, which is far heavier and more damaging to British industry than it would have been if the Government had acted earlier and postured later against three factors. The first factor is the Prime Minister’s timetable: if he wants to clear the 30-month-plus backlog by October, he will have to put a lot more effort and resources into doing so. The second factor involves the level of compensation. The third factor relates to whether the binding responses, which are necessary as we pass each of the thresholds, have been achieved.

    It is perfectly clear that the Prime Minister–like a previous Prime Minister–has returned from Europe claiming a victory, the cost of which we shall feel increasingly over the months ahead. This has been a policy of folly abroad and chaos at home, which has left Britain damaged both abroad and at home.

    The Prime Minister: I certainly do not intend to take any lectures on posturing from the right hon. Gentleman, who approaches every issue in Europe from a kneeling position–whether this country is right or wrong. He is accurate, in that he has said before all the things that he has repeated today. He was wrong then and he is wrong in most of what he has had to say today. The statement that he has quoted is wholly inaccurate. I have seen the right hon. Gentleman’s letter containing the assertion, and I have written back to him this morning telling him that he is wrong, and that no such statement was made. The right hon. Gentleman had better take that up with the Press Association.

    If the right hon. Gentleman looks at what I said in the House of Commons, he will see what the policy of the Government was at the outset and what it has remained, right from the beginning of this affair through to the present time.

    Both the right hon. Gentleman and the Labour leader, who says that the ban was unjustified, have failed to say what they would have done in the circumstances. They would have done absolutely nothing–except carp and criticise, the twin names by which we have come to know them.

    Mr. John Redwood (Wokingham): I am glad that my right hon. Friend has had success in getting our EC partners to see the difficulties facing our beef industry. I trust that people in this House will think twice before jeopardising more livelihoods and businesses in the beef industry.

    Does my right hon. Friend have equally persuasive ways of raising the issues of the powers of the European Court of Justice and the plight of our fishing industry, which are also on our minds?

    The Prime Minister: As I have told the House, both matters will certainly be subject to negotiation during the intergovernmental conference. I mentioned quota hopping, which was certainly not what was envisaged when the common fisheries policy was agreed. As I said in my statement today and in our White Paper, we seek some changes in the European Court of Justice also.

    Mr. Peter Shore (Bethnal Green and Stepney): This is not exactly an occasion for national rejoicing; but will the Prime Minister now answer the question put to him by my right hon. Friend the Member for Sedgefield (Mr. Blair)? Do we not, at every stage, have to obtain not just the consent of the European Commission for relieving the ban, but the consent of the Standing Veterinary Committee, a nationally appointed body? Is it not also true that the great cost of the mass slaughter–or 80 per cent. of it–will have to be borne by the British taxpayer and the Treasury? Will the right hon. Gentleman give an estimate of the actual sums involved?

    The Prime Minister: I believe that I have given the estimates over a period of three years before–but the point that the right hon. Gentleman did not address and may care to deal with now is that the principal issue is getting the ban lifted. It has never been a question of extra resources from the EU, for two good reasons.

    First, we have sought to keep all spending across the EU within the guidelines approved for expenditure. There are repeated claims from other nations wanting to break those guidelines; breaking them would result in substantial extra costs to this country. So if we sought to break the guidelines by asking for extra resources, the costs for this country would increase, not diminish, over the years ahead. I do not think that a prudent policy to follow, and I have no intention of following it.

    Equally, I have no intention of letting anyone take the opportunity of extra help being sought to change the agreements that we would otherwise seek to reach in the intergovernmental conference. For both those reasons, we do not propose to seek extra resources beyond those that normally apply under arrangements agreed in the past for circumstances such as these. There is also the special question of the British rebate and the arrangements that inhibit it when an extra payment needs to be made. They are the credible reasons why it is not in this country’s interests to seek compensation over and above what is normally available under the usual arrangements. It is impossible to determine the cost, but we broadly anticipate that it will be approximately £2 billion over the next three years.

    Mr. George Walden (Buckingham): Is my right hon. Friend aware that we have lost prestige, that we have lost money and that we have lost umpteen thousand more cows? If we feel big after that, we must have been feeling rather small before. Is he also aware that the Labour party did not condemn his tactic outright because it was frightened by the atmosphere of petty chauvinism in the press, which helped to push him into his mistaken policy in the first place?

    The Prime Minister: I cannot answer in relation to the judgments of the Labour party, but I can answer in relation to the Government’s position. We were not prepared to be in a position where objective criteria were ignored, where there was no way to seek a removal of the ban and where science was deliberately being subordinated to national prejudice in countries across Europe, rather than there being an objective judgment of what ought to be done to help a member state facing a particular difficulty.

    I can recall no occasion in the past when a single nation state faced a difficulty of this sort and political criteria in the other member states prevented a solution that was unanimously proposed by the Commission and supported by scientific evidence. Before my hon. Friend criticises the Government or anyone else, he should bear that in mind.

    Mr. Giles Radice (North Durham): Is it not the Prime Minister’s duty to remind the Euro-sceptics on his Back Benches, who have rubbished the European Union throughout the crisis, that it would not have been possible to reach an agreement without the help of the European Commission, the European Council of Ministers, the European Court of Justice and European money?

    The Prime Minister: If the hon. Gentleman looks at the many statements that I have made, he will see that I have made it clear that the Commission and the presidency have played a helpful role in seeking to find a way through these difficulties. However, that is not universally the case with the other member states. I have thanked the presidency and the Commission–most recently at my press conference in Florence–for the support that they have given us during this difficult period.

    Sir Teddy Taylor (Southend, East): Is it not a clear sign of the Prime Minister’s success in negotiating that only this morning the senior spokesman for the German Chancellor stated that he would have preferred to deal with the Leader of the Opposition, because he would have been more accommodating to German interests?

    The Prime Minister was quite right to tell his colleagues that Britain’s unemployment has been much lower than theirs since we left the ERM, but will he also make the point to them that the two European states that voted not to join the EC have even lower unemployment rates? Should they not think through the implications?

    The Prime Minister: I am sure that they will make their own decisions on that and on other matters. My hon. Friend is quite right about the relative rates of unemployment. Unemployment has continued to fall in this country for almost three years, but it has remained constant or increased in other countries–all of which live in the same general economic climate. I do not think that the difference in policies is an accident in the sense that unemployment has been falling in this country. The House will have noted my hon. Friend’s comments about the Leader of the Opposition with interest.

    Mr. Doug Hoyle (Warrington, North): Does the Prime Minister remember that on 21 May he said to us that he would be seeking a clear framework that would lead to the lifting of the European ban and the worldwide ban on British beef? However, he has returned with an agreement that gives us no timetable, no dates and no guarantees. He could have got that agreement without the policy of non-co-operation. He has soured relations with our European partners and he has left a bitter legacy for a long time to come. Even our closest friends, such as the Irish Taoiseach, said that the policy of non-co-operation was a mistake. Has not the Prime Minister–

    Madam Speaker: Order. This is not a debate. Almost the entire House wishes to ask a question, so questions to the Prime Minister must be brisk and I am sure that he will oblige and give brisk answers. Will the hon. Gentleman now put a question?

    Mr. Hoyle: Yes, I shall. The Prime Minister has got nothing for Britain. When will the ban be lifted by Europe and when will the worldwide ban be lifted?

    The Prime Minister: On the last point, if the hon. Gentleman reads the statement, he will find out. If he thinks that I could have got that ban lifted without the non-co-operation policy, why was there no progress over an eight-week period and why was there great progress over the next four weeks? The reality is that we accelerated the agreement of a framework and ensured the lifting of the beef derivatives ban precisely because of the action we took.

    Mr. John Butterfill (Bournemouth, West): Does my right hon. Friend agree that the Leader of the Opposition is nitpicking over the timetable and has overlooked the fundamental point, which is consumer confidence and its restoration? Having a timetable and an agreed procedure that relies entirely on scientific evidence gives us the means by which worldwide consumer confidence in British beef can be restored.

    The Prime Minister: Of course, my hon. Friend is right. The Leader of the Opposition knows that as well as any Member of the House. He just has his fingers crossed behind his back in the hope that he can score a few political points, irrespective of the reality of the situation.

    Mrs. Margaret Ewing (Moray): Some of us have listened carefully to the Prime Minister’s statement. Does he realise that his use of language in his statement gives no hope at all to the agriculture community in areas such as mine, where thousands of jobs are dependent on that industry? The use of words such as “aim”, “expect”, “believe” and “hope” shows pious optimism by the Prime Minister. The right hon. Gentleman specifically referred to certified herds. How will those certified herds be identified, and does he envisage a region-by-region lifting of the ban, which would be of substantial benefit to Northern Ireland and Scotland, because we have had quality assurance schemes?

    The Prime Minister: It is not specifically region by region, but herd by herd. In Scotland, it is likely that many herds will be certified because of the way in which cattle are reared. It was precisely to provide such help for Scotland and probably other regions that we decided to seek, and obtained, a framework that will enable us to identify herds in collaboration with the agriculture industry and the European Union, so that the ban may be lifted at an earlier date than would otherwise have been possible. As I told the House earlier, I expect that we shall be able to tell the Commission by October when, on the basis of the agreement that we have reached, the objective criteria would be met and those certified herds would be removed from the ban.

    Mr. Michael Jopling (Westmorland and Lonsdale): Is the Prime Minister aware that the beef settlement is an important and welcome step towards the ultimate solution of the crisis? Is he further aware that he should not take notice of those who speak for the two Opposition parties, who seem to have turned being wise after the event into a minor science? With regard to the accelerated slaughter process and in the event of dairy cows being slaughtered before the end of their natural time, will my right hon. Friend also give an undertaking that if we end up under-producing on the British milk quota, it will not have any long-term adverse effect on our milk quota in years to come?

    The Prime Minister: My right hon. Friend makes an extremely good point about milk quotas, which we are examining at the moment. As to the accelerated slaughter, according to the fourth cohort, it must be voluntary as there is no other way in which it can be done. Farmers will of course receive compensation, the levels of which are being determined.

    Mr. Dennis Skinner (Bolsover): Is the Prime Minister aware that, in industrial terms, he decided to take strike action without a ballot? He wanted to bang together the heads of all those in the Common Market, and it is the British people who have the headache. Will the Prime Minister now answer the questions: when will the ban be lifted and how much will his supreme folly and that of that gang over there cost every man, woman and child in Britain?

    The Prime Minister: The hon. Gentleman manages to carry his own absurdity to further lengths this afternoon even than in the past. I thought that he would welcome a strike without a ballot, based on his reputation and his past–it is the way in which he seems to have operated for most of his life. As to his other questions, I refer him to the answers that I have already given to several of his hon. Friends, when I set out those points.

    Sir Michael Spicer (South Worcestershire): Will my right hon. Friend confirm that the Government have not been diverted by the beef crisis from pursuing their general objectives in Europe as outlined in the White Paper: that is, preventing any further moves towards a federal state of Europe and, where possible, returning powers to this country and to Parliament?

    The Prime Minister: I can certainly confirm that our policies remain as set out in the White Paper, and they were reiterated again in Florence at the weekend.

    Mr. Tam Dalyell (Linlithgow): The Prime Minister referred to the middle east in his original statement. Did the Greeks, the Italians or the Germans tell him that they would go ahead and trade with Libya and north Africa, despite the sanctions? Is not British industry the loser, as the recent Egyptian delegation to the House made clear, as a result of sanctions against Libya?

    The Prime Minister: There was no such comment by the countries concerned during any discussions about the middle east. Those discussions tended to deal primarily with the middle east peace process.

    Sir Hector Monro (Dumfries): May I welcome the achievements of my right hon. Friend the Prime Minister in Florence, in securing the lifting of the ban in due course? I agree that it is important to get beef off the front pages of the newspapers and back into the high-quality food chain. To achieve that aim, will he ensure that the Ministry of Agriculture, Fisheries and Food makes fair payments to farmers involving the least possible bureaucracy?

    The Prime Minister: I shall ensure that that is the case.

    Mr. D. N. Campbell-Savours (Workington): The Commission’s position paper requires the introduction of an effective animal identification and movement recording system, with official registration. The hon. Member for Wantage (Mr. Jackson) and I called for those measures 11 weeks ago. Have those 11 weeks been lost? Is the programme under way? Will the Prime Minister provide some details?

    The Prime Minister: On the contrary, the 11 weeks certainly have not been lost. It is a massive undertaking to produce a proper identification programme for all cattle across the country, but that is our intention. A programme of that sort is available in Northern Ireland, but it does not extend across the rest of the United Kingdom. It involves a massive amount of computerisation and co-operation from the agriculture industry. A great deal of progress has been made in the past 11 weeks, and as a result of that progress I was able to set out the indicative dates for the House a few moments ago.

    Mr. Nigel Forman (Carshalton and Wallington): On the basis of what has happened with the beef issue in the past few months, is it not clear that the Government’s tactic of non-co-operation has proved both legitimate and effective? In order to put that in context, will my right hon. Friend tell the House how the 74 occasions on which we used our national veto during the period of non-co-operation relate to the occasions when was it not necessary to use our national veto, because matters were decided by qualified majority voting? That might show the House whether the European Union is as supra-national as some of my hon. Friends claim.

    The Prime Minister: I shall certainly provide my hon. Friend with those figures. I do not carry in my head the number of occasions on which there were qualified majority voting agreements in the past month, during the period of the non-co-operation policy, but my hon. Friend makes a good point. He is also entirely right to point to the fact that the policy has been effective in securing the objectives that I set out at the Dispatch Box, and in securing them far more speedily than would have occurred in any other way.

    Mr. Jeff Rooker (Birmingham, Perry Barr): Will the Prime Minister take this opportunity to confirm that the other members of the European Union are our partners and friends, not our enemies? When he was explaining his proposals to them over the weekend, did he explain why, on 20 March, two of his Ministers came to the House to make statements on the same issue–one raising a health scare about the transfer of BSE to human beings, and the other saying that no cattle would have to be slaughtered as a result? Given the massive job losses in this country and in France and Germany, how did he explain to our partners and friends the fiasco that was started by two Ministers not being remotely aware of the consequences beyond the statements that they made?

    The Prime Minister: I seem to recall that when my right hon. Friend the Secretary of State for Health came to the House, the Opposition congratulated him on bringing the problem to the House as speedily as he had, because it was thought that that was the right way to deal with it. The hon. Gentleman will recall that there had been a leak in the morning papers, I think, that day. In the absence of a statement, undoubtedly there would have been demands from the Opposition for one. Undoubtedly there would have been a private notice question. My right hon. Friend received praise from the Opposition for coming to the House and setting out the position. The way in which the hon. Gentleman refers to it now is a total and utter travesty of what happened.

    Mr. David Howell (Guildford): Can my right hon. Friend detect a strong whiff of sour grapes coming from the Opposition Benches this afternoon? Was it not quite simply a very positive deal, achieved as a result of a tough negotiating approach?

    Moving away from beef, did my right hon. Friend notice at the Florence summit that, whereas previously all the pressure was supposed to be on this country to conform to EU social and labour market policies, it is now the other way round and the EU is seeking to follow our policies? Did he hear any comment on the Organisation for Economic Co-operation and Development forecast that, over the next two years, Britain will be the fastest-growing economy in the whole of Europe?

    The Prime Minister: There was some comment by me, for I certainly mentioned that, but I did not hear a great deal of comment from our friends and partners in the discussion at Florence over the weekend. My right hon. Friend is entirely right that the new position of the Opposition on these matters seems to be, on every occasion, that everybody is right except the United Kingdom. That seems to be the case, whatever the merits of the argument.

    Mr. Peter L. Pike (Burnley): Will the Prime Minister say precisely when and how the scientific basis and information changed to justify the climbdown in the number of cattle to be slaughtered? Will he assure the House that the Minister of Agriculture will not be slaughtered before the last of these cattle are slaughtered?

    The Prime Minister: There was no change in the scientific criteria. My right hon. and learned Friend is at the Agriculture Council in Luxembourg at the moment.

    Sir Jim Spicer (West Dorset): Does my right hon. Friend accept that we all want to consider other members of the European Union as our partners and friends, but after the weekend in Turin, when he was so badly let down by our partners, was it not inevitable that the ban would follow? All of us in the agriculture community very much welcome the support that he has given to the farming community over the past three months. Does he accept that the farming community will take on board the need for the accelerated slaughter, but only if the commonsense approach to it is coupled with fair compensation?

    The Prime Minister: It is certainly true that we were promised co-operation in Turin. It is equally true that a few days later, in the Agriculture Council and elsewhere, that co-operation was noticeable only to the extent that it did not materialise. That is the background to the policy that we subsequently adopted.

    Mr. Llew Smith (Blaenau Gwent): The Prime Minister said that employment matters were also discussed in Florence. As we know, to meet the convergence criteria for a single currency, cuts of £18,000 million in public expenditure and public services such as health and education are required. Would he care to anticipate the likely effects that those cuts will have on employment?

    The Prime Minister: If the hon. Gentleman thinks that that applies to this country, he should have a look at what will be necessary in each and every country right across the European Union. I see that he does think that. He clearly does not envisage the sort of policy that is set out by his party’s Front Bench. There seems to be a certain disagreement between the Labour party’s Front and Back Benches. It is quite sad to see the splits in its European policy that open up daily.

    Sir Wyn Roberts (Conwy): I welcome the underpinning given at Florence to the policy of eradication, as well as progress towards the lifting of the ban. Does my right hon. Friend agree that, come the autumn, the British beef industry should be in a stronger position than it has been for some time, and that the grounds for increased consumer confidence–both here and elsewhere–should be stronger as well? Does it not appear that, if Opposition Members were ever to negotiate on our behalf in Europe, they would be dictators at home and appeasers over there?

    The Prime Minister: My right hon. Friend is right about the impact of our policy over a period. We are seeking a complete eradication policy for BSE. As that is increasingly achieved, it will reopen not only the European markets that have recently fallen foul of the European Union ban, but the markets that were barred to British beef some years ago in the United States and elsewhere. That is why, given the scale of the present problem, it is right for us to seek a full-scale eradication policy. The incidence of BSE is falling dramatically at present, and will continue to do so as a result of the measures that we have adopted.

    Mrs. Alice Mahon (Halifax): Is it true that the eradication plan that the Prime Minister has now accepted is three times larger than the original proposal? In the light of what he has just said, would it not have been better, cheaper and safer to go down that route earlier?

    The Prime Minister: I simply do not recognise the statistic that the hon. Lady has just produced. I have not seen it, and I have no reason to believe that it is remotely accurate. As I just told my right hon. Friend the Member for Conwy (Sir W. Roberts), what we are seeking is a comprehensive plan to eradicate BSE entirely from British herds. I think that that is right in itself. It is certainly right in terms of bringing confidence back to the consumer, and ensuring that British beef–which I consider an excellent product, and which has traditionally been seen as such by the world–can once more enter world markets without let or hindrance.

    Mr. William Cash (Stafford): Did my right hon. Friend note that, in yesterday’s The Sunday Times poll, the British people approved his tough stance by a majority of two to one? Cannot a number of useful lessons be learnt, both by the Labour party and by those who drive for a federal political union in Europe? Those who drive for political union should recognise that we will not–and the British people will not–tolerate the abolition of the veto as expressed by Mr. Dehaene, the Belgian Prime Minister, who, after all, is now governing by decree. As for the Labour party, since our adoption of a tough stance, its rating in opinion polls has dropped by nearly 10 per cent.

    The Prime Minister: I certainly believe that we have been following the right policy on its own merits. My hon. Friend is entirely right about the veto. Some of our European partners would wish all matters to be dealt with by qualified majority voting–which, of course, is what the Labour party signed up to in its European socialist manifesto. The impact of that would be that there would be no veto for this country. I assure the House that, if there had been no veto at the Edinburgh financing arrangements in 1991, we would have lost the British rebate. No other country in the European Union likes the British rebate; every other country would vote to get rid of that rebate, which saves this country millions of pounds a year. The little piece of paper that the Labour party signed in its European socialist manifesto is a little piece of paper that will cost the country billions of pounds and more every single year.

    Mr. Ieuan Wyn Jones (Ynys Mon): Does the Prime Minister realise that there is considerable concern among Welsh farmers at the accelerated slaughter programme, because we are taking out of production some of the most productive animals in the dairy herd? Does he realise that farmers’ disappointment is coupled with the fact that there is no firm timetable for lifting the ban? Will he make it clear what type of compensation package will be introduced for farmers? Will it cover the replacement costs of productive animals and the consequential loss of income? Does he realise that his policy of non-co-operation did not affect the timing or the outcome of the Florence deal, but that it might have affected relations with our European partners?

    The Prime Minister: I am sorry that the hon. Gentleman feels that way, because I just think that he is wrong. I have spent six years sitting round the European table with my partners, and he has not. I can assure him that we have made more progress by following this policy than we would have done if we had followed the policy that he seems to advocate. Animals in the accelerated slaughter scheme would in due course have been slaughtered under the 30-month-plus scheme, and the overwhelming majority of them would have been slaughtered only a few months later than under the arrangements that we advocated last week.

    Compensation will be offered. As I told the House earlier, we are discussing precisely what the compensation will be. I certainly understand the hon. Gentleman’s point on that.

    Mr. John Townend (Bridlington): As the Prime Minister has achieved most of the objectives that he set when he started non-co-operation, would he hesitate to use those tactics again in future if British interests were at risk? My farmers are very worried about the influence of the veterinary committee. If the committee is again subject to political influence–as it has been in the past–will it be able to stop the lifting of the ban, or does the Commission have the power to overrule it?

    The Prime Minister: The answer to my hon. Friend’s last question is, yes, it has the power if it were felt that the committee was not acting on the basis of objective science. That will be extremely helpful. As for his question about policy, very unusual circumstances led us to use that tactic–circumstances that I hope and expect not to see again. I cannot recall another issue on which our European partners voted against the unanimous recommendation of the the Commission, when that unanimous recommendation was clearly backed by science. The position taken by our partners was clearly taken for domestic political reasons and was not objective. That caused our response. I very much hope that that type of circumstance will not occur again.

  • PMQT – 18 June 1996

    Below is the text of Prime Minister’s Question Time from 18th June 1996.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Berry: To ask the Prime Minister if he will list his official engagements for Tuesday 18 June.

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

    Mr. Berry: Is the Prime Minister aware that he spoke for the whole nation on Friday when he said that he had had “a bellyful” of the Tory party?

    The Prime Minister: I have to tell the hon. Gentleman that his quotation is inaccurate, but it could certainly be applied to questions such as that.

    Mr. Peter Ainsworth: Is my right hon. Friend aware that more and more people in Germany wish that their economy was run like ours–with low inflation, steady economic growth, flexible labour markets and falling unemployment? Will he take an early opportunity to invite the leaders of the German opposition parties to Britain so that they can see what can be achieved with Conservative policies?

    Mr. Faulds: More, more.

    The Prime Minister: I am glad to see that it evokes such approval on the Opposition Benches.

    It is certainly true that we have at the moment the most competitive economy in western Europe, that we are in a very good position on inflation, and that unemployment is a good deal lower–and we are at the top of the growth league. That, as my hon. Friend says, is an enviable position, and I know that it is envied by many of my European partners.

    Mr. Blair: Will the Prime Minister join me in condemning the appalling outrage of Saturday in Manchester and send our thanks to the emergency services and our sympathy to the victims? Is this not a moment of truth for Sinn Fein? Does it not show the wisdom of demanding a ceasefire before Sinn Fein participates in any talks? Does not the responsibility now lie squarely on it if it is to play any part in the future progress of peace?

    The Prime Minister: I agree entirely with the right hon. Gentleman. Saturday’s bomb in Manchester was a callous and inhuman act. It is a miracle that many more people were not injured and that many people were not killed. What is so startling is the total indifference of the people who left that bomb to what could well have happened to many people who have no connection whatever with the disputes in Ireland or the disputes that the IRA may have with the British Government or others.

    The right hon. Gentleman is right. The time has come for Sinn Fein to make up its mind. Either it will be a democratic organisation taking part in democratic politics or it will stay side by side as the reverse side of the coin to the IRA, with intermingled membership, in which case it has no part in democratic politics whatever. I believe that, when the right hon. Gentleman says that the moment of truth is here, it is for Mr. Adams and his colleagues, and everybody wishes to hear precisely what their views are–and let us have no more of the measly nonsense that we have had from them in recent years.

    Mr. Blair: I join with that entirely.

    Does the Prime Minister also agree that there has been progress in Northern Ireland? The British and Irish Governments are agreed on the way forward; all nationalist parties in the Irish Republic and Northern Ireland, apart from Sinn Fein, are agreed on peaceful means to achieve their ends; and the United States and others abroad may have been given a telling lesson on the realities of the IRA. Is not the only course now open to Sinn Fein to ensure that the IRA ceases its violence? If it cannot–or will not–the process should proceed with the democratic parties, and an agreement should be reached and put to a ballot of the people.

    The Prime Minister: It is entirely right that the talks must continue. We have no intention of allowing the search for a political settlement for Northern Ireland to be derailed by the activities of the IRA and Sinn Fein. I hope that all the constitutional parties in Northern Ireland will continue to demonstrate the leadership and courage necessary to make rapid progress, and to show the IRA that it cannot stop the process with bombs in Manchester, London or anywhere else.

    If the IRA and Sinn Fein wish to have any future interest in this process, they will clearly need to declare an unequivocal ceasefire. They will need to declare it immediately. They will also have to show that that ceasefire is credible and lasting, and is not just a tactical device to enable them to enter the talks until such time as it is convenient for them to leave. It is now up to them to demonstrate their credibility; it is not up to us or anyone else. They must demonstrate their credibility–but the talks will continue.

    Mrs. Roe: In the light of falls in unemployment, interest rates and inflation, does my right hon. Friend agree that Britain is now one of the most competitive economies in Europe? Does he accept, however, that much more still needs to be done to raise standards in our schools? Although things are improving, far too many children still leave school without the basic skills.

    The Prime Minister: Both the premise of my hon. Friend’s question and her substantive point are important. She knows that the British economy is in very sound shape; we intend to keep it so. As for education and basic standards, the Government have introduced a programme of reforms that is more comprehensive than any that we have seen at any stage in the past, designed to raise standards in schools, build on the national curriculum and ensure regular inspection and the publication of performance information.

    We have made substantial progress in recent years in raising standards, but there is no doubt that there is a great deal more that we wish to do to ensure that the quality of education for all our children is the equal of the quality of education anywhere else in the world. That is our intention, and we will continue to pursue it, despite the failures of so many Labour-controlled education authorities whose records have held back many children in inner London and elsewhere. [Hon. Members: “Seventeen years.”] It is no good hon. Members below the Gangway muttering in this fashion, when it is their party, in control in local government, that could act now to improve education, but does not.

     

    Q2. Mr. Livingstone: To ask the Prime Minister if he will list his official engagements for Tuesday 18 June.

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

    Mr. Livingstone: Given the funds that the Government have made available to the Russian Government and organisations in Russia in recent years to help to establish democracy, has the Prime Minister had time to read today’s statement by the Conference on Security and Co-operation in Europe expressing the CSCE’s regret and concern at the extensive bias in the coverage of the presidential election? Will the right hon. Gentleman now use his contacts with President Yeltsin to point out to him the value of the British precedent of television and radio providing equal time for candidates, to legitimise this final stage of the Russian election?

    The Prime Minister: I have not yet seen the particular statement to which the hon. Gentleman refers. In view of what he says, I shall certainly consider it, but the very fact of the Russian presidential elections, and the way in which they have been carried, out would have seemed inconceivable just a few years ago. It is a welcome sign that Russia is settling into the normal pattern of democracy, and we must give great credit to President Yeltsin for that. I hope that the second round will be conducted well and that there will be a clear-cut and satisfactory result.

    Mr. Stewart: Does my right hon. Friend the Prime Minister agree that the control of business rates under the Government has been of immense benefit to businesses, large and small, throughout Britain and, therefore, to jobs? Will he ask the relevant Government Departments to analyse the consequences for jobs and for prosperity of taking off these controls and handing decisions back to loony Labour councils, as is advocated by the Labour party?

    The Prime Minister: I will certainly consider any mechanism that tries to restrain on-costs on British business. It is clear that the fact that British business as a whole pays less over and above wages in on-costs is one of the principal reasons why are more citizens are in work in Britain than in any other country of similar size throughout western Europe.

     

    Q3. Mr. Welsh: To ask the Prime Minister if he will list his official engagements for Tuesday 18 June.

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

    Mr. Welsh: Did the Prime Minister see last night’s “Panorama” programme, which catalogued 10 years of evasion and incompetence by the Government on the BSE issue? What does he have to say to Scotland’s hill farmers, now awaiting being dragged into the general economic catastrophe created by the Government, while he postures to no effect in Europe?

    The Prime Minister: Of course I did not waste my time watching “Panorama” last night–[Interruption.] I have much more productive things to do with my time than waste it watching nonsense from “Panorama”. We have taken account of the scientific advice that we have had throughout this affair, and that is what we will continue to do in the interests of British agriculture and of the British beef consumer.

     

    Q4. Mr. Michael Brown: To ask the Prime Minister if he will list his official engagements for Tuesday 18 June.

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

    Mr. Brown: Does my right hon. Friend recall the exchanges that he and I had in the House last October, when I raised the question of closed circuit television for security purposes in our towns and cities? Is he aware that the initiative that he announced last year is one of the most practical ways of dealing with crime and of introducing crime prevention measures? Although he may not be able to confirm to me today whether my constituency of Cleethorpes is to benefit from the forthcoming announcement, will he guarantee that he will have a word with our right hon. and learned Friend the Home Secretary and advise him that we in Cleethorpes are very supportive of that initiative?

    The Prime Minister: Bringing closed circuit television to all corners of the United Kingdom is a practical effort to create a safer Britain in future. We are investing around £50 million, and our target is to fund 10,000 new cameras in the next three years. I am pleased to hear from my hon. Friend about the Cleethorpes bid. Knowing my hon. Friend, I would have been surprised if there had not been a Cleethorpes bid, but he is right–I cannot confirm to him today whether it has been successful, but I hope that announcements will be made before too long.

    Mr. Litherland: The Prime Minister will understand that there are no words to describe the loathing that Manchester people have for the perpetrators of the crime against our city last Saturday, but it has happened and we must now begin to rebuild Manchester. Mancunians are resilient people, but they require help. Will the Prime Minister today give the assurance to the House that the Government will offer every support, including financial aid, for the restoration of businesses, buildings, jobs and homes in Manchester? Sympathy will not pay the bills.

    The Prime Minister: The hon. Gentleman has commented on three matters of importance. I entirely share his initial remarks about Manchester, and I have no doubt about the courage and determination of the people of that city in recovering from last week’s incident. Individuals injured by the bomb are eligible to apply for compensation under the criminal injuries compensation scheme. The Government-backed terrorism insurance scheme will ensure that participating insurers can meet claims by companies that purchased full terrorism cover. Businesses that have not done so are likely to receive limited reimbursement and should contact their insurance companies.

    The financial implications for local authorities are not yet clear. I have asked my right hon. Friend the Secretary of State for the Environment to consider carefully any application for assistance by an authority affected by the incident, and he will certainly do so. In Manchester in the past–and I am sure that this will be so in future–an effective partnership between the Government, the private sector and the city council has delivered remarkable regeneration in many parts of the city. That partnership provides an excellent basis for rebuilding, and we look forward to working with the people concerned.

     

    Q5. Sir Michael Neubert: To ask the Prime Minister if he will list his official engagements for Tuesday 18 June.

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

    Sir Michael Neubert: Will my right hon. Friend take the opportunity to pay tribute to a great man now gone, the late Sir Fitzroy Maclean? Was there not much to admire in that soldier, diplomat, Conservative Member of Parliament and patriot, who had an enviable ability for getting out of tight corners?

    The Prime Minister: Sir Fitzroy Maclean was a remarkable man with many qualities to admire–from being a founder of the Special Air Services to a Minister of the Crown at this Dispatch Box. In all his many roles, Sir Fitzroy made a remarkable contribution. He also played a crucial role in work with Tito’s partisans in the second world war. People will think of Sir Fitzroy Maclean as a man who lived life to the full. From what I know of him, I believe that he would regard that as a satisfactory epitaph.

  • John Major’s Speech to the 1996 Welsh Conservative Party Conference – 14 June 1996

    Below is the text of Mr Major’s speech to the Welsh Conservative Party Conference in Porthcawl on Friday 14th June 1996.


    PRIME MINISTER:

    Britain Transformed

    People will ask you ‘What have the Tories ever done for me?’

    It’s an honest question – bluntly put – and deserves an honest answer, equally straightforward.

    So spell it out for them.

    Remind the questioner there’s been a revolution in education. In 1979 one in eight young people went on to higher education. Today it’s almost one in three. A third of all families can look with pride to their child’s achievement. A third of our young people enter the world of work armed with a better education.

    ‘Well’, they may say “So there’s education. But what else have the Tories ever done for me?”

    Under the last Labour government, if you needed an operation, you had a one in five chance of waiting over two years. Today, only a handful of people are waiting that long.

    ‘Fine – there’s education, health. Fair enough. Anything else?’

    Inflation. There’s another certainty. If we’d kept inflation at the level we’d inherited and followed Labour’s policies, today a loaf of bread would cost £1.25 and a pint of milk 70p. About double today’s prices.

    ‘All right. I give you that. But what else have the Tories ever done for me?’

    Well, there’s tax. If we still had the tax system we inherited from Labour, the average earner would be paying £17 more a week- £17 a week – in tax. How about that?’

    “Mmmmm. Education, health, inflation, tax. Is that all the Tories have ever done for me?’

    Look, don’t have to tell you ladies and gentlemen, they’re tough on the doorstep. So come right back at them.

    There’s the unions. In 1979, we lost twenty nine and a half million days to strikes. Twenty nine and a half million. The dustmen, the council workers, the car workers all proving Labour doesn’t work. Since then, the number of days lost to strikes has hit the lowest since records began.

    ‘Yes, well’ they may say. ‘Apart from education, health, inflation, tax, strikes. That’s all very well, but what have the Tories ever done me?’

    Take a deep breath, and broaden the picture.

    Under Labour, loss-making nationalised industries cost the taxpayer £50 million a week.

    Today, privatised industries contribute £50 million a week in tax. £50 million a week – enough to pay for 11,500 hip replacements, 1 new hospital a month and 5 new schools.

    What’s more, electricity bills are down £18. Gas bills – excluding VAT – down over £90. Phone bills still falling – down £44 in the last three years. Privatisation works.

    ‘So there’s education, health, inflation, tax, strikes, household bills. But what have the Tories ever done for me?

    Jobs. Under Labour, unemployment rose by 122 per cent. 2.500 people became unemployed every week. This week, unemployment fell again – down by 800,000 since its peak. We’ve more of our people in work than any major country in Europe.

    ‘Sure, sure. That’s all very well. But how else have the Tories helped me?’

    There’s mortgages. Average monthly mortgage payments are around £170 lower than they were 6 years ago. At less than 7%, they’re at a 30 year low. The average rate under Labour was 11 per cent.

    ‘So that’s it, is it?’

    No. Here in Wales. William has been working to improve the environment. Intending to designate the Menai Straits as a nature reserve. Aiming for 50 of Wales’ beaches to be of the highest, blue flag, quality. Helping to protect Wales’ coast. So there’s health. Education. Inflation. Tax. Strikes. Bills. Jobs. Mortgages. The environment. How about that for a success story?

    ‘Yes … but why didn’t you tell me about all that in the first place?’

    Madam Chairman, that’s what life under the Tories has brought about: it’s quite a story. The story of a Britain transformed.

    Which part of our United Kingdom do you think has recorded over 1,500 new inward investment projects, worth billions, during the last thirteen years?

    Where has unemployment fallen by almost 26,000 over the last three years?

    Where has self-employment risen by almost 30 per cent since ‘79?

    Where have days lost from industrial action fallen to less than 1% of those lost in 1979?

    Here in Wales. That’s the kind of change Conservatism brings in its wake. Change for the better. And it doesn’t stop there.

    Look at Caerphilly. Once overshadowed by Cardiff and Newport, today a thriving major retail and commercial centre in its own right.

    Or the new Severn Crossing. Built with private finance as a vote of confidence for the growing South Wales economy.

    Or the new Ford plant I visited this morning, a £340 million investment bringing almost 500 new jobs to Bridgend.

    One success after another under a Conservative Government. To borrow a phrase you may have seen about town: ‘Yes, it worked’,

    Life is better. And if people want a change, they need to be clear what they’re changing from, and what they’re changing to.

    The Next Election

    At the moment too many people are sleepwalking into the next election – which is precisely what Labour want them to do. It’s the whole point of their strategy. They want to drug people into thinking that voting Labour is risk free. They don’t warn people to realise that if they vote Labour, Britain will never be the same again.

    Madam Chairman, that’s not my idea of politics. Britain is the oldest democracy in the world. I’ve always believed that if you give the people the facts, and treat them like adults, then you can trust them to make their own minds up.

    Our job is to set out our case. To make people think before they vote. And to leave them in no doubt what the consequences would be for Britain if they decide to cast aside everything we’ve achieved and take a massive step into the dark.

    Because the next election is a watershed election. Many of the changes Labour want to slip past us are irreversible.

    Three over-arching issues will lift this election out of the run of the mill. Issues that will decide the kind of country we live in.

    First, there’s the United Kingdom itself. You might think it’s right to give Scotland its own Parliament and Wales an assembly. Or you might think that’s a rotten idea, as I do. But whatever you think, once you go down that route, it’s difficult to turn back. The change might be irreversible. It would be no use saying ‘No one told me that would happen’. It would be too late. The Union would be gone.

    Then there’s Europe. You might think that Britain’s destiny lies in being drawn ever deeper into a federal Europe. Or you might, like me, believe we should resist that tooth and nail. Because once you’ve given powers to Europe it’s all but impossible to get them back. No use saying ‘Oh I didn’t think that would happen’. It would have happened.

    Finally, there’s the economy. You can eve an argument about whether you have more state control, as Labour believe, or less, as you and I think we should. Whether or not you agree, don’t doubt what’s at stake. You’d be throwing away the strongest economy in Europe – I repeat the strongest major economy in Europe. No point in complaining ‘Oh, I didn’t think that would happen’ when taxes, strikes, inflation all start going up – as they always do under Labour. By then it would be too late.

    Britain’s success, our Union, our nation – that’s what Labour threaten. Between now and the next election I’m going to set out the difference, the major difference, if I may say so, between us and Labour – and I’m going to say it and say it and say it until everyone understands all that is at stake.

    The Choice

    On the day they go to the polls, people will think of a number of things. High on their lists will be which party will make me and my family better off?

    The Conservative answer is simple. We believe in rewarding hard work. Encouraging people to set up their own business, to save and invest for the future.

    We want to give people the chance to spend more of their money as they wish.

    So as soon as we can safely do so, our instinct is to cut taxes. They’re still too high.

    Britain will never be able to compete in tomorrow’s world if we’re lumbered with high taxes, cramping enterprise and investment. That’s what you’d get under Labour.

    But to cut taxes we need to keep spending under control. We’re doing just that. For the first time in its history, spending on the welfare state will grow slower than the economy. Of course we’ll always help those in genuine need. But let spending spiral out of control, and we can wave goodbye to a strong economy.

    Now look at Labour, they’re addicted to the spending state.

    Look at what they’re planning.

    First, anyone earning as much as Clare Short could be taxed more. Care has a bee in her bonnet. She thinks they’re doing too well. So it’s bad news for them.

    It’s also bad news for anyone living in Scotland. They’d be clobbered by Labour’s Tartan Tax.

    Bad news for any middle class parent with a child staying on at school. They run the risk of losing their child benefit. Labour’s Teenage Tax.

    Bad news for anyone who owns shares in a privatised utility. Labour’s Windfall Tax.

    And heaven help anyone who uses a company car or drives to an out of town shopping centre. They’d run straight into Labour’s Shopping Tax.

    Oh, they’re high on tax in the Labour Party. So to keep your money, make your choice: lower taxes under the Conservatives, higher taxes under Labour.

    As for jobs, we’ve the lowest unemployment of any major European economy.

    Why? Because of our policies.

    Look how much it costs to employ someone across Europe. I don’t mean wages. I mean extra costs over and above wages.

    For every £100 an employer spends on wages, he’d have to pay an extra £32 in Germany. An extra £34 in Spain. An extra £41 in France. An extra £44 in Italy.

    But here in Britain, the cost is just £18. That’s why we’re competitive. It costs less in overheads to employ people here than in other European countries.

    That’s why we’ve attracted more foreign investment than any other country in Europe.

    And that’s why I won’t sign the Social Chapter or have a minimum wage.

    But Labour would. They say they’re after full employment – what they’d get is more unemployment. The minimum wage would price job-seekers out of the market. The Social Chapter would price Britain out of the market.

    So once again, the choice is clear. Policies to create jobs under the Conservatives. Policies to destroy jobs under Labour.

    Of course, the only way Britain will remain competitive is if our children learn the skills of the future. Education is vital.

    Conservative Britain has come a long way. Schools are no longer a secret garden. Just look at our record. A national curriculum, tests, performance tables, regular inspection. Choice for parents – every parent – even Labour politicians. That’s all right. We’re broad minded. And more young people going on to higher education than ever before.

    That’s the Conservative record on education and I’m proud of it.

    And here’s the future under the next Conservative Government.

    More choice.

    More grant-maintained schools.

    Tougher teacher training.

    More selective schools – including grammar schools.

    More Assisted Places.

    More results published.

    Every child is different. Every parent deserves choice. Opening doors for everyone. That’s Conservative policy.

    Labour’s idea of education is a scorched earth policy. First they enjoy it, then they destroy it.

    Some Labour politicians went to private school. But do they support them? Not a bit of it. They’d deny others the chance they had by abolishing assisted places.

    Some of them went to grammar schools. So now they’d like to abolish them.

    Some of them make the most of choice. They send their children to grammar or grant- maintained schools. They’d be abolished too – once the children have left.

    Labour standards are double standards. And their motto: ‘do what I say, not what I do’.

    When it suits them Labour mouth platitudes about teaching children the basics. But when it came to the crunch, oh, that’s different. Where were they when we had to fight to introduce the national curriculum, tests, and league tables and the rest? Who opposed us at elections, in Parliament and in councils up and down the country?

    You’re right – Labour. My motto is: ‘watch what they do, not what they say’.

    So it’s clear. More choice, higher standards, more freedom under the Conservatives. Less choice, more control, more restriction under Labour.

    The Nation

    A strong economy. A skilled workforce. A nation that’s winning in markets around the world. That’s how we’ll become the Enterprise Centre of Europe.

    But, just when we’re enjoying economic success, nothing would be more disastrous than Labour’s plans to carve up Britain. It would be an act of constitutional vandalism.

    Our nation’s prosperity and future depends on unity. Once broken up, it would be difficult – probably impossible – to put it together. And that’s the second reason why the next election is all important.

    I don’t say this for party political reasons. Nothing would improve the partisan, political fortunes of the Conservative Party than to see Scotland and Wales with Labour and Nationalist MPs going their own way. But we don’t want that.

    For one thing, we want Scotland and Wales electing more Conservative MPs. But irrespective of how they vote, we believe the people of Scotland and Wales want to remain part of the United Kingdom.

    Our United Kingdom has been moulded over the centuries, battered by the tide of history. Yes, it has changed. And it is changing. But necessary change, not change for change’s sake.

    Yet Labour’s plans are just that.

    When was the last time you heard someone looking for a job saying ‘What we really need is an assembly. Then I’d get a job?’

    Or parents concerned about their children’s education. Are they thinking ‘An assembly! That’s what my child needs to get through school’?

    And how many pensioners have you heard muttering ‘Welsh assembly. Welsh assembly – that’s what we need to fight crime on the streets’?

    Madam Chairman, a Welsh assembly is as pointless as a blunt pencil.

    Worse still, Labour’s plans are an humiliating, patronising slap in the face for Wales.

    Labour’s lust for power has forced them to promise Scotland a tax-raising Parliament. Why? Because the only way Labour can hope to compete against the Scottish Nationalists is to propose barmy plans for their own party political advantage. That’s why Labour want a Scottish Parliament. It’s their bid for Scottish votes.

    As a result, Scotland would become widely over-represented at Westminster. The only way Labour could attempt to redress the balance is by lumbering England and Wales with totally irrelevant assemblies.

    I come to Wales as an Englishman. A Conservative Prime Minister. But Prime Minister of a United Kingdom.

    Labour Prime Ministers – one of them even sitting for a Welsh seat – have governed the United Kingdom without holding a majority of seats in England. But they never said they had no mandate to rule England. They never said England should go its own way.

    But now Labour are singing a different tune. My duty is to point out the dangers of following Labour down the route they’d take us.

    Wales will choose.

    If the Welsh people want a focus for division, then a good way of doing so is to vote for a Welsh assembly. If they think an inspiring way to greet the Millennium is to have more politicians, chattering away in an assembly, then by all means they can vote for one.

    If, unlike Mr Blair, they can guarantee that an assembly won’t demand powers to spend other people’s money, they can vote for one.

    If they know why a Scottish Parliament should be elected by PR, but a Welsh Assembly by first past the post, they should telephone Mr Blair- because he hasn’t the foggiest.

    I have only one vote. I know how I’ll be using it. To protect and defend the United Kingdom from policies that would hurt and never work.

    But Labour’s madness knows no bounds. It spreads to the third great issue – Europe.

    Labour believe that our future lies in a sort of superstate. Let me remind you, Labour would undermine the veto. Jeopardize our rebate. Sign up to the Social Chapter. Give more powers to the European Parliament.

    No wonder Mr Blair says he’d never be isolated in Europe. Armed with a blank cheque, he’d agree to what is wholly against our nation’s interests. With his set of policies, he’d have little choice.

    Some people might like his idea of being part of a European superstate. If so, they can vote Labour. That’s their prerogative.

    Others – like all of us here – have a very different vision. It’s a vision of a Europe of nation states, linked by traditions of freedom and democracy and a single market, trading together but preserving their own identity.

    I don’t want to see our nation swept aside. Our Parliament at Westminster must remain the focus for British democracy – not Brussels.

    Yes, of course we must remain a part of the European Union. We can’t afford to be outside the world’s largest single market. We created that single market. It remains in our national interest to be part of it. The Union has made co-operation, not conflict, the habit between the nations of Western Europe.

    But we need to persuade our partners that the way forward is by building a partnership of nation states. A partnership that respects the cultures and traditions of European countries.

    We will argue for the Europe we want. And if we disagree, and think Europe is going in the wrong direction, we’ll simply say politely but firmly – ‘no, that’s not for us’.

    Europe must be flexible enough to allow us to do that. As more countries join, we can’t hope to fit into some universal blueprint. Nation states can’t be expected to march in institutional step.

    Flexibility, patience and understanding are essential. So I say again, if Europe goes federalist. Britain will not follow.

    Peroration

    Madam Chairman, no party has the right to point the British people towards the polling booth anaesthetised by warm words, hollow generalities, and a vague wish for change.

    We Conservatives inherited a Britain on the rocks.

    We’ve spent seventeen years rescuing this country from that inheritance and turning it round.

    Turning the tide of progressive thought in schools takes years.

    Reversing liberal approaches to crime takes years.

    Curbing the powers of the unions takes years.

    Getting inflation down to all time lows takes years.

    Building a Europe of nation states takes years.

    But on Britain’s doorsteps pointing to what we’ve achieved is only half the picture.

    We need to alert people to the choice they will have to make. When they go into the polling booth and pick up that stubby little pencil, what they’re voting for will be nothing less than the future of Britain.

    Say to the people before they vote ‘If you want a fragmented country, a weaker Britain, the end to our economic strength and that’s what you vote for, then fair enough, that’s democracy. You have that right’.

    But don’t leave them on the doorstep under the illusion that they’re voting for something else. Don’t let them be conned by that sort of thing: it’s a false prospectus.

    These issues are too great, too important to be brushed aside. If Labour had their way, the face of Britain would be changed for good. Forever. And irredeemably for the worse.

    We Conservatives can’t afford to let that happen – and we won’t. Which is why New Labour, Old Labour, any old Labour, are trying to pull the political wool over people’s eyes.

  • John Major’s Speech to the 1996 CBI Conference – 21 May 1996

    Below is the text of Mr Major’s speech made to the Confederation of British Industry (CBI) in London on Tuesday 21st May 1996.


    PRIME MINISTER:

    Brian – quiet relaxed day – well relatively, yes I suppose, relatively. I look along this top table here and I see this splendid collection of European tulips. I am delighted to see the CBI supporting European industry, and I look forward to European industry supporting the British beef industry – of which more later.

    Over this excellent dinner, the President and I were talking about how times change. And when we were talking, in the fashion that sometimes happens, a mental image came into my mind, an old piece of flickering black and white film came in front of my eyes as a memory aid. And it was Harold Macmillan, then Prime Minister, landing at Heathrow Airport and walking down the steps of the plane with Mr Selwyn Lloyd, who was then the Foreign Secretary. And he walked down to the bottom of the steps, and there at the bottom was one single television camera and reporter. And the reporter leaned forward with his microphone to greet the Prime Minister on his return from abroad. “Welcome home, Sir”, he said.

    “I am from the BBC. Do you have anything to say to the BBC?” And this was a tough question. And Mr Macmillan turned around to Mr Selwyn Lloyd and he said: “Do we have anything to say to the BBC?”. And Mr Selwyn Lloyd said: “No”. And Mr Macmillan said: “No, I have nothing to say to the BBC”. And the reporter leaned forward with his microphone and he said: “Thank you, Sir”.

    Not precisely that way today. So times have changed, and that is one of the themes that I want to talk about a little tonight – that theme and the British economy, how it stands, where it is going, and the choices that we face. Because the economy has changed as well in the last couple of generations. Smoke stack industries have given way to high-tech companies; public ownership to private enterprise; the global market place has become a reality; and at home industrial relations and working practices have been transformed.

    All that has happened and is behind us. But what is more important is what lies in front of us and the changes that must still come. We have, as a government, a clear economic ambition, an enterprise economy with the lowest possible taxes and with the least possible burden on business, an economy ready to compete and ready to prosper as the Enterprise Centre of Europe. A full-blooded economy cannot be built by business alone. Government must weld together policies on economic management, on tax, on education, on training, on infrastructure and a great deal else besides.

    And all these of course have a direct bearing on the business environment and on the prospects for enterprise. And it is for that reason that we have put competitiveness right at the top of the agenda. Every single area of government policy, even those which don’t immediately strike people as having something to do with industry, can help make Britain competitive and we must make sure they do.

    And tonight I would like to conduct something of a snap audit on how we are getting on. At the root of an Enterprise Economy is a stable economic climate. I believe that is now well in place. We are growing faster than any European economy at present and inflation is law, and staying low, and has remained lower for longer than I think anyone in this particular room can remember.

    There are some people who hold out the belief that a little inflation is no bad thing. And I guess what they mean is that inflation can make people feel a little more prosperous for a while, wages rise, house prices rise, pensions seem to go up. But it is of course a mirage and it is a mirage that is no good for business. But Britain has learned that lesson the hard way. How many times in the last 50 years since the war have governments lost their economic bearing when the economy slowed? How many times have they been panicked into premature re-inflationary measures that sowed the seeds of much worse problems once the immediate economic difficulties were over? Far too frequently, as everyone in this room well knows.

    When the recession of the early ‘90s hit Britain, we were determined not to fall into that trap. So we took tough action on inflation and on borrowing. It was not popular, it did hurt in the short-term, but it has worked. We have emerged from the recession in better economic shape, firstly than our competitors; and secondly more competitive as an industrial nation than we have been for very many years.

    Now of course, being open-minded businessmen and businesswomen, you may be thinking well he would say that, wouldn’t he? And maybe so. But the facts speak for themselves: low inflation enjoying perhaps its best run for almost 50 years; low interest rates so you can afford to invest in a secure climate; low taxes, though I would like to see them lower yet, low taxes to leave people with more of their money, to make it worth their while taking the risk of running a business; falling unemployment, still too high of course, but the lowest of any major country in Europe. These results are the proof of the pudding, they are the benefits of working for the long term. Other long term policies taken throughout the last 17 years are playing their own individual part in building our national competitiveness.

    Let me touch, for example, on privatisation. Do you remember what was said about each successive privatisation? Morally wrong, wouldn’t work, prices would rise, standards would fall, competition impractical. And we are now seeing how wrong all that was.

    Who feels nostalgic now for the day to day failures of the old state-owned industries? When did you last sit – I will ask Colin – on a British Airways flight and think, if only this was still a nationalised industry? Yet we were told that privatising British Airways would make it the pantomime horse of capitalism, and some pantomime horse it has turned out to be. What a nonsense that criticism was. And when did you last open your gas bill – prices down again – and wish yourselves back in the old days? Or get sentimental about the days when a quarter of pay phones didn’t work?

    It is results like that, the practical proof of the policy, that have won the argument. Private enterprise and competition motivate people. It gives them an incentive to cut prices, attract customers and improve services.

    Now of course those policies are controversial, inevitably so. Every privatisation has been categorised by many people as a privatisation too far. But they have worked, they have worked, and that is what matters, and enterprise and the British economy as a whole have benefited.

    Rail is the latest example. “Couldn’t be done”, the critics said, but it has been. And as of yesterday Railtrack is in the private sector with over 650,000 private investors applying for shares in the company. If Sid was in hiding, he came out again the other day in spectacular fashion. 80 percent of the passenger railway now either sold or on the market; 5 franchises, almost one-third of the passenger railway, already running in the private sector, and by the end of the month that should be up to 40 percent and that number is going to go on rising through the year as the programme rolls on.

    And look at what that means for the passenger? New rolling stock on the Gatwick Express and on lines where passengers have been complaining for years, like the Kent Coast and the London/Tilbury and Southend line. New services in the Midlands and south London where the new franchises have spotted gaps in the market. And where the new passenger, charter commitments. All this at a falling cost to the taxpayer and with a guarantee of keeping fares down that the passenger has never known at any stage before in the history of British Rail. That simply would not, could not have happened; would not and could not have been affordable under public ownership.

    Of course these changes are controversial; they are too disruptive to be otherwise. They are something governments do because they believe it is in the long term interests of the economy, because they believe that harnessing the innovation and energy of private enterprise gives us better public services, better infrastructure and helps build a competitive economy. And that is the point, that is what we are about. Spending the taxpayers’ money efficiently and effectively is central to all this.

    The biggest budget in Whitehall is social security. If we would like a low tax economy, and we would, and I suspect you would as well, we have to get a grip of benefit spending while still being fair to the people who need help. Let no-one assume that we are unconcerned about those who genuinely need help, we are and we will remain concerned about them. But to cut down that budget fairly we need practical detailed changes. You can’t get that just by waving a magic wand. You need to encourage independence, self-provision. You need mechanisms to get back into work where they don’t need help and social benefits. You need to carry difficult, very often contentious, legislation. And that is what we have been doing, not always popular, but it is what we thought was right.

    The new incapacity benefit, job seekers allowance, child support, changing the pension age – these I can promise you tend not to provide short term positive headlines for the government of the day. But they add up, they add up, they are the small ends of the candle that Gladstone referred to that build a whole candle at the end of the week. They add up in saving public spending and helping the enterprise economy by keeping tax low.

    Social security has been growing at an average of 5 percent a year ever since the war. Thanks to the reforms that we have carried through, expected growth is now down from 5 percent a year to 1.25 percent a year in real terms. For the first time in generations, benefit growth will be less than GDP growth, so benefits will take a smaller share of the national cake in the years that lie ahead, and that is something that no government since the war has achieved or been able to look forward to.

    And why does that matter for you? It matters for you because it helps to build a huge competitive advantage for British business. Our competitors in Europe still have to tackle their spiralling welfare bill, and their businesses may well have to pick up the tab. But we have planned ahead over many years. Britain has more invested in private pensions than the rest of the European Union added together. Ours is a system we can afford today and into the next century, and we intend to keep it that way in the future.

    But what of the other things, the things that any government serious about an enterprise economy has got to do to secure those ambitions? Well first and foremost, we have to listen to what it is that business says in the wider sense, and they ask for things way beyond the obvious tax and spend elements of economic management. And first and foremost, we have to complete the task we have set ourselves of getting the education system right.

    There is a great deal to be proud of. Higher education in particular has expanded beyond imagination in the last few years. Higher education is now a reality for 1 in 3 of our young people. At the start of the 1980s, that was 1 in 8 of our young people. So you can see the scale of the changes.

    Our new vocational qualifications, because we believe, I passionately believe, that so-called blue collar qualifications are every bit as valuable to the economy as white collar qualifications, and we need those blue collar qualifications if we are to have the right sort of industrial society that we need to compete not just with Europe but with Asia, the United States and Japan in the years that lie ahead. That is why we looked more towards vocational qualifications, that is why our new vocational qualifications are taking root and winning support, not least if I may say so, to Brian Nicholson’s pioneering work over the last few years which is immensely valuable not just in the short term but in the long term, and I am delighted to express my thanks to him for that this evening.

    And our schools are changing. They are now among the world leaders in the use of information technology. And I would like to keep them there to develop those skills and the advantage they give those children in their future when they leave school, and the advantage that they will give you, as employers, having youngsters coming out of school with a secure basic knowledge of the information technology that is here to stay, whether people like it or not. We either embrace information technology and play our part in leading the world economy, or we push it to one side and we watch other people forge ahead. And that is why Ian Taylor and his colleagues in government are seeking to do all they can to embrace the advantages of information technology.

    No-one knows better than the audience gathered here in this room this evening, the importance of having young people come out of schools with the basic skills in place. Our young people today are your workforce and your successor’s workforce tomorrow. If they are allowed to go through schools with literacy problems and numeracy problems, no amount of training later will compensate. It will not compensate for their quality of life, and it will not compensate for the workforce that you need.

    Tackling that problem is a long haul: the national curriculum, tests and league tables to measure schools’ performances. I personally believe that they are essential and I will tell you why, it is a perfectly common sense reason.

    If you wish to teach a child well, you need to know what it is that the child may not have understood. That is why you need tests. If you can identify what they have not understood, then you can correct the weaknesses and teach them it again until they do understand it but if you never find that out, those children will find themselves hobbled as they move on to higher and more difficult areas of learning. That is why we are seeking to change the culture of education, to bring back methods that work, to turn our back on fashionable theories that I believe have failed a generation or more of our schoolchildren.

    We now have a school inspectorate to punch home that message. Gillian Shephard has made it clear that she will give OFSTED – the Office of Standards in Education – more powers of inspection if they need them to tackle problems and drive up standards still further. Standards – standards – standards. It is time we were unashamed to use the word “excellence” when we set out what we wish to achieve in education. That must be our watchword and I believe in that we would have the support of every employer in the country.

    The fact is, Mr. President, that business and Government must work together to address the challenges of the future, that is essential. Neither of us, neither Government nor you in business, whatever great captain of industry you may be, none of you will achieve what you want entirely on your own.

    Let me give you an example, transport, roads, something I know of great concern to the CBI, that Brian and Adair come to talk to me about every other day, so I know the concern you have about it. Many people recognise the reality of how tightly we have to control public spending and in that climate we simply can’t rely on spending ever more taxpayers’ money on any matter, even one as important as roads. Instead, we have to get the best possible value out of every pound that is spent and that is why the emergence – now out of its chrysalis stage but not in full flower I think – of the Private Finance Initiative is so important, helping us to get what we want for public money, driving the hard bargains in road-building that you would drive in your own commercial enterprises, harnessing skills and ideas and starting projects that otherwise without PFI might never have got off the ground. Over £1 billion of privately-financed roads are now either awarded or in the pipeline, 37 separate schemes in all. There is the Channel Tunnel rail link, a £3 billion project, where the private sector is making a huge contribution in terms of management and money.

    It is not just transport but health too, also vitally important for employers. You want the minimum amount of sickness amongst your workforce and increasingly the days that people are taking off sick are falling year after year as health care and diet increasingly improve but health too is being transformed: five major hospital projects with capital values of over £10 million have reached an advanced stage in the last six months compared with only one a year for the past ten years.

    Just last week, an exciting new £200 million investment was announced for a social security card that will modernise our benefit payment system and crack down on taxpayer fraud.

    Of course it will take time to change the culture as we are seeking to do but we are slowly but steadily doing that and we welcome your help in pointing out what needs to be done and where we can improve the way that PFI works.

    Let me say a word about our relationship with the European Union and the importance of it:

    We must fight together, business and Government, for the things that matter to you in Europe: extending the single market in the areas that still have to be opened up such as energy and pension funds and completing the process in telecommunications. Never forget that the single market, vital and important though it is, is not yet completed. Making sure that others observe the rules that they have signed up to; we invariably do – our law officers insist upon it – and we must make sure that everyone else does as well, wherever we can, using whatever allies we can – and we do have allies on this issue – to stem the flow of new regulations and taking a cool-headed view of what will really serve the interests of British business in the long term.

    We have our own distinctive, British view of how the European Union should develop and in many important ways it is different from the views of many of our European partners but nobody should misunderstand the significance of that difference but if they do, let me make it clear that Britain is in the European Union, it is going to stay in the European Union and it is going to fight in the European Union for the sort of business environment that is right for business prospects in this country and to try and build the sort of European Union with which the British nation are comfortable.

    No-one regards our friends in other European countries as anti-European when they fight for what they believe is the right sort of development for the European Union. Well, I propose to say something very controversial! I think I have exactly the same right to fight in the European Union for the sort of European Union that we wish to develop for the future but no-one should doubt that we will be in there pitching for that particular development.

    We work together with our European Union partners where we can but that does make it, to my mind, doubly important that when agreements are made those agreements are held to. At Maastricht, I obtained an opt-out from what became known as the “social chapter” and I did it for this reason: because I believed it would add to the cost of business, reverse trade union and other reforms we put in place over the last 17 years and would push up unemployment. I have no intention of losing the benefits of that opt-out from the social chapter and let me tell you something about it.

    I do not believe it is right for politicians to seek popularity across Europe by laying benefits upon people in work at the expense of employers with the absolute certainty that it will make it more likely that those people still out of work will remain out of work because it will be too expensive to employ them in the future. There are 20 million European adults out of work. In this country unemployment, thank goodness, has been falling for two and a half years and is lower than any of our partners in Europe of any significant comparable size to the United Kingdom but that is not true across Europe and I do not see it as a moral position for governments to add costs to employment in the certainty that that will mean that the people who are out of work today may stay out of work for many years in the future. It is not just industrially “bonkers”, I believe it is morally wrong and we will not sign the social chapter.

    Let me, however, add another point. At Maastricht our European partners agreed that we would not be part of the social chapter but today there is a threat to that opt-Out: the health and safety articles of the treaty were agreed in 1985 to deal with genuine matters of health and safety but recent attempts to use them as a basis for imposing the working time directive on Britain go beyond what we agreed to and not only that, the breach the understanding I reached at Maastricht when I negotiated our opt-out from the social chapter. I have said to our European partners in unmistakable terms that we must change the health and safety provisions so that they reflect the more limited scope that was originally intended and that the British Parliament originally agreed to and I take this very seriously. We cannot be expected to have confidence in European agreements if they are subsequently undermined by shifts in interpretation. I do not wish to be misunderstood about this. If old agreements are to be broken, I do not see how we can reach new agreements so before there could be any agreement of any sort in the forthcoming inter-governmental conference we have to ensure that agreement on the social chapter and our opt-out is, secure and cannot be undermined.

    Mr. President, the most urgent issue facing us in Europe as we meet this evening is the crisis in the beef industry across the Continent and the export ban on British beef and on British products. We are taking every necessary step to tackle the problem of BSE in Britain and we are doing that in the interest of the British beef industry. We wish to eradicate BSE in our own interest, not under pressure from our European partners but in the interest of our own beef industry.

    The incidence of BSE has already come down radically, with the measures we have taken it will be eradicated slowly but certainly. The new measures we have taken to ensure the public is safe are costly measures, many are also painful for the farmers and difficult to implement speedily but we are absolutely determined to do everything necessary to ensure there is no risk to the consumer and that is why we have found so frustrating the lack of progress in persuading our European partners to agree on a strategy to lift the ban.

    The European Commission, President Santer and Commissioner Fischler have been very helpful. A majority of member states supported the latest Commission proposal to lift the ban on some beef derivatives as a first step but others ignored the scientific evidence, and did not support lifting that ban. The result is that so far we have no tangible progress in the European Union.

    As I told the House of Commons earlier today, this can no longer be tolerated. If some of our partners are unwilling to extend goodwill to us we shall have to withhold our own. As long as there is no agreement on a process leading to a progressive lifting of the ban, we shall not be able to cooperate where others need our agreement in the European Union. We shall also actively pursue our legal case against the ban.

    I do not embark upon such a course lightly but the scientific evidence so clearly on Britain’s side is being set aside. Progress on lifting the ban to help the British beef industry has to be at the forefront of our efforts in Europe but cooperation must be a two-way street, Business as normal is impossible in present circumstances and that includes the inter-governmental conference so let me be clear:

    This is not an “empty chair” policy. We will be there arguing our corner at every meeting, arguing it as hard as ever but we will not agree to measures where our agreement is needed. This is by no means the way in which I wish to do business in Europe but I see no alternative.

    I now seek a rapid agreement through negotiation with the Commission and with our partners. I will do everything I reasonably can to make this possible. We can then return to normal business and nobody wishes to see that more than I do but mercifully, Mr. President, there is more to life than Europe and beef. Although half of our trade is with the European Union, the other half is not and the opportunities here are immense. If I had one wish for our European partners, it would be that the whole of the European Union would lift its eyes, look beyond competition between France and Germany and Portugal and Britain and look at the competition in the Pacific Basin, in the United States, in Japan and in growing ways in Latin America.

    The opportunities for we British in those markets are immense. We have fantastic advantages in overseas markets: a strong economic base at home, the great plus of the English language – the business language of the world and increasingly the language in which the whole world communicates – historic links right the way around the world; this is not nostalgia, these are opportunities for British industry and commerce. We are much more heavily involved in overseas investment activities than any other country except the United States; we have far more investment for example in the United States than the Japanese do, we are just sensible enough not to buy their golf courses and their mountains and it is not controversial — and relative to GDP the United Kingdom is the number one investor among the G7 just as we lead the field in inward investment.

    As we dine together this evening, Michael Heseltine I am reliably told is in China. No difficult votes, he is in China! – with 270 businessmen and women, leading Britain’s largest ever trade mission there. I have led similar missions myself most recently to India, to South Africa and Israel; Ian Lang is back from Japan and he is off to Russia next week and that is just the tip of the iceberg; over the last year, there have been 80 ministerially-led trade missions taking thousands of businessmen all over the globe and generating business worth hundreds of millions of pounds.

    We have already done – you and I – much of the hard work to guarantee a bright future but now we must make sure that we build on it and do not throw it away. There can be no question of letting up on inflation, no question of loosening the purse strings, no question of taking the more insidious route – the smile, the handshake and the signature on the social chapter – that signs away British jobs and nor can we let our education system fall victim to wrongheaded fashion again. Any or all of those would be to betray the hard work that we and you have done to build up the prospects that we now enjoy.

    We live in the most competitive world economy we have ever known. Some people may find that threatening, I don’t. The future will bring new challenges but we can face then with the policies and the principles that are steering this country to a better economic future, we have never sought to duck change or to hide from challenge, we know that change can be turned to our advantage and that is what we have sought to do.

    We are ahead of the game with many of tomorrow’s challenges precisely because we have tackled problems that have beset the British economy for decades. Our competitors know that but perhaps we as a nation should acknowledge it more often because if we fail to recognise our own achievement we may not secure and build upon the opportunities that they present.

    My ambitions for the future are rooted in the policies and principles that have delivered results. We have policies that have brought low inflation, let us build on them and get inflation lower still; we have policies that have brought us falling unemployment, let us build on that and get it lower still; we have policies that have brought taxes down, let us build on that and get them lower still.

    I want this country to have the self-confidence it should have with its own achievements, I want it to lift its eyes and to capitalise upon the strong economic base that we now have. Let us not set limits on what we can achieve. Let us look firstly to protect our achievements and then to build on them to deliver the increasing prosperity that is now within our grasp. Government can’t do that alone, neither, I believe, can industry but together we can. Here in this room, if I may say so, are many of the engines of growth in the British economy. The opportunities there – I know and you know – are more real and more within our grasp than they have been for very many years past. All I would have to say to you is quite simply this; those opportunities are there, let us take them, grasp them and build on them. For the British economy much has been achieved but with our work and our help the best is yet to come!

  • Mr Major’s Speech at the 1996 Scottish Conservative Party Conference – 11 May 1996

    Below is the text of Mr Major’s speech at the 1996 Scottish Conservative Party Conference, held on 11th May 1996.


    PRIME MINISTER:

    I want to touch first on two issues of great concern.

    When last I came to Scotland, I went to Dunblane. The events there were a horror, almost unimaginable – a mad act that robbed innocent children of a happy future.

    Michael Forsyth and Michael Howard have already announced an amnesty on illegal guns to gather them in.

    Lord Cullen – one of Scotland’s most senior judges – is to advise us on what further action is needed.

    Should legislation be necessary – and it may well be – I can promise you we will move speedily. We have already set aside time in the Parliamentary programme for this purpose.

    I intend that we will do all we can to ensure such a crime cannot happen again.

    Secondly, beef.

    The European ban on beef has caused frustration and anger.

    Not just amongst farmers, but amongst everyone.

    Certainly here in Scotland, as Scottish beef is a by-word for quality.

    The ban is totally unjustified. It’s the result of panic, not science. And it must be removed.

    The ban turned a problem into a crisis, not just in Britain, but across Europe where beef markets have also been hit.

    Next week, the first steps towards lifting the ban are going to be discussed in Europe. I hope that progress will be made.

    For the ban was introduced by the Commission. And it is the Commission that has now unanimously recommended a partial lifting of the ban.

    Against that background, our European partners must understand the level of resentment that will be created if they fly in the face of scientific arguments and the Commission’s recommendations and continue to damage our beef industry.

    But let us be frank. Even when the ban has been lifted, we will need to rebuild consumer confidence to regain our markets. We need to make the case for quality again and again.

    Many beef herds have never had a case of BSE. So, while we aim to get the ban totally lifted, we’ll also be pressing to get rapid exemption for specialist beef herds.

    Such a move across the UK will particularly benefit Scotland, and the premium, grass-fed beef herds for which Scotland is rightly famous.

    We’re already consulting on proposals to get mature, prime beef from these herds back on the market in Britain.

    But to regain our markets around the world, we must – in our own interest – look at any sensible proposals to speed up the already rapid decline of BSE throughout the UK.

    I met with the Scottish NFU this morning, and heard from them first hand of the fears and anxieties of their members. I promise you this – we will stand by this industry.

    We have already committed huge resources. In addition to that, I am confident that we can deliver significant extra help for beef producers within this year’s European farm settlement. And, to help the exporters, we’ve agreed to pay more money to those whose stocks were destroyed or devalued in the initial crisis.

    I pay tribute to the leadership which the NFU has given over this difficult period, and to the effective and influential role they have played.

    We’ve made a start in tackling this crisis but we need to remove the threat of BSE once and for all. British beef is the best in the world.

    It’s good to be back in Scotland and to find you in such good spirits.

    So am I.

    I always enjoy coming to Scotland. Not least because you always doctor my water in a most agreeable way.

    We’re now within a year of the next General Election.

    And, when it comes – next year, I expect – we Conservatives are going to win that election – by working together, north and south of the border.

    It’s a good Tory word, “together” – and especially so here in Scotland.

    It emphasises that ours is a United Kingdom.

    And we’re the Conservative and Unionist Party.

    We believe in working together, north and south.

    And, so long as there’s a Conservative Government, that’s how it will remain.

    Some people say to me – why? Surely, if Scotland breaks away, England will save on public spending and can have lower taxes? And surely, it’ll be easier to win elections without the SNP, Labour and Liberal MPs from Scotland?

    True. But the United Kingdom as a whole would suffer. And so would Scotland.

    And we Conservatives put the United Kingdom first, even though it’s not to our Party advantage. That’s not the way Labour behave. Their devolution plans put the interests of the Labour Party first. We put the country first. And that’s the difference.

    For months, Michael Forsyth and his team have been taking the argument to Labour, exposing their flawed plans.

    Showing how they would wreck Scotland.

    Showing how the devolutionists are laying a false prospectus before the Scottish people.

    I have a message for you Michael. The battle you’re fighting for Scotland is as important as any that has been fought before.

    Fight hard. Punch hard. Punch often.

    And you’ll have from me all the support you need.

    When I became Prime Minister I spoke of a classless society.

    Many scoffed that this had happened without my noticing it.

    Others said it was a preposterous and even undesirable aim.

    Well, there have been remarkable changes in British society over the last 50 years. Indeed, I’m a beneficiary of them.

    But don’t tell me that a child brought up in deprived circumstances – and given an inadequate education – has the same prospects as one from a more prosperous background with a good education.

    There are many who achieve good results from bad beginnings. But one of our principal risks as a Government – and as a Party – is to ensure that fewer and fewer of our children have those bad beginnings. And that’s what our education reforms are about.

    We don’t believe that people in difficulties always have only themselves to blame. Don’t forget I’ve been poor and unemployed. And I know that our Party has done more than any other to relieve poverty and to finance the National Health Service and social security.

    It was practical compassionate Conservatism that marks me a Tory and millions like me.

    And it’s values like that that have underpinned the last 17 years of Conservative Government.

    17 years.

    Some people on the cocktail and chattering circuit think it’s time for a change. As though Government were a game of street cricket with everyone having a bat in turn. But what sort of change?

    Labour wouldn’t bring to Britain the sort of changes we’ve brought.

    Taxpayers. Cuts for everyone. The lowest basic rate for 50 years. Change that?

    Homeowners. Lowest mortgage rates for 30 years. Gas, telephone bills falling. Change that?

    Workers. More of our people in work than any major country in Europe. Change that?

    Savers. TESSAs and PEPs flourishing. Scotland is thrifty. It saves. And now it has a 20p rate of tax on savings – a new low. Change that?

    Businessmen. The longest period of low inflation for almost 50 years. Why change that?

    Parents. More choice than ever before. We shouldn’t change that – and Labour agree.

    Not only do they agree, they welcome our change and take advantage of it.

    You don’t believe me. Check with the Blairs. Ask Harriet Harman.

    Pupils. More going on to higher education than ever before.

    Patients. More being treated than ever before.

    The changes we’re brought about are changes for the better.

    Thanks to them, Britain is the best performing economy in Europe. The world’s leading companies are pouring in investment and jobs.

    Britain, with her unique heritage of trading links, and a mother tongue that’s the world’s common language, is winning new markets around the globe.

    Today, Britain stands on the threshold of a new era of opportunity and prosperity as a global trading nation. A small island that’s an international success.

    Of course, there’s much we have to do. But look what we’ve done.

    Take our schools, for instance.

    We inherited a system that had become a secret garden, overgrown with so-called progressive theories.

    Today, children are taught the basics. Labour called that a “fanatical doctrine”.

    We’re going to make sure that children are regularly tested. Labour said tests “encourage a climate of failure”.

    Exam results are published. Labour called that “political propaganda”.

    Schools can now govern themselves. Labour said that was “wrong”.

    Wrong? It’s precisely the kind of education parents want. That’s not wrong. It’s just commonsense.

    The same goes for crime. We’re been turning back the tide of political correctness that excused the criminal and forgot the victim. It meant once again taking on the so-called progressive establishment that dominates Labour thinking.

    Well, we took them on.

    For example, we increased the maximum penalty for cruelty to children. For dealing in drugs. We gave the police new powers to stop and search suspects.

    And right the way down the line, Labour opposed almost every change.

    If Labour had won their arguments, dangerous criminals who are in prison today would be out – walking the streets.

    So, change? Change back to that? Surely that would be folly.

    Some of the changes we’ve made have been painful. They’ve hurt people. And they have hurt us politically in by-elections and local elections.

    But although it hurt, it worked.

    And when we look around us we can see life getting better and our country becoming more prosperous.

    So when people talk of change, ask them “What kind of change do you prefer?”

    “Higher inflation? Lower taxes? More jobs? Tougher laws under the Tories?”

    That’s the kind of change you and I want. And it’s the only way to meet the challenge of the future. A change to Labour would be a change all right – a change for the worse. Don’t let it happen.

    Mr Chairman, before these changes, British companies and British businesses were fighting just to keep their heads above water. Now they are fighting to lead the field.

    And that’s especially true in Scotland.

    Which place in the UK do you think has gained most from our reforms of the last 17 years?

    Seen living standards grow by over a third?

    Grown faster than the rest of the United Kingdom over the last five years?

    Exports 40 per cent more per worker than the United Kingdom average?

    Brought unemployment down to its lowest rate for almost fifteen years?

    You’re right: that country is Scotland.

    Could this remarkable success story have happened without the Union?

    It’s out of the question.

    Labour or the Scot Nats would never have given Scotland the changes she needed. Instead of sunrise industries we’d have had sunset industries, propped up by subsidy, but doomed to disappear. The only question was when.

    Our way has delivered the private investment that’s the key to Scotland’s success.

    In one year alone, almost 100 projects brought Scotland over one billion pounds worth of planned investment, creating or protecting over 12,000 jobs.

    International companies – like Motorola, NEC, BT – they’re all investing in Scotland.

    And they’ll continue to do so as long as they’re sure Scotland will stay in the United Kingdom and income tax will not rise above those in England.

    But, if either of these things do happen, they won’t. They’ll go elsewhere.

    That’s the choice for Scotland.

    One of the reasons they come here is that a Conservative Government has built an economy that encourages investors by controlling expenditure and keeping inflation down. That’s meant we’ve been able to cut interest rates and keep taxes low.

    Again – yes, it hurts. But it has worked. It’s making life better. Don’t throw it away.

    Enterprise has many elements. But high among them is something that goes right to the heart of running the country – and dips into the pocket of every family in the land. Tax.

    Tax is always a battlefield between the parties because we have different instincts.

    We believe in low tax because it stimulates initiative and enterprise, fosters personal independence, and helps the country create enough wealth to help those in need. So we cut taxes when we can. But, as Ken Clarke said yesterday, when, and only when, it’s sensible to do so.

    Labour’s instincts are different. They increase spending.

    So, as Roy Hattersley put it, “Labour now has a clear choice. It can either be the party of higher taxation and proud of it, or the party of higher taxes which it is ashamed to describe, afraid to admit and incapable of calculating with any accuracy. It cannot be the low taxation party”.

    For once, he’s right. People will have a clear choice, a party whose instinct is for less tax, or a party whose instinct is for more tax.

    That’s why our opponents don’t like talking about their tax plans.

    But there’s no honest reason why Labour shouldn’t come clean about them. Britain’s books are open.

    After all, I’m perfectly happy to talk about our tax plans. They’re quite simple.

    We’ll cut taxes whenever we safely can.

    Labour are the exact opposite. Believe it or not, I’m told there are actually people who say Labour are addicted to the politics of envy and want taxes for that reason. And New Labour too. Shocking isn’t it?

    Be that as it may, one thing is certain. Whatever Labour say for public consumption, people know from past experience they’d be worse off under Labour.

    Tory scare tactics, the spin doctors who rule Labour till say. Is it?

    For example, any family with a sixteen to eighteen year old child who is in education had better watch out. Under Labour, their child benefits could disappear.

    Let’s call it a Teenage Tax – a tax increase of up to £560 a year for families whose children are 16 or over and at college. For some families, that’s the same as an increase of 5p on income tax.

    Under Labour, anyone who earns more than Clare Short would be easy pickings for the taxman. Clare’s salary is about £35,000. Many people would love to earn that much. But thanks to Labour’s ThirtySomething Tax, they’d be worse off.

    There are other taxes lurking.

    And, of course, anyone living here in Scotland would be hit by the Tartan Tax. But if they don’t need it, let them reject it now.

    Think how it would damage Scotland to pay more tax than the rest of the country. Who’d be hit most? Not those on high incomes, those on low ones. Someone earning, say, £76,000 a year would see his tax bill rise by 9%. At the same time, someone on £12,000 would see it rise by 14%.

    And this from a Labour Party that has the nerve to talk about ‘fair tax’.

    Before the last election, Labour published their plans. They said they’d increase spending, so naturally Labour would raise taxes to pay for it.

    The New, unscrupulous, Labour Party are different. Whenever Mr Brown threatens honesty on taxes, Mr Blair contradicts him. And Mr Prescott tries to keep up, but doesn’t quite know what’s going on. Well, I can tell you what’s going on.

    Labour still want to spend more of your money, that’s what’s going on. They can’t kick the habit – it’s a sort of reflex action. So they’d tax more. They always have. They always will. And nothing is going to change them.

    I sometimes wonder what on earth Labour stand for these days.

    Their leadership is trying to shed all its history, philosophy and creed with one contemptuous shrug and replace it with – what? A burning desire for office.

    But a lust for power is not, and never has been, a qualification for being entrusted with it.

    But it’s not just taxpayers who’d be worse off.

    Parents would be deprived of a choice of school for their children.

    Patients would see hospitals turned upside down as Labour tried to turn back the clock.

    Shareholders in privatised companies would find their shares threatened.

    But don’t just look at what Labour would do to our reforms. Don’t just think about how Labour would hit the pockets of the people. The real danger is to the very fabric of Britain itself.

    By their own admission, Labour say that they’d bring in the most extensive package of constitutional reform our nation has seen.

    Mr Chairman, this constitution of ours has run like a thread through this land for centuries. It’s been our backbone and our heritage. And without so much as a qualm, Labour would cut it in two.

    I wonder sometimes if they have any idea what their plans would mean?

    Labour would change our United Kingdom for good. Or rather, not for good. Palpably, flagrantly for the worse.

    If we were to let Labour tear this ancient island of ours apart, it could well be impossible to put it together again.

    Labour has tried the devolution gambit before.

    And now they’re at it again. A Scottish Parliament here, a Welsh Assembly there, regional assemblies heaven knows where. Will they never learn? What a way to mark the Millennium by tearing up the United Kingdom.

    Mr Chairman, this fiddling by Labour is a wild and dangerous game. No one can say where it would end.

    No-one can answer the questions it raises.

    No-one, least of all Labour – can tell how such totally irresponsible and disruptive plans would affect this nation and the real concerns of all its people.

    Would it help the Scots if they paid more tax?

    Do the Welsh think a talking shop would improve their lives?

    And when was the last time you heard people saying, “What Britain needs is more politicians in regional assemblies”?

    And all this would be just the tip of the iceberg.

    Proportional representation. No government ever able to take decisions without backroom deals.

    A Bill of Rights.

    Elected mayors – to do what, for heaven’s sake?

    A whole raft of constitutional doodling. That’s Labour’s irrelevant manifesto.

    Would it mean more jobs? Yes, for bureaucrats and politicians.

    More investment? Well, no actually – probably less.

    More prosperity? No. Just more taxes.

    Would Britain’s voice carry more weight in the council chambers of Europe if we divided her into three? No, much less.

    Mr Chairman, the changes Labour plan, no matter how slickly packaged and presented by their media gurus, would destroy in years what has been built up in centuries.

    Nor are the dangers Labour post restricted only to devolution. Their European policy is demeaning and disastrous.

    Now, I fully understand that the European issue raises the most passionate feelings. Who, in this country, would know that better than me? It’s a central issue of our time. But that shouldn’t distract us from a cool, dispassionate assessment of what is truly in our nation’s long-term interests – and what is not? That is my guiding principle. Getting the balance right for Britain now and in the years to come is the key to our approach to Europe.

    Yes, Britain must be a part of Europe, and a partner of Europe. But a Europe of nations, not a united states of Europe. Not a federal Europe. When people say “Let’s have a referendum on whether we want a federal Europe”, I say “why?”

    Because, Mr Chairman, there’s no need. Once again, I make this pledge. While I am Prime Minister, if others should opt for such a Europe, then Britain will not be part of it. We don’t need a referendum to know that we don’t want a centralised Europe.

    But let no one doubt that Labour would accept such a Europe. Already they’re committed to sign up to the Social Chapter. To give more powers to the European Parliament. To re-negotiate our rebate. To undermine our veto.

    So on both counts – what Labour would do to Britain at home and what Labour would do to Britain abroad – the whole future of this nation is at stake.

    Mr Chairman, come the election, the future we’ll be fighting for is a Conservative future.

    One where everyone feels that they belong.

    Where all our people, no matter what their background, have a chance to realise their dreams.

    To go to a good school, university, get a job, have a home of their own.

    To do what they think is best for themselves, their families, their children.

    To enjoy more of what they’ve earned and saved.

    These are the building blocks of the future.

    They’re what drive the people of our country.

    A people independent of spirit, proud of their past. Who look to a future of enterprise encouraged and work rewarded.

    Who want to protect the freedom and responsibilities of the family against the intrusions of the state.

    Who believe in the rule of law.

    And who love our country.

    Mr Chairman, at the last election, when I said I would fight to protect the United Kingdom, I was accused of wrapping myself in the Union Jack. It was meant as an insult. But I didn’t take it as such.

    You don’t have to dislike other nations to be proud of ours and I am proud of ours. I never feel more comfortable than in defending our nationhood and our unity as a Kingdom.

    The Union Jack in the flag of this United Kingdom – and we Conservatives, by nature a kindly Party, need to be ruthless, remorseless and relentless in defence of that Kingdom, as we always have been when that unity has been under threat.

    It is so once again today. Labour’s slick world of the soundbite and the over-simplified solution to problems of immense complexity has nothing to offer to bind this nation together. The superficiality of their policies – many of them disingenuous and ill-thought out – is breathtaking. What’s more, they bear little or no relation to the reality of government.

    When you walk through the door of Number Ten, reality walks in with you. Reality on a world scale. Over the years a Conservative Government has faced that reality and learnt how to handle it. So let me give you, here in Scotland today, this assurance.

    We Conservatives have the confidence and the tradition and, yes, the experience to guide us as we take our nation forward, out of this troubled century and into the next.

    That’s why we’re going to win the next election.

    Why we deserve to win that election.

    At stake is more than just our achievements. More than just the strongest economy we’ve seen for decades.

    This election will decide the very future of the United Kingdom itself.

    The future of our Parliament, our Union, our Country.

    It’s a fight for our Nation’s Future.

    And it’s a fight we’ll win.

  • Mr Major’s Speech in Rugby – 26 April 1996

    Below is the text of Mr Major’s speech in Rugby made on Friday 26th April 1996.


    PRIME MINISTER:

    Let me touch on a number of things including prospects and some of the things I may say to you over the next few minutes may perhaps surprise you, but I hope pleasantly in a range of ways. Let me firstly just set out precisely where we are economically and how we got there.

    It is not all that long ago that we and the rest of western Europe, the United States, Japan, most of the world in fact, south east Asia perhaps excluded, were in the midst of perhaps the most severe recession that we had seen for 20 years or more. When we went into that recession, I made a promise to myself and to my colleagues that we have kept and that is vital for the future of our economy. The promise I made was this: we will do nothing during the recession that will mean when we come out of the recession we have laid the seeds for future problems. Time and time again that has happened in recessions, as economic cycle succeeds economic cycle since the War we have seen that problem. Recession, pressure, the Government takes action, it gets out of the recession but the seeds are laid for a fresh inflationary spiral and we go, after another move in the economic cycle, back into the same problems. How many times have we seen that happen since the War?

    I have had vivid experience of inflation. You have of course as businessmen, you know the perils of it, I needn’t spell them out to you, but I have to say to you, quite apart from the business perils there is a social implication to inflation as well that I feel extremely strongly about, too strongly perhaps you may feel but I will express it for you:

    If you have ever been in a position where you wonder at the beginning of the week whether your family can pay the bills at the end of the week because the prices are going up, then you begin to see inflation not as some abstract economic theory but as something that threatens the very security of the way you live so I loathe inflation and I make no secret of the fact that I loathe it and we have taken every precaution we can to prevent that inflationary genie escaping from the bottle again and what is the result of what we have done during the period of the recession. And I would like you to bear in mind when I say that that we have lived in the same economic climate as our partners in Germany, France and other parts of western Europe. What are our economic circumstances now?

    We have inflation under 3 per cent for the third successive year and it is still going down, we will hit our target of 2.5 per cent or less at the time of the next general election. Apart from the social implications, you don’t have to worry in your future planning in the way you once did about whether Your investments are going to soar in cost because of inflation or whether the projections upon which you based your investment will suddenly fall apart. That is the first point to be made.

    The second point is that a very unusual economic trick has been pulled. Not only has inflation come down but contrary to what we have often seen, inflation has come down in parallel with unemployment. Unemployment has dropped by three-quarters of a million in the last couple of years or so.

    What has happened elsewhere in western Europe in those countries in the same markets, in the same economic environment? As our unemployment has fallen steadily, theirs has gone up. If you look at Germany, their unemployment rising far higher than ours; in France, their unemployment round about 12 per cent, stuck, no sign of it coming down. We are below 8 per cent and falling. And neither is that a false measure. Not only do we have a lower rate of measured unemployment, we have a higher percentage of our workforce actually in jobs than any major economy across Europe through inflation below 3 per cent and falling and unemployment falling. There are not a lot of people in this room who will remember when that combination was as secure as it is at the present time.

    Has it been done at the expense of nil growth? We have had larger growth in our economy over the last couple of years than our competitors across Europe; that is going to be the case this year, it is going to be the case next year, so low inflation and falling, too high unemployment but lower than anybody else and falling and growth as good or better than any of the other European countries. What has happened to competitiveness? You know very well what has happened to competitiveness. We are now taking markets we haven’t had for generations in this country, exports are running at record levels. Go and listen not to what I say – I suppose there is an element of “well, he would say that, wouldn’t he?” Go and see what German industrialists and other people say, have a look at the booklets on your chairs and see what businessmen here and politicians and businessmen abroad have to say about the British economy. There was a time when we stood here and looked at the economies of our competitors and wondered how they did it. I wish the extent of fashionable opinion in this country would wake up to the fact that that is now happening in reverse; those countries abroad are now looking at Britain and saying: “What has happened to her? How has she suddenly produced an inflation record like this, a job-creation record like this, a growth record like this and increased her competitiveness?” so that as we meet here today, we are probably the most competitive industrial nation in western Europe.

    That is where we are, the question is what do we do with it because that factor is apparent. What we have built is the platform for future prosperity but the prosperity itself needs to be built and it needs to trickle down to the people up and down this country who by their efforts have played a part in creating the opportunities that now lie in front of us.

    We had to put up taxes, something I loathed doing but it was taxes going up or high borrowing and interest rates going up instead. But now we have begun to reduce taxes, the first tax reductions are in this month’s pay packet and they are well worth having. I hope we will be in a position to do more, as soon as we prudently can, we most certainly will.

    Let me touch on two or three other things:

    Peter mentioned the social chapter. That is one of the principal reasons why we are more competitive than other countries. Not the social chapter as it is but social expenditure as it is across Europe. Let me give you the figures:

    For every £100 in wages that a British employer pays, it costs them an extra £18 in employers’ national insurance contributions and on-costs of that sort. In France, Germany, Spain and Italy, it is between £30 and £45, a huge competitive difference.

    Why does the social chapter matter? Our political opponents say it is a set of principles – a set of principles like Cathy of Clade [phon] was conductor of music! It is not a set of principles. These are policies that you can’t opt out of once you sign the social chapter and the problem is not what is in the social chapter today, it is what would go into the social chapter once every European country was signed up to it and what would go into it is the sort of social provision that exists in the nation states of Europe but not here but that would come into the social chapter by qualified majority vote to diminish our competitiveness against our partners were we to be so foolish as to sign the social chapter. Let me give you a couple of illustrations:

    There are some very large companies in countries like Germany and Austria; if they had to make staff changes perhaps for an extremely good economic reason, they can’t do it without going through a works council if they have more than 5 employees. If you want to work overtime in the country of one of our European competitors, you actually have to get permission from the government in order to work overtime. Can you imagine the questions? “Are the staff fit? Is it Sunday? How much are you paying? What is the reason for this?” By the time you have sorted all that out, the export order for which you wanted your workers to work overtime has gone to Britain I hope, because we are beginning increasingly to be able to [indistinct].

    Let me just say a word about taxes:

    All the figures upon which people can base their broad tax projections are in the public sector. You can’t be detailed, I accept, but the broad figures are there, there is nothing hidden, our accounts are as open as the accounts of any nation in the world so anyone can have a pretty good idea what their tax objectives are, they don’t have to hide behind obfuscation and downright deceit.

    My tax objectives are perfectly transparent and clear. As soon as I am able, I wish to reduce taxes further and I wish to go down to a 20 pence basic rate of tax, I am not changing the upper rate of tax and then I want to tackle capital taxes because I think they damage the market, they damage job creation and what we need is job creation and a competitive environment to keep our people in work and to put more of our people in work. These are our objectives.

    What are our opponents’ objectives? It is very difficult to say. When asked privately, the leader of the Labour Party said: “We aren’t going to touch people up to £30,000!” which I would have thought to any rational observer would have meant they are going to touch people earning over £30,000 but after that remarkable slip of the tongue, one of the leader of the Labour Party’s minders rushed along to the press to say: “He didn’t say that, he didn’t mean it, it never happened!” Claire Short – bless her honest, cotton-picking socks! – [laughter] seems to think it should happen; she is very well paid. Mr. Prescott is middle class, he is very well paid! Nobody doubts where the instincts of the Labour Party lie or what will happen. I don’t know what the editors of some of the great Labour-supporting newspapers who earn large sums of money think, I hope they have worked out how much it is going to cost them if the upper rate of tax goes up from 40 pence to 50 pence which is the minimum demand of the Labour Party in the House of Commons or perhaps 60 pence but certainly a very expensive proposition.

    The people I am concerned about are the people up and down the country who at the moment are being told one thing by the leadership when it is transparent that that is not remotely what their position would be likely to be were they in government. That tax slip of Mr. Blair’s was brushed to one side. Gordon Brown was a bit more explicit on another aspect, on child benefit. Because he is being pressed on tax, he decided he had better display a touch of virility so he decided to announce that he was going to take away child benefit for people with families of youngsters between the ages of 16 and 18 who decide to stay on at school. Let me say something about this:

    I left school at 16. I didn’t leave school at 16 because I didn’t want to stay, I didn’t leave school at 16 because my parents wanted me to leave school at 16. I left school at 16 because we could not afford for me to stay at school and I chose to go out and work; my parents didn’t like it but I chose to go out to work.

    If you take child benefit away from any youngster in any family, perhaps a low-income family, perhaps not but very many families on low incomes are desperately keen that their children should have a better education, a better opportunity, a better chance than they ever had and these days 1 in 3 of our youngsters go through A-levels and on to university and I am proud of that and I defend the expenditure to make sure that that is possible but if in future Labour were to carry out this plan and have the opportunity, you have a youngster of 16, 17 or 18 going on to A-levels, as they should, they will lose a £560 child benefit every year for each child. Most families have two children, often only a couple of years between them, you will get a rolling effect that dwarfs any tax changes we have seen for generations and how well-targeted it is, targeted directly upon many of the people who have the lowest incomes in the country – £560 a year gone.

    Apart from the stupidity of that in inhibiting youngsters whose parents have modest incomes going on to further education, it is thoroughly dishonest for this reason: child benefit was a tax allowance. We changed it from a tax allowance to a cash benefit payment so that it actually went directly to the mothers to be used predominantly for the children because of concerns that that wasn’t happening. What would be happenings is you would be taking away a tax allowance and what is the equivalent in tax? For someone on average earnings, that is the equivalent of an increase of 5 pence in the pound on the standard rate of income tax if that was actually withdrawn from families. That has crept out without the Labour Party realising exactly what it would have meant for people. If that has crept out under pressure, I would like to know what else is lying hidden that needs to come out and that we need to examine before we get towards the next general election.

    Peter asked whether we are going to win. I remember Peter asked me that before the last general election. [Laughter]. I look forward to Peter asking me that before the next general election but one and I will give him the same answer: yes, we are going to win and I will tell you why we are going to win:

    We are going to win because when you strip away the absurd hyper-exaggeration of everyday news events, what is happening in this country at the moment is that we are producing the most stable economic platform that we have seen for generations. What a tragedy it would be if, having gone through all that has happened in the last few years to create that environment and that opportunity, it were to be casually tossed away with the sort of policies that a change of government would bring about.

    I don’t think that will happen but I don’t base my confidence only upon the economy though I am confident about the economy. I base it on one or two other things that hit here [touching part of body?] rather than in the wallet and the first of those is the proposal for constitutional change that our opponents have. If you wanted to draw up a recipe that would divide and break up the United Kingdom, you would draw up the proposal fox constitutional change and particularly a tax-gathering parliament in Scotland that the Labour Party have committed themselves to. Once you get that parliament in Scotland, within a measurably short period of time if you are going to have the parliament, you would have to have a Labour government and Labour governments; like all governments, become unpopular.

    Mid-term elections in Scotland and who is likely to win? There is a possibility that the Scottish Nationalists:- separatist party openly declared for separatism – would become the majority party in the Scottish parliament and what mandate are they going to claim? Is it really credible to have a Scottish tax-gathering parliament and still have public expenditure from the rest of the United Kingdom spent in Scotland at a much greater level per head of population than it is in England? Of course it isn’t practical. Is it practical to have Scottish MPs at Westminster voting on matters that affect England while the same English MPs in England cannot vote on the same matters affecting Scotland? What sort of recipe for chaos is being unleashed with its ill-thought-out porridge that they are producing for Scotland?

    What have they got against the Scots that they should pay more taxes? What have the Scots got against themselves that they could contemplate any party that would want them to pay more tax?

    Then there is the question of Europe. No issue has been more explosive, no issue has been more misrepresented, no issue has been more conducted in stereotypes with the debate often determining itself only on the fringes of argument – those who are fantastically opposed to Europe and those who are fantastically in favour of Europe. There is a middle and it is a very large middle. I don’t know how many of the businessmen here have half their trade going to the European Union and back but I bet a majority of you do because half of all our trade goes to Europe and back so we have a real interest in playing a constructive role and arguing our case. Removing our influence and standing on the outskirts would mean that the problems that we are having with beef, where I am in great dispute with our European partners, could be magnified over a whole range of issues if we were outside the European Union or not playing a part in trying to determine the rules of the European Union but that doesn’t mean we are going to go into a federal Europe.

    I can tell you quite frankly I have no intention whatsoever of going down the route to a federal Europe. I just don’t believe it would be right for Europe to go in that direction and I know that it would not be right for this country to go in that direction and we have no intention whatsoever of doing so. We will argue the case, we will debate the case, we will win the case – in which case all is well – or we will not win the case and we will just say “No! You can go in that direction if you like but we are not!”.

    At Maastricht, we had huge disputes. Nobody truly believed that I would come back from the Maastricht debates having said “Non to the social chapter and “No” to a single currency with the opt-out. The City didn’t really believe that, none of the newspapers believed it. If you promise not to tell anybody, even some of my colleagues in the House of Commons didn’t believe it! [Laughter]. I know you will find that hard to believe [laughter] but I promise – and tell not a soul – that they didn’t. But at the end of the negotiations there was a choice: no treaty at all because it is agreed by unanimity or recognising that Britain has a distinct view and we are not going to be pushed in that direction.

    At the inter-governmental conference in front of us, the same principles will apply. I have set out with great clarity what our negotiating position is in the negotiations and if I have to say’ “No” I will say “No”. I did before and I will again, not because of parliamentary pressures at home, not because of public opinion at home – not just because of those things but because what is in the White Paper on Europe is what I believe about Europe and I have to say I am pretty fed up with the absurd commentary which says you either have to be on one wing of the European argument or the other wing to have any views at all. Well my views are very clear. On one hand, I am being told always that I am shifting my position, on the other I am being told I am being told I am too stubborn and why don’t I listen to people. I am happy to accept one of those if someone can make a credible case for it but I am just a touch concerned that having both of them often on the same day on the same page of the same newspaper written by its seems to me the same person who clearly is not perhaps wholly convinced of his case.

    We are not going down the federal Europe route but our political opponents are, the Liberals because they believe in it, the Labour Party because they believe it is fashionable. I just believe it is wrong and when we come to the general election that will be a big division so there will be divisions on tax, divisions on the constitution, divisions on Europe and great divisions on education and other matters.

    The fact of the matter is, Peter, when people come to vote in a general election, forget the nonsense of by-elections, the protests – “Oh my God, I’m sick of those people, let’s not bother to come out and vote today!”. You have got real issues, issues that affect the family, the money, the future, the country and upon those issues I am perfectly prepared to take my Conservative case to the country and just as I recall at the last general election as we entered the last week 7 or 8 per cent behind on the Sunday before the election, with every newspaper writing us off and wondering what Mr. Kinnock was going to do in Downing Street, I didn’t believe the polls then, I don’t believe them now, I thought we would win then and I was right, I think we will now and I will be right again. [Applause].

  • PMQT – 25 April 1996

    Below is the text of Prime Minister’s Question Time from 25th April 1996.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Corbett: To ask the Prime Minister if he will list his official engagements for Thursday 25 April.

    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. Corbett: Did the Prime Minister hear his Chancellor on the “Today” programme this morning deriding the claim that economic and monetary union would necessarily mean the end of the nation state? Is that the Prime Minister’s view, or will he be giving another shambolic free vote to his Cabinet?

    The Prime Minister: I am surprised that the hon. Gentleman does not think that on matters of conscience it is right to have a free vote in the House. I understand that last night’s debate was of a very high quality, as is frequently the case when we have a free vote in the House, and I believe that it was the right way to deal with the problem. With regard to the nation state, my right hon. and learned Friend is a strong supporter of it.

    Dame Jill Knight: May I assure my right hon. Friend that the Government’s announcement earlier this week on the abolition of anti-personnel mines has been widely welcomed both within and outside the House? Bearing it in mind that some 2,000 innocent people are killed or maimed every month as a result of those diabolical instruments, will my right hon. Friend please use his considerable influence to obtain their abolition worldwide?

    The Prime Minister: I am grateful to my hon. Friend. We have stated for a long time our aim to eliminate anti-personnel mines and we hope that through international agreement that aim can be achieved. I can certainly give my hon. Friend the assurance that we will work for a total worldwide ban on anti-personnel mines.

    Mr. Blair: Does not the fact that four of the Prime Minister’s Cabinet Ministers–[Interruption.] I am well aware why Conservative Members do not want to talk about this. Does not the fact that four Cabinet Ministers voted against the Prime Minister himself on a Bill from his own Lord Chancellor show the humiliating state to which his authority has been reduced?

    The Prime Minister: I think that the right hon. Gentleman will recall what I said when I announced the Bill last November in the debate on the Queen’s Speech. I made it clear at that time that this was a matter of personal conviction for all hon. Members and that I had no intention of riding roughshod over the convictions of any hon. Member, in the Government or beyond, on the matter. I said then that we would propose free votes on matters of conscience. If the right hon. Gentleman thinks that it is right to have a free vote on a matter of conscience, does he equally think that it is right that those members of any Administration who feel strongly on these matters should be excluded? Presumably he does. If he does, he has a strange view of what forms a matter of conscience.

    Mr. Blair: I think that most people have an increasingly clear view of the Government. Is the Prime Minister not aware–[Interruption.]

    Madam Speaker: Order. The House must come to order and listen to what is being said.

    Mr. Blair: I remind the Prime Minister that that was a Government Bill, proposed by his Lord Chancellor. Last night’s vote was not only about the amendment–it was fundamentally about the ethos of the Bill and about the direction of the Conservative party. Does not that vote show the advanced state of decay of his Government–that he now has to rely on Opposition support to carry that messed-up measure through the House of Commons?

    The Prime Minister: The right hon. Gentleman is deliberately misleading, and he knows that he is deliberately misleading–[Interruption.]

    Madam Speaker: Order. I am sure that the Prime Minister did not intend to use unparliamentary language. I refer to the words “deliberately misleading”. Will he please rephrase that?

    The Prime Minister: Of course–as Madam Speaker wishes it. I will simply say that the right hon. Gentleman is being disingenuous in the way in which he addresses this issue. He has known from the Bill’s outset that I have made it clear that, on the issue of fault and on other issues of conscience, there was to be a genuinely free vote of the House. A free vote was not forced on the Government. I announced it from the Dispatch Box last November when I spoke about the Bill in the Queen’s Speech. I have honoured that promise, for every member of my party.

    I made it clear that we were to have a free vote, and I made it clear to every member of the Government that a free vote would apply to them as well. In the past we have had free votes on other matters of conscience, such as capital punishment and Sunday trading. I believe that on an issue of such importance, and on one which is a matter of conscience, it is right for hon. Members to have an opportunity to vote exactly as their consciences dictate. I believe that that is in the best interests of Parliament. Moreover, if I had imposed a Whip on members of the Government after announcing that there would be a free vote, the right hon. Gentleman would now be criticising me from the Dispatch Box for not allowing the genuine free vote that I promised the House some months ago. I gave my word to the House, and I have kept it.

    Mr. Blair: I do not mind the Prime Minister talking tough with me, but it is time that he also talked tough with his Cabinet–that is all that we ask. Is this not all of a piece with the defiance that we heard–[Interruption.] We heard the Chancellor this morning–[Hon. Members: “Where were you?”] Conservative Members are all shouting–[Interruption.]

    Madam Speaker: Order. Sir Ivan and other hon. Members who are shouting, come to order.

    Mr. Blair: They are all asking where I was. That is a novel constitutional proposition–that it is now my duty to turn up and vote with the Government to save them from their own Cabinet Ministers. After hearing the Chancellor this morning, and with two Cabinet Ministers sitting in silent support of the European Communities (European Court) Bill, is not the Prime Minister’s real problem that every member of his Cabinet has a future agenda but him? Until he gets an agenda and asserts it, this country will continue to suffer from the most feeble Government in living memory.

    The Prime Minister: The right hon. Gentleman overlooks the fact that I set out the agenda last November, and I have kept to that agenda. I realise that in the new autocratic Labour party–where party henchmen oversee everything that Front Benchers and Back Benchers say and, should they stray, a signed statement is put out in their names later on the same day–the concept of a free vote is alien to the right hon. Gentleman.

    The next time the right hon. Gentleman talks to us about his conscience and matters related to church and conscience, perhaps he will say that it does not apply when he sees political advantage. He would be prepared to go through people for his own party political interests and to go against their consciences–even on a matter that affects the conscience of every hon. Member. If that is the way he behaves in opposition, people will be aware of that and they will be aware of what sort of Government he would be likely to have if he ever had the opportunity. What he has revealed to the House this afternoon is that he has no understanding of parliamentary tradition, no understanding of individual conscience and no understanding of the way in which Parliament must deal with matters of this sort which affect the consciences of every hon. Member and every family in the country.

    Mr. Spring: Does my right hon. Friend share the universal disgust that, despite the clear way forward that has been mapped out for enduring peace and stability in Northern Ireland, the IRA’s bombing campaign continues unabated? Does he share my outrage that a proposal to condemn the ending of the IRA ceasefire was rejected by the Labour party in Islington?

    The Prime Minister: I can only hope that the Leader of the Opposition will bring his own party in Islington into line on a matter of importance to everyone in the United Kingdom. It puts into proper context the nonsense that the right hon. Gentleman has just been talking to the House.

    Sinn Fein and the IRA, with their tired old combination of bullets and bombs, remain locked in the past. While they do so, they must remain outside the democratic consensus established by the two Governments, and outside the democratic consensus of all the other parties in Northern Ireland. I repeat to Sinn Fein that it has to make a choice, for it cannot duck it. If it wishes to become a democratic party, it must make it clear that it will have no truck now or in the future with violence of the sort that we have seen. If it does not do that, there is no way in which it can join the democratic discussions about the future of Northern Ireland.

     

    Q2. Mrs. Jane Kennedy: To ask the Prime Minister if he will list his official engagements for Thursday 25 April.

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

    Mrs. Kennedy: Given the President of the Board of Trade’s gloomy prediction that manufacturing firms are set to shed jobs in the coming months, and remembering that almost 3 million manufacturing jobs have disappeared from Britain since his party came to power, does the Prime Minister realise that his claims to have made Britain the enterprise centre of Europe have no credibility whatever?

    The Prime Minister: I am afraid that the hon. Lady has slightly misinterpreted, first, what my right hon. Friend said and, secondly, the facts. Perhaps she would care to acknowledge that manufacturing employment is 50,000 higher now than at the beginning of 1994; that this is the first time that a downward trend has been reversed for many years; that manufacturing output has risen by more than 8 per cent.; that exports have risen by a quarter to record levels; that total manufacturing investment in plant and machinery is up by 16 per cent.; that across the economy as a whole 5,000 new jobs have been created every week since the recovery began–almost three quarters of a million in all. While the policies of the Labour party would destroy jobs, the Government are creating jobs faster than any other comparable economy in western Europe. We have a lower level of unemployment than any other such economy in western Europe. The policy of the minimum wage and similar policies would certainly increase unemployment. As the deputy leader of the Labour party said some time ago, any silly fool knows that–even the deputy leader of the Labour party.

    Mr. Renton: Contrary to the hon. Member for Liverpool, Broadgreen (Mrs. Kennedy), I congratulate my right hon. Friend on the excellent speech that he made yesterday on Britain as the enterprise centre of Europe and on his vivid comment that those who think that Britain can be a trading haven on the edge of Europe without being in the European Union are in cloud cuckoo land. Does he recall that the original cloud cuckoo land was an imaginary city built in the air by the birds? Would that not also be a suitable destination for those who think that they can vote Labour without seeing their personal and business taxes go sky high?

    The Prime Minister: That does not apply only to personal and business taxes. It now seems that anyone who is ill advised enough to encourage their youngsters to stay on and take A-levels will lose £560 in child benefit every year. Those who happen to have two children aged between 16 and 18 doing A-levels will lose more than £1,000 a year. There is no purpose in the shadow Chancellor’s shaking his head: that is his policy–that is his response to people on low incomes who want their children to take A-levels, proceed to university and do better.

    We are not talking just about the withdrawal of child benefit. Before child benefit it was a tax allowance. This is the direct equivalent of a tax increase of £560 for every family with children taking A-levels. There is no point in the shadow Chancellor’s shaking his head: it is his policy and it is nonsense–and we intend to tell every family in the land about it.

     

    Q3. Mr. Chris Davies: To ask the Prime Minister if he will list his official engagements for Thursday 25 April.

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

    Mr. Davies: Does the Prime Minister accept that the Government’s statement earlier this week about anti-personnel land mines was a case of three steps forward in PR terms and two steps backward in terms of reality? It will greatly disappoint people all over the world who can take no steps at all because their limbs have been destroyed by those inhumane weapons. Will the Prime Minister not support the recommendations in today’s left-wing The Daily Telegraph, which suggests that the Government and Britain should take a moral lead in calling for a unilateral ban on the production and use of such weapons?

    The Prime Minister: I just wonder where the hon. Gentleman may have been about 13 minutes ago, when I made it perfectly clear that we would work for a total worldwide ban on anti-personnel mines. I would have hoped that he could support that.

  • Mr Major’s Speech to the Institute of Directors – 24 April 1996

    Below is the text of Mr Major’s speech to the Institute of Directors in London on Wednesday 24th April 1996.


    PRIME MINISTER:

    Mr President, Ladies and Gentlemen. A few moments ago, David, you encouraged us with details of your latest business confidence survey. I suppose I might call it a sort of alternative news summary on how I hope it forms the basis of the real news summary in the days that lie ahead. Clearly what is happening in the economy is of crucial importance to all the plans we have.

    What I think that survey confirmed is what many of us have felt for some time: the economic prospects are bright, they will get brighter, and increasingly we have a lot to be confident about in this country. And I think it is time to be positive – I hope that message will be carried through to people up and down the country. This pervading atmosphere of gloom that so many people have perpetrated does no good to them, no good to the country, no good to our prospects and there is no conceivable justification for it. It is about time for the gloom-mongers to depart and for us to look more clearly at the prospects that lie ahead.

    The centre of your debate today is Europe. And firstly this morning I want to set out my view of the opportunities it offers and the fierce debate that almost invariably surrounds it. I would like to set out how I see the future of Europe over the coming years and what I see as Britain’s place in it.

    For the last 30 years, Europe has been the great explosive issue of British politics. Our membership of the European Community, as it was then called, was confirmed in a referendum in 1975. Today there are some who question that membership in each political party and in the media.

    I understand the concerns and frustrations that lead to that questioning, in many ways I don’t find it surprising. For years past some have portrayed Europe only in the most negative terms. Every frustration is played up, often inaccurately; every benefit denied at worst, or ignored at best. And in these circumstances it is little wonder that the European Union has become so unpopular in the United Kingdom.

    But there is another side to the picture. I also see clearly the hard-headed benefits that Britain has gained from its membership. And as Prime Minister, I believe it does the country no service whatsoever to suggest that the only choice we face is either to go along with every demand our partners make, or to head for the exit. That is naive, it is damaging and in my judgment it is just plain wrong.

    We are in Europe and we all know that we are staying in Europe. And anyone who seriously thinks of leaving should perhaps explain to the nation precisely what that would mean. What, I wonder, would be the impact on inward investment, which accounts for three-quarters of a million jobs in manufacturing alone? Would the Nissans, the Toyotas, the Samsungs still be so keen to come here if we were not playing a leading role in the European Union? What would be the effect on the city and the great exporting companies were we to leave the Union? Would we be taken more seriously, or less seriously, in the wider world? And why have more and more countries in Europe, including some of the most prosperous, decided to join the European Union in recent years?

    Some suggest we could just negotiate a trading relationship with Europe. But I must be frank with you. The idea that if we were outside the European Union we could somehow become a trading haven on the edge of Europe, with all the benefits of that vital market of 370 million, while others fix the rules without any regard whatsoever to our vital national interest, seems to me to be cloud cuckoo land. This country is an international trading nation, it is not a little England, and it must never become so.

    So the first point is, we are staying in Europe, that is not in dispute. But the second is where the battle must be joined, and that is what sort of Europe are we staying in, and how do we address and remove the legitimate concerns that so many people have in this country?

    Let me be frank. Some politicians in Europe do have an agenda of ever greater integration, an intent to subsume states into common institutions in order to prevent the re-emergence of old national ambitions and rivalries. And they believe in that integration just as passionately as many of us oppose it.

    I understand and I respect their views, they reflect the long experience of wars and conflicts right across the continent – a different experience from ours in this country. But I don’t believe they are the right way to develop European cooperation. The nation state that we care about so much lends security, comfort and familiarity and people need that more than ever at a time of change and insecurity.

    You cannot legislate for a common nationality or a common sense of identity. The nations of Europe have developed over centuries, their cultural traditions can’t be eradicated by a simple stroke of the pen, and nor should they be. That would not carry the consent of the peoples of Europe, whether in Britain or elsewhere. And if politicians ignore those realities we would increase rather than reduce conflicts and tensions across Europe, we would set at risk all that Europe has achieved.

    So we in Britain are not going down that centralising route. At Maastricht I said no to policies that I thought would be damaging to the interests of this country. And if I had not won on those critical issues, there would have been no treaty for there would have been no agreement. And equally on the intergovernmental conference we have set out our position. Nothing can be imposed upon us in the intergovernmental conference unless we agree to it. And if it isn’t in our interest, I will not agree to it, I will just say ‘No’.

    But I don’t seek confrontation and nor do I expect it. In negotiation the European Union can be tough, but in the end it must respect and accept the vital interests of its member nation states.

    There are things that we don’t like about Europe, but we must fight them on the arguments, not on the basis of stereotypes and slogans, they do no good to our interests or to our prospects of success. And my personal view is quite clear. Although there are many things in Europe we would like to change, there is a lot that helps us. The balance is in our advantage. Not every decision, of course is exactly what we would have liked, but neither is every decision comfortable for every other country. We aim to build in the years ahead, in the conference and beyond the conference, a Europe that is more in our image and more to our taste. If we win the argument to build a Europe of nation states, all of Europe will benefit. Equally, if others choose to go in a direction that we reject, they need to recognise that we will stand our ground and not follow them in that direction. The Europe that evolves will be flexible, and it will need to be flexible to recognise and accommodate our national interests and beliefs, as well as theirs.

    The European debate must take into account not only national interests and sensitivities, but economic realities. And upon those economic realities I want to concentrate for a few moments. Today we live, as no audience knows better than this one, in the most competitive business environment we have known. Competing against countries around the world is an everyday reality. The man in the street in Manchester, Milan or Munich is not only competing with someone else in Europe, he is up against someone on the other side of the globe as well working in Seoul, Shanghai or Singapore. And we compete successfully or we fail, and if we fail, we go out of business. And that is the main challenge facing all businessmen. We need hard-edged policies to address these challenges. Business must win the battles for contracts, not government. But the decisions that government make, and the policies they follow, can help or they can hinder. And if governments get things badly wrong, they will condemn their businesses inevitably to defeat.

    Many people talk about competitiveness, but over 17 years of government our commitment to competitiveness is a matter of record and an article of faith. To be competitive we had to overcome problems that have beset Britain for generations. In the 1980s we tackled the excessive union power that was throttling British enterprise, and Norman Tebbit will speak to you later, and your own President, had a key part in that particular battle, so successfully won.

    In the 1990s we have inflation at the moment under better lock and key than it has been for generations, and it is never a battle that is permanently won, and if we were to take the arm-lock off inflation, we would begin to face the problems we have seen in previous years. For decades inflation was the scourge of the British economy, fuelling industrial strife, discouraging investment and making long term planning quite impossible. Now we are enjoying the longest run of low inflation for nearly 50 years.

    And not only is that vital for business. If anyone has ever lived in circumstances in which if the bills go up at the end of the week it is difficult to know how they will be paid – they will understand the true wickedness of letting inflation get out of hand and I have no intention of letting that happen again.

    In the 1980s we began to return to the private sector businesses that used to be badly run in the public sector at the taxpayers’ expense. They are now profitable companies bidding in markets the world over.

    In the 1990s we have tackled the more difficult privatisations, such as coal, successfully privatised in 1994 and now the most efficient coal industry anywhere in Europe. On rail, impossible according to some, quite extraordinary people decided they weren’t in favour of the private sector running British Rail. I sometimes think they forgot who built up the rail network in the first place. And yet that privatisation is now well under way and delivering benefits – new services, new investment, new improvements to stations and in my judgment a much better service for the train user is certainly going to come about as a result of these changes.

    Always, right the way through the ‘80s and right into the ’90s, there was always someone saying that each privatisation was one privatisation too far – mustn’t do that, it is change, it is uncomfortable, it is trusting that wicked private sector with something that has been run so comfortably, but so inefficiently, in the public sector. So those pessimists were wholly wrong, they have had to eat their words as one privatisation after another has proved to be a success.

    And above all, to be competitive as a nation we have had to get spending under control. It is now coming down again and tax rates have come down with it. British business now has the second lowest burden of business taxation of any G7 country – 6 percent of GDP in Britain, compared with 9 percent in Germany, 14 percent in France.

    We now have an economy that is more successful and has better prospects than for a generation. No longer do we look at our European competitors and wonder what their secret is, now they are beginning to envy our success here in the United Kingdom.

    Across Europe they know that Britain is the number one destination for inward investment in the European Union, second only to the United States worldwide. They know it is Britain that has Europe’s leading financial centre and the lion’s share of Europe’s most profitable companies. They know it is Britain that has got the lowest unemployment of any major European country and more of our people actually in work than any other major European country. They know that Britain has grown faster than the G7 average each year since 1993 and is expected to do so again this year and again next year.

    We have in place all of the ingredients for a rapid growth in prosperity. Life is better, and it should get better yet, but not if we turn our back on the policies that have carved out these opportunities in the first place. Not if we are seduced by candyfloss promises instead of continuing to make the hard choices. Only if we keep on sharpening our national competitive edge will Britain be able to go on winning in the fierce global market place.

    I want Britain to be in the front rank of industrial nations. So I have a clear objective for this country’s future – to make Britain the enterprise centre of Europe. That means policies that build on our strengths and it means we must learn the lessons from the world’s fastest growing economies. It means sound responsible economic management – easy to say, not so easy to deliver. But inflation has wrecked too many, recoveries in the past for us to risk throwing that prize away now. It means finding room to reduce taxes by keeping the lid on public expenditure. That is the only way to keep taxes down and then to get them lower still. And that is why, as the economy grows, we are committed to getting spending back down below 40 percent of national income and keeping it there, and that compares to something over 50 percent amongst our partners in Europe. And as we do so, we will press on towards our target of a 20 pence standard rate of income tax and the abolition of capital taxes.

    We need an enterprise culture that runs right through society, one that encourages the belief that individuals can themselves, by their own efforts and their own actions, make a difference. And that is why I am determined to stand up for the risk-takers, whether it is the people who are ready to take on and run a piece of the railway, or the companies that will shake up our gas, and electricity, and water markets as competition comes, or the thousands upon thousands of people up and down the country who risk everything they have to make their own small business a success.

    And I want more people to have a stake in enterprise. In the last budget, Ken Clarke made it even more attractive for companies to get their workers involved as shareholders. Now it is up to industry to play its part. Many of you of course already have employee share schemes and I hope more of you will. My challenge to you is simple, let us see if we can have a majority of workers in Britain’s large companies holding shares in those companies by the end of this decade. It is eminently achievable and it will do a great service to the spread of capitalism.

    Britain is a global trading nation and will remain so, that is both our history and our future but what we trade in will change. Much of tomorrow’s trade will be in information, in technology, in software, in communications and here Britain, with its skills and culture, its trading links right across the globe and the huge incalculable advantage of the English language, is well equipped to take on the world and to win those battles but we can only do it if our young people have the skills they need and that is why progress in education is so important and why we have continued so rigorously with our education reforms.

    We have seen a massive explosion in the number of people going into higher education in recent years. In 1979, 1 in 8 of our young people went into higher education; today, no longer 1 in 8, today it is 1 in 3. We are making progress in schools through the national curriculum, through tests and inspection and league tables and vocational education. We are shining a searchlight on the things that went wrong in education. Sometimes, when they become apparent it is embarrassing but it is better to be embarrassed and to have the information so that we can put it right than to let education remain a secret garden when we are not turning out the right sort of skills in our youngsters that industry will need and that they will need for their own life satisfaction.

    But we mustn’t only look at the schools. We need to ensure that every adult in Britain understands the opportunities to learn new skills, to take advantage of new technology at work or at leisure. We need to open the nation’s mind to the opportunities that lie ahead so we are getting together with industry on a project for the millennium to let as many people as possible try out computers in schools, in libraries, in shops in the high street, wherever it can be arranged to give them the opportunity to see for themselves and to develop the skills that will equip them and all of us for the changes that lie ahead as we move towards the new century.

    Our route to success in the challenging, competitive markets of tomorrow is built upon sound finance, low taxes, the liberation of enterprise, the skills and the capabilities to compete and a global trading ambition to reach out for the markets of tomorrow. Indeed, I believe that is the only way to deliver the wealth, the prosperity, the jobs, the opportunities that this country needs and that the people of this country deserve. It is the only way to meet the challenge of the future.

    We would like all of Europe to adopt competitive policies and succeed. There is nothing altruistic about that. We have nothing to gain here in this country if the market on our doorstep goes into decline and if Europe does not put competitiveness at the top of its agenda it will decline and that is why I regret so much that Europe has not yet completed the single market. It should and soon, starting perhaps with some concrete progress on the single market for energy. Energy bills account for a huge proportion of industry’s costs and Europe’s businesses can ill afford to pay over the odds for it.

    The same goes for telecommunications. Thanks to privatisation and liberalisation, prices in Britain have tumbled by almost 24 per cent in real terms over the last 5 years. That hasn’t happened in other countries, in the Netherlands for example, where prices have increased by more than 6.5 per cent over the same period, a 30 per cent difference with the drop in the United Kingdom. Here at least, though, there is the promise of progress.to complete the single market with full liberalisation due by 1998 and what a shame as well that negotiations to create a single market in pension funds have come close to stalling since some countries are simply not willing to give up their national captive markets.

    Europe as a whole is never going to compete and win in the world if it cannot even bear competition in its home market so Europe must proceed to complete the single market as soon as possible.

    Nor can it be right or justifiable that Europe still tolerates huge state aids for some countries’ air lines – that just rewards inefficiency and punishes success – and here too the result is higher prices when what Europe needs is the lower prices that competition and deregulation will surely bring.

    I understand, I know why people are reluctant to change, they want to protect jobs. We all want that but jobs are most secure when companies are most successful. The social polices of some of our partners sound very attractive and they advocate them with great self-belief but I believe they are misguided and they destroy jobs. Across Europe, companies are feeling the pain. Much of Germany’s new-job creation is now in Poland or the Czech Republic and in Britain too which, according to the President of the BDI has “the most effective job-producing machine’ in Europe” and I agree with the President upon that point.

    In France last month, Brittany Ferries tried to get the government to cut the social costs it must bear as a French employer with a French workforce. Employing 2,500 workers, it claims that it pays up to 18 million pounds a year more than would be paid by a similar British employer. A spokesman was quoted as saying that he wanted “to level the playing field, to find a way of giving us the same overheads as Britain.” Again he is right. He asks for that with good reason.

    The difference between our employment costs and Europe’s is stark. For every £100 he pays in wages, a British employer has to add £18 in non-wage costs. Quite enough you might think but in Germany not £18 but £32; in Spain £34; in France £41; and in Italy £44 and that is the measure of the cost of excessive regulation and that explains also the attitude that I took and take upon the European Social Chapter. Those costs explain why it would be against our interests to be part of the Social Chapter.

    Let us be plain about it! It isn’t just what is in the Chapter now, it is also a question of what would go into the Chapter if Britain signed it. The Social Chapter isn’t a finite list of specific measures, it is a mechanism, a mechanism to implement unspecified social policies in many cases by qualified majority voting so we would have no veto to protect British businesses. If we signed up to it, we would emphatically not be able to pick and choose which bits of it we wanted and at the moment the British opt-out focuses minds on the Continent on the competitive cost of more social regulation, it acts as a brake on further measures but if that brake went, if we signed it, if we were part of it, we would then see an avalanche of new measures building on other countries’ existing traditions and many of those measures would be precisely the sort of policies that we have spent the last 17 years getting rid of and I don’t want them back on the backs of British industry and British employers. [Applause].

    Look at the sort of over-zealous – I think that describes it accurately – over-zealous employment regulations some of our partners have at national level. For example, in Germany, if your firm has more than 5 permanent staff you can’t cut staff without consulting the works council, pretty inconvenient I would have thought for huge companies striving in a very difficult market and if you want to work overtime in Luxembourg, you need government consent to work overtime. I could give you further examples but I will spare both you and our partners from them.

    Just ask yourself this question: If all of Europe were in the Social Chapter, we signed up to it and became part of it, wouldn’t it be more tempting and less painful for our partners to try and foist the same rules on everyone rather than putting their own house in order? The answer to that is self-evident, of course it would and that is why we shouldn’t sign it. The Social Chapter could make jobs one of our fastest-growing export businesses and that is not in our interests.

    Mr. President, at Maastricht I negotiated what became called “an opt-out from the Social Chapter”. That will remain but it must remain effective and in some ways there is a risk to it at the moment. I am not prepared to see that opt-out, undermined by the creative use of other articles of the treaty such as health and safety at work. We agreed those provisions in 1985 to deal with matters of genuine health and safety. Recent attempts to use them as the basis for imposing the working-time directive on Britain go far beyond what we agreed to and not only that, they breach the understanding I reached at Maastricht when I negotiated our opt-out from the Social Chapter.

    I have told our European partners in clear and distinct terms that we must change the health and safety provisions so that they reflect the more limited scope that was originally intended and that we originally agreed to and I take this very seriously. We cannot be expected to have confidence in European agreements if they are subsequently undermined by shifts in interpretation. I do not want to be misunderstood about this. If old agreements are to be broken, I do not see how we can reach new agreements.

    Mr. President, I want Europe to succeed. I have no doubt that our best interests are as part of the sort of Europe that I have tried to sketch out this morning but I don’t believe that Europe will succeed unless it faces the tough decisions necessary to win in tomorrow’s world and if it doesn’t, it isn’t only our continental partners that will lose, we will lose as well and that is why we need to be in the middle of the argument in Europe, not at the sidelines in the middle of the argument, arguing for the sort of Europe we believe in and care about and the business environment that will bring prosperity to our countries right across Europe.

    Every time I go to south east Asia or the United States or Japan, I see the growth of competition that is coming from those parts of the world, I see how much of the world’s market they are eating up day after day after day after day and I ask myself: if Europe doesn’t lift its eyes and begin to see what is happening elsewhere in the world rather than in Europe, what will be our competitive position and our place in the world in 10 years or 20 years from now?

    Those are the points at issue, that is why we are having the disputes that so often hit the daily headlines with our European partners. It isn’t a matter of this trivial subject, that trivial subject, this occasional dispute or that occasional dispute; it is a question of the direction in which Europe goes and whether it will go in a direction that can make it successful and competitive or whether it will shrink in on itself and find that slowly but inexorably it has less influence, less competition, less wealth, less prosperity and matters less in the world and fighting that battle is very much in our British national interest.

    Mr. President, I don’t believe you make business more competitive by hitting them with extra costs like the Social Chapter, I don’t believe you create more jobs by imposing a minimum wage – and Heaven alone knows, with nearly 20 million people unemployed in Europe we need those jobs – I don’t believe you support the force of market by resisting privatisation, private ownership, which is what most people in most parts of the world have now accepted.

    Why should we find it rejected in parts of some of the very centres of capitalism itself in western Europe? And you don’t reward hard work and initiative by a policy of high spending and high taxes not fair on the individual and crippling to the competitiveness of companies.

    These are policies of importance, they are policies that if we don’t fight for in Europe I cannot see who will and if Europe doesn’t fight for them or a British government doesn’t fight for them, then the long-term impact of what happens in Europe and the washback upon what happens in this country scarcely bears contemplating. That is why I say we must be in the centre of the argument, that is why I don’t want the argument conducted in stereotypes on one extreme of the argument or the other extreme of the argument. We will never find everything in Europe to our taste, in truth we never believed we would but we need to make sure the balance of advantage is there for Europe and for us and for our future and these are central issues that are coming up for discussion in the inter-governmental conference and in decisions that will be taken beyond it.

    We have seen for the first time in many years that we are more competitive than our European partners because we have followed the policies I have been talking about. We had a good argument to put over. We need to lift the atmosphere of confidence right across this country so that we can conduct our arguments with our European partners with confidence so that they don’t say: “Well, you are only saying that because there are disputes about European policy at home!”. We are saying it because we believe in it, believe in it for us and believe in it for them.

    Mr. President, life in Britain is better than it has been for generations, our membership of Europe has on balance helped make it better. It can be better yet and we need, all of us – government, business big and small and individuals in every part of the country – to approach the decisions ahead determined to protect what has been achieved and then to build on it for the future. That is my responsibility and I intend to discharge it. The arguments will be difficult but I believe they can be won and I believe they will be won. [Applause].

  • PMQT – 18 April 1996

    Below is the text of Prime Minister’s Question Time from 18th April 1996. Michael Heseltine responded on behalf of John Major.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Dykes: To ask the Prime Minister if he will list his official engagements for Thursday 18 April.

    The Deputy Prime Minister (Mr. Michael Heseltine): I have been asked to reply.

    My right hon. Friend the Prime Minister is in the Ukraine, ahead of the G8 Moscow summit on nuclear safety and security.

    Mr. Dykes: Is my right hon. Friend aware that I much agree with his anxieties about the need to avoid creating an unnecessarily heavy bureaucracy in London? However, in view of the excellent Evening Standard campaign for the notion of just an elected mayor and the fact that millions of Londoners do not want that concept to be the preserve of one or more than one political party, will my right hon. Friend think again about that proposal and return with further thoughts in due course–bearing it in mind that London, like other capital cities, needs to be famous and have an elected mayor?

    The Deputy Prime Minister: The Government have explored that idea but it would be realistic to say that no hon. Members on either side of the House gave it overwhelming acclaim. Opposition came from Members of Parliament and from the local authority community. It is apparent that one can move to a directly elected mayor only with a root-and-branch overhaul of London’s local government structure, including the relationship between local and central Government. I do not believe that there is a public appetite for that, facing the real and urgent issues that the Government are addressing with such success for London.

    Mr. Prescott rose–

    Hon. Members: Middle class.

    Madam Speaker: Order. Calm down.

    Mr. Prescott: Please.

    Does the Deputy Prime Minister remember his shrewd analysis of November 1990–that the only way to restore the fortunes of the Conservative party was to dump Prime Minister Thatcher? Following the Tories’ humiliation in South-East Staffordshire last Thursday, what is the right hon. Gentleman’s analysis now?

    The Deputy Prime Minister: I am most grateful to the right hon. Gentleman because I have a new analysis. This week has seen three blows to the middle classes. First, the hon. Member for Birmingham, Ladywood (Ms Short) admitted that the Labour party will put up their taxes. Secondly, we learned that Labour will tax company cars. Thirdly, the right hon. Member for Kingston upon Hull, East (Mr. Prescott) has become a member of the middle classes.

    Mr. Prescott: The right hon. Gentleman should realise that all classes voted for Labour in South-East Staffordshire. Will he explain to the House why, if it was right to dump Prime Minister Thatcher in 1990 when the Tories were so unpopular, it is not right to dump Prime Minister Major now when the Tories are even more unpopular?

    The Deputy Prime Minister: Because, as the right hon. Gentleman knows, all classes gave this Prime Minister the biggest popular vote in the history of the Conservative party, and because the conditions are now in place to secure a fifth Conservative victory. There are excellent economic forecasts and improving standards in education, and we shall see the current Prime Minister back in his job after the next general election.

    Mr. Prescott: Is not the real problem for the Tories the fact that whatever they do will not make a scrap of difference, because, as The Daily Telegraph–the bible of the middle classes–said today:

    “this Government is a disaster.”?

    Is it not time that the Deputy Prime Minister realised that the only answer is for him, his Government and the country to be put out of their misery by calling a general election now?

    The Deputy Prime Minister: Not only has the right hon. Gentleman joined the middle classes; he has started reading a middle-class newspaper. The fact is that, however much one may disagree with much of today’s leader in The Daily Telegraph, one thing I can agree with wholeheartedly is that it realises that a Government formed of Opposition Members would be infinitely worse.

    Mr. Harris: What assurance can my right hon. Friend give fishermen from my constituency and from ports all round the coast of the United Kingdom who have come to London today–they are sailing up the Thames now–about the future of the industry? I agree with my right hon. Friend that we cannot withdraw unilaterally from the common fisheries policy and remain a member of the European Union, but does he agree that the common fisheries policy is inflicting huge damage on the industry and that it must be torn up and renegotiated?

    The Deputy Prime Minister: My hon. Friend is as well informed on fishing issues and policy as anyone in the House. I have just had a word with my hon. Friend the Minister with responsibilities for fisheries, who is to receive a delegation from the wider delegation that is in London today and who will be exploring its concerns. We have already dealt with some of its concerns. We are working closely with scientists on, for example, conservation to find more effective means of dealing with its concern. We have also made it clear that, in the context of the intergovernmental conference, we shall be raising the issue of quota hopping. We shall listen extremely carefully to the representatives of the fishing industry.

     

    Q2. Mr. Jamieson: To ask the Prime Minister if he will list his official engagements for Thursday 18 April.

    The Deputy Prime Minister: I have been asked to reply.

    I refer the hon. Gentleman to the reply I gave some moments ago.

    Mr. Jamieson: Is not the Deputy Prime Minister’s real objection to the idea of a mayor for London that he loves new titles only when he can have them?

    The Deputy Prime Minister: Having moved from being President to Deputy Prime Minister, it may not seem to be an advance now to become a mayor. If, on the other hand, by the united view of the House I were to be offered the job, I would have seriously to consider it.

    Mr. Butcher: Does my right hon. Friend have a sneaking respect for those good, honest socialists who are stinking rich but who are prepared to argue that the rich should pay higher taxes? Would he, therefore, like to remind such people–Ben Elton, Maureen Lipman, Ken Follett and Melvyn Bragg–that nothing is stopping them now from voluntarily contributing more taxes? If we are to take the Ladywood line, anyone who is tempted to vote Labour who is currently earning a Member of Parliament’s salary of £34,000 or more can start paying extra taxes now if they want to, because there may not be a future Labour Government to force them to do so.

    The Deputy Prime Minister: My hon. Friend makes a most important point. My right hon. and learned Friend the Chancellor of the Exchequer who, the House will note, is in his place, mentioned to me that anyone who wants to get in touch with him and make a gesture pro bono publico will be warmly received. But the PSBR is coming down anyway, so there is no immediate need to make any request of that sort.

    The serious issue for the House is not whether there should be higher or lower public expenditure or tax but whether an Opposition party can systematically refuse to answer any questions about whether it intends to raise taxes, and for whom. An Opposition spokesman was literally clawed off the airwaves on a day when she should have been dealing with her major responsibility on the privatisation of British Rail because the Labour party was terrified that she would not tell the truth but repeat the truth.

     

    Q3. Mr. Simon Hughes: To ask the Prime Minister if he will list his official engagements for Thursday 18 April.

    The Deputy Prime Minister: I have been asked to reply.

    I refer the hon. Member to the answer I gave some moments ago.

    Mr. Hughes: On the subject of tax, the figures that we heard this morning showed an outturn for the year just gone of a PSBR of £32 billion against a projection of £21 billion. Does the Deputy Prime Minister agree with the Chancellor, who on “The World at One” today said that if before the next Budget the figures for the year that we have just started showed that the real PSBR was still £30 billion or higher, there would be no scope for tax cuts? Does he accept that that will mean that in the history of this Administration there will not have been tax cuts under the Tories, there are not now tax cuts under the Tories and, if all independent fiscal advice is prudently followed, there cannot be tax cuts before the next election under the Tories?

    The Deputy Prime Minister: As I understand Liberal policy, the hon. Gentleman should support the Government in the Lobby. The Liberal party constantly seeks to increase tax bills, but my right hon. and learned Friend the Chancellor will make judgments about the proper balance between public provision and tax reductions. What everyone knows, and what my right hon. and learned Friend the Chancellor’s last Budget made clear, is that when it can be prudently done, a Conservative Government will reduce taxes. That is why there has been a significant improvement in people’s real disposable income in the past few weeks, as taxes have come down under this Conservative Government.

     

    Q4. Sir Michael Neubert: To ask the Prime Minister if he will list his official engagements for Thursday 18 April.

    The Deputy Prime Minister: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Sir Michael Neubert: Does my right hon. Friend bank at Barclays? Was it not an awful waste of the bank’s money to send the hon. Member for Hartlepool (Mr. Mandelson) all the way to Hong Kong–

    Madam Speaker: Order. I remind the hon. Gentleman that he must ask the Deputy Prime Minister questions on matters for which he has responsibility as a Minister.

    Sir Michael Neubert: With UK share prices hitting record highs, with unemployment coming down yet again this month by 27,500, and with price rises at their lowest levels for a generation, would not the hon. Member for Hartlepool do more to his own advantage by staying closer to home?

    The Deputy Prime Minister: I am extremely grateful to my hon. Friend for raising this subject because it is apparent from an article in The Times that the hon. Member for Hartlepool (Mr. Mandelson) had a task that could be interpreted as being in support of Government policy. He said:

    “We must step up our efforts to promote the town”

    of Hartlepool.

    “I am pleased to announce that during Easter I am travelling to Japan, Korea, Hong Kong and Singapore to beat the drum for investment in Hartlepool.”

    That is Government policy. The problem is, of course, that the trip was paid for by Barclays bank and it has a different view. It said in the article:

    “The trip had nothing to do with Hartlepool. The only connection we have with Hartlepool is a branch in the High Street.”

    Mr. Galloway: Has the Deputy Prime Minister had time to see the devastating pictures of the shattered United Nations peacekeepers’ base in the south of Lebanon? In the past few hours, more than 50 Fijian soldiers, Lebanese and Palestinian refugees–men, women and children–have been slaughtered by the Israeli invasion force. Does the right hon. Gentleman know that this morning, some hours earlier, a mother, her four-day-old child and her six other children were killed by an Israeli air raid on her home in south Lebanon? Does he agree that the flames now burning in Lebanon run the risk of burning to ash all the hopes of the peace process in the middle east? Will the British Government support an emergency meeting of the Security Council to try to bring the cycle of devastating violence to an end?

    The Deputy Prime Minister: I am grateful to the hon. Member for raising the subject of that appalling human tragedy, which shows all of us in the House how fragile peace processes are and how innocent the victims can often be. I have personally seen Fijian soldiers serving in the interest of the United Nations. They are an immensely impressive force and they do a wholly desirable task on behalf of a wider world. But when one considers the issues involved in south Lebanon and the attacks that Hezbollah has made on Israel from there, it is apparent that one is facing a near intractable problem of the deepest concern to the international community. The Government will do all that we can to play any part in accelerating the processes of peace and the restoration of a ceasefire. That, I understand, is the Israeli position and we strongly support that position. I am sure that the House will extend its sympathy to the relatives of those who were so unfortunately killed in today’s incident.

  • PMQT – 2 April 1996

    Below is the text of Prime Minister’s Question Time from 2nd April 1996.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Cohen: To ask the Prime Minister if he will list his official engagements for Tuesday 2 April.

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

    Mr. Cohen: Will the Prime Minister confirm that a typical person made redundant has to face a 20 per cent. pay cut in order to find a new job? As more than 10 million people have experienced unemployment under the present Government, that is an awful lot of pay cuts and job insecurity. Will the Prime Minister publish the truth in his manifesto–that Conservatives make things worse for working men and women?

    The Prime Minister: The hon. Gentleman overlooks the extent to which unemployment has fallen in this country–faster than in any comparable European country. It is down by more than a quarter on its peak some time ago. The hon. Gentleman should bear it in mind that in western Europe we all operate in the same economic climate. More people are getting back into work, more people are in work and there is a lower level of unemployment in this country than in any comparable European country.

    Sir Jim Spicer: Did my right hon. Friend by any chance see “On the Record” on Sunday, when education was discussed and we were treated to the sight of a Liberal councillor from Kingston who spoke out very strongly against any selective education, but who sends her daughter to a grammar school? Does my right hon. Friend agree that that is the true working of a Lib-Lab pact?

    The Prime Minister: At the risk of causing enormous offence to an important television programme, I confess to the House that I did not watch “On the Record” on Sunday or the Sunday before, and I suspect that I shall not watch it next Sunday. I notice nods of agreement from the Opposition. We seem to have a cross-party consensus on that point. Nevertheless, I can certainly appreciate what my hon. Friend says, and I doubt that that is an isolated incident.

    Mr. Blair: Does the Prime Minister recall, in the days when he was flatly against a referendum on Europe, saying that referendums were introduced only to cover up divisions in the Cabinet and none such existed in his Cabinet? Are not those divisions precisely the reason why he is in favour of a referendum today?

    The Prime Minister: I am surprised that the right hon. Gentleman should say that when he has just announced a referendum to sort out internal difficulties in his party about his policy. I have said that I will contemplate a referendum on a particular issue of policy that has never occurred before. The right hon. Gentleman intends to ballot all his party members about Labour policy–which is a novel proposition: I am not entirely sure how one can ballot people about something that does not exist.

    Mr. Blair: I suspect that I shall have rather more support for my referendum than the Cabinet will give the right hon. Gentleman’s. Why cannot the Prime Minister answer now the question that he was able to answer a few months ago? Has the Chancellor changed his mind–a nod or a shake of the head will do? We have paralysis in the Government–even the big man of the Cabinet cannot get his way. Is not the decision being taken only because the Government are weak, divided and are being pushed around by their factions?

    The Prime Minister: That was well prepared, but the right hon. Gentleman was too shy to mention that he has changed his policies on Europe, defence, the trade unions and on almost everything else. As for divisions, I have in my hand a paper entitled “Europe Isn’t Working”. It is produced by 50 Labour Members and it opposes every aspect of European policy that the right hon. Gentleman has in mind.

    As to a single currency, the deputy leader of the Labour party–whom we miss today–says, “Yes, we are against a single currency.” The right hon. Member for Copeland (Dr. Cunningham)–who is also not here–says that he, personally, is in favour of a single currency. Labour Members of the European Parliament are in favour of a single currency within the time limits and constraints, and the hon. Member for Livingston (Mr. Cook) says that it is irresponsible. The right hon. Gentleman is trying to dance in the midst of those divisions while pretending that there are none. The reality is that his party is as split as it can be on that issue.

    Mr. Blair: I have a suggestion for the Prime Minister: why does he not put his Government out of their misery and give the country a referendum on a matter that it really wants to decide–his Government or ours?

    The Prime Minister: In order to be kind and generous to the right hon. Gentleman, I am giving him time to find some policies so that he has some basis–other than negative campaigning–upon which to conduct an election.

    Mr. Marlow: While our masters in Brussels are deciding how to dispose of the British beef industry, will my right hon. Friend suggest to them that, if they are to slaughter perfectly healthy cattle, the beef would be better used as food aid rather than being incinerated? If people were faced with a one in three chance of dying of starvation or a one in 100 million chance of contracting Creutzfeldt-Jakob disease, surely they would eat the beef.

    The Prime Minister: As my hon. Friend intimates, my right hon. and learned Friend the Minister of Agriculture, Fisheries and Food is in Luxembourg today trying to restore public confidence to the beef markets across Europe. He is making good progress and he will keep negotiating until a package of measures is agreed. It is no longer certain whether that will occur today: there is a long way to go in the negotiations and I anticipate that they will continue for many hours yet.

    Mr. Ashdown: Does the Prime Minister realise that, as we speak, jobs are being lost and small farms and small firms are going to the wall because of delay and indecision on BSE? Does he acknowledge that he could take some steps without waiting for Brussels? I shall suggest three: first, launch a British standard for quality British beef; secondly, launch a public information campaign to correct misrepresentation and mis-information, which is still widespread and damaging; and, thirdly, get together with the banks and put together a credit guarantee scheme to help small firms and farmers until compensation arrives. I beg the Prime Minister to act now, when he can, rather than stand there wringing his hands and waiting for Brussels to open the door.

    The Prime Minister: The right hon. Gentleman’s last sentence beggars belief, given his party’s policy on the European Union, but I agree with him about the need to do whatever we can to help the beef industry. Nine or 10 measures have been taken already; a number are currently under consideration and more are under discussion in Brussels. The Agriculture Council is considering and discussing the possibility of extending the scope of intervention to deal with short-term confidence problems. That would clearly be of great benefit to many British farmers. We are also considering a package of measures to deal with BSE. We are discussing its funding and a number of other confidence-building measures for the market. The right hon. Gentleman knows that although there are certain things that we can do in Britain, the fundamental decision needs to be a cross-European one, as he himself told the House the other day.

    Mr. Robathan: My right hon. Friend will know of the concern of some Conservative Members about recent developments in defence. Therefore, will he study carefully reports of a recent conference which considered defence issues, found a potential peace dividend of some £18 billion and, yet again, voted for unilateral nuclear disarmament? When he discusses the resolutions of the recent Transport and General Workers Union conference, will he recall that that union sponsors not only the shadow Chancellor, but the Leader of the Opposition?

    The Prime Minister: I am not sure what proportion of the Labour party’s income comes from the Transport and General Workers Union, but it is clearly substantial. If accurately reported, its proposition on cutting defence would effectively leave Britain with no defence at all. I know that the right hon. Gentleman and his colleagues have been planning a defence review. I had not anticipated that it would be quite so draconian, but as half their policy is determined by trade unions, we cannot be certain that that will not prove to be the case if it is the policy of the Transport and General Workers Union.

     

    Q2. Miss Hoey: To ask the Prime Minister if he will list his official engagements for Tuesday 2 April.

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

    Miss Hoey: The Prime Minister issued an invitation at the weekend via the national newspapers for a debate with the Leader of the Opposition on national television. Now that my right hon. Friend the Member for Sedgefield (Mr. Blair) has accepted that invitation, would the Prime Minister like to name the day?

    The Prime Minister: The hon. Lady says the nicest things. I enjoy my tussles with the right hon. Gentleman on Tuesdays and Thursdays and on other occasions. I was as surprised as the hon. Lady was to read what was reported over the weekend. I recall very well, as a young untried candidate, trying exactly the same trick with an experienced Labour Member of Parliament. I recall that he said to me at the time, “Go and sort out your policies first. Then I shall consider these stupid PR stunts.”

     

    Q3. Mr. Michael Brown: To ask the Prime Minister if he will list his official engagements for Tuesday 2 April.

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

    Mr. Brown: Notwithstanding the exchanges between the Prime Minister, my hon. Friend the Member for Northampton, North (Mr. Marlow) and the right hon. Member for Yeovil (Mr. Ashdown), is not the answer for the Prime Minister to give the people of the country on the issue of beef, in Easter week, when Grimsby and Cleethorpes holds the biggest fish market of the year, the message that people should consume Grimsby fish? Will my right hon. Friend congratulate Frank Flear, who is behind the new fish docks in Grimsby and Cleethorpes that the Government supported with massive investment, and urge the people of Britain this week to consume Grimsby and Cleethorpes fish?

    The Prime Minister: I am happy to invite the nation to eat Grimsby fish, and fish from elsewhere in the British Isles. I hope that, having had their fish, people will spare some time to eat some beef too.

     

    Q4. Mr. McAllion: To ask the Prime Minister if he will list his official engagements for Tuesday 2 April.

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

    Mr. McAllion: Is the Prime Minister aware that, at the recent national poverty hearings in London, one single mother, registered disabled and dependent on income support, described how she had been forced to place her son in the care of her local authority, because underfunding prevented that authority from meeting his special educational needs in any way except through its residential budget? How does he explain to that family, and to the families of the one in three of today’s children born into the same oppressive poverty, the contemptible and odious Tory slogan that “life is better under the Conservatives”? For the poor, it most certainly is not; and for that, the right hon. Gentleman and the party behind him are directly responsible.

    The Prime Minister: I know that the hon. Gentleman is honest enough to say that he thinks that his party should put up taxes–I think that he knows that it will. He at least has had the candour to say that in public; it is his idea of the future. He is quite wrong about poverty. In fact, the vast majority of people are better off. Average incomes have risen by more than a third, even after allowing for inflation. The average income of all family types has risen. Pensioner average incomes since the Government came to power are up by about 50 per cent. after inflation. Average incomes of the unemployed and others not in work have also risen. That would not have happened but for the policies, both economic and social, that we have followed.