Tag: Unemployment

  • PMQT – 14 February 1995

    Below is the text of Prime Minister’s Question Time from 14th February 1995.


    PRIME MINISTER:

     

    Engagements

    Q1. Mrs. Ray Michie: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mrs. Michie: Last Tuesday, the Prime Minister said that a single currency was a constitutional issue. Last Thursday, the Chancellor said that it was not. Will the right hon. Gentleman now tell us who is right?

    The Prime Minister: I have told the hon. Lady, I think, directly, and many people in the House precisely what the position is as far as a single currency is concerned, and I have also told people exactly how we propose to approach it. There will be no single currency involving the United Kingdom in 1996 or 1997. When and if it arises at a later stage, whether 1999 or thereafter, we will examine both the economic implications and the other implications, and we will then make a judgement on the national interest.

    Mr. Nigel Evans: Will my right hon. Friend confirm that the Government are determined to protect the country from terrorism, drug smugglers and a tidal wave of economic refugees into this country?

    The Prime Minister: I should say to my hon. Friend that in recent years we have seen a very welcome improvement in race relations in this country and I do not wish to see that put at risk in any way. Raising fears about immigration tends to put that at risk. For that reason, I am entirely determined to maintain our fair but firm immigration policies, and that means that we shall retain our border controls.

    Mr. Blair: Following the Prime Minister’s welcome commitment last Thursday to reducing inequality, may we now put it to the test? As the national electricity grid is an absolute monopoly subject to no competition, will the right hon. Gentleman act against the excesses of the few regional electricity chiefs who stand to make £50 million out of share options on the back of it?

    The Prime Minister: I have to say to the right hon. Gentleman that I find much of his opposition to share options rather synthetic since a good deal of his leadership campaign was financed out of the proceeds of share options.

    Mr. Blair: So the right hon. Gentleman is prepared to do nothing on that. Let me now put this to him: as there still remain about 1 million long-term unemployed and the Government are proposing a £50 million cut in help to the unemployed, will he therefore act in respect of that?

    The Prime Minister: I notice that the right hon. Gentleman did not respond to the earlier point. As for his general concerns about poverty, perhaps I can help him by filling in some of the facts that he overlooks. As he will know, and as there are ample statistics to show, the vast majority of people are better off. Average income has risen by more than one third since 1979, the average income of all economic groups and family types has risen, vulnerable groups have been protected and average incomes are up by more than 10 per cent. for poorer pensioners, and up for the unemployed as well as for those in full-time work. Those are the results of the Government’s actions, and they exceed by far the results achieved by any previous Government.

    Mr. Blair: So the Prime Minister is prepared to do nothing about that either. Whatever he says about reducing inequality, he will do nothing about greed at the top and nothing about protecting the unemployed at the bottom. Are the British people not right to conclude, therefore, that his commitment to reducing inequality will be seen in time as just one more easily made, easily broken Tory promise?

    The Prime Minister: I look forward to the day when the right hon. Gentleman listens to the answer before continuing with his question. As “Social Trends” is a publication often cited by Opposition Members, perhaps they will take notice of the information available in the latest edition, which states that the income of recently retired pensioners has increased by just over a half in real terms since 1981, and the real income after tax of a lone parent on the lowest decile of female earnings and with two children rose by 50 per cent. between 1981 and 1993. Why do we never hear about the reality of what has happened rather than the accusations without base which come from the right hon. Gentleman?

    Mr. Marlow: If European institutions produce measures to dismantle our external immigration controls, and those measures are subsequently supported by the European Court, how will my right hon. Friend maintain our external controls?

    The Prime Minister: As I told my hon. Friend the Member for Ribble Valley (Mr. Evans) a moment or so ago, we believe in our right to maintain controls. My predecessor set out our determination and received a solemn declaration to that effect some time ago. Let me make it clear that we shall argue strongly for the maintenance of that position and shall take whatever steps are necessary to that end. I will tell my hon. Friend the Member for Northampton, North (Mr. Marlow) about that declaration: it was solemnly entered into by all the Heads of Government of the other European countries. They pledged their word, and I intend that they will keep it.

     

    Q2. Mr. Cousins: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mr. Cousins: Is the Prime Minister aware that, following the Government’s deal with Trafalgar House to kill off Northern Electric this morning, the resulting free-for-all in electricity companies has caused electricity shares to rise by 10 per cent. in a Valentine’s day orgy on the stock exchange, while there has been a Valentine’s day massacre of job security in the north? Does the right hon. Gentleman agree with the Confederation of British Industry that growing unfairness in society affects not only jobs but competition and business?

    The Prime Minister: As the hon. Gentleman will have observed over the last couple of years, competition in business has been creating jobs, not losing them, which is why unemployment has dropped by more than half a million.

    Mr. Foulkes: Rubbish.

    The Prime Minister: The hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes) has apparently not noticed the drop of half a million in unemployment, so I will tell him that it has dropped right across Scotland, which he cares about, as well as in England, in Wales and in Northern Ireland. If the hon. Gentleman has not understood even that, I can understand why he is on the Opposition Benches–because he understands nothing.

     

    Q3. Lady Olga Maitland: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Lady Olga Maitland: Has my right hon. Friend seen the report that tourism in Northern Ireland has doubled since the ceasefire was announced? Does he agree that that reflects in an important way the outcome of the peace process?

    The Prime Minister: I am aware of the remarkable increases in tourism. There have also been remarkable changes in the life styles of the people in Northern Ireland and in the success of large and small businesses in Northern Ireland. I believe that those are results of the ceasefire, which I hope we shall be able to turn into a permanent peace.

     

    Q4. Mr. Jim Cunningham: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mr. Cunningham: Does the Prime Minister recall that last Thursday in the House he gave an undertaking to commit the Government to fighting injustice and inequality? Will he now, as a first step, take the opportunity to reintroduce wages councils and, as a second step, abolish the jobseeker’s allowance?

    The Prime Minister: I will not give the hon. Gentleman that undertaking, because I do not believe that wages councils acted in the interests of people who were low paid. I believe that they kept a lot of people out of work who might otherwise have been in work. I accept that the Government have a responsibility to help the poor, and we have sought to do that. That is why extra help of more than £1 billion since 1988, over and above inflation, has been provided to help low-income families. That is the point that I invite the hon. Gentleman and his right hon. and hon. Friends to concentrate upon.

     

    Q5. Mr. Jacques Arnold: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mr. Arnold: Is my right hon. Friend aware of the decision of the parents of pupils at 88 schools in Kent who voted overwhelmingly for the schools to become grant maintained? Will he congratulate those Kentish parents on their choice? Does he welcome the fact that they had the choice in the first place–a choice exercised by the Leader of the Opposition and a number of Labour Back Benchers–or does he consider that choice to be wicked?

    The Prime Minister: I believe that every parent should have the right to choose what is best for his or her children, and I have no criticism of any parent who does so. I simply ask that all parents should have the same choice.

     

    Q6. Mr. Watson: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mr. Watson: What does the Prime Minister suggest that I could do to help my constituent, Jane Pepper, who gave up a secure job in the civil service last year to attend an access course for university? She secured three offers of places, but is now having to give them up because she loses £5,000 as a result of the Government’s penny pinching in cutting the mature students’ allowance. Leaving aside the waffle that the Prime Minister usually gives us, what advice can he give to Jane Pepper and the thousands of other people who missed out on higher education the first time around and are now having the door slammed in their faces again?

    The Prime Minister: The hon. Gentleman knows that the number of people going on to further and higher education has increased dramatically. When the hon. Gentleman’s party left office, one in eight of our children went to university. The figure is now one in three, and it is increasing.

     

    Q7. Mr. John Marshall: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Mr. Marshall: Does my right hon. Friend agree that the rather disappointing performance of the English cricketers in Australia illustrates the need for more competitive sport in our schools?

    The Prime Minister: I should certainly like to see more competitive sport in our schools, and we intend to ensure that there is more. Beyond that, we must ensure that there is a much better sports environment through the clubs, so that there is a proper throughput from school to club level and to more senior levels in sport. I intend to do what I can to bring that about.

     

    Q8. Ms Jowell: To ask the Prime Minister if he will list his official engagements for Tuesday 14 February.

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

    Ms Jowell: Is the Prime Minister aware that last week a senior manager at Guy’s hospital in London had to telephone 24 hospitals to arrange cover for patients needing acute and intensive care beds? Does he accept that patients’ lives are at risk because of the shortage of beds in London? Will he instruct the Secretary of State for Health that no further bed closures should be allowed?

    The Prime Minister: If the hon. Lady had wished me to comment on that, no doubt she would have given me earlier notice of the question. Often enough, there have been cases in which a direct answer could have been given if information had been provided, and often enough I have examined matters subsequently and found them to be a touch different from what had been suggested on the Floor of the House. I have no doubt that my right hon. Friend the Secretary of State for Health will have heard what the hon. Lady had to say.

    Mr. Michael Brown: Is not the situation with regard to the single currency quite straightforward–that if my right hon. Friend remains Prime Minister we will not have a single currency, but if the Leader of the Opposition becomes Prime Minister we will?

    The Prime Minister: As I have indicated to my hon. Friend on previous occasions, I will make a judgment on what I believe the national interest demands. If it demands no, I will say no.

  • Mr Major’s Downing Street Press Conference – 16 January 1995

    Below is the transcript of Mr Major’s press conference, held at Downing Street in London on Monday 16th January 1995.


    PRIME MINISTER:

    Thank you all for coming this afternoon. I thought as we have now got into the New Year that it might be appropriate to take this opportunity to have a look across the political scene as it is at the moment.

    I think we are about to enter a particularly interesting phase, and let me firstly say something about the longer term. In around two years, maybe a little more, perhaps a little less, we are going to have to persuade the public once again to entrust us with government. After 17 years I do not believe that anyone should be complacent about that task. No party has a divine right to govern and no-one should expect a bouncy economy alone to ensure an election success.

    Last week I took some steps to put this country on course for the longer term. On Friday, with some senior colleagues at Chequers, I conducted a comprehensive review of Britain’s role in the world. We analysed both the risks and the opportunities in the immediate future. We looked at what we had to do to promote Britain’s national interest and we looked at the policies that we believe were right for Britain.

    A nation like ours, dependent for about one-third of its wealth on overseas trade, must promote its interests worldwide. We have for long been a global power and we will continue to be a global power, but in an increasingly competitive world, that means that we must single-mindedly pursue our interests around the world politically and commercially, we must all put Britain first.

    I plan to have further Chequers meetings to look at domestic and social policies – jobs, health, education, public services – and these will be critical in building up the government’s policies for the future. This is work similar to that undertaken before the 1992 election, but it will be much wider and with a much longer perspective.

    I have invited Secretaries of State to assemble policy groups, each in their respective areas, and the remit for these groups is to think both boldly and imaginatively. I want their prescriptions informed by a very wide process of consultation, with people in all walks of life, inside and outside the Conservative Party. The Policy Unit will also consult widely, external expert opinions will be sought, I intend to have the widest possible debate to build the next phase of Conservatism, to plan new policies for government in the new millennium.

    Over recent years I believe we have done what is right for this country. But I know that doing uncomfortable things, although often necessary in government, does not at the same time necessarily endear you to people. But if your policy is right, and you stick to that policy, the benefits do come through, and that is what I believe is now beginning to happen.

    The economic debate and the European debate have dominated politics for some time, the economy is now coming right, and I can now see a road to unity on European policy as we prepare for the Intergovernmental Conference in 1996 and 1997.

    But there is a political life apart from these two subjects. Jobs, education, health, personal choice and opportunity, the levels of tax, the quality of life in the public services, these are things that concern families in every part of the country. On the economy we have a broadly based recovery unlike any that we have seen since 1945. It is a recovery for the long term, it is not a flash in the pan, it is not fuelled by monopoly money. We are seeing confidence and growth restored to manufacturing industry, Britain is making things once more, as it traditionally did, and it is selling them to every corner of the world. People will feel the effects of this recovery only gradually, but as they do begin to feel those effects, they can have confidence that that recovery is going to last.

    We will continue to pursue privatisation for the best of reasons, to help improve the standards of service to the public. Frankly, I am not content with the service we have had over many years from British Rail, I want to remove British Rail for good from the stand-up comedian’s joke book and to turn them into the envy of the world, we did that with British Airways and I have every intention of doing that with British Rail as well.

    On education policy we are pursuing higher standards, more choice, more opportunity. Later this year we will come forward with our detailed proposals on nursery education, testing the National Curriculum performance tables, all of these are now beginning to lever up standards and people can begin to see that that is what is happening, the improvement is evident and we intend it to continue into the future.

    I am utterly committed to the National Health Service. Each year doctors and nurses care for more patients, a million more than since our reforms began. This year we are abolishing a complete layer of bureaucracy in order to target resources on patient care. The great reforms of recent years are in place and they are now settling down. It would frankly be folly to seek to tear up those reforms, it would introduce chaos and instability into General Practioners’ surgeries and into hospitals up and down the country. The result of that could only be to shift the focus away from the patient and better treatment for the patient.

    We will carry forward the sea-change in our approach to fighting crime. People want to know that crime does not pay, but that criminals do. The new measures which come into effect this year to come down hard on persistent young offenders and bail-bandits, for example, they will give the police more powers to put criminals behind bars and to make punishment fit the crime.

    Crucial to these reforms has been the operation of the Citizen’s Charter. The Charter has delivered better information and standards in both health and education and will do so right across government. It is, as it always has been, a ten year programme to improve public services. I do not believe that public services should provide a brusque response to the public or to be needlessly anonymous, they are there to serve the public, and to be accountable to the public, and that is the right sort of devolution.

    The consistent theme in these reforms is moving the decision-making process away from government and out to local people, that is the sort of devolution that I passionately favour, not devolution which creates extra tiers of bureaucracy with extra tiers of expense and extra tiers of frustration for most of the people in this country.

    We are opening up government steadily but significantly. The last two years have seen changes to our security and intelligence services, to the information available about government committees and departments. There have been changes following the Jopling recommendations in the way Parliament works; changes for the system of awarding honours; and changes to the decision-making process in Scotland. The British constitution is not a written constitution, but neither is it an unchanging constitution. But it should be changed only with care and with good reason, not in a careless fashion for political reasons. Above all, I am concerned to widen opportunity for everyone, whatever their start in life may have been. We want to help people meet their own ambitions and control more of their own lives.

    We have a crowded agenda in the years immediately ahead of us, but what we are also seeking to do is to fashion flow in a wider way than has been done for very many years, the direction of policy beyond the immediate future, and that work will start immediately.

     

    QUESTIONS AND ANSWERS:

    QUESTION (John Sergeant, BBC):

    Prime Minister, this has many of the characteristics of a press conference at the beginning of an election campaign, is it your intention to use this conference to mount an attack on the Labour Party, and Mr Blair particularly?

    PRIME MINISTER:

    What a tempter you are. The purpose of this press conference was to set out what I have just said to you, firstly, and secondly to honour the promise that I made to you, not necessarily you, John, but the Lobby and others generally in the summer, when I promised that from time to time I would have further press conferences so that you would have the opportunity to question me. If you wish to question me about the Labour Party, of course I will respond to the policy muddles that they are getting into on education, on British Rail, on devolution, on energy policy, on health and on a range of other subjects, but as you will notice, I did not myself introduce the subject.

    QUESTION (Peter Riddell, Times):

    You mentioned at the end of your statement about the constitution being changed with care, have you got any proposals yourself, particularly in relation to the Nolan Committee, will you be putting forward suggestions for improving say appointments to quangos and other matters being covered by Nolan?

    PRIME MINISTER:

    I will be very interested to see what Nolan has to say. I think Nolan touches an area of concern that has been there for some time, and I think the Nolan recommendations will have to be looked at very seriously. I have not been invited to give evidence to Nolan, other members of the government will and where appropriate they will put forward particular ideas. But certainly we will wish to look very carefully at what Nolan recommends and very probably we will be seeking to implement much of it.

    QUESTION (Peter Snow, Newsnight);

    When you said in your New Year interview that at the Intergovernmental Conference on Europe next year you would not accept constitutional changes that would be damaging, did you mean by that that you would veto them or that Britain would not accept but the others could go ahead without you?

    PRIME MINISTER:

    The agreements at the Intergovernmental Conference have to be agreed unanimously, that is the way in which the European Union works. I am not in the business of just going there with heavy boots to be difficult, but if people propose constitutional change that I think is inappropriate for Europe, or inappropriate for the United Kingdom, then I will not accept it, I have made that perfectly clear.

    QUESTION (Peter Snow):

    You will veto it?

    PRIME MINISTER:

    If you choose to use that word, yes most certainly I will veto it, I will not accept it. If I do not believe it is in the interests of the United Kingdom, or indeed in the interests of the wider European case, then I will most emphatically say so and I will most emphatically say ‘No’. But I also said in that interview that I do not myself believe that the 1996 conference is going to raise huge constitutional issues, I cannot be certain about that, I cannot be certain what the other 14 countries will introduce, any country can introduce any issue it wishes, but I do not at the moment expect great constitutional issues to be introduced, if they are I believe the time is inappropriate, if they are and I think they are significant and damaging then I will reject them.

    QUESTION (Elinor Goodman):

    Given that you say this press conference is in part to map out the future of Conservatism, and also you admit to give us the chance to ask questions about the Labour Party, is Downing Street the right place to have it or shouldn’t it be at Conservative Central Office?

    PRIME MINISTER:

    You are the first journalist I have ever known not to wish to take the opportunity of asking questions wherever they may be asked, Elinor. But as far as the direct point you make is concerned, I am mapping out the policies for the rest of this government and for future Conservative governments.

    QUESTION (Michael Brunson, ITN):

    Can I ask about rail privatisation. I know that you always say that every privatisation is unpopular, but would you not accept that this privatisation seems to be unusually unpopular, even among some members of your own party? And secondly, since at least the Labour Party is now prepared to say that they are committed to a publicly owned and a publicly accountable railway after the next election, would you not accept that that is going to give those who may wish to buy, particularly Railtrack, very considerable anxiety about getting involved in this privatisation?

    PRIME MINISTER:

    You have brought me the news of what the Labour Party’s policy is at 1550 on Monday afternoon, whether it will be the same tomorrow morning I suppose is a moot point, it does seem to have undergone rather a few changes over the last few weeks. Last week Mr Blair was not sure whether he would renationalise or not. Mr Prescott equivocated in radio interviews, before that Mr Prescott was certain he would renationalise, and so would others. So I am not entirely sure what their policy will be in the future, though I strongly suspect that this is the first part of the Danegeld to be paid for the support that Mr Blair will seek on Clause 4.

    But as far as your direct question of concern, as to whether this is going to be uniquely unpopular, I would simply suggest that you go back and look at what was said in many of the previous privatisations. If, for example, I refer to British Steel, what was it that the Labour Front bench, Donald Dewar I think it was from memory said about British Steel – “totally irrelevant to the real interests of the industry and based on dogma”, he said, ‘the Labour Party is unequivocally implacably opposed to it.” British Steel, privatised, is now one of the most efficient steel-makers in the world. This was the privatisation that was said not to be concerned with the real interests of the industry. What was it they said about British Airways, again it was poor old Donald Dewar who was the Spokesman “British Airways will be the pantomime horse of capitalism, if it is anything at all” said the Labour Party about the privatisation of British Airways.

    I do not think there are many people here at this press conference or who may watch this answer who doubts that British Airways is now one of the most efficient airways anywhere in the world. So I believe it can be with British Rail, I am just not satisfied with what British Rail has produced by way of a service in the last 40 years or so, I believe it can do better, I know it is controversial but I believe it can provide a better service. And many of the scare stories that there have been about mass hackings of the line are dealt with in the legislation which ensures that services are protected. So I believe yes we can proceed with it, yes we will be able to proceed with the flotation, and yes over time precisely the same impact will be had by a privatised British Rail as we have seen with electricity, gas, steel, telecoms and British Airways, the private sector will run it better and passengers will get a better service.

    QUESTION (Mike Brunson):

    And they will buy it?

    PRIME MINISTER:

    And they will buy it.

    QUESTION (Adam Boulton, Sky TV):

    On the question of the Union, how do you reconcile your attitude towards Northern Ireland, in which you say Britain has no selfish strategic interest and you have given the people the right of self-determination, to your attitude to Scotland, and would you be prepared to consider another referendum on devolved government for Scotland?

    PRIME MINISTER:

    Well I was interested to see that the Labour Leader ruled out a referendum on legislation to introduce devolution to Scotland and Wales, I find that extraordinary if that is a settled position, but perhaps it will not be a settled position, perhaps it will change again. The distinction with Northern Ireland I think is very clear, in Northern Ireland we are not talking about a tax-raising assembly with the powers and authorities that would apparently be given to a Scottish Assembly. The danger with a Scottish Assembly, well there are many dangers with a Scottish Assembly, but I think there is a very real danger with that that it would firstly do dramatic damage to Scotland. And I say that with good reason. If Scotland is going to have the privilege of being more highly taxed, is Scotland going to have the degree of inward investment that previously it has had? I would suggest an inward investor would say: “But the Scots are more highly taxed, therefore there is going to be more pressure on wage demands, therefore my costs are going to be higher, therefore I am not going to invest in Scotland”. That is but one of a whole series of questions.

    The constitutional questions about what is proposed in Scotland are even more damaging. If Scotland is to have authority for education and health, and all health and education matters are to be settled by the Scottish Parliament, what rights would Scottish Members of Parliament have over those matters? None at all. What rights, therefore, should Scottish Members of Parliament have at Westminster over health and education in England, Wales and Northern Ireland? It is not credible. What in practise is being done in Scotland is that the Labour Party are well aware that they need a big majority of seats in Scotland in order to win a general election, they are very worried that the Scottish Nationalist Party would do very well in a general election, they are trying to out-bid the Scottish Nationalist Party in terms of winning seats, and they have now begun to realise the difficulties that that faces them. So they have offered an Assembly in Wales, but it seems a rather lesser Assembly, they do not regard that as important to Scotland.

    And then in order to square the circle they have said but we would have regional government all over England. There is no demand for regional government all over England, there is no demand for an extra tier of bureaucracy all over England. We are going to have, we are told by the Labour Party, a Premier for Scotland. Are we going to have a Premier for Wales? Are we going to have a Premier for Sunderland? Is his official residence going to be Roper Park? Who can tell? I could stretch to the corner of this room and back again the nonsenses that arise out of these devolution plans and the dangers that arise and I think those dangers are now becoming apparent, not just to the Conservative Party, but to Labour Members of Parliament in Scotland and in Wales and to people right across the country. They are just not thought through or thought out and they are immensely damaging.

    CHARLES RICE (EVENING STANDARD):

    Do you accept that if the Ulster Unionist MPs were to withdraw their support from the Government they could precipitate a general election a lot earlier than the two years you foreshadow and do you absolutely rule out paying Danegeld in any form to them?

    PRIME MINISTER:

    I have made it perfectly clear all along that we propose to seek a settlement in Northern Ireland but that it can only be done by carrying with us the people of Northern Ireland. I have seen some of the concerns that have been aroused about what might be in the framework document which is the premise upon which I think you based your question. There is no question of joint authority with Dublin having authority over Northern Ireland; that was ruled out a long time ago and many of the concerns that have prompted stories over the last day or so are just out of date and wrong.

    PETER HAYES (CENTRAL TELEVISION):

    I work for an area in which you may recall you lost of one of your precious parliamentary seats fairly recently.

    PRIME MINISTER:

    All my parliamentary seats are precious, all of them!

    PETER HAYES:

    During the by-election campaign, one of your traditional supporters said to me that he accepted successes in Northern Ireland, he accepted success for example on the economy but he said: “What is new? What is the big idea taking us as Conservative supporters up to the next election?” What you you say to him?

    PRIME MINISTER:

    I think there a range of things if I may because this idea of one single, big idea is often a misleading proposition. Policy goes in a particular direction and the policy is going in the direction of moving as much authority and opportunity away from the centre and down to the individual and his family.

    The big idea is making sure that the people of this country have as much freedom, liberty and opportunity as they possibly can. That is the big idea that the Conservative Party has stood for for generations and stands for now. That is why we want the lowest possible level of taxation; that is why we have provided so much extra power and authority for self-governing schools and information for the parents in those schools; that is why we have taken the management of hospitals away from bureaucrats and put it actually down to National Health Service trust hospitals – 98% of hospitals are now trust hospitals.

    That is the drift and direction of policy; that is why we would much prefer to be cutting taxes rather than raising taxes, that is a matter of innate instinct for the Conservative Party, by instinct we cut taxes, we dislike raising them; we have had to do it, it has been damaging for us and I think as soon as we are able to reverse that prudently and safely on economic grounds we will do so.

    The idea that you seek for is to make sure that the individual, whatever fashion of life he may have, has the greatest amount of devolution of choice and authority to him or her; that is and always has been the big Conservative idea.

    TREVOR KAVANAGH (THE SUN):

    Prime Minister, in view of the recent disclosures both official and unofficial about the Royal Family, do you have any concerns about the standing and respect in which those members of the Royal Family are held?

    PRIME MINISTER:

    I believe the Royal Family is a central glue in the constitution of the United Kingdom; I don’t see that changing. I know of everybody in public life in one form or another – it applies to the Royal Family, it applies to other people not just in elected public life – people expect very high standards all the time. think that has always been the position in this country.

    I think the underlying affection for the Royal Family remains immensely strong; I think that will manifest itself. From time to time, there are squalls which for a short term cause some difficulty; I think that is what they are, short-term squalls and the underlying affection, respect and admiration for the constitution of the monarchy itself will be untouched by this. I believe it will continue to endure and I personally believe it is immensely important for this country that it does.

    QUESTION (GMTV):

    Just a word about the people who have lost the whip. Do you accept that a couple of them may not actually wish to rejoin the Conservative Party despite the olive branches that you have proffered and what view do you take of that?

    PRIME MINISTER:

    It takes two to tango! The music has struck up, we will see who will take partners and when!

    QUESTION:

    Prime Minister, how soon do you anticipate you will be able to reassure those Unionists who suggested at the weekend that there might well be a general election this year and do you anticipate the search for a political settlement running into the next general election?

    PRIME MINISTER:

    I can’t answer the second question; I don’t wish to put a time frame on the search for a settlement. I will go on searching for a settlement until we have a settlement because I believe that it is immensely important that we do so and I believe the prospects of a settlement exist.

    We will pursue the joint framework document. I think the fears that have given rise to stories, as I indicated a moment ago, are mistaken fears and I think it will become apparent that they are mistaken fears but if I may push aside the political element that you raise, I have said from the outset of this many times on the record – you will have heard me say it many times, I repeat it again – we will only be successful in bringing peace to Northern Ireland if we can carry with us all the people of Northern Ireland. That is why I am playing this with my hands open and the cards face-out on the table.

    Let me take the framework document since it has now been raised twice. When we have agreed the framework document with the Irish government, that isn’t something that is going to be imposed. The framework document will then be published for everyone to see; it is then for the constitutional parties to examine it, to consult it and to comment on it. It goes into the talks with all the constitutional parties; then, if they approve it, it goes to a referendum of all the people of Northern Ireland so the fear that there is some sort of deal in which joint authority is in some curious fashion going to be enforced over the people of Northern Ireland against their will is not going to happen and cannot happen. We have not got joint authority in the document, the document itself is for consultation; it will have to be approved by the political parties in Northern Ireland and when they have finished with it, it will have to be approved by all the people of Northern Ireland so they have a triple look on their own future and I believe that is the way to carry with this process all the people of Northern Ireland.

    There are ancient differences, feuds, fears that have been in Northern Ireland literally for generations; the only way to still them is for people to look carefully and cautiously at what is happening and decide for themselves that this is the right way to deliver peace.

    You asked whether we would have it by the general election. I can’t promise that. It is not necessarily a speedy process. I think it was – I hope it was – an Irish poet, Yates, who wrote: “Peace comes dropping slow!” and I believe that is right. I think it was the “Lake Isle of Innisfree” and if it wasn’t I will no doubt be told tomorrow! “Peace comes dropping slow.” I believe that is entirely appropriate to the way in which we are developing this question in Northern Ireland.

    Everybody – every sane and sensible person – wishes to see a permanent settlement in Northern Ireland. It cannot be done without patiently and carefully looking at each of the areas that need to be dealt with and trying to place in the right place on the chess-board all the pieces that will comfort the fears of the different groups and people of Northern Ireland. That is what we are trying to do and we will do it openly.

    JOHN CRAIG (DAILY EXPRESS):

    When you spoke to us in the sunshine back in the summer, you told us of your plans to reshuffle your Cabinet. Is the Cabinet you have got now the one that you would hope to lead into the next general election or can we expect some more changes between now and then?

    PRIME MINISTER:

    The next general election may be two-and-a-half years away but I certainly have no plans for changes now. I enjoyed that press conference in the garden; I did contemplate having it in the garden this afternoon but I wasn’t sure how generally popular that might be.

    QUESTION:

    [Inaudible] devolution for quite some time now, indeed since the last general election. Does it surprise you therefore to find in the opinion polls the majority swinging the other way, in the “Sunday Times” poll for example 49% for, 32% against?

    PRIME MINISTER:

    I think the debate on devolution is only just beginning. Why do I believe so many people favour it? I think instinctively in every part of the United Kingdom people are proud of being Scottish, Welsh, English or Northern Irish and instinctively asked about a Scottish Parliament “Would you like a Scottish Parliament?” I think the answer instinctively is likely to be yes. Asked: “Would you like to pay more income tax than anybody else in the vicinity?” the answer may be no. Asked whether you would wish to see companies disinvest, moving away from Scotland, creating more people unemployed, I think the answer would be no. Asked whether you want to be a little Scotland in the middle of a great European Community without having the negotiating strength of the whole United Kingdom, I think the answer would be no. Asked if you would like to be the United Kingdom equivalent of Quebec in Canada, I think the answer will be no.

    It is not only me, not only the Conservative Party who thinks that these plans are folly. Other people, as they begin to examine them, will see that underneath the general aspiration there are very dangerous and damaging policies indeed. I will spell them out in detail again if you wish but I think you all are aware of the things that concern me: the different taxation policy; the question of the rights of Members of Parliament at Westminster in Scotland; the fact that if there was a Scottish Parliament there would be no justification for the numerically over-large Scottish membership in the House of Commons.

    All those are issues of some importance but if a Scottish Parliament was established and then began to challenge the English Parliament on issues, as I believe would almost undoubtedly be the case over time, what are the difficulties that are going to arise at that stage? What happens if there is a backlash elsewhere in the United Kingdom against the Scottish Parliament? I am not speaking out against the wishes of Scotland, I believe I am speaking for the interests of Scotland in pointing out that what is proposed is not a proposition that will help the living standards of Scotland or the future of Scotland and I will continue to make that point until we have won the debate, won the argument and seen these damaging proposals ditched and gone for ever.

    ROBIN OAKLEY (BBC TV):

    Prime Minister, two of your biggest problems in running your party centre round the disunity on Europe and on the sleaze factor. Why have you moved from saying that the rebels have got to work their way back over months to saying they would be taken back within weeks? What strength will your whips have to exert any discipline in future if they are taken back quickly?

    On the sleaze factor, why are you not encouraging the Nolan Committee to look into the financing of political parties around which many people’s worries on the sleaze factor tend to concentrate?

    PRIME MINISTER:

    I don’t think that is the remit of the Nolan Committee, it wasn’t set up to look at that and I don’t anticipate that it is going to look at that.

    On the first point, the question of the colleagues who don’t have the whip, it is up to events to determine when they come back. I indicated over the weekend that I thought on many issues they were very strong Conservatives indeed, they will wish to see a Conservative victory at the next general election. I don’t believe the issues of dispute that have caused this split are issues that it is impossible to resolve. I think some of the resolution is now in place and I think the rest of the resolution is now a clear path so I believe that they will come back. I can’t determine when they come back, it will need an agreement between both of us – as I indicated a moment ago, it takes two to reach such an agreement. I hope that they will decide to do so and I believe that is the wish of the 321 Conservative MPs in the House who have the whip.

    QUESTION (CH4):

    Prime Minister, could you foresee winning the next general election without lowering taxes substantially?

    PRIME MINISTER:

    I can’t anticipate the next two budgets. I am in favour of lower taxes but only providing it is economically justifiable; we will have to wait and see whether that is the case. I don’t think it would be prudent for me to tell you now what will be in the next budget or indeed the budget after that.

    QUESTION (DON McINTYRE):

    Prime Minister, do you think that the current well-publicised deliberations of the CBI and others on executive pay are in the end going to result in some form of legislation on that topic?

    PRIME MINISTER:

    I think they are trying to produce a system where peer pressure works and I believe that is the right way to deal with it. I think peer pressure on executive pay and ensuring that shareholders and institutional shareholders perhaps in particular use their power as the owners of companies to ensure that top pay awards are satisfactory is right.

    The danger is, however ill-advised some of these very large pay increases may have been and however offensive they may have been to many people, once you get in the direction of determining pay for top executives, where do you stop? Do you stop just at the former nationalised industries? Do you look beyond that to other companies that one way or another serve the people? Do you actually look at football managers, editors of newspapers? Where do you stop? You are actually getting into a position where the Government is going to decide who is paid what in areas that are not owned by the Government. That has been tried in the past, it has never in the past been successful.

    I share the concern that many people felt about some of these pay increases and I don’t think anybody who knows me doubts that and I think most of you in this room know that very well but the question is in opposition you can play gesture politics, in government you can’t. In government, you would be asking us: “What are you going to do?” and when we had said: “We are going to do this!” you would have pointed out all the defects in that insofar as it affected other people and you would have been right to do so. Gesture politics is very effective if you are in opposition but it is not effective if your are a government and I think therefore that the tight way to deal with this is the way the CBI are doing, the establishment of the Greenbury Committee. The National Association Of Pension Funds and others have expressed similar views and that sort of peer pressure is the best way to get an effective answer in my judgement.

    QUESTION:

    Prime Minister, you said in your statement that you were going to seek advice from Conservative non-government groups in formulating your policies for the next century. Can you indicate what groups you have in mind and would you welcome members of the public writing in to tell you what they thought?

    PRIME MINISTER:

    They always have done in my recollection. Let me be clear. I certainly didn’t mean the Labour Party and the Liberal Party; I don’t think any advice from them would be likely to be productive. I had in mind people who are non-political, who are specialists in whatever it may be, transport, the environment. I anticipate utilising and inviting some of the specialists in areas of great importance to future Government policy to submit their views on what needs to be done and of course, if people have a particular interest or a particular knowledge we would wish to hear what their views are. We are not just looking at a manifesto for the next general election – let me emphasise that again – we are looking at a much wider and longer time-scale so that we can look at the next phase of development in the United Kingdom and the sort of policies that we think are appropriate both for Great Britain as a country internationally and also for individuals within great Britain and their own individual liberties, choices and opportunities.

    QUESTION:

    [Inaudible] a new strategic authority for Greater London?

    PRIME MINISTER:

    No, I have no plans to do so at the moment, no.

    QUESTION (RADIO COVERING THE NORTH-EAST):

    Could you offer a message of hope for the people in the North-East, particularly the unemployed who feel they have been betrayed by your Government?

    PRIME MINISTER:

    I think unemployment is falling pretty rapidly in many parts of the country, not least of course the North-East. You put the point rather provocatively but I think many of the people in the North-East would look at some of the very large external investments providing jobs in the North-East and they might say to themselves would those investments have come to the United Kingdom and in particular would they have come to the North-East if it hadn’t been for the policies that the Conservative Government had followed and the answer to that question, as you will, know, is no, they would not have come to the United Kingdom and they would not have come to the North-East so I believe when they look at that dispassionately they will see the opportunities for increasing employment.

    What we have seen over the past two years is a continuing reduction in the level of unemployment; it has come down, frankly, faster than we imagined that it would and it is very welcome that it has done so and I hope what we are going to see in the months ahead is a continuing fall in unemployment and to make the reverse point, a continuing rise of the number of people in employment as well. The economy is set fair for that; although there is not a direct relationship between growth and job creation for a number of complex reasons, I hope that is the trend that we are going to see.

    QUESTION (MICHAEL WHITE):

    You are holding this press conference 43.5% behind in the polls, you say the economic recovery is coming through but isn’t it possible that if people feel as confident as you say they will they will take a chance on another government and if they don’t the reason why you are 43.5% behind is that “Daily Telegraph” readers feel all the insecurity which skilled workers – Labour voters – felt ten years ago when your free-market revolution began? Boris’s readers are as nervous as everybody else.

    PRIME MINISTER:

    Is Boris here. Oh there he is!

    You quote Gallup; Mori had a rather different figure which just indicates how volatile the opinion polls are at the moment, I have never been a great advocate of opinion polls on the question of voting at a particular time and that has been true in days when they have been favour to the Conservative Party as well as days when they have been less favourable to the Conservative Party.

    I believe that one can begin to see a great sea change in what has been put in hand over the past three or four years. We put a whole range of things in hand; we have produced a great deal of reform. Reform is often painful, it upsets people, people tend to object very strongly if their particular profession is being reformed; they certainly object very strongly if they face increased taxation they didn’t expect so there are a range of issues why people have had reason to feel disenchanted but because of the decisions that we have taken, because we accepted the unpopularity that went with those decisions, we can now see in the second half of this Parliament – and we are only just entering the second half of this Parliament – that we are on the most secure growth pattern for the economy that we have known for very many years indeed, that the education policies are delivering higher standards, better results, more young people in further education and better information for parents; that the health reforms are producing many more people treated, a wider range of treatments and faster treatment than ever before; and that in a whole series of other Government policies we can see a distinct improvement coming through so I believe the attitude does change. There is a fashion about these things. I think people will begin to see over the months ahead that the circumstances are changed, that many people who feel gloomy will begin to feel perhaps the gloom has been overdone and the prospects for them are much better.

    One of the things I believe affecting many of the people who feel very concerned is insecurity about their own employment prospects – you referred to Boris’s readers, I am sure that would be the case with many of those people – and yet we have seen for two years unemployment falling. In France, the nearest comparable economy to the United Kingdom in size and structure, you have unemployment at 12.8% and rising; here in Britain it is 8.8% and falling. That argues that we must have done something right and I believe as that continues to fall that message is going to echo very clearly in each and every part of the country and I will do my best to ensure that it does, Michael, as I am sure you will.

  • Mr Major’s Speech at the UK Quality Awards – 30 November 1994

    Below is the text of Mr Major’s speech to the UK Quality Awards on Wednesday 30th November 1994.


    PRIME MINISTER:

    PRIME MINISTER’S SPEECH AT THE UK QUALITY AWARDS, WEDNESDAY 30 NOVEMBER 1994

    In the midst of an otherwise dull week, I have been looking forward to this occasion. When I sat there listening to the names of the winners, it occurred to me that I could perhaps have used some TNT a little earlier this week. It might perhaps have encouraged the odd rover. I wonder if ICI could provide some explosives?

    I realise firstly that I am probably the last impediment between you and dinner and I will bear that in mind. But I believe this is an important occasion. I am delighted to be here as I know Michael Heseltine is and there are a few things I wish to say about British business and about quality. When Michael and I launched the Competitiveness White Paper last May, we had three significant messages. The first was that we live, in business terms, in a cut throat world. The second was that Britain’s best companies are literally the best in the world. And the third was that notwithstanding that, in order to maintain that position for some and gain it for others, we needed to raise our standard right across the board. The message is quite clear and it is quite unequivocal. Quality matters. It matters in an increasingly discriminating world. It matters for the pride of what we sell at home and what we export abroad. And it matters perhaps at the very realms of self-interest, because unless you provide quality you are very unlikely to provide and receive the return orders that all of us would wish to see this country obtain. That’s why it matters.

    Michael and I have both led trade missions abroad on a number of occasions in the last year. We have done so because we are proud of what this country produces. We have done so because we are sick and tired of some people who fail to realise how good so much of this country is and are forever running it down. We find, going abroad, there is a ready message and there are ready ears abroad to hear that message about the quality of British business; about the innovation of British business, and about the fact that British business now does deliver on time and does deliver a quality that is the equal of anyone in the world. That is why we’ve taken those trade missions abroad and that is why in the years to come we look forward to taking many more trade missions for exactly the same reason.

    Mr President, the British Quality Foundation has set itself to achieve higher quality across commerce and industry. You have essentially raised a flag of excellence with the UK Quality Award and I think the sheer size of tonight’s audience shows how many companies have responded to that challenge – how many companies themselves have sufficient pride in their own performance to realise that it is important to produce quality and important to compete in order to win the prizes that the best of quality now has available. I very warmly congratulate both the winners and those who came so close to winning on this occasion.

    Rover of course is one of the main companies that the Conservative Government has returned to private ownership. And tonight’s video shown a few moments ago showed precisely what they’d made of that opportunity. It isn’t all that long ago when you could have looked back at the British motor industry, looked back particularly at what is now Rover and seen what looked very much at that time, like a basket case of a company and a basket case of an industry. Anyone who went this year to the Motor Show would see what an absolute revolution has been achieved at Rover and elsewhere across the British motor industry. I believe what Rover had to say in their video about their quality and about their service is justifiable and I offer to them my very warmest congratulations for what they have managed to achieve. TNT Express as well are a success story of the very first order. A success story in the service sector, delivering a huge range of transport services, carrying almost everything from newspapers upwards. My only regret is, that not only carrying the newspapers, so dedicated are they, I’m afraid they also deliver them. With that single reservation, I offer them my warmest congratulations.

    But although their senior executives are here tonight to collect the prizes, I know they won’t mind my saying, that it isn’t just the chief executives on the boards, it’s the workers in Rover and TNT Express upon whom the companies success most depends. It is the shareholders, who work hard, who apply the crucial tests of profitability and performance and also the customers, who have applied the crucial tests of quality and value for money. Rover and TNT have met those tests.

    Tonight’s award gives other companies, not least small and growing companies, clear examples to emulate in the future. Every British company needs to measure up to the best if we are to succeed against hungry competitors in an increasingly open and competitive world market. There are no easy markets these days. No captive markets who will instinctively look to us because they have always looked to us. It is a much more competitive world out there this year than last year and it will be a yet more competitive world next year. And so the prime responsibility is going to be yours. Individual companies, individual businessmen and businesswomen. That is not to say that the Government themselves do not have a role to play, for I believe myself that they do. I believe the policies that are necessary for us to follow, are the policies that provide the framework within which British industry can succeed at home and sell successfully abroad. The fundamental issue, the fundamental responsibility of the Government is to provide the right sort of framework and the right sort of policies to business.

    On Monday of this week we voted on the European Finance Bill. I just wish to say to you this evening, I intend to continue to fight for the right sort of Europe. A genuine single market. One with flexible employment policies. The minimum of regulation and free trade with the rest of the world. And what I regret, is the extent to which the European argument – so vital to your success as business in this country and the employment prospects for all our nations – so much of this argument is carried on in extremes. In order to have any convictions on Europe, some people seem to think you have to be an extreme Euro-Federalist on one side or an extreme Euro-Sceptic on the other. Well I have to say to you, I fit in neither of those categories and neither in my judgement, do 95 per cent of the British nation. They know that the right sort of policies are that we have to be part of Europe, we have to be a leading part of Europe and we have to make a pragmatic and practical examination of what is right for this country and fight for those policies within the European Union. That, I promise you, is what the Government intends to do.

    Yesterday the Chancellor produced his Budget and here again it was the needs of business that were at the forefront of his mind. The overriding need to keep public spending and inflation down. To provide extra help for exporters and I know how hard the President of the Board of Trade has fought for those improvements. Measures to help unemployed people back to work and to reduce employers national insurance contributions for lower paid jobs.

    It is nearly two years ago since I first spoke about the need for work incentives in a speech at the Carlton Club. As is evident to anyone who heard the Budget speech yesterday, we are now putting our principles into practice. The Chancellor also introduced special measures for small businesses including new venture capital trusts. I believe the fruits of many of the difficult and, frankly, unpopular decisions that we have had to take in recent years are now beginning to show through. The whole economy has grown in the last twelve months, much faster than forecast – over 4 per cent, a touch over 4 per cent in the last year. Inflation is at the lowest for a generation and there are very few people in this room who could last remember when growth was double the underlying rate of inflation as it is at present. We’ve seen manufacturing output rise by 5 per cent and productivity rise by 6 per cent. Exports month after month seem to exceed the record figures of the month before and have risen by 12 per cent. Unemployment has now fallen by getting on to nearly half a million.

    The recovery that we are seeing in this country is unmatched elsewhere in Europe. Other things that many of the cynics forecast have not come about. It was said when we moved back into recovery that we’d have a widening balance of payments problem. Self-evidently we haven’t. That inflation would take off. Self-evidently it hasn’t. That after sterling devalued as we came out of the exchange rate mechanism, it would feed straight through the wages and we’d lose our competitive position. Self-evidently it hasn’t.

    I spoke some time ago to some German businessmen and they said “I hope you British realise where you are at the moment. You are at the moment the most competitive nation in Western Europe”. And that I believe is true and what I would wish to see is to see us remain the most competitive nation in Western Europe. I don’t wish to see inflation low for a short term. I wish to see if we can break the inflationary psychology that time after time after time has wrecked recovery in this country, and break it for good. That does mean no dash for growth policies as the Chancellor says. It does mean no reckless manipulation of fiscal policy. It does mean that we will continue to pursue the policies that are right for the medium and the long term to retain a position in which we have an economy with sustainable growth and low inflation.

    When I first went to the Treasury as Chancellor in 1989, one of the first things said to me repeatedly by businessmen was “we don’t want a lot from the Government, just give us a stable framework and remove regulation from us and let us do the job that we wish to do on behalf of our companies and on behalf of our country”. That I believe is what we are now achieving. We now have the fastest growth of all the major economies in Europe. This provides huge opportunities for British business provided British business stays competitive. What we must ensure is that we don’t casually, either we the Government or you industry and commerce, throw away the advantage that has been so hard won over recent years. I know the seductive voices about the feel good factor. Well I confess to you, in the privacy of this meeting, that I have a certain reservation about what people call the feel good factor. My observation over years has been that the feel good factor is often the prelude to a rather bad hangover. And people do feel good when more money is going in their pockets than productivity might perhaps merit. They do feel good is they’ve suddenly seen their neighbour’s house sold for £20,000 more than they thought it was worth. But those are the sort of factors that almost inevitably lead in the short term to economic difficulties. I want a feel right factor rather than a feel good factor. It is towards that aim that we are conducting economic policy at present.

    Mr President, the UK Quality Award has put the spotlight this year on two quite outstanding companies. I am delighted that next year public sector bodies will be able to compete as well as the private sector. All round quality is necessary in the public sector as in the private sector and I am determined that that also will be delivered. Britain’s success, her long term success, the pride that British industry now has in itself, can be maintained and should be maintained. But it does depend upon excellence in both the public and the private sector alike. So let me just conclude with a message I think is self-evidently true and that businessmen will recognise as being so. Let us be blunt. Winning is the name of the game in this hugely competitive world. I wish to see this country win. I wish to see British companies win. I know they will do so if they produce a quality that is the equal of any other in the world, as increasingly they are beginning to do.

    This award will add to the impetus to provide that quality and I warmly welcome it. I add yet again, my congratulations to those who won and look forward to seeing many more winners of the UK Quality Award in future years. Perhaps they are here. I hope, certainly, many people here will apply for this next year. It is worth winning. It has been won by two great exemplars of British industry. I wish all of you the best of good fortune in following their success in the future.

  • Text of the 1994 Budget – 29 November 1994

    Below is the text of the 1994 Budget, held on 29th November 1994 and presented in the House of Commons by the Chancellor of the Exchequer, Kenneth Clarke.


    Budget Statement

    Mr. Deputy Speaker (Mr. Michael Morris): Before I call the Chancellor of the Exchequer, it may be for the convenience of hon. Members if I remind them that at the end of the Chancellor’s speech copies of the Budget resolutions will be available to hon. Members in the Vote Office.

    The Chancellor of the Exchequer (Mr. Kenneth Clarke): The “Financial Statement and Budget Report”, with a number of press releases filling out the details of my proposals, will be available from the Vote Office as soon as I have sat down.

    Mr. Dennis Canavan (Falkirk, West): The Chair has already said that.

    Mr. Clarke: I was making sure that I had the hon. Gentleman’s attention. I congratulate him on his alertness.

    INTRODUCTION

    I have three priorities in my Budget this year. The first priority is to keep the economy on track to achieve the great prize of sustainable growth. This recovery offers the best prospect that the British people have faced for many years to enjoy the benefits of growth that does not pass through illusory boom to painful bust. My second priority has been to use this recovery wisely to encourage the creation of more jobs, particularly for people who have been out of work for some time. We must combine greater prosperity for the majority of our people with measures to prevent the emergence of a deprived underclass, excluded from the opportunity to work and dependent on welfare.

    The third priority is to strengthen the economy in the longer term. We must aim for a modern economy in which the growth of enterprising companies will give people a greater sense of confidence in the flow of new jobs that will always be required to replace the old jobs eroded by technology and competition.

    UK Economy

    The background to this year’s Budget is the healthy growth in output that we are seeing in Britain and overseas. The recovery has been under way at a modest pace for over two and a half years. It is now stronger and output has grown by over 4 per cent. over the past year. That is easily the fastest rate of growth of any of the major European economies. The forecasts I am publishing with this Budget show the economy expected to grow by 3 per cent. next year. As the recovery has got stronger, growth has come increasingly from exports. Over the last year, British exports have grown by over 8 per cent. Investment in plant and machinery has grown by over 5 per cent. Consumer demand has increased by a more modest 2 to 3 per cent. That is a very healthy shape for this stage of the recovery and bodes well for our long-term future as a competitive industrial economy.

    Our exporters have been able to take advantage of the pick-up in growth overseas, by keeping their costs down and raising their productivity. Our producers have succeeded in improving their performance in domestic markets, so that while exports continue to rise, imports are little changed. Overall, I expect our balance of payments on current account to improve by over £6 billion this year. An improving balance of payments is remarkable for this country at a time when the economy is growing stronger. More encouragingly still, inflation has remained low.

    Underlying inflation has fallen to levels that we have not seen for a generation. Indeed, only about one third of the adult population of this country have ever experienced such low inflation during their adult life. The other two thirds are still finding it difficult to adjust to the change to a low-inflation economy. [Interruption.] They are not going to adjust back under the Labour party, either. Unemployment is on a clear downward trend, having fallen by over 450,000 since December 1992. The United Kingdom, as I have already said, is the only major economy in Europe where unemployment has fallen over the past year.

    The unemployment rate in this country is lower than the average for the European Union. And the number of people in work is rising. The “Labour Force Survey” shows an increase of 226,000 in the number of people in work in the last 12 months. That means real new jobs for people up and down the country.

    We are seeing strong output growth, strong export growth, falling unemployment, an improving balance of payments and low inflation. That combination is almost unique in this country since the war. But let us be under no illusions. Those promising conditions have to be sustained if they are to deliver higher living standards and secure jobs for men and women. And these promising conditions have arisen at all only because of the difficult decisions that the Government have been prepared to take in recent years.

    We must not now throw away the gains that have been made by turning to some short-term dash for yet faster growth. Growth will be sustained only if we keep the lid on inflation, get public borrowing down further, and push ahead with measures which strengthen the industrial economy. That is the way to convert growth into prosperity and jobs.

    That way lies the virtuous circle of improved competitiveness, rising productivity, economic growth, low inflation, and more jobs. We must not change our minds now for the sake of short-term popularity. [Interruption.] Those who bask in their short-term popularity and neglect the need for sound economic measures will live to rue the day hereafter. Only by keeping our nerve and sticking to the determined policies that we have put in place over the past couple of years will we be able to enjoy the full fruits of improved economic performance in rising prosperity and lower unemployment.

    Inflation

    Let me deal first with inflation. Low inflation creates a climate of stability which encourages savings and investment in the future of this country. Nothing would be more damaging than if we let inflation off the leash again only to have to take another dose of bitter anti-inflationary medicine. The British experience is that high inflation has brought economic recovery to a halt three times over the past 20 years. That is three times too often for my liking. And while we have succeeded in bringing inflation down to levels that were last seen when England won the World Cup, we must never take that for granted. Before that game I had lived in a low-inflation economy. After that game came Harold Wilson, in political terms.

    I live in a low-inflation economy again now and am glad to say that our inflation rate is now well below the European average. We need to keep up that performance if we are to be a competitive manufacturing nation enjoying the living standards of the best in future. I will therefore continue to set interest rates to meet our objective of keeping underlying inflation in a range of 1 to 4 per cent., and in the lower half of that range by the end of the present Parliament. That is a tough target by Britain’s recent standards, but not by those of some of our best competitors.

    To make sure that we achieve that target, I have backed good intentions and resolve with a number of important decisions over the past year that have strengthened the framework of policy. The Bank of England’s quarterly inflation report is now fully independent of the Treasury. The Governor decides the precise timing of interest rate changes. And, most importantly, I decided in the spring to publish the minutes of my meetings with the Governor. As a result, we in Britain now have one of the most open frameworks for monetary policy-making in the world. This will stand us in good stead in keeping inflation permanently low; but it will most certainly not avoid the need to take tough decisions at times.

    In September the Governor and I agreed that, with the recovery strengthening at home and prices rising abroad, there was a sufficient risk of inflation picking up here to justify raising interest rates by half a per cent. By acting before retail price inflation itself picks up, we will aim to nip inflation in the bud. I expect inflation to rise slightly over the next year, reaching a temporary plateau of around 2 per cent., as a result of higher commodity prices and stronger profit margins in our very buoyant manufacturing industries. But continuing competitive pressures will ensure that producers and retailers keep costs under control and pass on the benefit to consumers. I expect that underlying inflation should then resume its downward trend.

    Gilt Market Repos

    Before I turn to the public finances, I can announce an important further development of the gilts market. The Bank of England is publishing today a consultative document on the establishment of an open sale and repurchase – a so-called repo – market. This should improve both liquidity and efficiency, reducing yields and hence reducing the Government’s debt interest costs. Each reduction in yields of just one basis point – one hundredth of 1 per cent. – will eventually save more than £25 million a year of public expenditure.

    Public finances

    I turn now to the public finances.

    Last year, I continued the process started by my right hon. Friend the Member for Kingston upon Thames (Mr. Lamont). I announced measures which cut the public sector borrowing requirement by 1 per cent. of GDP by the end of this Parliament. Combined with the healthy growth in the economy that we are now enjoying, those measures have helped to bring the public sector borrowing requirement from £45 billion in 1993-94 to an expected £34 billion this year. My objective remains the same: to balance the Budget over the medium term. We remain on course to eliminate Government borrowing entirely by the end of the decade. By 1996-97 borrowing will be approximately equal to the Government’s net capital expenditure.

    About half my own cuts in public borrowing last year were achieved through cutting public spending plans. But, because of the length of the recession, my right hon. Friend and I also had to raise taxes to meet the objective of healthy public finances. Delay and failure to act would have caused, since then, intolerable additional pressures to raise interest rates faster and to raise taxation still further. We would not have had strong and sustainable recovery now if we had failed to cut spending and raise taxes last year.

    For that reason, the public spending cuts and the tax increases that I announced last year remain, of course, quite essential to the strategy of achieving economic recovery. We have restored confidence in our ability to achieve sustained recovery by the process of taking firm measures. We would damage that confidence again if we now seemed to falter, or even to go back on any of the measures that we have already put in hand.

    VAT on Fuel Compensation Package

    I am able to improve the package of help that I announced last year to cushion the effects of VAT on fuel on all pensioners and on vulnerable groups – enormous though that package was when I announced it last year. Last year I doubled public spending on the very effective home energy efficiency scheme so that, for the first time, everyone over the age of 60 became eligible for a grant. This has been a huge success. Soon over a million people will have received grants to improve the insulation of their homes, reducing their excessive heating bills and improving their comfort. That is still not enough. Therefore, on top of last year’s doubling, which will of course be carried forward each year, I am now adding another £10 million a year to the resources to fund grants. Soon British homes will at last be a match for the British weather in every part of the United Kingdom, especially for the elderly.

    Cold weather payments were set at £6 each week only two years ago. I now intend to increase them to £8.50 each week in order to reassure people that they will get help with their bills when spells of freezing weather occur.

    Furthermore, next year, 1995-96, there will be an additional £52 for single pensioners and £73 for couples built into all retirement pensions as compensation for VAT on fuel.

    From April 1996 there will be £68 extra on the single pensioner rate and £96 extra for pensioner couples. That is more than the whole of the VAT on fuel bills for a significant number of them. In addition, electricity prices have been falling for many people. Gas prices are to be raised for the first time since 1991, but this will be coupled with discounts for prompt payment which will reduce many peoples’ bills.

    The House should appreciate that, so far, including the first stage of VAT – the 8 per cent. already in payment – both gas and electricity bills have fallen by 1 per cent. in real terms over the last two years. That real-terms fall is for everybody, before taking into account the package of help for pensioners so far in payment. The full burden of the tax is, of course, only borne by people of working age who are not receiving means-tested benefits. I have made it quite clear that people of working age cannot expect tax cuts or a reverse of previously announced tax increases this year.

    PUBLIC SPENDING

    I would like to turn now to the Government’s new plans for public spending.

    Last year’s Budget set a new milestone in the control of public spending. We managed to reduce the control totals that had been set in the previous spending round, by £8 billion over three years, and we reduced general Government expenditure by £15 billion over the same period.

    That was a measure of the success of the new system of public expenditure control that we first introduced in 1992. Last year saw the first fruits of the programme of fundamental reviews of all Departments.

    The reaction to that new approach was predictable. A welcome from the Government side of the House, criticism and alarmist nonsense from the Labour party and scepticism from the so-called experts who doubted whether those plans could be delivered in practice. In fact, for the current year, 1994-95, the first year after last year’s announcement, we expect to do better than the plans that were set and we expect to underspend by more than £1 billion.

    At the start of this year’s survey, the Cabinet decided that we should also keep within last year’s planned totals for 1995-96 and 1996-97 and allow no more than 1 per cent. real growth for 1997-98. The plans I am about to announce deliver that remit. But it has not been easy. Last year’s settlement was extremely tight. I am grateful to my right hon. Friend the Chief Secretary for his skilful handling of what has been a difficult spending round.

    We have been guided by four basic principles this year. First, we have taken advantage of the welcome fall in inflation since the last Budget. Thanks to lower inflation, the price levels that we will be facing in 1995-96 will be 2 per cent. lower than we expected when we decided on spending plans last year.

    We have not let that feed through into a higher level of real resources for Government Departments. We have reduced our cash plans for almost all programmes. Lower inflation needs to be matched in the public sector by lower cash spending.

    The second principle is that we have built on the increasingly important role played by private finance. All Government Departments are now looking actively at private finance options for their capital expenditure.

    Thirdly, we have focused our search for savings on administrative and running costs, cutting the back office and protecting the front-line delivery of our key public services. Our aim has been to provide a better output of public services, for fewer inputs. Fourthly, we have taken a close look at the Government’s own spending priorities. We have looked for savings on some programmes so that resources can be channelled into the services and policies to which the Government attach most importance.

    Private Finance

    The right hon. Member for Kingston upon Hull, East (Mr. Prescott) reacted to my mention of private finance. Privatisation and private finance for capital investment are rapidly becoming the chosen method for raising the quality of public services in the majority of countries in every continent in the world. They started in this country. Although the political debate here has been transformed since I first became a Minister, an irritating amount of post-socialist resistance still persists. The right hon. Member for Kingston upon Hull, East will welcome the news that, fortunately, the Government’s private finance initiative remains alive and well and is growing rapidly.

    Last year, I announced that a number of transport schemes would go ahead under the private finance initiative. Significant progress has been made – £370 million of private capital has been invested in transport projects in the past two years, with a further £760 million already committed. In addition, £3.5 billion of projects are currently out to competition and the value of contracts placed will steadily build up from a stream to a significant flow. The right hon. Gentleman does not look so cheerful.

    The private finance initiative, however, runs wider than transport. There are now more than 50 health projects either approved or completed, bringing more than £100 million of new capital into the national health service. Bids have been received for the first two privately financed prisons and more than £1 billion of information technology projects are now following or considering the private finance route.

    In higher education, universities now receive approaching a third of their revenue from the private sector and my right hon. Friend the Secretary of State for the Environment announced on 31 October new proposals to make it easier for local authorities to form joint ventures with the private sector.

    New projects are constantly emerging as the initiative breaks new ground. Today, I can announce that we are on course to let contracts in 1995 under the private finance initiative, leading to around £5 billion of capital investment. We said that we could do it, we introduced it and we are doing it.

    Transport

    The growing importance of private finance has helped us to find significant savings for the taxpayer in the transport programme. In recent years, there has been a huge increase in public expenditure on the trunk roads and motorway programme which has risen by one half in real terms in the past 10 years. That was essential to tackle traffic bottlenecks and to reduce costs on British industry seeking to get goods to markets at home and abroad.

    Now that the main need of the economy is control of public spending and borrowing, we cannot carry on pumping in the same amount of taxpayers’ money. We have, therefore, significantly reduced planned public spending on trunk roads and motorways. Even so, public spending on such roads – without taking account of the expected contribution from the private finance initiative – will be considerably higher in real terms than the average level of provision in the 1980s. Rapid progress with private finance of design, build, finance and operate roads will take provision still higher and the first four DBFO schemes will shortly go out to tender.

    Private finance will also now play an increasingly major role in London Underground investment. In particular, I am pleased to report that the private finance competition for the provision of a new Northern line train service has proceeded rapidly. My right honourable Friend the Secretary of State for Transport will be able to announce a decision very soon.

    That, together with future deals, should improve the quality of London Underground investment as well as its quantity. In addition to the contribution from private finance, the plans in the Budget imply total investment in the underground network next financial year of around £1 billion. The Budget also takes account of the key effects expected to arise from rail privatisation, not least the privatisation of Railtrack within the lifetime of this Parliament, as announced by my right hon Friend the Secretary of State for Transport last week.

    As has been the case with other privatisations, rail privatisation will bring benefits to passengers from more efficient management bearing down on costs and being more responsive to passenger needs.

    Running Costs

    Private finance will play an increasingly important role in financing better infrastructure for public services in coming years. I now turn to the need for firm control of the Government’s current, as opposed to their capital, spending.

    One of our key objectives this year has been to intensify the search for savings on administrative and running costs. My right hon Friend the Chief Secretary joined the Treasury team from the Ministry of Defence, where he played last year a lead role in preparing the defence costs study. That experience served him well.

    The success of the defence costs study is just one example – a very successful one – of how key programme objectives can be protected by bearing down on the administrative costs of delivering them. The outcome has been a substantial benefit for the taxpayer and for the front line.

    The defence plans in the Budget fully cover the costs of the important equipment orders that the Secretary of State for Defence announced in his statement to the House in July. Indeed, taking account of the changes in inflation since last year, these plans actually allow a slightly higher real terms level of spending than implied by the plans last Budget, accommodating the costs of military redundancies associated with the defence costs study.

    Improvements in the efficiency of delivering services is a policy that must apply throughout the public sector. The plans in this Budget reflect the results of a rigorous scrutiny of the Government’s own administrative costs. It must be right for modern government to modernise their own management structures and to get their own overhead costs down.

    As last year, we have maintained the policy that the pressure from pay and price increases should be met by greater efficiency or other economies. This has already allowed public services to achieve very reasonable pay settlements that reflect low levels of inflation and allow modest increases in real earnings. It is ridiculous to describe this long overdue and sensible practice as a pay freeze.

    But, in total, the plans in this Budget are for central Government running costs not to rise in cash terms over the four-year period from 1993-94 to 1997-98 taken as a whole. That represents a real-terms reduction in those running costs of more than 10 per cent. in the cost of government. It is consistent with the civil service White Paper expectation that total civil service staff numbers will fall significantly below 500,000 over the next four years to their lowest levels since the war.

    Local Authorities

    It is only right that local government should follow central Government and take a similarly tough approach to containing its costs. The Government’s proposals for local authorities have been set on that basis. The 1995-96 total standard spending in England will be 2.2 per cent. higher than this year, including provision for community care. That is perfectly reasonable after a year in which provision was far better than local authorities had expected or planned for because of the Government’s success in reducing inflation.

    As in central Government, local authorities will need to pursue opportunities for savings rigorously. Local authorities have substantial scope for improvements in efficiency, and for other economies. By that means, and by concentrating on their priority areas, they will be able to protect key services. The Government will use their powers to cap excessive local authority budgets should that prove necessary.

    My right hon Friend the Secretary of State for the Environment will announce the details of the local authority government settlement on Thursday.

    Housing

    We have managed to find savings in housing capital expenditure, in particular that of the Housing Corporation. The Government will comfortably exceed their election manifesto commitment on the provision of new social housing up to 1994-95. The new plans will still allow a substantial social housing programme to continue, assisted by the corporation’s success in levering in private finance.

    Employment

    Against the background of steadily falling unemployment, it has also been possible to make economies in the employment programme while still improving the quality of the programmes that are provided. A major reform of training for unemployed adults, based on payment by results, will seek to ensure that more trainees get jobs when they finish their courses.

    Social Security

    As a result of the announcements in last year’s Budget, we are already down the track of a thoroughgoing reform of the social security benefits system. We intend to ensure that it is better targeted on today’s real needs and we intend to make it simpler and less susceptible to abuse.

    Legislation to reform statutory sick pay and to introduce a new incapacity benefit was enacted in the previous Session. This Session will see the passage of the Jobseeker’s Allowance Bill and a major Pensions Bill to modernise the framework for both state and occupational provision.

    Tomorrow, my right hon. Friend the Secretary of State for Social Security will announce the details of the next phase of this programme of reform. I wish to mention now three of the initiatives that he will announce, from which I expect substantial public spending savings to flow.

    First, there is housing benefit. My right hon. Friend will announce tomorrow a reform of the arrangements through which the general taxpayer subsidises local authorities’ payment of housing benefit to the tenants of private landlords. The effect of this will be that authorities will not be fully reimbursed if they pay housing benefit on rents that are significantly above the average for the area and the type of property. Local authorities will, therefore, scale back the benefit they actually pay in line with the new restriction on central Government subsidy. They will, however, retain discretion and have some funding to pay the full rent in individual circumstances which they consider justify it.

    The previous arrangements meant that neither the landlord nor the tenant usually had any incentive to negotiate a lower rent because housing benefit would usually pay the rent in full – [Interruption.] This has had the inevitable effect, as seems to be acknowledged, of driving up rents and public expenditure – [Interruption.] I see that that is a welcome reform. At the moment, the social security budget sometimes pays the rent in full in cases where the rent is far above the average rent for property of that type in the neighbourhood. In future, people on housing benefit will have an incentive to make the same judgments about what they can afford as people who have to pay all their own rent. The system will no longer be a prey to the unscrupulous landlord. The reform will take effect from October 1995. Existing claimants remaining in the same property where they live now will not be affected.

    My right hon. Friend the Secretary of State for Social Security will be glad to hear the encouraging response from Opposition Members – [Interruption.]

    Let me see how far I can take the Labour party down the process of social security reform. Secondly, my right hon. Friend the Secretary of State for Social Security will announce tomorrow further measures to limit support for mortgage interest through the income support system to constrain the cost to the taxpayer and to minimise the distortion to work incentives.

    Most people are readily able to insure their mortgage interest payments, if they wish, against periods of sickness or unemployment and many people already do so. For new mortgages taken out by people of working age after October 1995, support will not normally be available for the first nine months, although my right hon. Friend will consult on the precise arrangements, including different treatment for circumstances in which insurance might not be available. There will also be some scaling back of support for existing borrowers.

    One reason why insurance has not become more widespread is that the taxpayer has picked up the interest bill too readily in too many cases. This change will give more borrowers an incentive to ensure that the mortgage costs of people who are temporarily unable to keep up with their payments will be met by the borrowers themselves and by lenders, rather than by the taxpayer.

    Thirdly, my right hon. Friend the Secretary of State for Social Security will also announce a major intensification of the war against fraud in the social security system. We are already saving £700 million a year from existing efforts. The further measures on fraud, which include a major project to pay benefits in post offices by electronic means rather than by paper transactions, will, at a cost of £300 million, save another £2 billion over the next three years.

    The Government know that firm control of public spending and reduced public borrowing are essential to sustained recovery, prosperity and jobs. We will also show that strong control of public spending overall can be combined with improvements in key public services selected as Government priorities.

    Education

    The Department for Education provision will increase in real terms by almost 1 per cent. next year. The Government are intent on extending their significant achievements in education, and we have also managed to find savings in parts of the education programme. Almost one in three young people is going to university, compared with one in eight in 1979. That is a remarkable achievement. A period of consolidation to secure quality and standards is now required after a period of very rapid expansion. However, the overall package of student grants and loans will once again increase in line with inflation. There will be continued growth in student numbers in further education, again to record levels. The new plans also allow for further growth in the number of grant-maintained schools and for additional capital spending in our schools.

    Home Office

    The Government continue to attach high priority to spending on law and order. The new plans for the Home Office increase provision for the police by 3 per cent. in 1995-96. Major efficiency improvements from the Sheehy proposals will enable more police officers to be released for front-line duties. The reforms to be implemented next year will give chief constables much greater freedom to manage their own increased resources and to respond more effectively to the public’s priorities.

    Single Regeneration Budget

    As a former Minister with responsibilities for the inner cities, I am pleased to say that within the single regeneration budget we have found extra resources to support new projects in our rundown urban areas and elsewhere. My right hon. Friend the Secretary of State for the Environment will be providing for more projects under the current bidding round and he will be able to conduct a second round of bidding with funds starting in 1996-97. In all, there will be more than £800 million for new regeneration projects over the next three years.

    Health

    That brings me – finally, on public spending – to the Government’s plans for the health service. With inflation so much lower than expected this year than last, it would have been perfectly possible for us to reduce our previous plans for health and still to meet our manifesto commitment to real growth in resources for the national health service each year. Due to the high priority that we give to the national health service, we have decided not to claw back the unexpected provision in this way. Instead, the health service will keep the unplanned bonus that it has had this year from lower inflation. I shall spell out what that means. Next year, spending on the national health service will grow by £1.3 billion. That is 1 per cent. growth in real terms against the per cent. increase that we originally allowed for in last year’s Budget. It will come on top of a real increase of 3 per cent. this year because of the drop of inflation.

    So, in addition to the extra money from the taxpayer, the health service continues to benefit from the improvements in performance flowing from the Government’s reforms. Further improvements in efficiency are expected to release at least £600 million extra for patient care next year. All those savings, including gains from rationalising management and administration costs throughout the Department and throughout the national health service, are ploughed back into patient care. Those extra funds, on top of the extra provision that I have announced, which are achieved from savings coming from a variety of measures, have only one thing in common. All those savings – therefore all the extra funds – have so far been opposed by the Labour party.

    All this – the extra provision and the savings – means that next year we shall all benefit from an even better financed health service, which has seen real increases in spending on it by the taxpayers in every year since the Government took power. It will be delivering even better standards of patient care, with further improvements in patients charter standards, and more progress in reducing waiting times.

    HELPING PEOPLE BACK TO WORK

    At the beginning of this speech I said that the combination of healthy growth and low inflation we are now seeing is virtually unprecedented in Britain’s recent past. Few doubt the strength of the recovery. But everyone in touch with the real world knows that the benefits of recovery have yet to feed through to many people in this country. Unemployment remains far too high.

    Thanks to the labour market and trade union reforms of the 1980s, unemployment did start falling at a much earlier stage of this recovery than it had in recent previous recoveries and, unlike other European countries, we have resisted pressures to add social costs on top of wage costs for our employers.

    Unemployment will, of course, fall further as the economy recovers. But I have long believed, as my panel of independent forecasters points out and as is now widely recognised, that demand expansion on its own is not enough to produce a sufficient fall in unemployment. We have to do more to reduce unemployment in ways which are consistent with sustained growth and low inflation.

    I have been making speeches on this and giving lectures ever since I became Chancellor on the need to ensure that we do not have recovery without jobs. As well as giving speeches, I have already done something about it. In my last Budget, I did three things. I announced measures to make it harder for people who are quite capable of working to stay on benefit without looking for a job. That is at the heart of the job seeker’s allowance. I made it easier for people with children to take jobs, by introducing a child care allowance into family credit. I made it cheaper for employers to give people work, by cutting the lower rates of employers’ national insurance contributions by a full percentage point.

    In this Budget I want to do more on all three fronts. We must get people back into work and out of dependency on benefit. We must reduce – not increase – the cost to employers of employing people who have been out of work. I aim to ensure that we do not have a class of people in this country who are excluded from economic activity.

    Incentives for employers

    The first step is to encourage employers to look more favourably on people who have been out of work for some time. I can announce, therefore, a wholly new incentive to encourage employers to take on more people who have been unemployed for two years or more. In future, employers will get a full national insurance rebate for up to a year after taking on such a person. That will provide employers with an important new reason to give a second chance to someone who has been unemployed for some length of time – [Interruption.] Yes, but the Opposition were very late on the scene on which we have been working for a long time and they have got most of it wrong. I am going to announce a package which will show the Opposition how to do it. This first whole-year national insurance contribution holiday will run from April 1996. More immediately, my right hon. Friend the Secretary of State for Employment intends to develop new pilots under the Workstart scheme. This offers employers a grant to recruit people who have been unemployed for over two years. There will be around 5,000 new job opportunities. Experience with existing pilots that we have been running suggests that the scheme helps to break down the prejudice which can blight the long-term unemployed.

    I know that some employers will still worry that people who have been unemployed for a long time may have lost the habit of working. We introduced the work trials scheme to counter that. It allows unemployed people to try out a new job for three weeks, without losing their benefit. They will keep their benefit entitlement. It costs employers nothing for those three weeks and it lets employers see for themselves whether the people they take on can be relied on to hold down a steady job. The record so far is impressive. A large number of people are kept on at the end of the trial period. So I propose to expand the scheme to provide 150,000 job opportunities over the next three years.

    In addition, I propose a further cut in the lower rates of employers’ national insurance contributions for every employee. From next April, they will come down by another 0.6 per cent. This will reduce the cost to employers of providing lower-paid jobs by another £230 million in 1995-96, on top of the reduction of £940 million carried through from 1994-95. It must make sense to keep on cutting the burden on employers who create jobs and in particular on those employers who provide jobs for less skilled people. The Labour party keeps wanting to go in the opposite direction by increasing the costs on employers with a minimum wage and a social chapter.

    Incentives to look for work

    I need to match these incentives to employers with measures to ensure that people get the rewards to which they are entitled when they move from unemployment into work.

    First, we need to ensure that people are kept in touch with the labour market and do not stay on benefit unnecessarily. The job seeker’s allowance will reinforce the link between claiming benefit and looking for work. It will be supported by an unprecedented range of measures to help the unemployed.

    One of our existing measures, Community Action, was due to finish next year. My right honourable Friend the Secretary of State for Employment has decided to extend the scheme in revised form. It will provide work experience and a route back to jobs for around 40,000 long-term unemployed people each year.

    We introduced Restart when I was Minister of Employment in 1986. That required people who had been on benefit for a long time to come in for an interview and advice to help to get back into work. It gave positive help to many people and got many back into work. It also revealed that some could not be bothered to come for the interview. They lost benefit.

    For young unemployed people, we have been experimenting with similar schemes called Workwise and 1-2-1. We propose to extend them nationwide.

    Helping employees with the transition to work

    But it has to be worth people’s while to take jobs. I also intend to introduce new measures to ensure that people are not deterred by genuine, short- term financial problems when they try to move from unemployment into work.

    Anyone moving from benefit into a low-paid job is likely to be better off, but it may not seem like it to the man or woman concerned. The first thing that happens when a person takes a new job is that income support disappears, and with it all help with the cost of housing and their council tax. In due course, the person in the new job may be entitled to family credit and housing benefit. But at the moment it can be hard to find out how much that will be, or when it will come.

    In the meantime, the person concerned has all the expenses of getting to work – buying clothes or tools, travelling to work, and so on. Time and time again, I have had people tell me that this is a major deterrent to taking a job and that they really cannot afford to take a job because of these gaps in the system. I have a number of measures to help.

    I propose to speed up the payment of family credit, so that anyone who takes a job can be sure of getting the benefit to which they are entitled, and getting it quickly.

    I propose to enable people who take a job to go on getting the same help with their rent and council tax as they had on income support, for their first four weeks in the new job. I propose to speed up the payment thereafter of housing benefit, so they can be quite sure where they stand at the end of the four weeks.

    I propose to exempt from tax the back-to-work bonus which my right honourable Friend the Secretary of State for Social Security announced in October. That will give people who have been unemployed, but have managed to do a bit of part-time work while receiving their benefit, a lump sum when they leave benefit and take a job. I also propose to expand the number of grants available to people who take jobs, to cover their start-up costs. These are known as jobfinder’s grants. I propose to make available around 25,000 grants of an average of £200 for those who have been unemployed for more than two years.

    Family Credit

    Family credit has been an important and effective way of encouraging lone parents and couples with children to take employment. By providing top-up benefit for those in work it makes it worth while to give up unemployment and benefit dependency. At the moment it helps half a million people. Last year, I improved family credit by announcing the new child care allowance which was introduced in October.

    I now intend to give low-paid and unemployed people with families an incentive to take full-time work. The existing structure of family credit strongly favours part-time rather than full-time working. But the majority of the people who have been unemployed long term are people who need to find full-time work.

    I therefore intend to introduce a £10 a week premium for full-time workers on family credit to give a new incentive to take full-time work rather than stay on benefit. This will also give a substantial boost to the incomes of 345,000 low-paid families with children.

    But childless couples and single people account for two thirds of the long-term unemployed. These people, of course, cannot, at present, claim family credit. I would like to examine whether introducing a new in-work benefit for childless people would be effective. This is obviously a very big step and I have agreed with my right honourable Friend the Secretary of State for Social Security that we should try it out on an experimental basis. We intend to test run a new benefit through a pilot scheme covering 20,000 people. If the pilot shows that the benefit helps to get childless couples and single people back into work we will then consider introducing a national scheme.

    I have also been impressed by an imaginative scheme pioneered by the training and enterprise council in Lincolnshire. This helps people build up full-time work by parcelling together a number of part-time jobs. The scheme is known in Lincolnshire as Jobmatch. I propose to extend it to help up to 3,000 people a year.

    Overall, these measures constitute an extremely important and carefully thought-out package of support for unemployed people. It is no longer credible for some people to campaign for reductions in long-term unemployment and to reduce benefit dependency without having effective policies to deal with it. [Hon. Members:– “When?] It comes into effect steadily from this Budget. The details will be announced by my right hon. Friends the Secretaries of State for Employment and for Social Security. There will be a social security statement, in the usual way.

    The days of priming the pump to cut unemployment are long since past. The Government are building reforms on reforms to remove at last the distortions and anomalies from the benefit system which discourage so many unemployed people from taking jobs.

    This package aims to lift people from dependency into work and to smooth the transition from out-of-work benefits to modest in-work benefits. The measures will work because they are carefully put together and they are affordable and because they are being introduced at a time of strong economic recovery based on our sound economic policies so that more jobs are becoming available. They are a set of effective policies to tackle the big problem of structural unemployment which faces the whole western world, and I believe that we are ahead of other countries in tackling it. I am sure that they will eventually gain widespread support – even from those who have no practicable ideas of their own. [Interruption.] Opposition Members – I hear from their interruptions – still do not understand. If we look to the minimum wage, if we look to the social chapter, if we load costs on those employers who might otherwise create low-paid jobs, we will make matters worse. We are giving incentives to create jobs and making the transition from unemployment to work easier. We started work before the Borrie commission. We have come up with better recommendations and the Borrie commission and the Labour party have a long way to go before they even understand how the system works.

    TAX

    Let me turn now to my proposals for taxation. Happily, in this year’s Budget, I have no need to raise revenue overall in order to secure the public finances. The action in last year’s Budget, combined with a firm approach to public spending, will see to that. Nor – as I have already made clear publicly – are significant tax cuts justified this year. But I do have a number of proposals to ensure that we raise the necessary revenue in ways which do least damage to the economy while helping vulnerable groups.

    Anti-avoidance

    I am delighted that there now appears to be a wide political consensus in the House on the need to close loopholes and to prevent the artificial avoidance of taxation. There is, I have to say, in some quarters a tendency to exaggerate the extent of tax avoidance by including proposals, as the hon. Member for Dunfermline, East (Mr. Brown) always does, that would actually impose extra taxes on legitimate business under the guise of a crackdown on so-called loopholes.

    I have said before and demonstrated before that we are no friends to the tax avoidance industry. Last year, I announced a number of measures to close genuine loopholes, raising £2 billion over three years.

    This year, I intend to go further by tackling the artificial avoidance of VAT on property transactions and share issues, by stopping the purchase of companies simply to make use of their surplus management expenses and by preventing tax avoidance through operations with discounted securities.

    In total, the anti-avoidance measures in this Budget will yield an additional £1.5 billion in the next three years. We will continue to close down genuine loopholes wherever we may find them.

    Vehicle Excise Duties and VAT on cars

    I have some major proposals on vehicle excise duty this year. Few things annoy honest motorists more than knowing that many people still drive without a tax disc and waste the time of police and the authorities in trying to track them down.

    Earlier this year my right hon. Friend the former Secretary of State for Transport announced that the Government intended to move to continuous licensing. That means licensing on possession rather than use of a vehicle. We will be issuing a consultation paper setting out how we intend to do this. The move is designed to combat evasion and help fight crime by enabling the police accurately to check the ownership of vehicles.

    I can, however, reassure the House that we will not seek to disadvantage those motorists, including classic car owners, who do not pay vehicle excise duty now because their cars are genuinely off the road.

    I also intend to bring up to date the system of concessions and exemptions from vehicle excise duty. The existing highly complex arrangements go back, in some cases, to before the second world war and have little relevance to the modern world.

    The number of different concessionary classes will be reduced from 132 to nine, a simplified and sensible handful. This will come into effect from 1 July 1995 and will yield about £30 million a year.

    But the House will be pleased to hear that special treatment will still apply to cars for disabled drivers and emergency vehicles. Moreover, I have also decided that accessories for the disabled fitted in company cars will no longer be taxed as a benefit-in-kind from next April.

    I propose to increase the rate of vehicle excise duty for cars – the tax disc – by £5, to £135. But to avoid adding to industry’s costs, lorry duty rates will again remain unchanged.

    I propose to introduce a significant change to one part of VAT relating to cars. Since 1992 taxi and car hire firms, unlike most businesses, have been able to recover the VAT on their cars. In response to industry’s concerns about market distortion, I propose to extend this to cars bought by any business wholly for business use. This will mainly affect leased cars, with consequential changes to their VAT treatment when sold or leased on. The change should be revenue neutral in the long run, but will cost £140 million in the first year.

    Fuel Duties

    In my last Budget, I announced that road fuel duties would increase on average by at least 5 per cent. in real terms in future Budgets. This year, I intend to stick to that commitment. It is an essential part of the plans that I set out last year to deliver healthy public finances as quickly as possible and it forms an important part of the Government’s strategy to return carbon dioxide emissions to their 1990 level in the year 2000. From 6pm tonight petrol taxes will therefore go up by 2p a litre for both leaded and unleaded petrol, taking into account the effect of VAT.

    In recent years there has been a small differential between the duty on diesel and the duty on unleaded petrol. The differential is becoming difficult to justify in economic, health or environmental terms. I therefore propose to tax diesel at the same rate as unleaded petrol. This means an increase of about 3p a litre on diesel. I also propose to increase the duty on gas oil and fuel oil by p a litre, which will raise £70 million a year. I propose, however, to freeze the duty on road fuel gases.

    Tobacco

    I turn next to duties on tobacco. The Government are committed to reducing smoking. I continue to believe that higher tax is the most effective and fair means of doing so.

    Last year I said that I intended to increase tobacco duties by at least 3 per cent. in real terms on average a year. I intend to stick to that commitment today.

    Tax on cigarettes will therefore increase by 10p on a packet of 20 from 6 o’clock tonight. Duty on other tobacco products will go up by a similar proportion.

    Alcohol

    The single European market has brought real benefits to British industry, through an expanded market for business, increased competition, reduced bureaucracy at frontiers and cheaper transport costs. These have all greatly benefited our consumers. But one of the most widely publicised other effects of the single market has been the increase in legitimate cross-border shopping in alcohol and tobacco, and in smuggling.

    Both of these have inevitably meant some loss of duty to the Exchequer, pressures on the British drinks industry and some damage to British business. No Chancellor can remain unmoved in the face of this, but nor can any Chancellor simply adopt popular measures to cut taxes on alcohol which would threaten the Revenue and require taxes on other goods to be raised.

    In the longer term, the solution is for the Government to work with our European partners to bring duties more in line. The forthcoming review of Europe-wide minimum excise duties gives us the opportunity to make a start on that. This year, pending that, I have once again listened to the concerns of the industries. I propose no increase in the duties on beer, table wine and spirits. This will mean that the proportion of the cost of an alcoholic drink represented by tax in this country will continue to fall. Ten years ago 37 per cent. of the price of a pint of beer was tax. Today it is only 30 per cent.

    Betting and gaming duties

    The Government also intend to modernise and deregulate betting and gaming. This process is, in my opinion, welcome and much overdue. The coverage of taxation must also keep up to date with the modern world. I therefore propose to widen the coverage of gaming machine licence duty to cover amusement machines such as arcade video games. It is anomalous that we should tax amusement machines with prizes, but not those without. I am sure that this measure will be welcomed by many parents, although perhaps not by all children.

    Gaming machine licence duty has been increased only once since 1987. I propose to restore its real value to the 1987 level, but at the same time to allow payment by instalments. Those measures will raise about £60 million in a full year.

    In 1991, my right hon. Friend the Member for Kingston upon Thames announced a reduction in pools betting duty of 2 per cent. Since then, this has helped to fund the Foundation for Sport and the Arts. My right hon. Friend the Secretary of State for National Heritage and I have now reviewed the reduction. We have agreed that it should continue for a further five years, provided that the pools companies also continue to fund sport and the arts at their present level. [Hon. Members:– “Hear, hear.”] Many of my hon. Friends appreciate, as I do, that the foundation continues to support a number of worthwhile projects to encourage participation in sport and the arts. I am delighted that the pools companies have generously reaffirmed their commitment.

    Business taxes

    A strong and thriving business community is the only way to ensure a strong and thriving economy. The Government have a record of achievement in developing the tax system in ways which improve competitiveness, sharpen incentives, simplify administration and encourage the small and medium-sized businesses which are so important to the future development of the economy.

    I should like to announce a package of measures today which will add further to the strength of British industry. Decisions on many of the measures that I shall be announcing today have been informed by the industrial finance initiative undertaken last year by my hon. Friend the Minister of State, Treasury and my right hon. Friend the Financial Secretary and his predecessor.

    Corporation tax and capital allowances

    First, I should like to say a few words about corporation tax and capital allowances. We have one of the lowest corporation tax rates in the industrialised world. Low tax rates are good for incentives. They mean that businesses can keep more of their profits to use as they, the businesses, want. Since 1984 we have cut the main corporation tax rate from 52 per cent. to 33 per cent., while scaling back capital allowances to a level broadly matching commercial depreciation.

    I have considered again all the calls for increased allowances to encourage investment. They have a simplistic appeal. But I remain firmly of the opinion that increasing capital allowances would distort investment decisions and would not encourage the high-quality investment needed to improve economic performance. A narrower tax base would jeopardise our ability to maintain the low tax rates which have helped to transform British industry over the last decade. The change from high capital allowances to low rates of corporation tax has been very successful. I propose to maintain that emphasis on low rates for the successful rather than high allowances for all in our system of business taxes. I also have no changes to announce on the rate of advance corporation tax or the value of the tax credit on dividends.

    Business rates

    I would now like to deal with business rates. We are about to implement the first five-yearly review of valuations of properties for rating purposes. Without those five-yearly reviews the rate base would become hopelessly out of date. The property market has changed a lot over the past five years with wide regional variations. [Hon. Members:– “It has gone down.”]

    As a result of the review, many properties in the south of England will begin to see reductions in their rates bills. Some businesses in the midlands, the north, Scotland and Wales will benefit as well, but others will discover that up-to-date valuations will raise their liability.

    I am glad to say that I will be able to continue to find resources to help businesses through this new transition period in the same way as we have been helping business through the transition from the last revaluation. My right hon. Friend the Secretary of State for the Environment and my right hon. Friends the Secretaries of State for Scotland and for Wales will announce details of the scheme later today.

    But I can tell the House now that increases in bills will be limited to 10 per cent. in any one year for large properties, once adjusted for inflation. Small business properties account for three quarters of those receiving protection.

    We have decided to limit real increases for such properties to 7 per cent. This protection will in part be financed by limiting real reductions in rates bills for large properties to 5 per cent. and for small properties to 10 per cent.

    But the revenue from limiting gains is not enough to help those businesses which find themselves worse off as a result of more up-to-date valuations. I have therefore decided to provide assistance of £605 million next year to finance the transitional relief. That is similar to the amount that we are spending on the former transitional relief scheme this year.

    ECGD

    I laid stress at the beginning of my speech on our improved export performance. We need to build on this and not become complacent. Strong export growth will be essential if healthy recovery is to be sustained.

    My right hon. Friend the President of the Board of Trade and I have taken a closer look at the services provided by the Export Credits Guarantee Department. We have agreed that a reduction in premiums of around 10 per cent. on average is possible while still protecting taxpayers’ interests. This will improve our competitiveness, building on the premium reductions in the past two years.

    Furthermore, we have agreed to increase the amount of ECGD cover available to many important developing markets by £300 million for 1997-98. Those measures will provide an added incentive for British exporters to play an even greater role in the most successful and rapidly growing economies in the world.

    Landfill tax

    As I said earlier, one of my main objectives for the tax system is that it should raise revenue in ways which do the least possible damage to the economy. In some cases, taxes do some good, by helping markets work better and by discouraging harmful or wasteful activities.

    Taxes can play an important role in protecting the environment. One major problem is the disposal of waste. I would like to make an announcement today to help tackle the problem.

    My right hon. Friend the Secretary of State for the Environment and I will issue shortly a consultation paper setting out details of a new tax to be collected by Customs and Excise on waste disposed in landfill. We propose that a new landfill tax should come into effect in 1996. It should raise several hundred million pounds a year. But I am determined not to impose additional costs on business overall. I shall therefore be looking at ways to offset the impact of the new tax by making further compensatory reductions in the level of employer national insurance contributions when the new tax is introduced. In brief, I want to raise tax on polluters to make further cuts in the tax on jobs.

    Small Businesses

    I have more measures to help small businesses in particular. The need to focus on smaller firms with growth potential has been an extremely important theme of the industrial finance initiative. It is absolutely essential that we have a healthy and vigorous small firms sector for the future economic well-being of the country and to achieve higher levels of employment.

    One important way in which we can help small businesses is by encouraging the venture capital industry. A flourishing venture capital industry plays a key role in promoting job creation, innovation and growth. The British venture capital industry has been growing in recent years and I am determined that that growth should continue. In my Budget last year, I announced the introduction of the enterprise investment scheme and I announced consultation on a possible new venture capital trust scheme and an extension of capital gains tax reinvestment relief. All three measures were aimed at encouraging equity investment in small companies. I want to build on them today.

    Enterprise Investment Scheme

    The new enterprise investment scheme is now in place, offering tax relief for investment in unquoted trading companies. Over 40 per cent. of the schemes set up so far involve so-called business angels, who want to invest their expertise, as well as their money, in a small, growing business.

    That is a good start, but the scheme has some complex rules and I have decided to simplify them. I am also extending capital gains tax reinvestment relief to the enterprise investment scheme, which should increase greatly its attractiveness.

    Venture Capital Trusts

    I have consulted widely on venture capital trusts and the response has been very positive. I have accepted suggestions for change on some details and I propose to implement the scheme in full. I want to go further by making investment in risk capital even more attractive than I originally contemplated when I announced the consultation period. Investment up to £100,000 a year in new shares in a venture capital trust will offer 20 per cent. up-front income tax relief and capital gains tax reinvestment relief, in addition to tax-free dividends and capital gains. I believe that venture capital trusts will make a successful contribution to filling a gap in our enterprise economy by encouraging more people to become venture capitalists.

    The cost of the new scheme is expected to be £150 million next year, rising to £290 million in 1996-97. Of course, those costs have to be based on an estimate of the take-up, but we expect considerable take-up. It could mean that funds of £2 billion might be raised over the next three years, providing much more investment where it is most needed in our small, growing, technologically advanced and innovative companies.

    My proposals go significantly beyond what I first set out 12 months ago. They now put in place an effective and imaginative set of measures aimed at generating equity investment in dynamic, innovative growing businesses. They should be widely welcomed by everyone who understands how a modern free market economy works and how new jobs are created in the modern world. Unlike some hon Members, I do not describe tax reliefs of this kind to stimulate investment in business and enterprise as tax loopholes, which they are usually identified as by the Opposition.

    Insolvency reform

    During the recent recession businesses, particularly small businesses, were too often being closed down by their creditors and jobs lost before rescue options had been properly explored. Following consultation, my right hon. Friend the President of the Board of Trade will shortly issue a paper setting out the Government’s main conclusions on company rescue procedures in future.

    To give management more time to reorder their affairs, we will introduce a 28-day moratorium binding upon all parties. This will give companies a breathing space to assess rescue prospects and come to an arrangement with creditors. We are also consulting further on a mechanism to help substitute equity for debt of firms in administration or receivership. I hope that those measures will contribute further to the creation of a rescue culture, discouraging the needless and wasteful liquidation of businesses that could become sound.

    Loan guarantee scheme

    The impact of the 1993 changes to the loan guarantee scheme has been encouraging, but its rules are still quite rightly being criticised as too complex. Together with my right hon. Friend the President of the Board of Trade, I intend to review those rules with a view to making the scheme simpler and more attractive.

    Lifting burdens on business

    The tax system not only imposes a financial burden on business that pay tax, but a regulatory burden and an overhead cost as well. I want to reduce those burdens on businesses. Simply running PAYE and national insurance contributions is difficult for many small businesses. From next April, I propose to increase by more than 30 per cent. the threshold for businesses to make quarterly rather than monthly payments to the Inland Revenue.

    That will benefit around 100,000 employers at a one-off one-year cost of £75 million. That means that nearly two thirds of all employers in the country will now be able to make quarterly payments on their PAYE. I also propose to consult on a move towards annual VAT payments for small traders and to further simplification of VAT accounting.

    Furthermore, I intend to improve the administration of the tax system by encouraging closer working between the two revenue departments, the Inland Revenue and Customs and Excise, as well as closer co-operation between the Inland Revenue and the Contributions Agency. This will all be directed at improving the service offered to businesses seeking to comply with their tax obligations.

    I would also like to make some progress towards closer alignment of tax and national insurance. From next April, clearances given by the Inland Revenue concerning non-taxable expenses will also count for national insurance purposes. My right hon. Friend the Secretary of State for Social Security will give details of this and other measures in his statement tomorrow.

    I also intend to raise the registration threshold for VAT to £46,000 tomorrow in line with inflation. This will help a number of the smallest businesses.

    Finally, I turn to self-assessment. I am publishing today for consultation some details of the remaining legislation for self-assessment. The Inland Revenue has been consulting widely on the changes. The response has been positive and it is a worthwhile reform for which to aim. My right hon. Friend the Financial Secretary and I intend to go ahead with our proposals and aim to keep any burden placed on employers as low as possible.

    Taken together, this latest extensive package of tax reliefs and deregulatory measures provide a substantial package of support for the business community. They aim to strengthen British businesses not by intervention, but by easing cashflow problems, cutting back red tape and providing targeted help for small businesses. That is how we maintain our improved business performance, help to sustain the recovery and help to create more jobs.

    SAVINGS

    Higher savings also have an important role to play in helping sustain growth, by providing additional resources for investment.- [Interruption.] I must tell the hon. Member for Bolsover (Mr. Skinner) that the Budget contains extremely serious proposals to help small businesses, to cut unemployment and to produce all the real improvements in the economy that the people of this country want. I have already announced measures to encourage savings into unquoted companies. There are two further measures I would like to announce today.

    PEPS and corporate bonds

    Personal equity plans have been very successful since their introduction in 1986. Over £15 billion has been invested in over 4 million plans to date. They have widened share ownership and played an important role in providing finance to industry. I want to take that success further and in particular to widen the type of finance available to industry through PEPs.

    I propose that, from next year, people will be able to invest through PEPs in a range of corporate bonds, convertibles and preference shares, and not simply equities. This change is expected to cost £10 million in 1995-96 rising to £40 million in 1997-98.

    TESSAs

    When my right hon. Friend the Prime Minister introduced tax exempt special savings accounts – or TESSAs, as they came to be called – it was understood that tax-free interest would be allowed to build up over a five-year period. For some of those accounts, the five-year period will soon be coming to an end.

    I have had to consider whether this tax exemption for savings should be extended. TESSAs have been very popular, allowing many people to catch the savings habit and build a nest egg for their future. Over 4 million people have invested over £20 billion since they were first introduced.

    Given their success and popularity, I have decided that all or part of the capital accumulated in a TESSA at maturity can be reinvested straight away in a new TESSA. Anyone who wants to continue to save tax-free will therefore be able to do so up to an overall limit of £9,000. This measure will cost £150 million in 1996-97.

    Income tax

    Finally, I turn from taxation to income tax.

    The lower, basic and higher rates of income tax will remain unchanged in 1995-96. However, we can at last begin to benefit from our steady return to healthy public finances. This means that I can fully index the personal allowance, the threshold for higher rate tax, and the income limit for the age-related allowance.

    I have been able to provide some additional help in two important areas. First, I want to do a little bit more for pensioners. I propose to increase the age-related personal allowance by more than indexation. The allowances for everyone aged 65 and over will be increased by £430. Nearly 3 million pensioners will gain from this, at a cost of £200 million in a full year.

    Secondly, I also propose to widen the 20p lower band to £3,200. That increase is twice the amount necessary for indexation for inflation. One in five of all taxpayers will now only pay tax at the lowest rate of 20p.

    The tax measures that I am announcing in this Budget – all the tax measures that I have described – reduce revenue by £1 billion in 1995-96, but that is because I have had to provide £605 million, as I have said, for the transitional relief for business rate payers. I have said many times that I would like to go further and that I will in due course go further. Conservative Members are tax cutters by instinct. But I have also made it clear over and over again that tax cuts can come only when we can afford them and when it is in the interests of our industrial economy that we should make them. That means two things. We have to continue to improve further our long-term economic performance. That is why in my Budget today I have introduced numerous measures – boring the hon. Member for Bolsover – to strengthen the economy and make sure that recovery is sustained and that we become a powerful manufacturing and industrial economy. The second requirement is firm control of public spending.

    PUBLIC SPENDING AGGREGATES

    All my efforts to help businesses and help the unemployed will be to no avail if I did not keep a firm grip on public spending. I have already dealt with spending by each Department. But I have not yet described what will happen to public spending overall as a result of our decisions. Last year’s spending round delivered substantial cuts in overall public spending. This year’s has not been easy because of that.

    Public spending control is not only about controlling costs. It is about choice of priorities. That is the language of politics. Within this year’s settlement, my right hon. Friend the Chief Secretary and I have succeeded in producing real increases in resources for priority programmes such as the national health service and the police service. We have also managed to protect the delivery of public services generally by focusing our search for savings on administrative costs.

    We have avoided our tight settlement last year being turned into a wasteful one by ensuring that success in lowering inflation does not simply increase the volume of spending on programmes.

    I am glad to tell the House that that approach has allowed us to make overall savings which are even greater than those achieved last year.

    Last year, we managed to reduce the control total by £8 billion over the three years. This year we have done a bit better – not 10, not 15, not 20, but another £24 billion off the control total over the next three years on top of last year’s reductions.

    Last year we reduced public spending plans so as to reduce general Government expenditure by £15 billion over a three-year period. This year, on top of last year’s reductions, we will reduce general Government expenditure by £28 billion. That is a total reduction in Government expenditure over the four years covered by my two Budgets of £43 billion.

    Those savings have allowed me to reduce my projection for the public sector borrowing requirement. Taking into account the tax and public spending measures, I now expect to be able to reduce borrowing from £30 billion to £21 billion in 1995-96, from the previously forecast £21 billion to £13 billion in 1996-97, and from £12 billion to £5 billion the year after that. This reduced borrowing should provide an added stimulus to business confidence, strengthen the recovery further and give us the healthy public finances that we need to put our economy and our economic policy on course.

    CONCLUSION

    This Budget keeps Britain firmly on track for real economic growth that can last. This Budget concentrates on strengthening British businesses. This Budget will help to create more jobs. And it will lay the foundations for sustained rises in prosperity. I commend it to the House.

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Hon. Members: More, more.

    Dr. Robert Spink (Castle Point) rose —

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

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

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

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

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

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

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

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

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

    Mr. Blair: I must make progress.

    Several hon. Members rose —

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

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

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

    The former Chancellor of the Exchequer said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Mr. Blair: No, I am sorry.

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

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

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

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

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

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

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

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

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

    Mr. Duncan Smith rose —

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

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

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

    “the management of the National Health Service”.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The Prime Minister: I shall give way later.

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

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

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

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

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

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

    [Interruption.]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. John Reid (Motherwell, North) rose —

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. John Reid (Motherwell, North) rose —

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

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

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

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

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

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

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

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

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

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

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

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

    Mr. Tom Clarke (Monklands, West) rose —

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

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

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

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

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

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

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

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

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

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

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

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

    Dr. Godman: Will the Prime Minister give way?

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

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

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

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

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

    Dr. Godman: Will the Prime Minister give way?

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

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

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

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

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

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

    Mr. Campbell-Savours: Tired old arguments.

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

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

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

    Mr. Campbell-Savours: Yesterday’s arguments.

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

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

    Dr. Reid: He said something about taxes.

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

    Mr. Campbell-Savours: Tell us then.

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

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

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


    My Lords and Members of the House of Commons.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Members of the House of Commons,

    Estimates for the public service will be laid before you.

    My Lords and Members of the House of Commons,

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

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

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

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

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

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

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

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

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

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

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

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

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

    My Lords and Members of the House of Commons,

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

  • PMQT – 25 October 1994

    Below is the text of Prime Minister’s Question Time from 25th October 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Berry: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Mr. Berry: Does the Minister for business probity still command the full support of the Prime Minister?

    The Prime Minister: I shall be making a statement immediately after Question Time and the hon. Gentleman should contain himself.

     

    Q2. Dr. Michael Clark: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Dr. Clark: During the course of his busy day, does my right hon. Friend ever pause to reflect on how easily little bits of bad news can push major items of good news out of the headlines? In congratulating my right hon. Friend on his continuing achievements in Northern Ireland, may I ask whether he agrees with me that the end of 1994 will be remembered not for the media’s obsession at the present time, but for the achievements in Northern Ireland, which have brought stability, hope and peace beyond our wildest expectations?

    The Prime Minister: It is attractive from time to time to maintain a proper perspective on political matters and I do believe that we have now entered a fresh phase of the peace process in Northern Ireland, as I set out in my speech in Belfast last week. As I saw for myself across the community in Belfast last week, there is enthusiastic support in Northern Ireland for the progress that has been made and appreciation and understanding of what still needs to be done. But there is greater hope that peace may now be permanently achievable than we have seen at any time in the last quarter of a century.

    Mrs. Fyfe: Will the Prime Minister investigate the affair of Healthcare International at Clydebank and tell us why more than £30 million of public money has been put into creating a private hospital and what will now happen to rescue that hospital? Will he guarantee that any such rescue effort will not be at the expense of NHS hospitals in Glasgow and the west of Scotland?

    The Prime Minister: I am sure that my right hon. Friend the Secretary of State will examine carefully what the hon. Lady has said. As the hon. Lady will know, year on year, the resources available to the health service in each part of the United Kingdom have increased, as have the number of patients treated and the quality of service offered by the NHS, and we intend that that will continue.

     

    Q4. Sir Thomas Arnold: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Sir Thomas Arnold: I invite my right hon. Friend to use the time between now and the start of the intergovernmental conference in 1996 to persuade our partners in the European Community to adopt a moderate rather than ambitious agenda. Does he agree that a stately minuet would be preferable to the rain dance that he described in his celebrated article in The Economist one year ago?

    The Prime Minister: My hon. Friend sets out my view with great clarity. It will be necessary in 1996 to look carefully at changes that have occurred. I do not personally believe that there is a great appetite across the European Union for dramatic changes. We will have to wait to see what is placed on the agenda, but my judgment is that changes deserve to be modest and should be no more.

    Mr. Bryan Davies: Does the Prime Minister accept that it is not sleaze but his party’s basic values that have been exposed? Is it not the case that, now that public service is set at naught and the marketplace rules, Conservative Back Benchers are operating in that marketplace?

    The Prime Minister: If the hon. Gentleman examined improvements across the range of public services over the past 15 years, he would realise that his remarks are utterly and totally misguided. Service to the public is what matters. Where that can best be provided in the private sector, it should be. Where it remains in the public sector, we have done more to improve service than any previous Government.

     

    Q5. Mr. Pawsey: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Mr. Pawsey: Does my right hon. Friend agree that choice and diversity are essential if we are to continue improving the nation’s schools? Will he reconfirm yet again his support for grammar schools, grant-maintained schools, the assisted places scheme and city technology colleges? Can he tell the House how many children are being educated in those schools?

    The Prime Minister: My hon. Friend’s point follows on rather well from the previous question. Education is a service to the public and now offers more choice at a higher standard than previously. It does so as a direct result of the policies that we have followed. Giving parents more choice and more information on which to base their choice is a fundamental part of our policy will remain so. That means that we need more grant-maintained schools and CTCs. I cannot immediately tell my hon. Friend how many pupils are attending those schools but I will do so in writing. Something like 1 million parents have benefited from those schemes, and many more will do so in future.

    Mr. Barron: When I was first elected to the House, I believed that I was elected to perform a public service. Will the right hon. Gentleman make a comprehensive statement at 3.30pm, to ensure that other Conservative Members believe that we are here to give public service and not for self-service?

    The Prime Minister: Clearly the hon. Gentleman was not listening a few moments ago. I set out clearly our determination to improve all services that must remain in the public sector, as many must. I commend to the hon. Gentleman my speech at the chartermark awards a few days ago, which he would find of some interest.

     

    Q6. Mr. Waterson: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Mr. Waterson: Does my right hon. Friend agree that those who have something to contribute to public life should be encouraged to serve on public bodies? Has not the obsession with sleaze reached absurd heights when the Labour party accuses General Sir Peter de la Billiere and the Duke of Kent of being Tory placemen on public bodies?

    The Prime Minister: I believe– [Interruption.]

    Madam Speaker: Order. The House must settle down.

    The Prime Minister: My hon. Friend the Member for Eastbourne (Mr. Waterson) is entirely right in pointing to the fatuous nonsense that appeared in a Labour pamphlet published last week. There is a serious debate to be held about public service and non-departmental bodies but it cannot be held by claiming that General Sir Peter de la Billiere and the Duke of Kent were placed on quangos because of donations that they made to the Conservative party. Where there are issues, let us look at them.

    Let us look also at the large number of Labour party members who serve on quangos. I have here a long list of members of quangos, all good Tory placemen: Mr. Bill Morris, Mr. Jack Jones, Mr. Harry Irwin, Lord Plant, Eric Hammond, Hugh Scanlon, Reg Bottini, Lord Cocks, Baroness Blackstone, Lord Barnett. I shall spare the House the rest of the list.

    Hon. Members: More.

    Madam Speaker: Order. I am sure that the House does not want more of me. Quieten down now.

     

    Q7. Ms Lynne: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Ms Lynne: Given the Prime Minister’s avowed intention to maintain the highest standards in public life, will he reassure the House that the disgraceful tactics used by the Government to crush the Civil Rights (Disabled Persons) Bill will not be used again when disabled persons’ legislation comes before the House in future?

    The Prime Minister: I indicated earlier in the year that we would send out a consultation document on the question of anti-discrimination legislation for disabled people. We have done so. We have received more than 1,000 responses to that document. We are examining those carefully and, as soon as we have finished that, we will make an appropriate announcement.

    Mr. Thomason: Does my right hon. Friend agree that the creation of 1,000 additional jobs by Rover at the Longbridge plant on the edge of my constituency is a demonstration of good Government policy and superb local management, and will he support it?

    The Prime Minister: All extra jobs are worth while and we have had a lot recently. Unemployment has fallen by more than 400,000, partly as a result of growth in the economy, partly because of the increased competitiveness and partly because of the sort of investment in this country that would not take place if the policies of the Opposition parties had been followed. We now have output rising at 3.5 per cent., inflation at a 27-year low, unemployment down by 400,000 and business confidence at a high level. I look forward to more jobs being created in my hon. Friend’s constituency and elsewhere.

     

    Q8. Mr. Tyler: To ask the Prime Minister if he will list his official engagements for Tuesday 25 October.

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

    Mr. Tyler: When, this time last week, the Prime Minister answered my question about making his Administration a sleaze-free zone, why did he not admit to the House that he had had an inquiry for three weeks into the behaviour of members of his party? Why did he not come clean with the House at that stage, instead of waiting for newspaper revelations to force that information out of him?

    The Prime Minister: When the hon. Gentleman reads the Cabinet Secretary’s report, which I will be publishing this afternoon, he will see that his question is wrong and he will owe me an apology.

    Mr. Peter Bottomley: Is not the point about public appointments that, if we had not had denationalisation, the Government would still be left appointing their own placemen to run half of British industry? Has not one of the great gains of having a Conservative Government for the past 15 years been that we have got rid of most of those appointments and that we do not need to have trade unionists on every board in the country?

    The Prime Minister: My hon. Friend is entirely right about that. It is also entirely to right to say that we need people who are public spirited to serve on non-departmental public bodies. That is the case and it has been for a long time. [Interruption.] Perhaps I may remind hon. Members who shouted out, “They are all Tories” of a Labour party national executive committee advice note published recently? It reads as follows:

    “Labour Party members may take up places on non-elected authorities and use them as a platform for our campaigning”. It goes on:

    “Members accepting appointments of this kind should inform Walworth Road so that the … Shadow spokespeople and Head Office policy officers can maintain a network of contacts, informing appointees of Labour policy and collecting useful information in return.”

    That is the sleazy way in which the Labour party deals with non-departmental bodies.

    Mr. Bill Michie: Why are the Prime Minister and his Government spending so much time chasing would-be or wishful job seekers, instead of concentrating on his right hon. and hon. Friends who have too many paid jobs?

    The Prime Minister: We are seeking to put as many people as we possibly can who are at present without jobs and unemployed–whom the hon. Gentleman claims that he cares about–back into work. The job seeker’s allowance seeks to play its own part in doing that. It is a necessary innovation; I welcome it, and I believe that it will be very successful.

  • PMQT – 18 October 1994

    Below is the text of Prime Minister’s Question Time from 18th October 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mrs. Anne Campbell: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mrs. Campbell: Did the Prime Minister’s predecessor break the code of conduct for Ministers when her son, Mark Thatcher, made £12 million from the Al-Yamamah arms negotiations?

    The Prime Minister: I have no doubt that my right hon. and noble Friend acted with complete propriety throughout her long and distinguished period as Prime Minister of this country. If the hon. Lady has any evidence to the contrary, I hope that she will produce it rather than peddling remarks like that.

     

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

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

    Mr. Devlin: Does my right hon. Friend agree that yesterday’s announcement that Samsung is to bring 3,500 jobs to Stockton-on-Tees will be very welcome in the town, where we have long had high unemployment? Will he confirm the Government’s continuing commitment to the sort of regional policies that have brought that about?

    The Prime Minister: I very much welcome the announcement by Samsung. It is extremely good news for the north-east. Throughout much of the past 30 years, there have been very high levels of unemployment in the north- east and everyone will recognise the importance of that substantial investment. I know that my hon. Friend has campaigned for Cleveland for a long time and will be very pleased by it. It follows a series of other welcome investments–Motorola, Digital and NEC–none of which would have come to this country but for the economic policies that we have followed, the fact that we are not part of the social chapter and the fact that we are members of the European Union.

    Mr. Blair: Since this is our first chance after the recess, may I say how much we welcome the further moves towards peace in Northern Ireland and assure the Prime Minister of our continued support in achieving that peace.

    Last Thursday on BBC television, the Chancellor of the Exchequer specifically ruled out a referendum on a single currency. Did he speak for the Government?

    The Prime Minister: First, may I congratulate the right hon. Gentleman on his new position. It carries with it very great responsibilities, and I wish him well in those responsibilities for as long as he holds them.

    On Northern Ireland, I am grateful for what the right hon. Gentleman had to say. It is and has been an intractable problem for many years. We have made some progress. There is no certainty that we shall be able to carry the process through successfully to a conclusion. I believe that there is a chance–perhaps a better chance than we have known at any time in the past quarter of a century. I intend to take the opportunities that exist, but I hope that I shall carry the House with me in saying that we must take them with care, with caution and in our own time. I believe that that is the only way in which we shall carry with us all the people of Northern Ireland, without which we shall not be able to carry the matter through to a satisfactory conclusion.

    As for the right hon. Gentleman’s substantive question, at the moment no one knows what may be at issue in the intergovernmental conference in 1996. The question of a referendum on any issue does not arise and very probably will not arise.

    Mr. Blair: With all due respect, the Chancellor specifically ruled it out and therefore he thought that it did arise. Is not that the problem: that the Chancellor takes one view on Europe, the Employment Secretary takes another view and the Prime Minister hovers between the two? Does he– [Interruption.]

    Madam Speaker: Order. The House will come to order.

    Mr. Blair: I repeat: he hovers between the two. Does he agree that a divided Government is a weak Government, and a weak Government is no good for Britain?

    The Prime Minister: The right hon. Gentleman has already said that, were he to form a Government, it would be a weak Government, and that is precisely because he said that his Government would not be isolated in Europe. Irrespective of the issue, irrespective of the British interest, irrespective of the views of the House or the Members of the House, and irrespective of the views of his colleagues below the Gangway, the right hon. Gentleman would follow slavishly whatever Europe says. That is not a credible position for any Government in this country.

    We will judge issues on their merits as they arise.

    Sir James Kilfedder: May I congratulate my right hon. Friend on being the first Prime Minister in more than half a century to achieve the cessation of terrorism in Northern Ireland? Is he aware that the people of Northern Ireland fully endorse his careful and cautious approach because, as he realises, until the terrorists hand over their dumps of Semtex explosives and arms, there is the real danger that they or a breakaway group could easily use them on some pretext, saying that the British Government had failed to deliver their promises?

    The Prime Minister: My hon. Friend speaks with a great deal of knowledge of the situation in Northern Ireland for many years, and has had to live through many tragedies affecting his constituents. I listen, therefore, very carefully to what he has to say about Northern Ireland.

    As I said a moment ago, we shall continue to be cautious. Armaments– especially Semtex and detonators, perhaps more than guns–are a crucial issue that will have to be dealt with as we advance the process.

     

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

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

    Mr. Pike: Recognising the Prime Minister’s commitment to the national health service, as restated last week, will he understand the worry that exists at national blood transfusion service centres under threat of closure, such as Lancaster and Liverpool, where the staff are drawing attention to the dangers of reduction in service if those centres are allowed to close? Will he intervene now and say that those centres must be kept open to maintain the level of service?

    The Prime Minister: I entirely agree with the hon. Gentleman that it is important to have a proper blood service in all parts of the country. I will ensure that my right hon. Friend the Secretary of State for Health examines in detail the remarks that he made this afternoon.

    It should be recognised throughout the House and beyond that there is no one in the House who does not share an affection for the national health service, who does not wish to see it built up– [Interruption.] Many of the Opposition Members who are muttering sat in the House when the last Labour Government cut the hospital programme by a third. They should know that there are now 20,000 more doctors, an extra 3,000 patients treated every day, and one large increase in facilities costing more than £1 million for every eight days throughout the 15 years that the Conservative party has been in power. That is a formidable commitment to the national health service, and it is the commitment of this Government.

     

    Q4. Mr. Nigel Evans: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mr. Evans: Does my right hon. Friend agree that the recent news that there is to be a central computer for organ donors is welcome, not only to the 5,000-plus people awaiting organ transplants, but to their families?

    Can he assure us that when the scheme starts it will be given as much publicity as possible to entice as many millions of people as possible to register?

    The Prime Minister: I will certainly look at what my hon. Friend has to say. There is no doubt that a central register will help hospitals and bring a great deal of new hope to the people waiting for life-saving operations. We will, therefore, examine the issue of publicity and see that the scheme gets as much as possible.

     

    Q5. Mr. Clelland: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mr. Clelland: When millions of British families are suffering mass unemployment, poverty, a deteriorating environment and rampaging crime, is it right that so much attention should be focused on the marital problems of one very rich family?

    The Prime Minister: I have no intention of commenting on the subject to which the hon. Gentleman clearly refers.

    On the subject of employment and unemployment, the hon. Gentleman might welcome, with me, the fact that unemployment has now been falling consistently, in large numbers, for getting on for two years–including a further fall of 28,000 just a few days ago. That trend looks as though it will continue; it is a trend that has come about because we have now returned to a position of low inflation and high growth. Indeed, for one of the very few periods in the past 50 years or so, growth now exceeds inflation. That is the best guarantee, not only of more jobs, but of ensuring that those with jobs retain secure jobs in future.

     

    Q6. Mr. Bellingham: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mr. Bellingham: Is my right hon. Friend aware that, on the subject of grant-maintained schools, Norfolk is in the lead? In those schools morale is high and, above all, there is overwhelming parental support. Will my right hon. Friend confirm that he will not return those grant-maintained schools to local authority control–unlike the Leader of the Opposition, who wants to turn the education clock back to the failed policies of the 1960s and 1970s?

    The Prime Minister: I certainly can offer my hon. Friend the reassurance that he seeks. The development of grant-maintained schools has been a great success. It has tremendous support from well over 1 million parents. [Interruption.] I think that the Opposition are saying that it is a disaster that 1 million parents are now getting what they want for their children. The Government do not regard that as a disaster; the Government regard that as choice, which I thought was now one of the mantras of the new Labour party.

     

    Q7. Mr. Tyler: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mr. Tyler: In the light of his previous answer, can the Prime Minister reassure the House that his Administration is now a sleaze-free zone?

    The Prime Minister: I am as concerned as any Member in the House or any person in this country that we should have the highest standards in public life. I approve of corruption no more than I assume does the hon. Gentleman, and I will not accept it. Our public servants and our public institutions are acknowledged to be among the best in the world. In order to maintain that reputation in administration and in politics, wrongdoing will have to be rooted out wherever it is, and I shall seek to ensure that it is.

    Sir Anthony Durant: I congratulate my right hon. Friend on his skill in dealing with the situation in Northern Ireland. We strongly support the caution that he is exerting in the negotiations. Meanwhile, will he ensure that there are enough troops on the streets of Northern Ireland to reassure the people of Northern Ireland?

    The Prime Minister: I am happy to give my hon. Friend that assurance. The details of policing on the streets are properly a matter for the General Officer Commanding and the Chief Constable, not for direct political decision. But for as long as it is necessary for the police, the RUC or troops to be on the streets of Northern Ireland to protect all its people, whichever part of Northern Ireland they come from, they will be made available.

     

    Q8. Mr. McFall: To ask the Prime Minister if he will list his official engagements for Tuesday 18 October.

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

    Mr. McFall: Does the Prime Minister agree that his noble Friend Lord Archer owes the public an explanation as to his share dealings? Will he therefore authorise a DTI report on those share dealings?

    The Prime Minister: I welcome the opportunity that the hon. Gentleman has given me to make the position entirely clear; I agree with the hon. Gentleman that it is appropriate that I should do so. There are clear statutory procedures surrounding investigations of the sort that concern Lord Archer. When concern first arose about the Anglia TV share dealings, my right hon. Friend the President of the Board of Trade appointed independent inspectors to investigate the circumstances surrounding dealings in Anglia Television shares–

    Mr. Campbell-Savours: Why did they not publish?

    The Prime Minister: If the hon. Gentleman will wait a while the whole House will be able to hear the answer that his hon. Friend has requested.

    When the inspectors’ report was received, my right hon. Friend the President also took independent legal advice on their conclusions. It was therefore on the basis of the inspectors’ conclusions and of the legal advice that my right hon. Friend sought that he decided that there was no further action to be taken under the insider dealing legislation. If there had been, action would have been taken. If I may deal now with the question shouted by the hon. Member for Workington (Mr. Campbell-Savours), there is no provision in the Financial Services Act 1986 for inspectors’ reports to be published. Indeed, when the Bill was considered before Parliament it was made clear that inspectors’ reports would not be published. Investigations are undertaken on that basis; evidence is given on that basis; and it would not be right to change the position retrospectively.

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

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


    PRIME MINISTER:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • PMQT – 14 June 1994

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


    PRIME MINISTER:

     

    Engagements

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

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

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

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

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

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

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

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

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

    Madam Speaker : Order.

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

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

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

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

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

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

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

    Hon. Members : Hear, hear.

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

    Mr. Ashdown rose

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

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

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

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

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

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

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

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

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

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

     

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

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

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

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

     

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

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

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

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