Author: admin

  • PRESS RELEASE : Volodymyr Zelenskyy met with the Secretary General of the Council of Europe

    PRESS RELEASE : Volodymyr Zelenskyy met with the Secretary General of the Council of Europe

    The press release issued by the President of Ukraine on 9 May 2022.

    President of Ukraine Volodymyr Zelenskyy met with Secretary General of the Council of Europe Marija Pejčinović Burić.

    The President noted the rapid and effective response of the Council of Europe to Russia’s aggression against Ukraine.

    The exclusion of the aggressor country from this organization, which promotes the principles of human rights, the rule of law and democracy, testified to the unity of European states in combating tyranny and dictatorship.

    “I want to thank you for the fact that the Council of Europe became the first international organization to expel Russia for its actions,” said the President of Ukraine.

    Volodymyr Zelenskyy discussed with Marija Pejčinović Burić concrete ways to support Ukraine at this difficult time for our country. The parties discussed, among other things, initiatives to establish a group of legal experts to assist the Office of the Prosecutor General, as well as the launch of a new online platform Cities4Cities to support local communities in Ukraine.

    One of the key issues for our state is the protection of human rights in the temporarily occupied territories. In this regard, the ways of monitoring the situation by the Council of Europe were discussed.

    “All gross human rights violations by the Russian occupation administration in the temporarily occupied territories of Ukraine must be recorded and punished in the future,” the President stressed.

    The President called on the Council of Europe to make every effort to stop Russia’s illegal deportation of Ukrainian citizens from the temporarily occupied areas and combat zones, and to work with other international partners to ensure the return of Ukrainians from the aggressor’s territory.

  • Liam Fox – 2002 Speech to Conservative Spring Forum

    Liam Fox – 2002 Speech to Conservative Spring Forum

    The speech made by Liam Fox, the then Shadow Secretary of State for Health, at Conservative Spring Forum on 23 March 2002.

    Hardly a day goes by without further evidence coming to light indicating that, under Labour, the NHS is failing. Dirty hospitals with high infection rates for patients. Cancelled operations leading to rising waiting lists. A care home crisis resulting in bed blocking, with frustration for patients and demoralization for medical staff.

    Yet, despite this bleak picture under a Labour government that promised so much, the public remains ambivalent about the NHS. At the same time as rising intellectual criticism about the quality of the service, there remains a strong emotional attachment to the institution itself. There is therefore both a demand for change but a suspicion that change may threaten the aspects most prized by the public, such as a service free at the point of use for those who need it.

    Complicating the picture is the fact that some of the harshest criticism of the NHS comes from those who were previously its fiercest defenders. Often, the combination of their own unhappy experiences and an increased awareness of better healthcare overseas has persuaded them that the NHS is not the only model capable of producing the quality and security of access they seek.

    It has been a serious handicap in the health debate in the UK that the terms “healthcare” and “the NHS” have for too long been politically synonymous. Only recently have events conspired to promote change, for example a Labour Government being forced to have British patients treated on the continent because of the explicit failures of the NHS. This backdrop provides a rare opportunity to open up a better quality discourse. That debate needs to begin with a clear understanding about the origins of a peculiarly British approach.

    The National Health Service was a product of the 1940s – that is of a collectivist era. Central planning was high fashion, as was the notion that state control was the best way to achieve change. This is unsurprising. The War had seen a massive increase in state regulation, which had been tolerated in the interests of victory. Austerity and rationing were necessary and accepted concepts.

    Now, 60 years later, we find ourselves in an era of affluence which the founding fathers of the NHS would not recognize. In 2002, austerity is no longer fashionable or necessary. Yet much of the British public have been willing to tolerate just such austerity in the field of healthcare. It is almost as if inadequate provision has been accepted as a classic case of Britain “muddling through”, with the Dunkirk spirit its guiding force.

    Increasingly, the patience of patients is wearing thin. There is a growing demand for the standard of healthcare befitting the World’s fourth richest country. We are no longer a nation emerging from the ravages of a War that almost drove us to extinction. It is no longer acceptable for the public to be constrained within an NHS that does most things quite well most of the time. What is needed, and increasingly demanded, is a system that does many more things very well all the time.

    Politically, Labour has been the party most wedded to the politics of the 1940s. But even they have been forced to abandon most of their discredited ideological positions from that era.

    On the economic front, they have retreated before reality. They no longer have Cabinet Ministers whose sole responsibility is Food or Prices. The major nationalizations have been overturned. Trades union reforms and labour market liberalization have brought prosperity and individual emancipation in the economic sphere.

    In the social sphere, however, individuals are still much more at the mercy of the state. Labour fought tooth and nail against Margaret Thatcher giving council house tenants the right to buy their own homes. In education, too many children pay the price for Labour’s obsessive centralisation, while in health, Labour deny people the right to choice and diversity taken for granted in so many other countries.

    Labour supporters cling to the NHS like a comfort blanket, because, in every other facet of policy, they feel that the Labour Party has abandoned its roots. The NHS is the last remaining manifestation of the Attlee government, of the era when Labour believed they had all the answers. But the NHS was never even the Utopia Labour like to portray. Within a few years, they were retreating from their New Jerusalem, with charges for spectacles and prescriptions, thus creating the service which Tony Blair describes as “largely” free at the point of use.

    The NHS, as an institution and not merely as the expression of a set of ideals, has thus acquired a totemic identity in the eyes of Labour politicians which has little to do with healthcare. Its continued existence in its present form owes more to the complex psychological needs of a Labour Party which is no longer a socialist party in a world where socialism no longer has a place.

    The NHS has now become the fig leaf for New Labour’s vapid core. Indeed, it is just about the only thing that allows Labour activists to live with their consciences, their Party having thrown virtually every other Labour nostrum over the side of HMS Blair in search of the rhetoric to please the focus groups. Politically, the NHS is now the ventilator on the Labour Party’s own life-support machine.

    And the joint victims in this tragedy are the patients, denied the care they need, and the medical professionals, unable to provide what they have been trained to do. The NHS, under Labour’s model, pursues equality of access at the expense of excellence, and seems almost to accept mediocrity as a manifestation of social values dating from “the golden collectivist era” of the post-War world.

    So, the first problem which Labour are landed with is that the NHS is over-centralized and over-politicized.

    For Bevan, this maxim was in full accord with the ethos of the day, and entirely deliberate. He thought it vital that he should be able to hear the crash of every bedpan from his office in Whitehall. This was why he rejected the proposal from the original Beveridge Report that the existing system of mixed healthcare provision should be retained, and instead nationalised virtually the entire system overnight.

    Successive Labour Health Secretaries have followed the script for the NHS which Bevan wrote in 1948, all determined to run the Health Service from behind their Whitehall desks.

    And, despite its focus group-friendly lexicon, New Labour’s grip on the healthcare system has been similarly vice-like. Time and again, they have brought clinical and political considerations into direct conflict. Ministers have swept aside concepts of clinical priority in favour of their own insatiable PR agenda. Professional freedom is suffocated, and ethics take a back-seat, as clinicians and managers are pressurised into making the political health of the Government, rather than the health of their patients, their main consideration.

    Examples of what this means for the patient are legion. There can be no clearer illustration than Labour’s hugely discredited waiting list initiative.

    This policy has been roundly condemned in most quarters for encouraging clinical distortion, as a result of which patients with more serious conditions actually wait longer while simple, less urgent cases are dealt with more quickly to bring numbers down. It has been pointed out, quite rightly, that this abandonment of the principle of treatment being undertaken on the basis of need has undermined the entire ethical and moral principles which the NHS was supposed to embody.

    It is entirely consistent with the narcissistic nature of New Labour that they are more concerned with how things appear than how they really are.

    Waiting lists are controlled by restricting the numbers of patients who get to see their Consultant (it is only then that their official waiting time starts). Thus there is a huge rise in the waiting list for the waiting list. Patients are still waiting in pain and fear in increasing numbers. But Ministers can claim to have met their targets.

    Systematic and widespread fiddling of the figures takes place. Consultant to consultant referrals are not counted. Patients who refuse a specific date or refuse to answer letters become “administratively” removed irrespective of their real problems.

    Only recently, a GP friend told me that he had just returned from holiday only to find that his daughter had been taken off a waiting list because, while they were away, the health authority sent a letter saying, “If you don’t write back within seven days, your name will be taken off the list.” Now she has to go back to the end of the queue. What sort of system is that?

    In another hospital, the maxillofacial surgeons were forced to add patients to the waiting list and give a date of 23 December for treatment, knowing that no patient would volunteer to go in for facial surgery so close to Christmas. Those patients were therefore taken off the waiting list.

    In March last year, the British Medical Association described the situation where ‘Artificial targets imposed on an overstretched service cannot be met without resorting to ingenious massaging of the figures. It does not fool, nor does it help, patients’.

    But it is the reaction of the Blair Government to exposure by the National Audit Office of fiddled waiting list figures that is most instructive.

    As you would expect, the Prime Minister tried to understate the issue, telling the House of Commons that:

    “It is important to put this matter in perspective. Over a period of four to five years, 6,000 people were misallocated on the lists.”–[Official Report, 19 December 2001; Vol. 377, c. 281.]

    Only 6,000! They are not mere statistics; they are real people, sick people. This outrage is, in my view, one of the greatest stains on this Government’s record and it is a direct result of the mindset of New Labour.

    One of the hallmarks of Labour’s stewardship of the NHS has been their clear intent to ensure that as many party political poodles as possible are in positions of NHS authority. Against the entire ethos of public service, Labour have ensured that appointments are made not on the basis of what individuals can bring to the administration of health care, but the loyalty they will bring to their party political masters.

    When Dame Rennie Fritchie was confronted with the evidence, she concluded that there were, indeed, an unacceptably high proportion of appointments made to Labour Party supporters. In the wake of this, the so-called Independent Appointments Commission was introduced. What difference has this made? In response to recent Parliamentary Questions, the Government has revealed that the proportion of Labour Party appointees has actually increased! In fact, this is little wonder. Although the Appointments Commission itself is supposedly independent, it is appointed by the Secretary of State.

    When Labour came to power in 1997, they promised to put more money into the health service by cutting administration. In practice, quite the reverse has happened. We now have the situation where, for the first time in the NHS, the number of administrators is actually greater than the number of beds. We have the absurd situation of having 1.15 administrators for every NHS. Under Labour the number of beds has fallen by 16,000 and the number of administrators has increased by 27,000.

    This problem is made worse by the fact that the increase in administration has largely been accounted for by people whose role is to make the system still more centralised. In other words, we have reached a position in which the NHS as a whole is over-bureaucratised, but individual Trusts might well be under-managed. The main reason for this is the constant interference, in the form of Ministerial circulars, and the resulting obsession with targets in the system.

    Under New Labour, if it moves it must have a target. The predictable result of this has been the emergence of target-orientated behaviour amongst hospital managers, whose job primarily is to meet centrally-set targets, irrespective of what this means for the running of their hospitals or the impact on the patients.

    We have seen the ridiculous situation where patients have been kept in ambulances outside Accident and Emergency Departments because their waiting time does not officially begin until they are clocked in to the A and E Department itself. This enables hospitals to meet their Accident and Emergency waiting time targets. But it makes no difference to the patients themselves. Likewise, when hospital trolleys have their wheels taken off, they technically become a bed – so, by the most bizarre manipulation of their own equipment, hospitals are again able to reach the Government’s targets with no benefit whatsoever to the patients.

    Perhaps most distressing of all is the concept of redesignation of parts of hospitals. Outsiders simply cannot comprehend that corridors could be redesignated as wards, with the result that, technically, patients are not waiting in corridors. Such cynical and essentially dishonest behaviour brings shame on those who have demeaned their own professional status by doing such things and denies patients the level of care and dignity they have a right to expect.

    There can be few organisations that will rival the NHS for sheer ability to waste resources. Almost unbelievably, the Head of Controls Assurance at the NHS, Stewart Emslie, identified £9 billion of waste in the NHS in 2001 – almost 20% of the entire budget. Amongst the items of waste that he mentioned were £2 billion as a result of bed blocking, between £1-3 billion of fraud and theft, over £1 billion wasted by hospital acquired infections, £300-600 million on medication errors, £300-600 million on wasteful prescribing, £400 million on clinical negligence and £100 million on avoidable management costs.

    It is inconceivable that any Chief Executive Officer of a major company would be able to hang on to his job, given such gross and unacceptable diversion of vital resources. Yet this is a system into which, with characteristic failure to understand the root problems, Labour is simply proposing to pour further huge sums of taxpayers’ money.

    The Prime Minister told us on the BBC’s recent NHS Day that more taxpayer’s money will have to be pumped into the Health Service. He is ignoring all the evidence if he believes that this alone will be the answer to the system’s problems. Labour has already spent considerably more in real terms, but to no effect.

    A Surrey consultant, Peter Williamson, recently told Hospital Doctor:

    ‘The Government claims it is putting great sums of money into the system – but this money is seldom seen by the people inside the service’.

    Experts at the King’s Fund have highlighted how the Government’s extra funding has had little impact on activity levels. They said:

    ‘The implication is that any reduction in the waiting list in the last three years has been achieved not through treating extra patients, but through fewer people being placed on to the waiting list each year. The figures show that there has been a fall in the rate of increase in NHS activity, despite a large increase in funding for the NHS.’

    Things are so bad that, despite a 30% increase in real terms in the level of health spending over the last three years, there was actually a fall last year in the level of NHS activity.

    We do not need to look far to see that spending alone is not the answer. Wales and Northern Ireland are already above the Institute of Fiscal Studies target of 8.9% GDP and Scotland is above the Government target of 8%.

    Yet in all parts of the UK the health service is failing, even in Northern Ireland, where spending is commensurate with France. Although Wales and Northern Ireland have higher spending than England, they also have longer waiting lists.

    From a significantly higher baseline, expenditure in Scotland is rising, but things are still getting worse. For example, over the period from 1999 to 2001, there has been a marked increase in the number of people waiting for treatment, patients are waiting longer for treatment and fewer patients are being seen. And over the last year, the number and rate of nurse vacancies has also risen.

    Despite higher spending in Scotland, a third more people die of heart disease and 40% more people die of lung cancer. It is clear from across the UK that the problems of the NHS monolith cannot be solved by simply throwing in more taxpayer’s money.

    “No more for the NHS until it gets better” the Chancellor told the Sun. Did we miss something? What event has occurred to justify the billions extra about to be spent? For, rest assured, billions more will be spent while mere tinkering goes on.

    Despite endless upheaval, very little will change in the NHS. The New Labour oxymoron of “earned autonomy” means “you can do what you want but only if it’s what we tell you”. The latest legislation gives many new powers to Whitehall to control activity in the NHS. For example, the Secretary of State will set all the budgets of the new Primary Care Trusts, and can withhold funds if they fail to meet his performance criteria.

    Talk of commissioning powers and the emergence of strategic health authorities makes many wonder if Labour are simply recreating the internal market they abolished in 1997, having wasted five years and countless amounts of money in the meantime.

    Labour’s relationship with the private sector is equally dysfunctional. They have alternated between support for a monopoly provider, a full partnership and a short-term expedient. The position, of course, depends on the audience, not the analysis. What is clear, however, is that the policy will have nothing to do with choice.

    Of all the failings in Labour’s approach to health, perhaps the greatest is their failure to understand the value of individual choice.

    From the moment a patient first experiences symptoms, their route through the healthcare system will be plotted by someone else, taking no account of any preferences he or she might have. And at all stages along that route, the patient will be within a system which is State-owned and State-run.

    The fundamental and inevitable failings of such a centralised and politicised State monopoly system manifest themselves from the very outset.

    The patient’s first point of contact is with their GP. They have little, if any, choice over who this is, they will belong to a “list” and the Government will regulate and restrict the number of GPs in any one area.

    If their condition warrants it, the GP refers the patient to a consultant. Needless to say, they don’t have any choice over which hospital the consultant works at, let alone that consultant’s identity. Their time of treatment will be dictated to them, and with increasing frequency may be cancelled. If they fail to observe all the rules set they will go to the back of the queue.

    What century is this? Why is it that the consumerist culture is entirely absent from our State healthcare system? The assumption seems to be that patients exist to service the system, rather than vice versa.

    Without giving greater control to individual patients over their own medical and surgical treatment, there will never be a liberation from the unacceptable position of the State holding the whip hand.

    As in so many other areas, the problems faced by our public services can be traced back directly to the very ethos of New Labour. Like the Clinton Administration, its project is about coming to government and staying in government, not about what to do when it is in Government. Policy consequently is replaced by endless reports and reviews. It is little wonder that a senior United States official was quoted recently as saying that Tony Blair seems more concerned about finessing a problem than dealing with it. How very perceptive.

    Any given problem is exacerbated by the fact that the Government has no core beliefs at all. One minute they will call for a monopoly NHS, another a public/private partnership or even full-blown private sector involvement. What they say depends entirely on the audience.

    This is a Government of intellectual incoherence, inconsistency and incompetence, in which the Prime Minister becomes ever more detached. And in doing so, he appears to grow increasingly contemptuous of his party – it seems to exist only to glorify the cult of his personality, spawning a Ministerial culture of blame, spin and re-announcement. When things go wrong, they are happy to blame the professionals, their predecessors in government, the Third Way – anyone but themselves. If that fails, they set new targets, shift deadlines and commission new reports. They stand for nothing, but will say anything.

    The public have instinctively trusted Labour on health, but their hopes are being, and will continue to be, shattered. The NHS is not delivering what it should. Despite a huge increase in resources, the NHS actually saw the number of patients treated last year fall. Waiting lists are rising. The crisis in care homes threatens to turn care in the community to neglect in the community. The number of cancelled operations is soaring. Hospital acquired infections are at record levels. Morale continues to plummet in the caring professions.

    Labour’s response is to pour in more taxpayer’s money and tinker at the edges of the NHS. Sadly, they will not succeed. The NHS is a collectivist model in a consumerist world. It is over-centralised. It is over-politicised. It is over-bureaucratised, yet under-managed. It is obsessed with targets, but failing to meet clinical need. It is wasteful; and spending and outcomes have increasingly become disconnected. Only the dedication of its staff keeps it afloat. Labour will fail because they will not accept these things.

    Without a historic depoliticisation and decentralisation, coupled with increased choice for patients, Britain will be consigned to second-rate healthcare.

    A solution will require a Conservative prescription. Tony Blair was right on one thing ” Britain deserves better”. Five years on, it is clear that this cannot come from Labour.

    I once likened the approach of the NHS to asking Dickensian peasants to queue up for their gruel, and to say thank you because there was nothing else on offer. Like Oliver Twist patients want more. It is what they deserve. But not just more of the same.

  • Eric Pickles – 2002 Speech to Conservative Spring Forum

    Eric Pickles – 2002 Speech to Conservative Spring Forum

    The speech made by Eric Pickles to Conservative Spring Forum on 24 March 2002.

    Stephen Byers is a misunderstood man.

    Some think that stands for whatever is perceived to be fashionable in left wing politics, that he has betrayed his Marxist past. This is to misunderstand the man completely. I have known him a good many years and I can say he is utterly consistent in his devotion to Marxism.

    Of course it is not Karl Marx his principles are based on. It is Groucho Marx.

    Specifically Groucho’s attitude to ethics: ‘These are my principles. If you don’t like them I’ve got some others.’

    That is why Mr Byers can move from 80’s rabble-rouser, to 90’s smoothy-moderniser, from millennium-man advocate of the third way, to pronouncing the death of the third way, with the ease and the speed that the Department of Transport change their press officers.
    As Secretary of State, if your idea of long term planning is to survive the censure motion after next, it is little wonder that the Government’s transport policy is so directionless.

    I was recently asked what enthusiasm I had for the Government’s ten-year transport plan. I replied that I was so enthusiastic I was seriously thinking of ways I could enter year three onwards for the Whitbread prize for fiction.

    Labour had the opportunity to consolidate the gains made from the privatisation of Railtrack under the Conservatives. We reversed the long-standing decline in passenger numbers, investment poured in and our railways had a better safety record. Instead Byers blew it with a botched renationalisation. That will cost the travelling public dear.

    Remember a third of the promised railway investment is meant to come from private sector funding. It is frankly ridiculous for the Government to argue that that the private sector investment has not been affected following their decision to confiscate a company from its legal owners.

    Any lingering doubts remaining over future relations between private finance and Government were dispelled by the letter to the Chancellor written by over twenty top fund managers saying that Labour’s handling of Railtrack has damaged relations between the Government and the City, increased the cost to the taxpayer of public private partnerships and discouraged people from saving.

    In other words on every length of road, stretch of track, new hospital or school building – anything that needs private finance there will be a Byers premium. We will all pay more to get less

    Anybody who cares about our Railways will tell you what we need to do to make life better: get Railtrack out of administration, stop dithering over the approval of rail franchise renewal, because if you don’t there will be no new trains after 2004. Do that and we can deal with the number one problem facing our railways a lack of capacity to meet any significant increase in demand.

    Transport is full of acronyms: SPV’s, Infroco’s, NATS and, of course, PPP. Rarely does the acronym meet the reality. This is true with the PPP for the Tube. Forget Public-Private Partnership, in London PPP stands for Poor Prospects for Passengers.

    Poor prospects of seeing a new train in ten years. There are only 12 new trains in service on Tube by 2008.

    Poor prospects for projects due to start ten years into the thirty year project, with the Government offering no stability for funding.
    Poor prospects for the taxpayer: despite promises we still don’t know whether the PPP is value for money, and we still don’t know when things go wrong who will pick up the tab.

    Poor prospects for overcrowding: the PPP will make no significant improvement.

    If over Easter you decide to visit London and decide to join Londoners on a sweaty, smelly overstuffed tube carriage, ten years from now were you to repeat the journey chances are it will be the same. Chances are it is likely to be the same carriage; the only difference will be the carriage will be ten years older.

    We will inherit a terrible mess on the London Underground. To make life better we will seek to develop a series of quality contracts with Transport for London on: punctuality, reliability, cleanliness and safety (personal and public). We will ensure a no strike agreement operates on the tube. The closing down of the network has no place in the resolving of industrial and sometimes petty disputes in modern Britain.

    We are now rapidly approaching an important milestone to judge this Labour Government, laid down by no less a person than the gentle and serene Deputy Prime Minister.

    After the 1997 general election, John Prescott said, ‘I will have failed if in five years time there are not … far fewer journeys by car. It’s a tall order but I urge you to hold me to it.’

    Since 1997 traffic on all roads has consistently increased. Estimated traffic levels rose by 3% between the fourth quarter of 2000 and the same quarter of 2001 alone – according to official DTLR figures.

    We will be looking for volunteers to break this news to Mr Prescott. A fast car and an ability to duck will be an asset

    Labour and their “me too” lackeys the Liberal Democrats see the car driver as the enemy. Someone to be despised pilloried and above all taxed.

    Fuel tax is still the highest in Europe. At the last count the average UK retail price of diesel was over 20 pence per litre more expensive than any other EU country. It is worth re-emphasising that the pre-tax price of both fuels was among the cheapest in Europe, but the total amount of tax per litre was the highest of these countries

    New taxes are introduced on company cars, but ministerial cars are of course exempt. Nothing must disturb the air conditioned splendour of the New Labour elite, free from the care of the day to day bustle the rest of us face.

    Recently in a debate, I asked a Minister when was the last time he travelled on the tube during peak time and whether he enjoyed it? The question was so unexpected in its impertinence that I got the shocked response that he ” could not remember.” That would be a sad admission from any Minister, but from the Minister of Transport it was shameful.

    Much needed relief roads lie abandoned. Motorways that would take traffic away from chocked towns are neglected. The number of miles of motorway opened each year has significantly declined under the Labour Government. In 1997, the last year Conservatives were in government, Britain’s motorway network increased by 42.3 miles. In 2001, it increased by a paltry 6.1 miles.

    Talk to any of New Labour’s advocates of congestion charging after a few polite pleasantries about inter-model shift from car to public transport and they go onto the real agenda. For the truth is this: if there was even a modest shift away from the car towards buses or trains, our public transport system could not cope. There is not sufficient capacity.

    No, what Labour’s transport gurus want is a reduction of journeys, principally by people on low incomes. According to them poor people can’t have cars.

    To make life better on our roads there needs to be a bigger dose of reality and recognition that the car and the lorry are a help, and not a hindrance, to an integrated transport policy. Indeed they are vital to many people in rural areas, many elderly, disabled and parents with young children.

    Over the coming months we will look at getting the best out of our road space. At getting the best out of better lane management, better repair management, better use of technology. We will look at innovative ways of providing public transport with some of the flexibility that private transport has.

    We understand that people will not leave their car at home until personal safety is improve on buses and trains, pupils will not return to school transport until better supervision and safety provided.

    Above all we understand that we have to integrate our transport policy into the way people live their life, rather than how some cloistered transport boffin thinks they should. Our policy will be firmly grounded in reality, with a determination to repair the damage inflicted by Byers and to make our transport system better.

  • Oliver Letwin – 2002 Speech to Conservative Spring Forum

    Oliver Letwin – 2002 Speech to Conservative Spring Forum

    The speech made by Oliver Letwin to Conservative Spring Forum on 24 March 2002.

    Almost every day our newspapers and televisions carry stories of horrific crimes.

    Almost every day we hear the anguished voices of these victims of crime asking what is to be done.

    The failure to tackle crime has given rise to pessimism and despair.

    I understand that pessimism but I do not share it.

    Sometimes in life you are privileged to witness astonishing achievements. Two weeks ago I had that privilege.

    I visited a city. I met individuals who were determined to transform the life of that city by drastically cutting crime. I visited a police force whose morale was second to none.

    A city whose Mayor and Commissioner of Police had the political vision – against the prevailing consensus at the time – to put the police on every street and to ensure that they became custodians of their neighbourhoods.
    A city which has given the streets back to its citizens by dealing with every manifestation of disorder, whether it be simple graffiti, youth offending or drugs.

    That city was New York.

    New York used to be like many parts of our cities.

    Places where street crime, social disorder and violence has become the norm rather than the exception. Places where criminals are not often brought to justice. Places where the police are demoralised because of interference from politicians and bureaucrats.

    It was not always like this in Britain. Violent crimes were not unknown in 1956 when I was born. But they were not so frequent that the papers had a fresh tale of terror for every edition. It was not the case that children carried knives or that drug deals were done in the playground. Women were not dragged from their vehicles by carjackers. No one even knew what carjacking was. Indeed there was little fear of theft of any kind. When a man who later became my neighbour on the Wandsworth Road in London left money for the butcher and the baker in a drawstring bag hanging from a latch, it was not stolen and he didn’t expect it to be stolen.

    Something has changed in our society over my lifetime. When I was born, there were 68,000 police officers and less than 500,000 crimes a year. Now there are 127,000 police officers and 5 million crimes a year.

    There are those that assure us that the tide has now turned and use the survey statistics to make their case. But most people in this country do not believe the survey statistics. Most people think street crime is rising. And the statistics for reported crime suggest they are right. The Home Office itself tells us that:

    · The number of young people committing serious crimes, including murder and grievous bodily harm, has almost doubled in last seven years.
    · Gun crime has trebled in London during the past year and is soaring in other British cities.
    · Crimes involving knives have also trebled in London in the past year and they too are increasing in other British cities.

    These figures tell us something that is true about the everyday lives of millions of people: that life-shattering violence is not unthinkable, that violence has become the common currency of crime and that the fear of crime lies around every corner.

    But the public aren’t just afraid. They are angry and they have every right to be so.

    Government has many duties and the first of these is to protect the public.

    My opposite number, the Home Secretary – to do him justice – does understand that we no longer feel protected. But what is he doing in response?

    He is trying to take power to control every police force in Britain from a desk in Whitehall.

    Presumably, he imagines that efficiency will be improved by the Home Office – the Home Office, which has given us an Immigration and Nationality Department that can’t process applications faster than the average snail; an asylum system that is, by his own admission – in a state of chaos; and a youth justice system with appallingly high re-offending rates.

    He threatens to sack the Commissioner of the Metropolitan Police, and engages upon a damaging, divisive and demoralising conflict with the police service. Five thousand police officers arrive to protest outside Parliament and, for the first time in living memory, policemen begin to ask for the right to strike.

    I might have suggested to him that this is a time to pick a fight with the criminals, not with the police. But I don’t need to – because he has noticed this for himself.

    We know he has noticed, because he and the Prime Minister have held a ‘summit’. This last week. Very impressive. An initiative. Very impressive. So, of course, were the last 29 initiatives taken by Mr Blunkett since he became Home Secretary.

    Let’s hope this one will be different from the rest. Let’s hope this one will actually work.

    But I fear that the chances are slim. Why? Because Mr. Blunkett is the Newton of modern criminal justice policy. Newton told us that, for every action, there is an equal and opposite reaction.

    In Mr. Blunkett’s case, it can truly be said that, for each initiative, there is an equal and opposite initiative.

    So the day after the summit, focusing on street crime, what did the Home Secretary do? He announced that he was not able to find prison places for the people whom the police were going to arrest and the courts were going to convict.

    And he told us he had discovered a brilliant device for solving the problem. He was going to let a large additional number of existing prisoners out early on electronic tags.

    What was the message to potential criminals? Just be sure that, if you intend to engage in crime, you wait until my prisons are full. Then I guarantee you’ll be in and out in a trice!

    But perhaps we shouldn’t worry too much. Because, a few days before the summit, the Home Secretary had already made sure that not too many people would be arrested.

    What was his brilliant wheeze that week? What was that week’s ‘initiative’? It was to require every police officer to issue a report every time someone is stopped on the street.

    How will that cut bureaucracy and make the police more effective at fighting street crime? I have to admit, I don’t know. Alas, Mr. Blunkett’s junior Minister, Mr. Denham, didn’t know either when I asked him in the House of Commons.

    Thousands of police officers don’t know either.

    But I can tell you who does know. The boys in the gangs know. They know they are not likely to be stopped, because the police officer stopping them will have to spend most of the morning handing out notices to every member of the gang.

    So my message to the Home Secretary is this. “David, calm down, slow down. Your heart is in the right place. But you can’t cure street crime in this country with a thousand incoherent and conflicting initiatives. You can’t cure it by alienating the police or trying to control this all from a desk in Whitehall. Time is running out. We have a crisis of street crime on our hands. To tackle it, we need a coherent programme, calmly developed, and carefully implemented.”

    Now, you will ask me: “what is our programme?” And that is why I have been beginning to develop a coherent programme for Conservative policy on crime over the last few months.

    Back in January I delivered a speech called Beyond the Causes of Crime. It sets the agenda for everything the Conservative Party hopes to achieve on the issue of law and order.

    When the Prime Minister spoke about being tough on crime and tough on the causes of crime, he too was hoping to set an agenda, and in many ways he succeeded. But the time has come to start looking beyond the causes of crime. We think it is better to find out what causes the opposite of crime – in other words those patterns of decent, friendly, civilised behaviour that make for what I call the neighbourly society.

    We believe that the neighbourly society is the most important defence we have against crime. A neighbourly society is built upon strong and supportive relationships within families, between neighbours and throughout the wider community. A united, concerned and vigilant community not only guards against the attacks of the established criminal, but also turns young people away from the path of crime.

    But what chance does the neighbourly society have when the young learn that thuggery goes unpunished while good people live in fear? How can we expect communities to form and flourish when the streets are overrun by vandals and drug dealers? We need to understand crime and community as two opposing forces. Crime has weapons at its disposal above all, violence and the threat of violence. In the face of such a threat the peaceful community can only retreat, ceding more ground to the criminal, exposing young people to values wholly opposed to those of the neighbourly society. Thus neighbourhoods decay; the young are corrupted; people who can, get out; and people who can’t, live blighted lives. All this, because decent people are afraid.

    Crime isn’t just about the headline offences of rape and murder, or even the more common offences of mugging and burglary.

    It is about the everyday crimes, conveniently filed away under the term ‘social disorder’: graffiti, vandalism, petty theft, fly tipping, drug dealing, intimidation, bullying, racial abuse, the corrupting influence of gangs, and the underlying, but entirely viable, threat of violence against anyone who stands up to the wreckers.

    Yes, of course, people do fear the headline crimes, but in many neighbourhoods there is another kind of fear, closer to despair, born of the knowledge that we must limit our lives or become victims anyway; that the street is owned by the criminal, not by the citizen; that vandals can do what they will, even if everyone knows who they are; that thugs may torment their neighbours with only retaliation guaranteeing a decisive police response; that the gang is a stronger influence on our children than the school; that in the frontline against fear no one is on our side; that we are right to be afraid.

    I have spoken of the struggle between crime and community. It is a struggle that the community is losing and the evidence of defeat can be seen most starkly in Britain’s poorest neighbourhoods. There is something desperately wrong with our society when the people we put in the front line against fear are those least able to stand up to the thugs – the poor, the very old and the very young. They need some one to fight for them, not just holding the line against fear, but taking back the ground lost to the forces of disorder.

    Who will take on this role? We believe it must be the police.

    What we want is the kind of policing that takes back the streets from the muggers and the drug dealers and makes them safe for the decent, law-abiding people of this country. I call this neighbourhood policing and it is the foundation on which we will rebuild the neighbourly society.

    This is not just a dream. It can be done. And the reason I can be so sure is because it has been done. Not in this country, of course. But in America, where city after city has declared war on social disorder of all kinds.

    Two weeks ago, when I was in New York as the guest of the NYPD, what did I see? I saw policemen walking the streets. I saw patrol cars, which patrol small areas on a continuous, 24-hour basis. I saw the teams available to move in behind the beat-cops and the patrols to tackle crime on the street. I saw how week-by-week, street-by-street mapping of crime makes transparent where and when crime is being committed, and forces policemen at all levels – right up to Chief Constable level – to produce timely, effective strategies for dealing with street crime. I saw how the Police Department and other agencies tackle quality of life issues as well as crime. I saw a criminal justice system that is based on a sense of urgency.

    Does it work? The figures speak for themselves. Over 9 years, murder in New York has been reduced by 80%; robbery, burglary and car theft by over 70%; theft by just under 50% and rape by just under 40%. Across these crimes as a whole, the reduction is 60% since the new methods were introduced.

    You are now five times more likely to be the victim of crime in London than in New York, and twice as likely to be robbed or mugged. New York is now a noticeably safer and more pleasant place to live in than London.

    Why isn’t our government bringing about the same transformation over here? Because, true to form, they want to do the whole thing themselves. Instead of leading from the front, David Blunkett wants to run every police force in the land from his desk. It won’t work. Reform isn’t about micro-management by politicians, bureaucrats and spin-doctors, it’s about setting public service professionals free to do the job they were always meant to do. The tragedy of New Labour is that they cannot grasp this truth.

    Neighbourhood policing is critical. But it is not enough. We believe that the criminal justice system needs to change. The Commissioner of the Metropolitan Police was right. There is not much point in catching criminals, if it takes months to conduct trials and if they are bailed back onto the streets to commit more crime during those months. We need to find means of instilling a sense of urgency into our criminal justice system.

    Our prisons are another problem. 58 per cent of all prisoners are caught re-offending within two years of release. For prisoners under the age of 21, the record is much worse. 75 per cent of all young offenders sentenced to custodial sentences are caught re-offending within two years.

    These figures are simply unacceptable in a civilised society. How can we accept that a young person, once a criminal, is always a criminal? How can we accept that level of failure? How will we ever have safe streets and a neighbourly society if we continue to accept it?

    In the next few months, Conservatives will be bringing forward radical proposals for reform of the youth justice system – proposals designed to take young criminals off the conveyor belt to crime.

    But we also need radical proposals to prevent young people getting onto the conveyor belt in the first place.

    To do that, we have to have effective neighbourhood policing – and a fast, effective court system. We have to break up the gangs when they are committing crime, and we have to prove to young people that crime can and will be stopped in its tracks. We have to clean up the neighbourhoods in which graffiti, fly-tipping and vandalism have reduced the quality of life to a level where crime seems natural.

    But these things are not sufficient. We also have to build upon the work that Michael Howard began when he was Home Secretary. We have to make a reality of co-operation between the police, the schools, the local authorities, the Drug Advisory Service and other agencies, to spot the youngsters at most risk of becoming criminals, and to intervene effectively before they get onto the conveyor belt to crime.

    Nor will the state be able to do everything that needs doing.

    A great part of the heat of the day will have to be borne by volunteers, by charities, by what Douglas Hurd called ‘active citizens’. Conservatives believe in active citizenship. Many people in this hall are the active citizens, the volunteers, the people who support the charities that are preventing young people from joining the conveyor belt to crime.

    In the next few months, as we come forward with specific policy proposals on neighbourhood policing and reform of the criminal justice system, we will also bring forward specific policies on the voluntary sector, to widen and deepen voluntary effort – to lead our young people away from the conveyor belt to crime.

    Our work in this Parliament has barely begun. We have much to learn, and much to study. We are conscious of the magnitude of the task.

    But I make this pledge to you today. We will go on thinking and go on working. By the time that we come to the next election, we will go into that election with a coherent, developed, long-term programme to fight street crime in this country, and to rescue our streets for the decent citizens of this country.

    Only with such a programme can we hope to achieve a neighbourly society in Britain. Only with such a programme can we hope to achieve a Conservative Government in Britain. It is our ambition and our intention, to achieve both of these goals.

  • PRESS RELEASE : Obtaining Ukraine’s EU membership candidate status is of great importance for the Ukrainian people – President during a conversation with Ursula von der Leyen

    PRESS RELEASE : Obtaining Ukraine’s EU membership candidate status is of great importance for the Ukrainian people – President during a conversation with Ursula von der Leyen

    The press release issued by the President of Ukraine on 9 May 2022.

    President of Ukraine Volodymyr Zelenskyy held a video conference with President of the European Commission Ursula von der Leyen. During the conversation, the President announced the transfer of the second part of the completed questionnaire to obtain the status of a candidate for membership in the European Union.

    Volodymyr Zelenskyy noted that the second part of the questionnaire was passed to Head of the EU Delegation to Ukraine Matti Maasikas.

    “I think these answers are also a small victory for our team. We are waiting for the consideration and conclusions of the European Commission. I would like these conclusions to be positive. And I would like these conclusions to be provided faster thanks to you,” the President of Ukraine said.

    He stressed that obtaining Ukraine’s EU membership candidate status is of great importance for the Ukrainian people and our Armed Forces, which are defending their homeland.

    For her part, Ursula von der Leyen noted that the European Commission will work hard to review the completed questionnaire submitted by Ukraine to make a decision in June this year.

    “I am very impressed with the speed with which you prepared the answers to our questionnaire. This will encourage the European Commission to work faster,” she said.

    Volodymyr Zelenskyy thanked the European Union for its support to Ukraine.

    “I am thankful to you, Charles Michel and the European Union who are actively working against Russia’s occupation of part of our territory. Working with sanctions, diplomatically, financially, supporting our state with armaments,” he said.

    Volodymyr Zelenskyy also stressed the importance of adopting the sixth package of EU sanctions against Russia, and thanked those European countries that support the introduction of an embargo on oil and gas from the aggressor country.

    The President of the European Commission noted that the EU is working on imposing an embargo on imports of Russian oil products.

    Ursula von der Leyen stressed that today Ukraine is fighting for common European values and democracy, so the EU will continue to provide its support, including financial support. She announced the work on the creation of the Trust Fund for the reconstruction of our country.

  • PRESS RELEASE : President of Ukraine discussed with the President of the European Council support for Ukraine during the war

    PRESS RELEASE : President of Ukraine discussed with the President of the European Council support for Ukraine during the war

    The press release issued by the President of Ukraine on 9 May 2022.

    President of Ukraine Volodymyr Zelenskyy held a video conference with President of the European Council Charles Michel who visited Odesa. The meeting was also attended by Prime Minister Denys Shmyhal.

    The President congratulated the President of the European Council on the anniversary of the victory in World War II and thanked him for the visit to Ukraine.

    “I am very pleased that today, at the highest level, the European Union supports Ukraine, at a time when manifestations of Nazism, unfortunately, exist and are being revived. But they should not be spread, and we are doing everything for this together,” Volodymyr Zelenskyy said.

    He stressed the importance of preventing a food crisis in the world, which could be caused by Russia’s aggressive actions. After all, Russian warships in the Black Sea are blocking the passage of merchant ships to Ukrainian ports.

    According to the President, our country supplies grain to almost 400 million people on the planet. Blocking the export of Ukrainian agricultural products is already leading to rising food prices in the world. As a result, it could lead to growing famine and political instability in a number of regions of the world.

    For his part, the President of the European Council who visited the Odesa seaport where the blocked ship with Ukrainian grain is located stressed that wheat should be available to all people in the world so that famine does not spread across the planet.

    The interlocutors stressed the importance of taking immediate measures for Russia to unblock Ukrainian ports for grain exports.

    Volodymyr Zelenskyy also noted that in the difficult moment of the Russian invasion, Ukrainians are very grateful for the bold position of Charles Michel and his personal presence in Odesa.

    “The European Union supports Ukraine not in words but in deeds. Today, financial support is also very important for us,” the President said, noting that he counts on the assistance of the President of the European Council in the dialogue with African and Asian countries to support Ukraine.

    The President of Ukraine also thanked for the sanctions policy of the European Union. He stressed that Ukraine is waiting for the adoption of the next packages of sanctions against the aggressor country.

    “I am confident that the EU and the world will not stop at six sanctions packages. But what matters is not the number of these packages, but their effectiveness. I am convinced that the main result is peace on our land and therefore in Europe,” Volodymyr Zelenskyy said.

    The President also thanked Charles Michel for supporting Ukraine on its path to European integration.

    “I want to thank you for your political support, for being here. For the fact that you see Ukraine in the near future equal among other members of the European family,” he said.

    For his part, the President of the European Council assured that the European Union will continue to provide maximum financial and defense assistance to Ukraine. The EU has already approved a plan to support our state.

    “There must be a “Marshall Plan” for your initiatives. We must mobilize global support so that you can cope with humanitarian challenges and start rebuilding Ukraine’s economy,” said Charles Michel.

    He also said that in June the European Council will consider Ukraine’s application for EU candidate status.

    Charles Michel noted that the Ukrainian people today are fighting not only for their homeland, but also for the common European values of democracy and freedom. And the European Union supports Ukraine and is impressed by the resilience and courage of our people.

  • PRESS RELEASE : The people of Ukraine and Canada stand side by side in the struggle for freedom against Russian tyranny – Volodymyr Zelenskyy following a meeting with Justin Trudeau in Kyiv

    PRESS RELEASE : The people of Ukraine and Canada stand side by side in the struggle for freedom against Russian tyranny – Volodymyr Zelenskyy following a meeting with Justin Trudeau in Kyiv

    The press release issued by the President of Ukraine on 8 May 2022.

    President of Ukraine Volodymyr Zelenskyy met with Prime Minister of Canada Justin Trudeau who is on a visit to our country.

    During the negotiations, the parties discussed Canada’s support for our state in the struggle for independence and territorial integrity, as well as a number of bilateral issues.

    “The people of Ukraine and Canada stand side by side in the struggle for freedom against tyranny that Russia is trying to spread,” Volodymyr Zelenskyy said during a meeting with media representatives following negotiations with Justin Trudeau.

    “The subject of our talks today was what we must do to liberate our territory from the occupiers as soon as possible, to return normal life to all Ukrainians. Canada’s defense support for Ukraine was discussed in detail,” the President said.

    According to the President, he informed the Prime Minister of Canada about the weapons that Ukraine needs to move faster to victory.

    Volodymyr Zelenskyy noted that the Canadian delegation had the opportunity to visit today the suburbs of Kyiv, which was liberated from the occupiers, and see for themselves what destruction Russia leaves on our land. In this context, he called Canada’s support for demining the de-occupied territories extremely important.

    “The Russian occupiers left thousands of mines, thousands of tripwire mines and shells. They are a threat to our people, our children. And today we have agreed to establish maximum cooperation in this direction, so that there are no such “exclusion zones” left in Ukraine, which cannot be entered due to the threat of Russian mines,” the President said.

    The Head of State called economic support for Ukraine no less important.

    “Post-war reconstruction requires clear, bold, ambitious decisions comparable to the historic Marshall Plan. We agreed to work together to make this a reality,” he said.

    Volodymyr Zelenskyy also noted that negotiations are underway with the Canadian side to lift trade restrictions for Ukrainian exporters, which will greatly help our economy.

    In addition, the President announced his intention to continue discussions on the abolition of the visa regime for citizens of Ukraine.

    “I am grateful to your team, I am grateful to each and everyone who is here with us today in words, in deeds and in personal presence. Together with us at such a difficult time,” said Volodymyr Zelenskyy, addressing Justin Trudeau.

    For his part, the Prime Minister of Canada reaffirmed the unwavering support for Ukraine, including financial and humanitarian support. Regarding arms assistance, he said Canada would provide anti-tank systems, satellite communications equipment and more.

    “We will provide everything needed and fund demining efforts,” he added.

    The Prime Minister of Canada also assured of further assistance in the abolition of customs duties on imports from Ukraine.

    He noted that today he visited Irpin and saw with his own eyes the terrible consequences of the Russian occupation.

    “Obviously, Vladimir Putin is responsible for his heinous war crimes, and Canada will continue to support Ukraine in this war against Russia. We will stand side by side with you in this beautiful capital, which is full of light, culture and history. We will stay with you for years, decades and centuries to fight tyranny, and Putin and his allies will see that Ukraine will win,” said Justin Trudeau.

    He also announced the resumption of the work of the Canadian embassy in Kyiv.

    At the end of the meeting, Volodymyr Zelenskyy, in the presence of Justin Trudeau, presented state awards to Ukrainian rescuers who took part in the demining, using, in particular, Canadian equipment. Among the awarded was the dog Patron who was taught pyrotechnic work by his owner, Major of the Civil Protection Service Mykhailo Iliev. There are already 236 explosive devices found by Patron. In addition, the dog, along with pyrotechnics, is actively involved in mine security education. Children love him especially, and thanks to Patron they perceive information better.

    “Today I want to award those Ukrainian heroes who are already clearing our land of mines. And together with our heroes – a wonderful little sapper Patron who helps not only to neutralize explosives, but also to teach our children the necessary safety rules in areas where there is a mine threat,” said the President of Ukraine.

  • Michael Howard – 2002 Speech at the Centre for Policy Studies

    Michael Howard – 2002 Speech at the Centre for Policy Studies

    The speech made by Michael Howard, the then Shadow Chancellor of the Exchequer, on 12 April 2002.

    May I begin by expressing my gratitude to the Centre for Policy Studies for allowing me to give this, the second of a series of speeches on the framework of economic policy, at the Centre. The Centre has, of course, a long and distinguished history of offering a forum to Conservative economic policy makers. I am honoured to be following in that tradition this morning.

    Last month, I made the first of this series of speeches at the Institute of Public Policy Research which is, if not exactly a sister organisation of the CPS, then perhaps a cousin across the water.

    In that speech I made three points. First, that the current Government’s approach to monetary policy is an evolution of the policy that the Conservatives began to put in place in the 1990’s and not, as the Government maintains, a decisive break with the past. Secondly, that the transfer of responsibility for setting interest rates to the Monetary Policy Committee of the Bank of England has been a successful further stage in that policy, for which the Chancellor deserves credit. And thirdly, that that evolution must be maintained by implementing even greater objectivity and accountability in framing monetary policy.

    My main message was that, in monetary policy at least, there is now a very considerable degree of economic consensus. That consensus, and the stability and continuity which spring from it in economic affairs, is greatly to the advantage of our economy and is a matter for celebration.

    Today I want to talk about the framework for fiscal policy. Here too there are some points of consensus and here too that is to be welcomed. Unfortunately, however, the scope for consensus is somewhat more limited in this area for reasons which I hope to make clear in the course of this speech.

    In terms of short-term economic management, of course, monetary policy is a much more appropriate tool than fiscal policy. Fiscal policy, however, has a very important and powerful influence on the economy’s medium and long-term performance. And it must be conducted in a manner that supports the work of the central bank in running monetary policy directed at achieving an inflation target.

    This leads to one clear and rather obvious difference between the framework for monetary policy and the framework for fiscal policy. While the task of short-term economic management based on monetary policy is now broadly apolitical and the responsibility of the Bank of England’s Monetary Policy Committee, the conduct of fiscal policy remains clearly the political responsibility of the Chancellor of the Exchequer.

    But first, I perhaps ought to make clear that there is one area of fiscal policy which I shall not cover at any length or in any detail this morning. I have already set out my firm belief in the proposition that, other things being equal, low tax economies are best. They are, in general, the most dynamic economies, the most innovative economies and the economies which do most to enhance the material welfare of the people who live and work in those economies. Other things are not, however, always equal. There are from time to time moments in a nation’s economic history when other things have to take priority. As I have also said before the present crisis which we face in our public services is, I believe, one such moment. This does not mean that, as a nation, we should pour endless amounts of taxation into the bottomless pits of unreformed public services. It does mean that the public services must be put first and that the provision of the resources which are necessary in order to meet the current crisis may have to take priority over tax cuts.

    But today I intend to concentrate on the Government’s approach to the framework for fiscal policy and some of the key principles which Governments should apply in this area.

    THE PRINCIPLES OF FISCAL MANAGEMENT

    The current Government has set out five principles of fiscal management – transparency, stability, responsibility, fairness and efficiency.

    It implies that these principles are somehow new. And it makes yet more fundamental claims. In the recent Treasury book, “Reforming Britain’s Economic and Financial Policy”, which no doubt you have all read and which some of you may realise has now become my nightly bedside reading, the authors Ed Balls and Gus O’Donnell, assert that ‘a consensus has emerged in support of sound public finances as the principle medium-term objective of fiscal policy.’ Such a consensus, they claim, ‘grew out of the experience of the 1970’s and 1980’s which saw a relaxation of fiscal discipline.’

    Not for the first time in their volume, they claim too much. The very phrase, ‘sound public finances’ could have been lifted from virtually any of the speeches of Margaret Thatcher or any of her Chancellors. To the extent that there is now consensus around the need for sound public finances, that consensus hardly arose because of Labour’s actions. Indeed, even now, there seems in Government circles to be little recognition of the trade-off between high tax levels and economic competitiveness.

    But the principles are nevertheless welcome. And I am happy to endorse them.

    THE RULES OF FISCAL POLICY

    The principles, however, only take you so far. There is clearly room for huge differences of judgement in the way in which the principles are applied and it is in partial recognition of this that Gordon Brown has attempted to convey at least the impression of rigour by the introduction of his two fiscal rules. The first rule is that the Government will only borrow to finance net capital spending. This is the so-called ‘golden rule.’ The second – the ‘sustainable investment rule’ – is that, over the economic cycle, the ratio of net public sector debt to GDP should be set at a stable and prudent level, defined by the Chancellor as 40% of GDP.

    The Chancellor has, of course, made great play of these rules. When announcing them to Parliament in June 1998, he claimed that they would go a long way to ending ‘once and for all’ boom and bust, a claim with which manufacturers and others might currently take issue. This would, in turn, he said, enhance stability and long-term investment in public services, thus enabling the country to achieve its potential.

    The casual observer might therefore be left with the impression that these rules are rather powerful. In fact the gloss from the Treasury is such that Gordon Brown is often presented either as a modern day version of Gladstone or as the 21st Century reincarnation of Philip Snowden.

    But the principles behind these rules are not new. They build on the approach taken by the Government’s Conservative predecessors. Ken Clarke’s Red Book in November 1996 stated: ‘Fiscal policy’s role is to maintain sound public finances. The Government’s fiscal objective is to bring the PSBR back towards balance over the medium term, and in particular to ensure that when the economy is on trend the public sector borrows no more than is required to finance its net capital spending’ (parag 2.09). Not only was the PSBR projected to fall to close to balance in 1999-2000, with a surplus thereafter, but net public sector debt was forecast to fall below 40 per cent of GDP in 2001-2.

    The sustainable investment rule, which constrains public debt, has a particularly interesting pedigree. As early as 1976, Tim Congdon proposed, as part of a wider programme, a maximum ratio of public debt to GDP. He pointed out that a large deficit, which implied a rising ratio of debt to GDP, would result either in the crowding out of private sector investment or inflation. His analysis was incorporated into policy making in the 1980’s.

    It is indeed gratifying that the present Chancellor has recognised the fact that an excessive budget deficit might risk excessive debt interest and, consequently, unnecessary taxation. But belated recognition is one thing. Fresh discovery is another. This approach did not start in 1997.

    THE FLEXIBILITY OF THE RULES

    Nor are these rules the all-encompassing ‘final word’ on fiscal policy that Government rhetoric would imply. The Institute of Fiscal Studies, for example, has said the rules are not ‘sacrosanct.’ It refers to them as ‘probably best regarded as sensible rules of thumb, but they are no more than that.’ I rather agree with this view.

    At first sight, for example, there is some logic in terms of intergenerational fairness behind the golden rule. It seems equitable that each generation should pay fully for the spending that benefits them but should not have to pay for the spending that will benefit other generations. But even here, the rule is not perfect. Some spending that does not produce a durable physical asset nevertheless yields benefits to future generations – such as the defence spending during the last War, as Marc Robinson has pointed out in a paper for the IFS. Furthermore there may also be cases where future generations have to pick up the bill in a way that is acceptable under the golden rule – for example in respect of civil service pension liabilities.

    But there are yet bigger problems when we look at the rules in more detail.

    For example, the golden rule allows the ratio to be defined over the ‘economic cycle.’ This cycle is very difficult to define and as such gives the Chancellor considerable creative scope in assessing whether the rule has been met.

    When I recently asked the Chancellor, in a written Parliamentary Question, for clarity on this matter, he referred me to the Red Book. This is what the relevant passage of the Red Book says:

    ‘Given the closeness of output to trend throughout 1997 to 1999,possible measurement errors and the prospect of further data revisions, it remains difficult to conclude for certain that the UK economy has completed a full, albeit short and shallow, economic cycle between the first half of 1997 and mid-1999. For the purposes of the Budget and the assessment of performance against the fiscal rules, the provisional judgement remains that a cycle may have been completed by mid-1999 when the current cycle is assumed to begin’ (Budget 2001, March 2001, para 2.36).

    I am not sure that that makes it very much clearer what the Chancellor means but I hope you understand what I mean.

    How is anyone supposed to hold the Chancellor to his test of the golden rule – supposedly cast iron, water-tight, a lynchpin of his entire approach – when it is so difficult to determine, at least until well after it has been completed, when the cycle to which it refers has started or ended?

    And of course, the golden rule only constrains borrowing in relation to what is defined as current spending. This means that Governments can spend substantial amounts of money while keeping the golden rule. As the IFS have pointed out: `In the late 1960s and early 1970s, the golden rule was met. This was not because public sector net borrowing was particularly low, but because public investment at the time was high’ (Briefing Note, January 2001, p. 3).

    OUR APPROACH TO THE RULES – SCRUTINY AND TRANSPARENCY

    So what approach should an incoming Government take to these rules?

    The Treasury has itself acknowledged that there is a balance to be struck between ‘a rigid mechanical approach and an approach based on unfettered discretion.’ I agree. And actually achieving this balance – ensuring that the rules are neither unachievable in a recession, nor so loose as to be meaningless – is, I agree, extremely difficult.

    Two conclusions follow.

    First, no Chancellor should seek to load greater authority onto the rules than they will bear. Gordon Brown’s attempt to dress up these rules as a return to some form of exceptionally rigorous Gladstonian fiscal orthodoxy is, I am afraid, wholly bogus.

    Second, the rules need to be buttressed by other measures.

    THE NEED FOR SCRUTINY

    The best means of achieving this is through improved and more objective parliamentary scrutiny.

    I have already proposed improved scrutiny of appointments to the Monetary Policy Committee. What scope is there for improving parliamentary scrutiny in the fiscal area?

    One possibility would be to equip Parliament with an agency that could offer serious analysis of spending, borrowing and taxation in a manner comparable to that achieved by the Congressional Budget Office in the United States. It would mean that all the Treasury decisions could be authoritatively challenged by an objective agency accountable to Parliament.

    Under the present arrangements, the National Audit Office and the Public Accounts Committee enable the legislature to scrutinise the previous actions of the Executive after the event. This work is exceptionally valuable, but Parliament should also be intellectually equipped and capable of properly challenging the Government as it develops its policies. And there is no more central area for this task than fiscal policy: spending, taxing and borrowing.

    THE NEED FOR TRANSPARENCY

    But for scrutiny to be effective a degree of transparency is necessary. Indeed, transparency is the first of the Government’s five principles. If this principle is to be achieved it must be possible for the facts on which debate is based to be capable of being established and, if possible, agreed. But one of the worrying developments since 1997 has been the increase in obfuscation from the Treasury. I am not talking here about the repeated reannouncements of spending proposals – those spinning Balls are easily caught.

    I am talking about something much more insidious.

    As the Financial Times has said: `Unfortunately, in many respects Mr Brown has reduced Budget transparency to a new low. Important tax changes have been omitted from the speech… Statistics have rarely been quoted on a consistent basis. The Budget documentation has been filled with political point-scoring rather than factual analysis. And there has been a continued tendency to classify the collection of revenue as anything other than taxation’ (2 March 2001).

    Let us take a few of these points in turn.

    We have become accustomed to the phenomenon of discovering after a Budget Statement that some very important measure has been buried in some obscure footnote. The extent of the £5 billion a year raid on people’s pension funds was not mentioned in the relevant Budget statement, with a reference instead to `a long needed reform’ (Gordon Brown, col. 306, HC Debs, 2 July 1997). When the Chancellor introduced the new 10p starting rate in his 1999 Budget he neglected to mention that he was abolishing the existing 20p rate. And nor was his stealth tax on entrepreneurs – IR35 – mentioned in his 1999 speech. Instead, he said: ‘I want to recruit, motivate and reward Britain’s risk-takers’ (Gordon Brown, col. 177, HC Debs, 9 March 1999).

    Another example is the far too little known fact that the Government has deliberately excluded the impact of indirect taxes when illustrating the effects of Budget changes on specimen households.

    The public accounts themselves are now more opaque and confusing than for many years. The Budget Red Book has been transformed from a coherent document that lucidly explained economic policy to a discursive document that confuses more than it informs. Meanwhile its length has risen from 160 pages when we left office to 225 pages last year. The Finance Bill likewise has risen from 219 pages to 292 pages.

    It is little wonder that one of the most serious criticisms that can be levelled against the Chancellor is the increasing complexity of the tax system. The Institute of Chartered Accountants, for example, has said that the tax system has ‘spun out of democratic control’ because of complexity, the number of anomalies and the ‘culture of never-ending change.’

    I know that the CPS is looking at this problem of the ever-increasing complexity of the tax system and I very much look forward to your conclusions.

    Clearly this also has implications for two more of the principles which the Government has established for fiscal policy – efficiency and fairness.

    Complexity in the tax system does not lend itself to meeting either meaning of the term `efficient’: the efficient allocation of resources in the economy or the narrow definition in terms of efficient tax collection. Indeed it is a startling fact that the number of Inland Revenue staff has risen from fewer than 50,000 in 1997 to 64,000 now.

    One of the reasons behind this growing complexity is the tendency of the Chancellor to intervene in just about every area where intervention is possible. I accept that there is a proper place for the use of the tax system to encourage particular kinds of behaviour which are regarded as economically and socially desirable. But any such intervention should be used sparingly – both because any tax break for some effectively raises tax rates for others and also because this very process, unless it is firmly controlled, tends to constitute an impediment to transparency.

    Yet as the Economist has said: ‘The signs are, in fact, that in microeconomic policy Mr Brown’s every instinct drives him towards complication and activism….. The Chancellor is meddling because he thinks he knows best…. The Chancellor appears to forget that fiscal complexity feeds on itself; that it creates anomalies that call forth new rules and complications’ (The Economist, 13 March 1999).

    It is also clear that much of the opaqueness which has arisen in recent years is deliberate. The national accounts and public finances should in principle be presented on the basis of internationally agreed accounting conventions. That is why the Chancellor’s decision to score the Working Families Tax Credit as a credit that reduces income tax and the tax burden rather than for what it is, a social security benefit that increases public expenditure, is so reprehensible. His approach to this question is entirely inconsistent with the internally agreed accounting conventions. The Treasury Select Committee has also noted that, under accounting conventions employed by the ONS, the OECD and ESA95, `…WFTC counts as expenditure’ (report on Budget 2000, April 2000).

    Even if the Chancellor’s preference to score the measure as a tax credit rather than a social security benefit were acceptable, he has chosen to treat the WFTC and the old Family Credit benefit, which it replaced, in different ways. In historical data presented by Gordon Brown, Family Credit is scored as a social security benefit and is not netted off against income tax. This of course is the opposite of what he has chosen to do with the Working Families Tax Credit. The result is a higher total tax burden before the introduction of the change and lower one afterwards despite the fact that there has been no change of any kind in the essential approach. That is not transparency, that is deliberate obfuscation.

    Where statistics are not consistent Government documents should highlight this and explain the reason for it. This is particularly important where the Government is choosing to present numbers in a way that departs from the agreed international conventions. And where previously available information has been dropped, it should once again be made available and in an easily accessible form.

    CODE FOR FISCAL RESPONSIBILITY

    The Government has emphasised, in this context, the introduction of the Code for Fiscal Responsibility. Treasury advisers claim that the Code strengthens the openness, transparency and accountability of fiscal policy.

    However, it is clear that the principles in the Code – the fiscal principles I listed earlier – are not being observed. The Code itself, although approved by Parliament and supported by the Finance Act 1998, does not have the force of statute.

    We may need to look at ways to give effect to some of the rhetoric employed at the time of the Finance Act 1998 and ostensibly enshrined in the Code for Fiscal Responsibility.

    I would welcome a public discussion on the lessons that we can learn from our experience since the legislation of 1998, together with the experience of scrutiny that is available for example under the New Zealand Fiscal Responsibility Act and elsewhere.

    This would also help to meet the fifth principle of fiscal management: fairness. It is certainly a principle to which I would subscribe. But it is not a principle which is likely to be met under an opaque and complicated tax structure. And the Government’s general performance in this area leaves a great deal to be desired. The tax burden for the poorest fifth of households rose from 37% to 41% in the first three years of Labour Government – the latest figures which are available. That is hardly the record of a Government with an equitable tax policy.

    SPENDING

    The final point I wish to make about fiscal policy is, in many ways, one of the most important of all.

    Both the fiscal rules of course relate to inputs into the public spending equation. Yet the most important issue is the outcome of that spending – its effectiveness.

    The Chancellor in the foreword to the Treasury book states that there was a need for `better planned public spending’ in 1997, which focused on `the quality of public service provision’. Yet it is hardly credible to claim either that public spending over the last five years was in fact better planned, or that the quality of public service provision has improved as a result.

    There does need to be a rigorous approach to assessing the effectiveness of decisions about public spending and investment. Of course the Government claims that such an approach is already taken. And there is, indeed, Treasury guidance, set out in the `Green Book’, covering the need for cost-benefit analysis of spending decisions.

    Treasury advisers also highlight public service agreements as the means by which attention is focused on outcomes rather than inputs. Yet these have not achieved that goal, not least because many of the targets are not being met.

    An IMF working paper last year looked at these issues. It stated that UK Government authorities implicitly recognised that the golden rule was about how investment is financed, not about the optimum level of that investment. The paper went on to say: `it is particularly important that the details of how a “value for money” criterion will be implemented are clearly set out. But that is not yet the case in the United Kingdom’. It said, in relation to the Government’s requirement that each department publish a Departmental Investment Strategy, that the first strategies (in March 1999) contained little relevant information other than to refer to existing (non-mandatory) guidelines on investment appraisal.

    So it is clear that not enough attention is being given to this vital area, one which is often overlooked in discussion of the fiscal rules.

    CONCLUSION

    I have today focused on the framework for fiscal policy, and have set out some suggestions for how it might be strengthened.

    The Chancellor’s fiscal rules have an important role to play, but their limitations need to be acknowledged. They need to be buttressed through the introduction of a degree of objective scrutiny and transparency into fiscal policy. There also needs to be a greater focus on the outcome of the spending – rather than just the amount which is spent.

    I will be focusing in future speeches on non-fiscal aspects of the supply-side economy. But it is important at this stage to recognise that the combination of ever higher taxes along with ever worsening public services, a less transparent tax system and employment regulations that make the labour market less flexible will, in the medium-term, depress the economy’s growth rate.

    Beneficial supply-side reforms take a long time before their full effects on an economy are evident. The impact of damaging policies on the supply-side is also only clear after a lag, and the lags involved can be protracted. It is because these lags are so long that we need a properly informed debate about these issues now. The public finances should be accurately and intelligibly presented. And the institutional arrangements for presenting and scrutinising the government’s fiscal polices need to be strengthened.

    Measures of this kind will not guarantee halcyon economic performance forevermore. But they would represent a clear improvement on the arrangements that are presently in place. I hope they can form the basis of informed debate during the rest of this Parliament.

  • PRESS RELEASE : Volodymyr Zelenskyy together with Justin Trudeau took part in a video conference of G7 leaders

    PRESS RELEASE : Volodymyr Zelenskyy together with Justin Trudeau took part in a video conference of G7 leaders

    The press release issued by the President of Ukraine on 8 May 2022.

    After bilateral talks in Kyiv, President of Ukraine Volodymyr Zelenskyy and Prime Minister of Canada Justin Trudeau took part in a video conference of the G7 leaders.

    The President of Ukraine thanked Olaf Scholz, Federal Chancellor of Germany, who chairs the G7, for organizing this summit.

    “I believe that such a summit with the participation of Ukraine today proves that the free world is determined not only to defend freedom, but also to win, as it did 77 years ago. On behalf of the entire Ukrainian people, I am grateful to the leaders of the United States, Great Britain, France, Italy and Japan. I am grateful to the European Union and, of course, to the Prime Minister of Canada for this solidarity with us,” Volodymyr Zelenskyy told the media representatives after an online speech at the G7 summit.

    According to him, the G7 leaders agreed on a special summit declaration, which fixed the historical solidarity of the participating countries and their readiness to work together until security and observance of international law for Ukraine and the whole of Europe are restored.

    Also, as noted by the President of Ukraine, at the G7 meeting, he proposed specific tools needed now by Ukraine and everyone in the world “who values freedom, democracy and independence.”

    “The first is new steps in Ukraine’s defense support. Because it is on the battlefield that the fate of freedom in Europe is decided. Secondly, I stressed the need for new sanctions against Russia, as the war on our land continues, which means that the existing sanctions are not enough. Third, we discussed financial support for Ukraine now, when the war continues, and joint work to restore our state after the war. The scale of Russia’s current threat in Europe makes the return of concepts such as the Lend-Lease and the Marshall Plan quite natural,” he said.

    In the fourth point, Volodymyr Zelenskyy invited all the G7 states to join the post-war reconstruction of Ukraine, using the format of patronage over specific cities, towns, regions and industries affected by the Russian invasion.

    “It is this format that can give maximum efficiency to the work on the recovery and create new economic and technological ties within the democratic world,” said the President.

    The fifth point of the proposals of the President of Ukraine is to unite efforts to guarantee stability in the global food market.

    “We, the grain exporters, are able to do this on the basis of respect for human rights in such a way that there are no more price crises in the food market, so that each country is confident that it is not threatened by famine,” said Volodymyr Zelenskyy.

    The Prime Minister of Canada assured that his country will continue not only to provide assistance to Ukraine, but also to consolidate the efforts of international partners, including in the issue of sanctions.

    “On this anniversary of the victory in the war in Europe, we stand side by side and defend freedom, independence and international law. We will continue to impose severe sanctions, reduce our dependence on energy resources from Russia, and fight disinformation from Russia. We will also be there to overcome all of Putin’s challenges, including the food threat,” said Justin Trudeau.

    The President thanked the G7 leaders for their willingness to work together to protect and strengthen freedom and democracy in the world.

  • PRESS RELEASE : Volodymyr Zelenskyy met with the President of the Storting of Norway

    PRESS RELEASE : Volodymyr Zelenskyy met with the President of the Storting of Norway

    The press release issued by the President of Ukraine on 8 May 2022.

    President of Ukraine Volodymyr Zelenskyy met with President of the Norwegian Storting Masud Gharahkhani who paid a visit to Ukraine.

    “I am glad to meet you. I am grateful for the support of Ukraine’s sovereignty and territorial integrity, as well as for the opportunity to speak in your parliament,” the Head of State addressed his interlocutor.

    Volodymyr Zelenskyy also thanked Norwegian society for supporting the people of Ukraine from the first day of the war for their freedom.

    For his part, Masud Gharahkhani noted that it is an honor for him to visit Ukraine. He stressed that Volodymyr Zelenskyy’s speech at the Storting was historic.

    “Today, my country is celebrating the day when we managed to regain our democracy and independence after World War II. Unfortunately, today your country is once again going through aggression and violence,” said the President of the Norwegian Storting.

    Masud Gharahkhani said he was deeply shocked by the consequences of the Russian occupation in Irpin and Bucha in the Kyiv region.

    “I want to confirm to you that Norway always stands by Ukraine,” he said.

    The parties discussed the issue of increasing Norway’s security support for Ukraine. The President thanked Norway for the decision to provide defensive weapons to Ukraine and its practical implementation.

    During the meeting, Volodymyr Zelenskyy and Masud Gharahkhani discussed approaches to further strengthening sanctions on Russia. The parties also touched upon the possibility of cooperation in the field of energy security.

    The President noted the financial support of Ukraine and humanitarian aid from Norway, and invited to join the reconstruction of our country.