Category: Speeches

  • Michael Heseltine – 2006 Speech on Conservative Policy

    Below is the text of the speech made by Michael Heseltine on 7th April 2006.

    It is very rare in public life to be given the chance to revisit previous responsibilities. Having served on three separate occasions in the Department of the Environment – twice as Secretary of State – I am delighted that David Cameron asked me to look again at the opportunities to stimulate the regeneration of our cities.

    I can bring experience to the task but with that experience come the opinions that arose from that experience.

    I should stress that whatever I may believe should not be confused with what a future Conservative government may do.

    I act rather as a headwaiter.

    I can produce a menu.

    It is for David and his colleagues to decide what, if any thing, they will consume from it.

    My task is also partial. Inner city policy embraces an agenda that touches on virtually all domestic issues. I am concerned with structure and physical regeneration. John Gummer and Ian Duncan-Smith with their policy groups carry the demanding work load concerning human relations and social provision.

    Today we look forward to important local elections.

    Let us be clear about one thing.

    We are not here today to take part in a wake to remember the glorious past of Conservatives in urban Britain.

    We have an altogether more optimistic purpose.

    Already we control Trafford, Dudley, Solihull, Walsall and many other authorities.

    We control nine London boroughs and we run Birmingham, Bradford and Coventry.

    There is one clear message.

    We have taken the beach heads.

    Now to advance.

    Let our cry be – if we can do it there, we can do it here.

    Wining control of more authorities are skirmishes in the battle of the next general election.

    Stepping stones to power.

    The chance to serve.

    As we bring the skills of good administration to more and more authorities let us remember politics is not all about fact, statistic or spinning the truth.

    It is also about passion.

    If you want to understand why Labour is bad for Britain walk about the deprived parts of Britain’s cities.

    After nearly a decade of power what has New Labour actually done for the forgotten people?

    What does that most overblown phrase of modern politics “Education, Education, Education” actually mean to those kids leaving our sink schools barely literate?

    Do the elderly feel safer?

    Is the litter picked?

    Is there a glimmer of hope shining through the drab concrete world that is as far as the horizon stretches?

    Walk around.

    Feel the insecurity.

    Absorb the squalor.

    Understand what it’s like to lose hope.

    Ten years of excuses, ten years when new Labour forgot a generation who simply missed out.

    What a challenge here for our party.

    With: the right policies,

    the right candidates,

    the right language,

    and, above all, an unswerving allegiance to the Churchillian vision of a net of civilised living above which all are free to rise, below which none may fall.

    Time and again the Tory party has leapt the simple barriers of class to bring hope.

    Lord Shaftsbury took the women out of the mines and the children out of the chimneys.

    Disraeli gave the working man the vote.

    Rab Butler was responsible for universal education.

    Mrs Thatcher’s government enfranchised the council tenant.

    In forgotten Britain there are challenges today of such historic scale.

    Do not for one moment think that these problems are self contained, affect only that proportion of society that actually live in urban deprivation.

    There is high unemployment in deprived areas.

    That is a human tragedy.

    It is a tax payers bill.

    The education is inadequate.

    Illiteracy impoverishes someone for life.

    To the drug barons it is an opportunity. It is a recruiting ground. The drug peddlers do not restrict their sales to inner cities.

    Low or no education standards, drugs, here is the cauldron from which criminals come.

    But the crimes threaten us all.

    So it is our problem too. Less personal. Just as important.

    Expensive

    Dangerous

    Threatening

    I began by saying that it would be quite wrong for me to make statements that sound like policy decisions. I would like therefore to cover just three themes today.

    First

    What were the critical changes and consequences for the regeneration of our cities of the Thatcher and Major governments?

    Second

    Are local governments capable of carrying greater responsibility for their destinies?

    Third

    Why should a conservative government pay particular attention to the regeneration of our cities?

    First, the critical changes.

    The sale of council houses and the transfer of much of the remaining stock into self administering trusts was a social revolution of historic proportions.

    Well over a million families became homeowners.

    Many millions more were enabled to exercise a more direct influence over their housing conditions.

    I give Tony Blair credit for making fashionable the concept of stakeholder.

    It was a very good way to describe the property owning, share owning society we had already created in the teeth of Labour opposition.

    Second, Geoffrey Howe’s, Nigel Lawson and Ken Clarke’s budgets created the conditions whereby the enterprise system could regenerate itself.

    Everywhere today there are flourishing new companies creating local wealth and jobs.

    We made that possible.

    Third, less conspicuous but equally profound, our policies broke the barriers of prejudice and bitterness between the public and private sectors.

    Both have their strengths.

    We created the incentives to forge those strengths into formidable partnerships where the old enmities were replaced by constructive co-operation.

    You may ask what do all these changes, now centrepieces of modern government, have in common?

    I will tell you.

    Every one was opposed by the Labour Party.

    In the dark corners of deprived Britain which had been their fiefdom for decades, they had become the custodians of deprivation, the champions of mediocrity.

    We let the light in and there grew an urban renaissance on a scale and quality not seen since Victorian times.

    Let me be specific. Take Manchester

    GMex the great exhibition centre

    The concert hall

    The velodrome and other great sports stadia that came from our support for the Commonwealth Games

    The redevelopment of Castlefields

    The transformation of the Hume estate

    After the bomb outrage the recreation of the City centre itself

    The list goes on.

    It can be replicated in City after City.

    London, Liverpool, Leeds, Birmingham, Newcastle, Cardiff, Glasgow. Many others.

    I come to my second question.

    Are local authorities capable of carrying greater responsibilities for their own destinies?

    Well let’s say something rather uncomfortable.

    The chief executive of a major city is paid in the order of £150-200,000pa.

    He or she will be amongst the highest paid people in most cities.

    If they are not capable of doing the job, there should be a system to replace them by someone who is.

    If they are capable, why should Whitehall double or triple guess every decision they make?

    We should give them real freedom to serve local people as local people determine.

    But let me say something else uncomfortable.

    You will say to me “but surely the leader of the council runs the show, why are they paid a fraction of the Chief Executive’s salary?

    And anyway why do we need two Chief Executives?

    One badly paid and answerable to an electorate and one extremely well paid and enjoying a tenure far removed from public accountability.

    I believe that the time has come to combine these two jobs.

    I believe great cities should elect great leaders and hold them to account.

    They should be elected by the constituency of the whole city and not just a constituency that is often an unrepresentative part of it.

    There is a second part to my question as to whether cities are capable of carrying greater responsibilities.

    It is this.

    Would central government ever devolve real discretion to local authorities?

    Anyone who has any experience of the relationship between central and local government is familiar with what happens.

    Ministers legislate.

    Officials get at it.

    Circulars prescribe in detail after detail what the law means, what it entitles an authority to do or not do.

    When I first became Secretary of State I discovered that a housing authority had to answer 80 questions about the detail of any scheme before they would put a brick on the ground.

    And councillors thought they were free!

    We changed much of that, but the culture remains.

    Central government pays for 80% of local expenditure, so it controls the details of that expenditure as well.

    The money comes in labelled packages each with its own detailed prescription and set of rules.

    Rules mean Whitehall knows best.

    Whilst Whitehall checks its forms, questions the detail, imposes its remote perspective, it also creates delay, generates cost and, even worse, encourages a culture of drab conformity and stifled initiative.

    I think we should breathe freedom into local authorities.

    We should welcome the diversity of policies that would flow.

    We started in the early eighties to link government grant to the after use of reclaimed land. By such linkage local authorities had to find private sector partners who in turn added more investment on land reclaimed at public expense.

    City challenge was the logical next step.

    Government grant was available for local authorities with the most attractive proposals involving local communities of up to 30,000 people and partnership across public and private sectors.

    This simple idea made local authorities’ officials much more inclined to work together as a team as opposed to their traditional role as outpost of their sponsoring Whitehall department.

    Times have moved on but the lessons remain.

    I think that such ideas could be extended to cover whole authorities and not just parts of them.

    Directly elected local leaders would prepare an overall plan for the administration and development of their authority.

    The scale of central finance would relate to the quality and imagination it contained.

    Local leaders would be rewarded for the vision they conceived, the partnerships they formed and the co-operation they secured at local level.

    In any competitive allocation of funds not every authority would win.

    Those that lost would have a choice.

    Moan about the result or try harder next year.

    I think they’ll try harder.

    It worked with City Challenge.

    It would work on a larger scale.

    I understand the arguments about public accountability, but this should be the job of the Audit Commission. I do not believe that our public services are so well administered by the present rigid control that we should deny authorities the freedom to experiment, diversify, set their own priorities, design policies that reflect local needs as local people see them.

    Our party places its faith in choice, initiative, individual responsibility. Why should we apply these inestimable human qualities only to the private sector?

    We have to encourage the public sector to adopt similar attitudes and approaches.

    The way to do that is to devolve responsibility not impose restraint.

    I come to my last question. Why should a conservative government pay particular attention to the regeneration of our historic cities?

    Cities are the great engines of our economy.

    They can sustain the infinite variety of human talent upon which a sophisticated society depends.

    They can educate and train a workforce without which investment drains away.

    They provide choice and diversity in academia, the arts, culture, sport, entertainment and the quality of life.

    They are the great centres of human enterprise and endeavour.

    They were built on the enterprise of countless generations

    As the party of enterprise we have so much to give.

    But there is another answer to my question.

    Just two words.

    One nation.

    Someone once said to me “why do you bother with inner Liverpool? There are no votes for us there.”

    No Tory can accept that.

    I do not see this nation as packages of voters, some to be cherished, others discarded because they vote another way.

    I do not pretend to know from which school some great academic originally came or from which part of society a world class entrepreneur may emerge.

    I only know it is our responsibility to give to each and all the best start in life we can.

    I believe passionately in the free enterprise system as a creator of wealth, but markets know no morality.

    It is our responsibility, as it has been the tradition of our party throughout its long and distinguished history, to bring a balance to the books of life.

    To recognise that, if we fail to educate our people, we will pay for their unemployment benefits or, worse, fill our prisons to overcrowding.

    If we let large parts of our cities become the preserve of the low skilled, the elderly, the dependent, then have no doubt that one day society will pay the price of dereliction and decay.

    We must fight to regain a place in our cities because by any standards I understand they will be better run if we do.

    It is right to do so.

    What is morally right cannot be politically wrong.

  • Michael Heseltine – 1989 Speech on Science

    Below is the text of a speech made by Michael Heseltine at the Cavendish Conference Centre in London on 23rd November 1989.

    I would not pretend to be a scientist. But there are very few ministerial positions in government in which one is not brought face to face with the government’s role in research and development.

    I have been fortunate in having held several such positions. At the Department of the Environment in the early 1970’s, I saw something of the work of the Road Research Laboratory in the furtherance of safety measures. As Minister of Aerospace I took over responsibility for the crisis surrounding Rolls Royce, the last development phase of Concorde, and I initiated the fusion of ELDO and ESRO into the European Space Agency.

    I was responsible for Britain’s part in the European Airbus and had the task of setting up many of the Industrial Requirements Boards designed to give effect to the Rothschild principle of customer-contractor relationships. As Secretary of State for the Environment in the 1980’s and then as Secretary of State for Defence, I was responsible for the research programmes in a variety of different fields: in nuclear waste, disposal of toxic wastes, the construction industry and many others. As for Britain’s contribution to research and development in the defence field, that is a major source of controversy, perceived as pre-empting a disproportionately large share of our available scientific and technological resources.

    Although I have never held responsibilities directly for the university or educational world, it is, I think, reasonable to claim that I have seen, both at home and abroad many of the complex issues which fall to Ministers to address. And I recognise that, for all the brave words, the range of government support and the means by which it is administered look markedly similar today to those that I first encountered.

    I would like to thank you for inviting me to make this speech because it has provided me with an opportunity to think back over those earlier experience and to address, in the light of them, the implication behind your invitation: that British science needs saving.

    Saving British Science?

    The first question that occurs to me is, why should we be pre-occupied to save British science? If in the market place, people move into non-scientific activities, if people choose to pursue their careers in the arts, literature, or languages, if people are content to gravitate increasingly to the service industries – using other people’s scientific abilities, purchased in the market place – why should we be concerned about that?

    There are, I believe, ready answers to these questions. First of all, because of the value of increasing knowledge and understanding for their own sake: mankind is inherently driven by curiosity and must be free to explore the limits of his mind and experience

    Secondly, there is wider social purpose. An ever-widening base of knowledge is the hallmark of a civilised and civilising society in a very practical sense – diseases, disasters help for the disabled, safeguards for the environment, a whole raft of ever-emerging problems – require scientific knowledge. And I would say to our young people, reluctant – as it seems – to persevere with science at school or university, the pursuit of science and scientific research is not just the foundation of our future wealth as a nation but is the source of the safety of the planet at large.

    In the final analysis, the advanced nations of the world are more than ever dependent on science-based industry. Investment in science, the training of their most talented young people in science, and the enhancement of the technological base of industry, are to all of them national priorities of the first order. To be part of the technological revolution sweeping through the modern world necessitates a strong science base.

    So, if the arguments are conclusive and we come to the same conclusions as all other similar, advanced nations that we will compete in this arena, where should the emphasis of policy lie? There is, of course, a chicken and egg situation. If you have not got facilities of the first order, if you cannot demonstrate achievements at the exciting frontiers of knowledge, you will not attract new generations of young people by example. And it follows, if you do not attract the talented new generations, you will not develop a scientific base from which excellence can emerge.

    The international context

    We have to cut into this circular arrangement. It is obvious that, if we do not educate and train our young people to the standards of our competitors, the likelihood of decline is greatly increased. There can be no argument that the British are incapable of scientific excellence. For over a hundred years we have been at the forefront of the scientific revolution that has transformed peoples lives. Only the United States surpasses us in the number of Nobel prizes. Where we have been less successful is in the exploitation of our knowledge. There is no substitute but that we educate and train on the scale that will enable us to remain in the race.

    Sadly, of all the OECD nations, the numbers in the UK involved in research have for some years been in decline. Not enough of our best brains pursue science at school or in higher education. Applications for science and engineering places are falling, with a serious knock-on effect on the pool for top rate post-graduates. The latest official forecast of science and engineering graduates and post-graduates contained in the January 1989 public expenditure White Paper projects an increase of only 2,000 to 46,000 by 1991-92. Thereafter, numbers are expected to level off before rising again towards the end of the 1990’s. Clearly there will be intense competition for this limited pool of talent.

    After twenty years of debate, Britain is at last adopting a core national curriculum. The significance of this reform should not be underestimated in providing a deeper grounding in science and technology for all young people. But at the route of the problem must surely be the shortage of inspiring science teachers who could pass on their enthusiasm to future generations. We shall need to recognise the market value of such people. We shall have to consider what salaries will be needed if we are to ever to address this problem seriously. Too many who can teach science can rapidly move into more lucrative areas of business.

    Sir Monty Finniston vividly identified a mare basic failing in his Royal Commission Report, “Engineering:  All our Future”, that there has been in this country, for many generations, a cultural hang-up about all things technical. But I also suspect that a basic distrust of science is engendered from an early age. There has long been a British prejudice in favour of the arts, grounded in the early traditions of classical education. In Japan, Germany and France technologists assume a more significant role in business and government.

    It must follow that for us to devote resources to achieving the highest standard of skills is not with the philanthropic intention that Britain shall export our talent to other nations’ industries or universities with our talent. We are doing it, not just four our citizens as young people, but because we believe that by investing in them in their formative years, they will deliver the wealth and stimulus from which we can all benefit.

    Spending and infrastructure

    So the next step follows: that in a free society, the market place will buy the talent. And the talent will be attracted by both the financial rewards on offer, but also by the quality of scientific opportunity on offer. You simply will not keep top-class scientists by doubling their money and halving their research budgets.

    You will not attract the best academic minds to work in the worst scientific conditions. So the facilities matter and we therefore need to ask whether, in both the public and private sector, the opportunities for young British people, hopefully educated and trained to the highest standards are such as to persuade them to fulfil themselves in our laboratories, universities and companies. And how best can we direct public and private resources to that end, for staying on the frontiers of research cannot be done on  the cheap.

    A growth economy needs to invest in its intellectual assets. Though from the mid-1970’s we went through a period when university laboratories were, in large measure, living off the 10% annual growth of the 1960’s, the government has now given new importance to the funding of basic and strategic science. The Science Budget over the next three years is now planned to increase by £178m more than in previous projections. By 1990/91 it will be 27% higher in real terms than it was in 1988/89.

    The turn-around is dramatic when one considers that in 1987 the forecast was for a 4% annual reduction up to 1991. Sixteen government departments, other than the Ministry of Defence, contribute £1.1bn directly to the nation’s research effort; the MOD’s expenditure is over £2.25bn; the five Research Councils pay out £641m in addition to the contribution of the University Funding Council. This is by any standard a major and influential commitment by the British government.

    I draw a conclusion from all of this. It is that common sense prevails. The larger the pool of scientific resources you create, the larger the fish that will swim in that pool. There is, of course, a caveat. It is no use simply throwing money at the problem.

    What should be the disciplines? Indeed, are there practical disciplines which can apply to the frontiers of scientific knowledge? Is not blue-sky research desirable of itself: the right to know, the right to explore, the right to pursue the unknown? You cannot put a price tag on so amorphous an objective. You cannot measure the returns in terms of dividends or wealth-increase. In many cases there is more gamble than risk. There may be no returns at all.

    But the pool, of course, is not infinite. The government must define the scale of the public’s contribution to it, while companies are limited by the scope of their balance sheets. Judgements are unavoidable. Priorities have to be established.

    And there is yet another dimension. For we do not live or trade on a desert island. But the closer one examines the realities, the more one discovers the relationships between mighty companies and the public procurement programmes of the governments behind them. Competition there certainly is. But the idea that it is competition on the level playing fields of the corporate sector is unrealistic, as it is foolish to behave as though it is the case.

    Slowly, by patience – as the European Commission is attempting to do – we may change the rules. But we must be very clear that we do not in the meantime put our industry where, by the time the rules have been brought to common form, the strength of our industry has been eroded

    We need to understand the scale of British expenditure.

    UK research investment

    The first fact is that gross expenditure on research and development has risen by over £1bn since 1981. The latest figures available to me show that in 1987 we spent £8,703m compared with £7,677m in the earlier year.

    Can it be argued that by international comparison this is too low? In 1987, the last year for which I have complete statistics, Britain spent the same proportion of her GDP on research as France at 2.29% and considerably more than Italy at 1.19%. We do not, however, match the Americans at 2.71%, the Germans at 2.81% or the Japanese at 2.87%.

    But of course these figures do not reveal the full picture. They ignore the critical factor: the size of the respective gross national products. Then the investment gap becomes evident.

    OECD figures reveal that in 1987 Britain and France spent virtually the same at £9.4 and £9.5 billion. Germany spent £13.3bn, Japan £26.7bn and the United States £70.3bn.

    Whereas in the case of our competitors, the percentage of GDP devoted to research has steadily risen (for example, in France from 1.97 in 1981 to 2.29, and in Germany from 2.42 to 2.81) the UK percentage has fallen from 2.42% to 2.29%.

    As a result – as you know only too well – half of the “alpha” research proposals submitted to most of the Research Councils in 1987 and 1988 were underfunded. Britain’s output of scientific achievement remains outstanding, but the truth is that others are catching up.

    There is, of course, the question  of why we have not been very effective at moving research results into product development, but it is no solution to that problem to reduce the level of fundamental research.

    Industrial R&D

    Higher profits in recent years have been reflected in higher R&D spending in the private sector in the last two years but there is a sizable leeway to make up.

    These figures throw out their own questions.

    What philosophy should the government adopt to the money it does spend?

    Has the government got the balance right between military and civil expenditure?

    How do medium-size countries such as ours give the sort of support to their industries as is available to our overseas competitors?

    I do not see how it is possible to argue that the government’s withdrawal from near market research and the transfer of responsibility for this to the private sector can be questioned in theory. That is not to say that industry should not be encouraged to sub-contracting to our universities and polytechnics. The private sector will be more disciplined in the use of resources, will cut off false trails more quickly and exploit new developments more effectively. And quite frankly they are more likely to exploit them in their own plants and laboratories than public research organisations who can be more orientated to the publication and dissemination of ideas than their exploitation.

    I do not say this as a matter of doctrine because I know enough of the workings of government to know that in practice most governments are deeply involved in making judgements every day about the use of public funds in support of specific projects, though certainly automatic grants are today the creatures of the past.

    The requirement for government support is now invariably a large private sector commitment, and preferably collaborative projects.

    Industrial strategies

    Across the world this trend to “privatise” the research and development programmes in the new market is discernible. But no one should confuse privatised research and development with a genuine market place. The United States, with far and away the largest commitment, operates a protected market for its hi-tech industries, offering generous partnerships for co-operation where an overseas partner has the technological lead but rigidly imposing the technology transfer provisions of national legislation in all other circumstances.

    Japan has transferred much of the former government funding of MITI to its private sector but just look for examples of where any overseas company is allowed to gain access to the ownership of one of those companies and you will see a protected market at work.

    It is within this real world of industrial politics that any British government must assess its priorities. But the real world contains another dynamic. The decade ahead is going to see the completion of the regional market of Western Europe. Its precise form or scale is secondary to the consequence for industry and our research programmes. The consequence will be mergers on a European scale. They may be driven by American partnerships pr they may be furthered by Japanese investment but ten years from now Europe will not think of national research programmes, for the simple reason that such programmes will not be able to match in scale or sophistication the American or Japanese challenges.

    The more we continue to duplicate or triplicate our invention of the wheel in the nation states of Europe, the less competitive we will be with the two giants.

    So company merger in Europe will bring together the research resources of the European countries. Competition for scarce national scientific resources will lead to collaborating but also specialisation at the academic level across the universities and research laboratories of Europe. Governments will be forced by the logic of the market place to follow this pattern.

    I have set out my support for the view that industry is best trusted with the application and exploitation of research. It is the servant of the market place and its disciplines.

    Government as a customer

    But what of the circumstances where governments are themselves the market? The scientific and technological consequences in such cases can be profound. It is not so much a case of the jobs involved, rather the attainment of a technological base and the ability to set standards that flow from the availability of public procurement funds.

    It is here that governments cannot avoid decisions about their role in support of their industry. And none of them, in practice, do.

    Let me give five examples where in the pursuit of public policy, the government – as customer or in the discharge of its own responsibilities – has opportunities to enhance the technological base of our industry:

    1)      Euro-control for the management of our airspace. An area in which British industry has a direct stake in the British Government taking a lead is in the creation of a Europe-wide air traffic control system. As the largest single source and destination of all flights in Europe this is a major national interest. It won’t be easy, as the system must go wider than the twelve and countries over which planes fly have different priorities from those like us where they begin and end their flights – which is why only governments can create the necessary frame work.

    But the prize is great. And not just in terms of quicker flights and less delays. A whole new market at the leading edge of technology, in the telecommunications, computer and other equipment industries would be opened up. The potential fillip to European industry is enormous. The Americans and japans will certainly challenge for the contracts. The French, Italians and Dutch, with the support of their governments, are gearing up. If the British Government plays its hand skilfully, British companies could have a major role as well.

    2)      The European Space Agency. There has been much questioning of Britain’s role in space. I believe we are wrong to remain apparently detached as our competitors commit growing resources. There is an unquantifiable but inescapable message in such a policy. Younger generations need not just the prospect of financial reward in their choice of career, they also need intellectual stimulus and vision. If we want them to see the broad field of engineering and scientific research as the outlet for their energies, the exploration and conquest of space offers a unequalled challenge for the enquiring mind.

    But Britain cannot afford such a journey alone. Indeed, it would be a massive waster of our resources to explore what others already know. The European Space Agency was a British initiative. We secured, from its creation, a European lead in communications satellites. We achieved in partnership what, alone, the limitations of our resources would have denied us.

    3)      The management systems of government. I have long been one of those pre-occupied to improve the efficiency and effectiveness of management in government. In a recent report, published by P.A. Management, we argued how far there is to go in converting Whitehall’s paper-based management information systems into the state of the art technology. Better value for money and improved public accountability are now on offer, but only following an investment in the latest equipment and programmes. As a parliamentarian, I am interested in how we use the taxpayers’ resources and account for them. Pace-setting contracts to equip Whitehall with the sophistication that a major multi-national company would take for granted, could present industry with a turn-key to world markets.

    4)      The relocation of civil servants. Decisions about the siting of head offices, the location of staff, where they are to live and work affect the distribution of wealth. We should disperse the civil servants from the South-East, not in a mean and penny-pinching way to the backstreets of provincial Britain, but to offices built as models, as exemplars of what dispersed and decentralised offices can be like – equipped for the space age rather than the steam age.

    5)      The relocation of our public sector research laboratories. There are no government research laboratories in the North West, yet the growth potential that centres around research laboratories is enormous. In March the government announced its plans to move the MOD Quality Assurance Division from Woolwich to Teeside by 1995. The Division is going north before companies it monitors move south. Some 1500 jobs are involved, of which 650 would be scientific and engineering post and 250 would be apprentices. But is had taken five years just to get the decision announced. And it is taking another five years to implement it.

    I would like to see the use of the proceeds of the sale of expensive land in the south to build centres of excellence in the North. North West is the heart today of Britain’s booming aerospace industry. The heart, that is, of Britain’s private sector aerospace industry. But think what we could do to build on that. Why does Farnborough have to be in the road-congested, air-congested South East? Why not use that site for activities that have to be in the South and move Farnborough to the North West? Why not encourage local universities and polytechnics to direct more of their courses towards the pursuit of such technical excellence? Industry-sponsored science parks located near to universities would benefit enormously from the academic input. Why not, indeed, go further? Britain could encourage its space industries to locate around a Space Centre in the North West. Far and away the most important contribution to all this would be a dynamic private sector. But the concept and its initiation would have to involve a partnership in which the government, as the most important customer, recognised an enabling and sponsoring role.

    Conclusion

    In each of the examples I have given the government’s interest is an improved service or a more effective economy.

    In each case the private sector has a massive role to play.

    In each case government can improve our competitive ability and achieve better value for money.

    Our scientific values would be enriched, our citizens better served, our industry strengthened.

  • Nick Herbert – 2011 Speech on Police Effectiveness

    nickhertbert

    Below is the text of the speech made by Nick Herbert, the then Policing and Criminal Justice Minister, on 28th September 2011.

    Introduction

    My thanks to the Police Foundation for inviting me to speak today at the close of your annual conference. Currently there could not be a more apposite subject for discussion than police effectiveness in a changing world. I would like to contribute to this debate by setting out the challenges I believe an effective police service should meet, and how the Government’s reforms support that endeavour. But my focus today will be on the aspects of reform that affect the people who work in policing and, in particular, what this means for police leadership.

    The challenges

    Despite significant reductions, crime is too still far too high. We know there are particular challenges at either end of the scale. Anti-social behaviour has sometimes seemed too small a matter to tackle head on, but affects the public deeply, whilst organised crime has been too big and complex to take on fully.

    At the same time, the deficit which this Government inherited has left us with no choice but to reduce funding to police forces. The daily financial news makes the risks of failing to tackle the deficit ever more clear.

    I’m not going to enter here into a discussion about whether police budgets should be cut by £1 billion or £2 billion a year. Nor am I going to humour the sophists who dispute what should be a non-contentious proposition that the core mission of the police is to cut crime.

    There are many challenges for the police service, but they are obviously framed by the necessity to reduce crime while budgets fall: cutting crime while cutting costs.

    The Government’s reforms

    The Government’s reforms help police forces fight crime by changing the terms of trade externally and internally. Externally, bureaucratic accountability is giving way to democratic accountability, bolstered by a new commitment to transparency.  Internally, the bureaucratic approach to police work must yield to a culture which emphasises professional discretion and common sense.

    Let me start by highlighting two key structural reforms we have put in place already – crime mapping and Police and Crime Commissioners.

    Our crime mapping website, www.police.uk, has been a phenomenal success, attracting over 430 million hits since its launch at the beginning of this year.  From next May, justice outcomes will be added so that people can see not just the crimes, but how they are dealt with.

    The recent passage of the Act to elect Police and Crime Commissioners next year represents another key reform.  PCCs will make policing more accountable and I believe more responsive.

    These reforms mark a major change in the way that the public and the police will connect with each other.  They will strengthen the essential bridge between the police and the people, and give the public a stronger voice while protecting the operational independence of the police.  They represent a major shift of power from Whitehall to local communities.

    There has been full debate about Police & Crime Commissioners, and Parliament has spoken.  Now is the time to focus on transition to the new system and, in the interests of policing, to make the reform a success.  In particular, we should see the PCC’s wider responsibilities for community safety as an opportunity to ensure effective local partnerships to prevent crime.

    Meanwhile, we are bringing together for the first time the work of all those tackling organised crime in a new strategy which we set out this summer.  Going further, we are creating a powerful new body of operational crime fighters – the National Crime Agency – to make the UK a hostile environment for serious and organised criminality.

    Just as forces will be accountable to their Police and Crime Commissioner, the NCA will be accountable to the Home Secretary.  The NCA will have a culture which is open, collaborative and non-bureaucratic. From the outset, a key NCA objective will be to demonstrate its impact publicly, including to local communities.

    So this is a strong and coherent agenda, creating appropriate structures at both force and national levels to address the challenge of reducing crime while cutting costs.  These are powerful elements of the first phase of police reform.  They reflect our determination to empower the public, boost transparency, create strong accountability and remove bureaucracy.

    None of this would have happened if, instead of driving reform, we had set up a Royal Commission or a committee of inquiry.  As the independent Inspectorate of Constabulary has made clear, the fiscal challenge is urgent: there is no time for delay. It’s right to seek professional guidance and independent views in specific areas – and we have.  But we cannot contract out political leadership or funk the big challenges which must be grasped.  And it is little use setting up committees of wise men if you don’t even acknowledge that there’s a problem to be solved.

    And let me be clear about how we should approach the changes that are needed.  Public service reform must be driven first of all by the interests of the public.  The changes we are making to reduce bureaucracy and enhance professional discretion will help the police.  This is a positive agenda for them, and I am committed to it.  We will consult the professionals and we will listen.  But we cannot rely on committees of experts consulting other experts.  Our reforms will give the people a voice.  And where tough decisons are needed, including changes to ensure a fair deal to the taxpayer and a voice for the consumer, we will take them. The public interest will come first.

    Reform and the people in policing

    If the important structural changes we are making are the first phase of police reform, we now enter the second phase, focusing on the most valuable asset in policing: its people.

    Let’s be clear about our starting position.  This country has the most diverse, most academically qualified, and best trained police service we have ever had.  The British way is that the police are part of the public and derive their legitimacy from the public – a huge strength.  The can do approach of police officers is a strength, too.  So is the British model of impartial policing, admired around the world – and with good reason.

    These are strong foundations to build on.  But they can’t be a reason to conclude that there’s no need for change.  Let me identifty four key areas in particular which I believe point to the need for changing the way in which police forces work.

    Challenges and opportunities for police leadership

    First, recent events have raised questions which must be answered.  Phone-hacking led to resignations at the top of the Met, and has raised serious questions about the relationship between the police and the press.  There are troubling issues relating to police conduct in other parts of the country as well.  HMIC is doing work on police integrity.  But it’s important that we can have a frank debate about the lessons to be learnt, particularly around how openness reinforces integrity and is the ultimate guarantor of the values we need at the top of policing.

    In response to rioting, police officers put themselves in harm’s way for the public, and we owe them a huge debt of gratitude.  Again, it’s sensible and right to have a debate about tactics in the wake of such events, and HMIC will advise us.  This need not mean criticism.  Some lessons will be positive, such as the response of the public and of the criminal justice system.

    Other police forces around the world are experiencing the new phenomenon of flash mobs using social media to commit crime.  The world, as the title of this conference acknowledges, is changing.  It simply makes sense to consider how to adapt.

    This debate should be conducted without rancour or defensiveness.  To recognise the problems, and to consider the changes needed in response, is not destructive criticism of the service.  Any healthy organisation and its leaders need challenge and support.

    It is the responsibility of politicians to hold public services to account, to ensure proper arrangements for governance, and to ensure that operational leaders are equipped to meet contemporary challenges.

    The second driver for change relates to the need to deal with bureaucracy.  Bureaucratic control led to front line officers and police leaders responding to Whitehall rather than the public.  It defined an era when officer numbers and police spending rose dramatically – but when crime reduction actually slowed compared with preceding years.

    I am glad to say that the bureaucratic approach is changing.  Just as accountability to the public needs to shift from being bureaucratic to being democratic, we need to see through a corresponding shift in how police officers and staff are allowed to work.  This agenda is one which can be immensely empowering to officers and staff, where innovation is encouraged, discretion is allowed and professionals are trusted.  But in an era where we take a new view of the assessment and management of risk, new leadership is needed.

    The third reason for change relates, again, to resources.  Falling budgets mean that there is a requirement for transformation in policing.  Police forces need to re-think how they provide their service, protecting but re-shaping frontline service delivery and bearing down ruthlessly on cost in non-essential functions.  They need to question the unnecessary deployment of sworn officers, the most expensive police resource, in back and middle office functions rather than in frontline roles.  They need to move away from deploying their people in ways which have grown up over time but bear little relation to what the public needs.

    Police leaders need to drive the organisational changes and the changes in culture that will enable these better approaches.  They need to inspire their officers and staff with relentless focus on crime-fighting.  That should not be a difficult or unwelcome message to deliver.  Officers and staff joined policing, in the main, inspired to serve the public and fight crime.  The problem is that the day-to-day bureaucracy and over emphasis on procedure for its own sake has obscured that aim.  We need police leaders who will return to the focus on crime-fighting which the public and Police and Crime Commissioners will certainly demand.

    I often hear that, when budgets are falling, government must tell the police what they should stop doing.  Let me answer.  We don’t run the police or tell officers how to do their job.  But I do want forces to stop doing things – stop their officers filling in unnecessary forms, stop inefficient processes, and stop the bureaucracy that wastes police time.  And I will do everything I can to support those changes.  I don’t want the police to stop providing key services, salami slice provision rather than re-think it, or believe that the answer is to ration demand.  And they don’t need to.

    We remain in the midst of a poor political debate about policing, where too many politicians and commentators still measure success by the size of inputs and assume that less spending inevitably means poorer service.  But it is outcomes that count, and the effective deployment of officers matters at least as much, if not more, than overall numbers.  This generation of police leaders must deliver a service that becomes stronger even as it becomes leaner.

    The Winsor Review

    The fourth requirement for change is that we need a workforce which is structured, rewarded and motivated to respond to modern demands.

    The Home Secretary has of course commissioned Tom Winsor to provide two reports which will be central to the people side of police reform.  His first report is currently in the Police Negotiating Board process.  So it would not be appropriate for me to comment in detail.

    But I do want to draw attention to Tom Winsor’s principles, which he set out in his first report and which the Home Secretary has already accepted.  Amongst these, he set out that fairness is an essential part of any new system of pay and conditions – fairness to the public and fairness to police officers and staff.

    Winsor said people should be paid for what they do, the skills they have and according to how much they contribute.  His principles noted that while rewarding officers for the onerous demands of front line policing, the police service also needs to recognise the contribution made by police staff.

    The Winsor principles send a clear message in support of fostering professionalism and discretion in policing.  I would urge all bodies with an interest in policing to contribute fully and in detail to Tom Winsor’s work on his second report. This work will map the way forwards for policing over the medium and long term.  It represents an opportunity for change which comes only once every 25-30 years.  That opportunity must not be missed.

    Criteria for police leadership reform

    So the police need to cut crime and cut costs, and they need to tackle big agendas relating to governance, reducing bureaucracy, transforming their organisations and managing their workforces through a major programme of change.

    This is a significant challenge, and it will require real leadership.  My job is to provide the clear framework and support which the service needs to help them through.  But in the end the public, through their elected Police and Crime Commissioners, will rely on police leaders to deliver.  So I think it’s right to ask what we want from the next generation of leaders – and I don’t just mean senior leaders – in policing.

    – First of all, I believe we need to maintain the positive characteristics of current police leadership – such as the ‘can do’ spirit found in the police service as a whole.

    – We must maintain the British model of operationally independent, impartial policing.

    – The public will want to see inspirational leaders who drive a relentless focus on crime-fighting.

    – They will want a police leadership which they can trust.

    – We need a police service and leaders, as Chief Constable Steve Otter and I argued two weeks ago, who are properly representative of the public they serve …

    – … and a service that is open to all and attractive to the best.

    – We need to ensure that police forces have the management capacity and skills to control costs.

    – Related to this, we need leaders who can drive transformational change, in particular to the way their officers and staff work, moving to a culture of professional discretion.

    – And we need to underpin all this with values of integrity of conduct combined with openness to challenge and to new ideas.

    I don’t believe that these set of requirements should be controversial.   Indeed, it strikes me that forward thinking police leaders are already espousing them.  Bernard Hogan Howe has done so in his first week as Metropolitan Police Commissioner.

    Talking points

    So then we come to the steps needed to promote these criteria.  We need a good debate about these.  But let me offer a few talking points.

    – Policing should not deny itself access to talent from whatever suitable source.  That’s why we’ve asked Tom Winsor to look at direct entry to policing at ranks above constable, and accelerated promotion within policing.  I know that direct entry in particular is controversial in the service, and operational issues must be addressed.  But outward-looking and self-confident organisations should welcome the ability to attract good people, from all backgrounds and at various points in their careers.

    – Similarly, openness must underpin the approach to the selection, training and development of leadership from within the service.  We need to expose police leaders to learning from other sectors, making training more flexible and more open.  We need to broaden skills through more secondments out of the service, and indeed more varied careers which see rising stars moving in and out of the service.

    – We need to foster a more open appointments system.  Too often we are seeing competitions for chief officer posts which are scarcely competitions at all.  An outward-looking and self-confident service should welcome more open approaches.  Direct entry is one solution, but there are broader cultural issues around selection and promotion to address.

    – We need to consider how police forces should meet – and show they meet – high standards of corporate governance as they are held to account by Police and Crime Commissioners.  That can sound a dry area – but what it means is that the way a force top team works must provide good management and leadership, and follow the key values of policing.

    A professional body for policing

    We now need the right vehicles for delivering these changes in the future.  We have consulted on Peter Neyroud’s Review of Police Leadership and Training which sets out a vision of a professional body for policing.  We are considering the response, and we will set out our proposals shortly.

    But the NPIA will be phased out next year.   So I do want to be clear that the destination should be a new professional body for policing which has responsibility for training, standards and leadership.  We will, of course, talk about the detail.  We must get the governance right: there must be accountability to the local, in the form of elected Police & Crime Commissioners, as well as to the national.  It must be a body that speaks for the whole of policing, staff and officers.  But it is time that we collectively lifted our sights and saw the huge and positive opportunity which creating an inclusive, professional policing body would bring to the whole service, including rank and file officers and staff.

    Conclusion

    I want to take this work forward collaboratively, in dialogue with the service.  But let me conclude by repeating the challenges which I set out:

    – The continuing need to cut crime;

    – The need to cut costs;

    – The need to learn positively from recent events, and

    – The need to equip leaders to meet these contemporary challenges.

    These are indisputably challenging times.  I appreciate that forces, officers and staff are being confronted with difficult decisions.  But I remain optimistic about the future of policing, not least because of its huge institutional strengths:

    – The British model of impartial policing, where the police are part of the public not separate from it, a model which is rightly envied around the world, and

    – The values of the people who work in our police service – who, overwhelmingly, joined policing inspired to serve the public and fight crime.

    The benefits of change, to the public and police professionals alike, are too important to lose, and a failure to act would be damaging.  So we will continue to drive reform.  There is room for debate, but no time for denial.  The world is changing.  Successful organisations will change with it.

  • Nick Herbert – 2011 Speech to IPPR

    nickhertbert

    Below is the text of the speech made by Nick Herbert to the IPPR on 28th March 2011.

    I’d like to begin by thanking the IPPR for giving me this opportunity to speak today.  The IPPR has made a strong case for redressing what it calls the ‘accountability deficit’ in policing.  Rick Muir and Guy Lodge’s pamphlet in 2008, ‘A New Beat,’ cogently set out the case for local democratic accountability, describing police authorities as ‘weak, unaccountable and remote.’  I am glad that I am not alone in using blunt language.

    It’s significant, though too often overlooked, that the case for reform of police governance is made across the political spectrum.  There is a party consensus in favour of the democratic reform of police authorities, albeit differences of view about the best model.

    Nevertheless, I intend today both to re-state the case for reform and explain how we as a Government, implementing the Coalition Agreement, are going to swap the bureaucratic control of the police for democratic accountability, and how this will benefit police and public alike.

    Who runs the police?

    In Shanghai a few years ago, a Chinese businessman who was perplexed by the notion of parliamentary democracy asked me who, as an MP, I worked for – the government or the people?

    I once put the same challenge to Sir Ian (now Lord) Blair, the former Metropolitan Police Commissioner. He declined to reply. His answer should have been unequivocal: the people.  After all, aren’t the police a public service?

    Who runs the police? We probably wouldn’t ask the same question about other public services.  Head teachers and governors run schools.  Chief executives of NHS trusts run hospitals, with medical directors at their side.  We know that politicians have a role in overseeing schools and health policy, but we rightly balk at the idea that they should try and manage the services.

    And yet, when the Home Secretary told the Police Federation conference last year that she didn’t want to run the police – policing was their job – some raised their eyebrows.  She was surely right to say that “professional policing means policing run by you, the professionals, not us, the politicians.”  But this was clearly a significant break from the past.

    Today, some of those who rightly ask questions about the policing of demonstrations forget that politicians should not direct the police – we hold the police to account.  But that is the way that policy was going. Police forces sprang out of the municipalities, yet in recent years they have increasingly looked to the Home Office rather than their local communities.  Instead of trusting the skills, decision-making and professionalism of those that actually do the work, politicians and policy makers became focused on raising standards from Whitehall with a plethora of targets. There were even detailed instructions on how to answer telephone calls.

    This government is determined to end the decade of centralisation, by axeing policing targets, scrapping unnecessary forms and ditching the so-called Policing Pledge.  We have removed ring-fences on funding and we are restoring professional discretion, allowing police officers to be crime fighters, not form writers.

    The need for stronger local accountability

    But the police are a monopoly service – the public can’t choose their force.  Officers must be accountable for their actions and performance.  We cannot simply release the grip of Whitehall without putting in place some other means to ensure that forces deliver.  Most crime is local.  It is far better that forces should answer to local communities than to box ticking officials in Whitehall.  But if local accountability is to substitute for the centralised performance regime of the past, it needs to be strong.

    And the problem is that police authorities are not strong enough to exercise this alternative governance, and they are not sufficiently connected to the public.  Only four out of 22 inspected police authorities have been assessed by Her Majesty’s Inspectorate of Constabulary and the Audit Commission as performing well in their most critical functions.

    There is also a gap between the authorities and the public they are meant to serve.  Only 8 per cent of wards in England and Wales are represented on a police authority.  Only 7 per cent of the public understand they can approach their police authority if dissatisfied with policing.  Almost no-one knows who their authority chairman is.  A recent survey found that a typical authority receives barely two letters a week from the public.  They may be doing a worthy job, and I thank authority members for their commitment, but this democratic deficit cannot continue.

    The absence of a direct line of public influence is problematic for forces, too.  The founder of modern policing, Sir Robert Peel, said back in the 19th Century that “the ability of the police to perform their duties is dependent upon the public approval of police actions”.  After about a decade over which public approval of the police fell, it has now started to rise again – a welcome trend – but still only 56 per cent of the public say that the police do a good or excellent job.

    A survey by Consumer Research last year found that nearly a third of those who come into contact with the police – and I don’t mean criminals – were dissatisfied.  Of the minority who complained, nearly two thirds were unhappy with the way the police dealt with their complaint.  The police were amongst the poorest performers of public services.

    We should recognise and pay tribute to police success in tackling crime.  Every time I visit a force and see policing at its best I am reminded of the commitment of officers, PCSOs and staff.  And at a time when many rush to judgement on the police, as we have seen in relation to recent operations, we should remember the challenges they face.

    Today I have publicly rejected criticism of the police over their handling of the riots in London, which I believe is unfair.  Of course lessons must always be learnt from such incidents.  But the readiness of officers to place themselves in harm’s way, and their can do attitude, is something for which the whole country should be grateful.  Over 50 officers were injured on Saturday; some had to be taken to hospital.  It is the violent thugs who attacked property and the police who should be condemned.

    But we would be doing a disservice to officers, staff and the public if we failed to identify the areas where policing needs to improve.  Successful policing in future will rely on the bridge between the people and the police being strengthened.  Police forces will need to raise their game in relation to antisocial behaviour at one end of the spectrum, where public concern remains high, and the threat of serious organised crime at the other.  And this is at a time when budgets are necessarily being reduced, requiring chief constables to show real leadership and drive a fundamental redesign of policing to protect frontline services.

    I believe that forces have the people and the will to meet these challenges, but that we now need radical change in the way we organise policing.

    A Royal Commission?

    To those who call for a Royal Commission to ponder these issues, I say – in common with Her Majesty’s Inspectorate of Constabulary – that there is no time for one.  Reform cannot wait; we do not have the luxury of delay while a committee of wise men ponder and eventually agree to differ.

    We live in the age of accountability and transparency: as MPs discovered, institutions which are too late to see this will be damaged as a result.  From the beginning of the next financial year – starting in just a few days – forces will need to make the significant budget reductions that the economic recovery of our country requires.  In Harold Wilson’s words, ‘I see no need for a Royal Commission … which will take minutes and waste years.’

    The police reform agenda

    Direct local accountability and decentralisation are part of a coherent reform agenda to cut crime.  We are also creating a powerful new National Crime Agency, to improve the fight against serious and organised crime and help protect our borders.  We are dealing with an over cluttered national policing landscape, phasing out the National Policing Improvement Agency.  We have proposed new powers to tackle antisocial behaviour and we are toughening the licensing laws.  We are reviewing police leadership, training and skills, examining pay and conditions and moving towards a reformed, more accountable ACPO. We will publish Peter Neyroud’s report on police leadership very shortly.

    Central to this reform agenda is the introduction of Police and Crime Commissioners. They are a key element of the government’s programme of decentralisation, where power is returned to people and communities.

    We will swap bureaucratic control for democratic accountability, replacing police authorities with directly elected commissioners in all forces in England and Wales save for the City of London, which is an exception. London already has its Mayor. He will be London’s Police and Crime Commissioner and will take over functions from the Metropolitan Police Authority, which will be abolished.  From the first elections in May next year, the public will have a real say over how their area is policed.

    These new commissioners will be big local figures with a powerful local mandate to drive the fight against crime and antisocial behaviour.  They will decide policing strategy and the force budget, set the local council tax precept, and appoint – and if necessary dismiss – the chief constable.  They will do all these things on behalf of the public which elected them.

    The role of commissioners will be greater than that of the police authorities they replace.  That is the significance of the words ‘and crime’ in their title.  They will have a broad remit to ensure community safety, with their own budgets to prevent crime and tackle drugs.  They will work with local authorities, community safety partnerships and local criminal justice boards, helping to bring a strategic coherence to the actions of these organisations at force level.  And in future their role could be extended to other elements of the local criminal justice system, ensuring that the police and those who manage offenders operate together, working to break the cycle of crime.

    Strict checks and balances

    Our aim is not to abandon the ‘tripartite’ arrangement of police governance, between the Home Office, local representatives and forces, but to rebalance it.  We are recognising, in the words of the Local Government Association, that the tripartite has “become unbalanced, with the Home Secretary acquiring more and more powers at the expense of chief constables and police authorities.”

    To prevent too much power from being invested in a single individual, we are putting in place strict checks and balances.  These will include local Police and Crime Panels, with representatives from each local authority and independent members, with the power to scrutinise the commissioner’s actions.  District councils will have a stake in police governance for the first time.

    We need to strike the right balance here, ensuring that the panels will be effective, but guarding against appointees inappropriately cutting across the mandate of the elected commissioner.  Panels will not, and should not, have direct control over a commissioner’s decisions, and they will not be police authorities – it is commissioners who will hold forces to account, not the panels.

    But the panels will have teeth.  They will have the power of veto over excessive precepts and the appointment of chief constables.  And they will have the weapon of transparency.  They will have the power to compel commissioners to release documents, summon them for questioning, and compel them to respond to any suggestions or advice.  All of this will be in public.  The thinking and decisions of commissioners will be laid bare for the people to see.

    A single accountable individual

    The strength of this model is that local councillors will still be involved in the governance of policing while an elected individual takes executive decisions, supported by a highly qualified team.  The principle of one accountable individual, directly responsible for the totality of force activity, is crucial to our vision.

    Policing governance by committee has meant that an unelected body has power over the level of precept.  It has meant that no-one is properly held to account for decisions or poor performance.  No-one is truly in charge.  Even police authority chairs are first among equals – they are not decision-making leaders.  Under our new system, commissioners will be able to appoint their own executive teams to support them.  But the buck will stop with commissioners, and the public will cast judgement at the ballot box.

    Direct elections of police authority members would not produce this single focus.  Directly elected chairs of authorities – the previous government’s latest proposal – would be the worst of all worlds, a really bad idea, where an individual would have a mandate but be unable to deliver it, routinely outvoted by a committee of appointees.  What’s more, this model would cost more.

    Direct accountability at Basic Command Unit or some equivalent level is an interesting idea, and superficially attractive, but it would result in lots of politicians with a mandate, none of them actually having strategic responsibility at force level.  Someone has to set the force budget, strategic direction and appoint the chief constable.  Without a single, clear mandate, the waters remain muddied, committees still take decisions and the public loses out.

    Operational independence

    It’s fundamental to the British system that the police remain operationally independent.  No politician can tell a constable – a sworn officer of the crown – who to arrest.  Forces will continue to be under the legal ‘direction and control’ of their chief constable.

    I welcome Sir Hugh Orde’s comments in this week’s Police Review that ‘the government has listened to our concerns’ on this issue.

    There is general agreement that we should not try and define operational independence by statute.  But as Rick Muir has argued, “we need to clarify who decides what, when and how – and where politics ends and policing begins.”  A Memorandum of Understanding was recommended by the Commons Home Affairs Select Committee in a report last December.

    The government has therefore committed to developing a new protocol –  which has also been described as a Memorandum of Understanding – to delineate the key responsibilities of Chief Constables, Police and Crime Commissioners, the new local Police and Crime Panels which will scrutinise commissioners, and the Home Secretary.  The Home Office is working with ACPO and others to ensure these principles are reflected in this document, and I hope that it will be ready to be considered alongside the Bill in the House of Lords.

    Ensuring strategic policing

    It has been suggested that Police and Crime Commissioners will be focused on local issues to the exclusion of those which require a strategic response – that they will be too parochial.  I doubt that they would behave in this way, but in any event they will have a clear responsibility for tackling all crime in their area and for holding the whole of their force’s activities to account.  That is the principle which underlies the vertical integration of forces.

    As I have argued before, there’s a paradox of policing over the last few years.  While central government has interfered too much in matters that should be determined locally, it has been weak in areas where a stronger grip was required.  The imperative of dealing with the threat of terrorism, backed by a huge investment, saw a strong national counter terrorist network developed.

    But the fight against serious and organised crime, as Sir Paul Stephenson reminded us last year, remains patchy.  There has been too little focus on ensuring value for money.  And following the failure of compulsory force amalgamations, the centre was weak in setting a new vision or driving collaboration.

    The time has come to reverse this situation – giving more space for local determination with stronger local accountability, while ensuring real leadership where national organisation and cross-boundary policing is needed.

    So the new National Crime Agency will transform the fight against organised crime, working with police forces.  The Home Secretary will issue a Strategic Policing Requirement, which will guide forces on their responsibilities for serious and cross-boundary policing challenges – such as terrorism, organised crime, public order and responding to major incidents and emergencies.  Police and Crime Commissioners and Chief Constables will be under strong duties to have regard to this Requirement.

    Collaboration between forces

    It makes operational sense for forces to work together. But it also saves money. The Home Office is providing stronger co-ordination and support for collective procurement of goods and services by forces, including IT, where we estimate potential savings of some £380 million a year.  Around a third of spending by police forces is not on the frontline – it is on back and middle office functions.  Her Majesty’s Inspectorate of Constabulary will be reporting in detail on this breakdown later this week.  But it is clear that the opportunities for savings while protecting the frontline are immense.

    I flatly disagree with those who expect Police and Crime Commissioners to be obstacles to collaboration.  In fact, I expect them to be strongly motivated to drive out costs as they seek to free officers to fight crime.  They will have a public mandate to do so that is stronger than any pressure brought about by Whitehall bureaucracy.

    That means that PCCs will be powerfully incentivised to look hard at what their forces do and what opportunities there are for working with other forces and other partners to do things more efficiently and effectively.

    But to allay any fears, the Police Reform and Social Responsibility Bill, currently before Parliament, also places commissioners and chief constables under a strong legal duty to collaborate.

    The need to tackle serious and cross-boundary criminality more effectively, and deliver support functions more efficiently, are not new problems.  They have not been brought about by the introduction of PCCs.  They are the same challenges that we have been facing for some time.  But because we are strengthening the accountability of forces to their communities, we are also able to address weaknesses in our national response to serious crime without undermining the space, freedom and discretion for local decision-making which is so important.  Put simply, the Home Office is now focusing on the right things.

    Driving value for money

    I expect Police and Crime Commissioners to reap a return for taxpayers by driving value for money more strongly.  Their running costs will be no more than police authorities, because we will no longer be paying allowances to councillors.  The only additional costs will be those of holding elections once every four years.  Because these will be combined with local elections, this will be £50 million.  (The Association of Police Authorities’ estimate, at double this, is wrong.)  This sum has been provided additionally by the Chancellor for 2012; it will not come out of force budgets.  To put it in context, the equivalent annual cost is less than 0.1 per cent of total police spend.

    Policing in the United States

    And while I am dealing with one poor argument against reform, let me address another.  Police and Crime Commissioners are not a crude import from the United States.  As Bill Bratton reminded us when he came over here last year, with some 17,000 police departments, there is no single model of policing in the US in any case.  At least that’s a number that should give the proponents of force amalgamations here some cheer.

    Of course there have been things to admire and learn from the United States – Bratton’s own remarkable policing reforms in New York; the Chicago Alternative Policing Strategy, similar to our own rediscovery of neighbourhood policing; the strong connection between public services and the people which direct elections create.  It was seeing Los Angeles’ street level crime mapping that persuaded me to promote that idea here – resulting in a new website, www.police.uk, which received over 400 million hits in the first two months, an example of the power of transparency but also the public appetite for information about crime and antisocial behaviour in their neighbourhood.

    But there are other aspects of the US system which we emphatically would not wish to replicate, and many areas where our own model is superior.  In particular, we have an independent Inspectorate of Constabulary – which we are strengthening – a robust Independent Police Complaints Commission, and we have national measures to ensure the integrity of crime data collected by local forces.  Those who suggest that Police and Crime Commissioners would open the door to widespread police corruption simply do not understand our system.

    The Mayor of London

    And we don’t need to look across the Atlantic to see that an elected individual holding the police to account is popular.  In London, Mayor Boris Johnson has delivered on his pledges to tackle knife crime and put uniformed officers on public transport.   He has committed to keep cops on the streets – strikingly, at a time when most forces have frozen recruitment, the Met is about to begin hiring officers again. How many Londoners would prefer their police force to answer to an invisible committee?

    The office of the Mayor of London has proved to be popular amongst Londoners, precisely because the Mayor is sensitive to his electorate.  Since Boris took greater charge of policing in the capital, the Metropolitan Police Authority has received four and a half time as much correspondence.  The people know who to go to and who to hold to account – and they like it.

    The politicisation of policing

    Nor can it be said that the Mayor’s greater involvement has politicised the Met.  In any case I find the criticism of politicisation a peculiar argument when the Home Secretary is always an elected politician and a leading member of their party.  As the IPPR’s Director, Nick Pearce, has said, “one person’s politicisation is another person’s accountability.”  If the police aren’t to answer to an elected representative of the people, who exactly will they answer to?

    We judged that it would be both wrong in principle and unworkable in practice to ban political parties from fielding candidates as Police and Crime Commissioners.  But that does not mean that party politics will be introduced into police forces themselves.  Commissioners will not be permitted to appoint political advisers.  And, once again, the operational independence of officers will be crucial.

    Police and Crime Commissioners will not be picking up the phone to individual officers, telling them how to do their job, who to arrest, and where to be.  They will not be permitted to sack or appoint officers, other than the chief constable – indeed under these arrangements Chief Constables will receive greater power over who they hire for their top management team than they have at the moment.

    And the candidates for office need not come from the political parties.  There is a real opportunity for highly qualified independent candidates to come forward, and I hope they will.

    It’s claimed that extremists will be elected, even BNP candidates.  This is nonsense: they polled just 2 per cent of the national vote in the general election.  The electoral system and size of constituencies means that their candidates will not succeed.  The same disreputable arguments – that you can’t rely on people to make the right decisions – were advanced against votes for women.

    Dig deeper, and you find an elitist fear that elected Commissioners might be so brash as to reflect public concern and pledge to get tough on crime.  It’s strange that so many democrats are so wary of democracy, but I believe that we can and should trust the people.

    The benefits of reform

    This reform is essential to address the democratic deficit in policing, to end the era of Whitehall’s bureucratic control, to reduce crime and antisocial behaviour and to drive value for money.  I accept that police authorities will be losers, since they will be abolished.  But I believe that everyone else will gain.

    Chief constables will be liberated to be crime fighters rather than government managers, free to run their workforces, and relieved of the burden of politics which they can safely leave to Police and Crime Commissioners.

    Police officers will benefit from a less bureaucratic system where discretion is restored and where someone close to their force has a strong interest in driving out waste and prioritising the frontline.

    Local authorities will benefit from a continuing say in the governance of policing, and district councils will have a role for the first time.

    The taxpayer will see better value for value money as commissioners, who will have responsibility for the precept, focus relentlessly on efficiency in their forces.

    Local policing will benefit from a strong democratic input, focusing attention on issues of public concern.  The streets will be safer.

    The Home Office will be refocused on its proper role, especially to address national threats and to co-ordinate strategic action and collaboration between forces.

    Above all, the public will have a voice in how they are policed.  Police and Crime Commissioners will have the mandate and the moral authority to reflect public concern on crime.

    Finest service in the world

    The Prime Minister said recently that we have the finest police service in the world.  Like the NHS, we should be proud of this British institution and protect what is best in it.  But we also need to ensure that the police are able to meet today’s challenges and command broad public support.

    Sir Robert Peel, famously said that ‘the police are the public and the public are the police’.  Forces will continue to be run by chief constables, but their legitimacy depends on the principle that the police answer to the people they serve.

  • Nick Herbert – 2011 Speech on National Security

    nickhertbert

    Below is the text of the speech made by Nick Herbert, the then Policing and Criminal Justice Minister, to the Serious Organised Crime Forum on 23rd May 2011.

    I am grateful to Professor John Grieve and Neil Stewart Associates for inviting me to speak today.

    I would like to start with an apology. I accepted this invitation from Neil Stewarts Associates to speak some time ago, and the timing seemed to be rather fortuitous. I’d hoped that we would have published our new strategy on organised crime and set out more detail about the NCA which we’re going to set up and legislate for, so that this would be a good time to both talk about that new strategy and to answer questions about it.

    As things turn out, while publication is imminent it has not happened today and as you know we must publish these things first to Parliament and in the proper manner. And so, what I’m going to say I’m afraid is necessarily high-level, but I still wanted to come along to hear what you have to say and engage in this debate. That is because Serious Organised Crime is a growing concern in this country, and one which this Government is committed to tackling.

    I want to try and explain why what we are proposing to do really is different to the way this threat was tackled in the past – I do believe we have an important and coherent agenda for a new approach to tackling serious and organised crime.

    I see from the attendee list for today’s event that many of the key figures in the fight against organised crime are present, and I’m very pleased therefore to be discussing these issues with you.

    National threats

    The security of our country remains the first duty of Government. And one of the first actions as a Government was to establish a new National Security Council, chaired by the Prime Minister. It looks at the big threats to our country and assesses our response. This is a Government therefore that is focusing its attention where it should properly be.

    Last October we published a National Security Strategy and a wide ranging Strategic Defence and Security Review.  Taken together they set out what we consider the current and future threats to the security of this country to be – and how we should respond to them.

    As in other areas, there are tough choices to be made given the budget deficit we inherited. I think it’s important we do have a collective recognition of that.  Those choices must therefore be informed by a hard headed analysis of risks and prioritisation.

    In relation to terrorism, with very significant government investment we have seen the development of a strong, increasingly integrated, national police counter terrorism network – working effectively with the Security Service in combating the continuing threat.

    By comparison, though, our response to organised crime has lagged behind this threat.  Sir Paul Stephenson highlighted this in his powerful Police Foundation speech last year and the Government has responded accordingly.

    Threat from organised crime

    I’m conscious that I’m speaking to a knowledgeable audience. You are only too aware of the corrosive impact that organised crime has on individuals, communities, businesses and our economy.

    But it is worth pausing to consider and note the scale of that threat.  We estimate that organised crime is costing this country between £20 and £40 bn a year in social and economic costs – it means that it is costing almost as much as paying the interest on our current debt.

    The National Security Strategy highlighted a significant increase in organised crime as a key risk to our national security.  It also highlighted cyber crime and the security of our borders as significant concerns – both of which have an organised crime dimension.

    But unlike some other national security issues, we are not talking here about some distant threat. You know this only too well. We are talking about daily instances of criminality; about vulnerable people being victimised; about communities being cowed; and law abiding citizens losing out because money is fraudulently going into the pockets of criminals rather than supporting vital public services.

    Current response

    Thanks to the work being driven by many of you here – and I would like to pay particular tribute to Jon Murphy’s leadership in this area – there have been genuine successes against organised crime targets. We know more about the nature of the problem now and who is involved in committing these crimes.

    The latest law enforcement estimate is that there are about 38,000 people involved in organised crime impacting on the UK, involving around 6,000 groups.

    But for all the good work being done by law enforcement agencies and their partners, there is a harsh reality which is this: too many of these criminals have shown themselves to be out of law enforcement’s reach. There are – to borrow a related phrase from a different era – too many ‘untouchable’ criminals.

    Law enforcement has not been properly supported by national Government.  HMIC have said that that our approach has been blighted by a ‘lack of unifying direction’.

    I have spoken before about the paradox of policing in recent years. That is that central Government spent too much time interfering in matters which should properly be determined locally, yet paid insufficient attention to national issues, national threats and areas where policing needed to be co-ordinated more strongly on a national basis.  Organised crime is a prime example of this.

    So our determination is to reverse this position. The challenge is how to improve our overall response when set against the fiscal position that this country has inherited, and over which we have no choice.

    New approach

    I have already talked a little about the overall grip that we are showing on national security issues through the National Security Council.

    We published, earlier this year, a New Approach to Fighting Crime.  The key elements of this are:

    First, replacing bureaucratic accountability with local democratic accountability – the election of Police and Crime Commissioners being a manifestation of this. Bernard Hogan-Howe was right to note that despite the recent vote in the House of Lords, the Government does expect that Police and Crime Commissioners will be introduced across the whole of England and Wales, with the first elections taking place in May next year. That is because this policy was written into the coalition agreement.  It is therefore right to expect that this policy will be properly scrutinised and that the issue of checks and balances will be properly addressed. Nevertheless we do intend to go ahead with it and we expect the Commons to reinstate the policy. I want to talk a bit more in due course on the significance of this policy proposal.

    The second element in our new approach to fighting crime was that of increased transparency. The third element is engaged and active communities. And we see a link between these last two with the launch of the police.uk street-level crime mapping website, which has seen an astonishing 400m + hits since it was launched. This demonstrated the public’s concern about crime in their neighbourhood, and not just low-level volume crime: we know that neighbourhoods are also affected by serious organised crime and its impact.

    We also set out how we intend to return discretion to professionals and how we want to drive efficiency across the criminal justice system.

    We talked about a focus on preventing crime happening in the first place.

    And we referred to the new focus on organised crime.

    Now these issues are all interlinked. I will say a little more about the organised crime aspect in a second. But our focus on improving our response to that criminality must be seen in a broader context.

    So let me highlight a couple of points:

    Value for money

    Reducing the budget deficit remains a priority. As I said repeatedly at the Police Federation Conference it is inescapable. The fight against organised crime is subject to the same need to maximise efficiencies as other areas of law enforcement.

    Nevertheless I was able recently to announce that we are providing £3m in 2011/12 to support improvements in the national coordination of organised crime policing.  We are also providing £19m in 2011/12 and £18m in 2012/13 to provide specific support for regional organised crime policing capabilities, including Regional Asset Recovery Teams, and I am pleased that this announcement has been welcomed by ACPO.

    The local/national balance and our overall police reform programme.

    There is a view, I know, that Police and Crime Commissioners will focus only on very local issues, on volume crime, to the detriment of threats which may extend to the national level. Some suggest that they will not focus on issues such as serious and organised crime.

    I simply don’t accept this analysis.  Police and Crime Commissioners will be responsible for ensuring the effective delivery of the full range of policing services.

    We have an important principle in this country, which is that the chief constables are responsible for the totality of policing in the own force areas. That is the principle of the vertical integration of police forces, and those who hold chief constables to account are therefore responsible (in the case of current Police Authorities and in future Police and Crime Commissioners) for holding that totality of policing to account.

    To move away from that principle would be to suggest that there would be somehow a split in both the operation of our police forces and the way they were held to account. I do not detect an appetite either within the profession or indeed in any political debate for that. So let us hold on to that golden thread and recognise that there serious and organised crime runs right down to the neighbourhood policing agenda, just as in our response to terrorism.

    And I think we also have to accept that there is be an alternative model which some suggest would give a bigger focus on serious and organised crime, namely the creation of large regional forces. I accept that there are some who perfectly legitimately advocate that as a solution to dealing with these issues. But I simply need to occupy the space of real politick and repeat gently but firmly that there is no possibility of such a policy going through the House of Commons; the last Government had to abandon it in the face of opposition, and that is because there is no public support for it.

    Therefore what we have to do, given an acceptance that there are going to be 43 forces in England, is to consider how we ensure that there is a proper focus on national threats (including the issue of serious and organise crime), given that we have that number of forces which are vertically integrated with Chief Constables responsible for the totality of policing in their areas.

    And what I want to point out is that we have written into the bill that is currently before parliament some very significant changes that will assist in relation to the proper co-ordination of policing in this area.

    First of all the bill contains a new provision – a Strategic Policing Requirement which requires the Home Secretary to set out what, in her view, are the national threats, and the appropriate policing requirements to counter those threats. This is an important element of our overall approach to policing. Organised crime will feature as one such national threat.

    We are working constructively now with ACPO and our other partners on the detail of the Strategic Policing Requirement.  I want to get this right – and be very clear about the practical implications of it for chief officers and for Police and Crime Commissioners.

    There will be strong duties on local forces to have regard to the Strategic Policing Requirement – it encapsulates exactly the reversal of the current position, so that in this area there will be stronger local co-ordination because there is a national threat.

    But let me be clear about this – the SPR is new but it deals with an existing problem. It is not being introduced because we believe a problem will be created by the introduction of Police and Crime Commissioners.

    The failure to ‘close the gap’ was caused by the existing model of policing governance.

    The SPR is an important part of the package of policing reforms that we are introducing, and to characterise those reforms as simply being the introduction of local democratic accountability is to get only half of the point.

    The second important duty that we’re placing upon the local policing bodies is strong duties to collaborate. I recently set out in a speech up in Ryton why we think it is important to drive the agenda of collaboration, not just so as to drive stronger value for money in policing but also so to achieve greater operational effectiveness.

    This is an important necessity, given that we are not going to move towards the creation of strategic police forces. It is something which the Inspectorate has identified needs to happen at a far greater pace.

    So two statutory requirements are being placed upon local policing bodies: to collaborate and to have the regard to the Strategic Policing Requirement. In these lies the answers to those who believe that in future there will be an excessive focus on the local and on volume crime – there will not, there will be a proper balance, and it is right that there should be.

    Focus on organised crime

    Let me also say a little more about two elements of how our new focus on organised crime will manifest itself – firstly through a new strategic approach; and secondly through a new operational body – the National Crime Agency.

    We have signalled that we will publish as I mentioned a new strategy on organised crime.  There have, I know, been consistent calls for Government to set out a clear approach.

    We will set the unifying direction that HMIC have called for.  In doing so, we want to galvanise the work of all those with a responsibility to combat organised crime.  It is a big community – a range of government departments; a range of law enforcement agencies; their criminal justice partners; our security and intelligence agencies; local partners; business and the private sector.  And the public have a role too.

    We want, I think, to emulate what CONTEST has done for our response to international terrorism – though without the level of new funding which that strategy originally enjoyed.  But that strategy is an interesting benchmark.

    Alongside an emphasis on hard-edged enforcement, we want to put an emphasis in the strategy on prevention and self protection work.  This is about increasing the risks to criminals and the likelihood of them getting caught; while at the same time reducing vulnerabilities and criminal opportunities.

    We will want to talk about the importance of intelligence to our response; about ways to improve our operational capabilities; and how we can best develop our international response to what is a global threat.

    The strategy needs to work from the local to the global level.  The links are clear.  Our national security depends on having safe and secure neighbourhoods.

    I see the need for a strong communications effort in all this – to reach out in public messaging terms about the nature of the organised crime threat, and what we are collectively doing about it.

    The strategy reflects, again, this Government putting its focus and energy where it properly should be.

    National Crime Agency

    The strategy is inextricably linked to the establishment of the new National Crime Agency, the creation of which we signalled last year.  As I mentioned we will shortly publish details about how we see the new Agency operating.  But let me say a few things now.

    As we’ve said – the NCA will spearhead our response to organised crime, will encompass work against child exploitation and improve the security of our borders.  It will harness and exploit the intelligence, analytical and enforcement capabilities and reach of SOCA and other agencies, as well as incorporating those capabilities which rest elsewhere at a national level.  It will build and maintain a comprehensive picture of the threats, harms and risks to the UK from organised criminals and be responsible for ensuring that those criminals are subject to a prioritised level of operational response.

    The NCA will be an integral part of the UK law enforcement landscape.  It will be led by a senior Chief Constable and have strong, two-way links with local police forces and other law enforcement agencies.

    Accountable to the Home Secretary, and underpinned by the Strategic Policing Requirement which I have mentioned, the NCA will reinforce the golden thread of policing. It will work with Police and Crime Commissioners, Chief Constables, devolved administrations and others to connect activity from the local to the international – in country, at the border, and overseas.

    There are improvements we can make before the NCA comes fully into being.  I support the work which law enforcement leaders are driving through the Organised Crime Partnership Board to improve our knowledge and mapping of the threat; and the coordination of the law enforcement response to it.

    These are critical building blocks as we establish the NCA.  And I want to reiterate that in developing both the organised crime strategy and our proposals for the National Crime Agency we have been in the closest consultation with ACPO and other relevant bodies. This is to ensure that we set out these very significant proposals on a properly grounded basis where we have involved right at the beginning of these ideas the most senior practitioners involved in law enforcement in the country.

    I also mentioned that the proposals for the NCA follow the call by the Commissioner of the Metropolitan Police for a approach to dealing with Serious and Organised Crime that is significantly different. This is because it involves a national agency actually having a tasking responsibility in relation to Serious and Organised crime, something that we have not seen so far.

    Conclusion

    As I’ve said – more detail on the issues I’ve covered today will be forthcoming very soon.  So this is just a flavour. But I wanted to reiterate that as a Government, we are committed to fulfilling our national responsibilities to keep this country – and our communities – safe and secure. To fight crime, and that means serious and organised crime too.

    Organised criminals – as you well know – are agile and adaptable.  Our collective challenge is to match that. There should be no criminal untouchables.

  • Nick Herbert – 2011 Speech on Police Funding

    nickhertbert

    Below is the text of the speech made by Nick Herbert, the then Policing and Criminal Justice Minister, to City Forum on 25th January 2011.

    The Spending Review settlement sees government funding for the police fall by 20 per cent in real terms by the end of the four year period – some £2.1 billion.  I want to explain why this settlement for the police is necessary, challenging, but manageable – and how we are helping the service meet that challenge.

    But I also want to set out why I believe that ‘business as usual’ is no longer an option for police forces and authorities.  I will argue that a fundamental redesign of police force organisation is now needed.

    Concerns

    Let me start by addressing some of the concerns that have been set out.

    There are some who say that police funding should not be cut, or not by so much.  But this government inherited the toughest fiscal challenge in living memory.  We have had no option but to reduce public spending.  The police service, in spending over £13 billion a year, cannot be exempt from the requirement to save public money.

    But my absolute priority – and that of the Home Secretary – is to ensure that the England and Wales police retains and enhances its ability to protect and serve the public. By improving efficiency, driving out waste, and increasing productivity, I believe that we can make the police service stronger even as it becomes leaner.

    It has been argued that the distribution of grant between forces is unfair. We looked closely at whether it would be right or possible to adjust the grant reduction to take into account the fact that some forces raise less from their precept than others, but there were a number of objections to that.  One is that by doing so, we would be penalising council tax payers in other areas who already pay far more for their policing services and have had a big increase in council tax over previous years. That would certainly be unfair. And by subsidising forces – including large forces with greater capacity – in that way, we would be asking others to take a larger cut in central grant than 20 per cent. They would have regarded that as unfair, too.  The fair solution, and the one expected by forces and authorities, was to treat all forces in the same way with an equal cut in grant.

    Of course there has been much focus on the expectation that police officer numbers and staff numbers will fall.  But as I have consistently argued, this is a narrow focus. The test of the effectiveness of a police force cannot be how much is being spent on it or how many staff it employs.  There is no simple and automatic link between officer numbers and crime levels.  There is no simple and automatic link between officer numbers and their visibility to the public.

    Of course, to use the great Bill Bratton’s phrase when he visited us last year, cops count.  But, as he also argued, the effectiveness of a police force – like any organisation – depends primarily on how well the resources available to it are used.

    Manageable reductions

    Some have said that the funding settlement is not manageable – or that the profile of the reductions makes it harder.  But the overall settlement is just that – settled. Neither the 20 per cent real reduction in government grant nor the profile are negotiable.  In cash terms – not taking into account inflation – the average reduction for forces’ grant is 4 per cent in the first year, five per cent in the second, 2 per cent in the third and 1 per cent in the fourth.  That doesn’t affect the council tax funding for forces, which is determined locally, and which on average accounts for a quarter of all police funding. Those figures illustrate the fact that although these are challenging reductions, they are manageable, provided that considerable savings can be realised.

    Let’s be under no illusions about what the core challenge is. It’s not just to reduce costs. The core challenge is to reduce costs while maintaining and indeed improving public services.  The police are ‘can-do’ – and I’m constantly impressed by the determination I’ve seen from police officers and staff to do just that.

    I appreciate that many in the police workforce are worried about their remuneration and their jobs. I certainly do not belittle this concern, which is wholly understandable.  But my first priority must be to ensure the best service to the public within the financial constraints which we all face.

    This challenge requires real leadership, decisive leadership. Transformational leadership from chief constables, who I know can provide it.  Local political leadership from police authorities and their successor directly elected Police and Crime Commissioners. And strong, strategic leadership from the government, which the service rightly expects and which I am determined to provide.

    So let me explain the broad strategy – and how we will ensure that it is delivered.

    It is to:

    – improve frontline services

    – spend the minimum on other functions

    – from the start think about transformation and long-term change, not tactical salami slicing

    The police service needs to maintain and improve frontline services – which includes both visible frontline policing – for example, response and neighbourhood functions – and the less visible frontline functions – like investigation. This isn’t about maintaining frontline numbers – it’s about the service to the public.

    There are many tools to hand.  Better management and organisation can increase availability to the public.  Better rostering and shifts will increase availability at the times of peak demand.  More professional discretion, less bureaucracy and better use of IT will enable the most effective use of the time of frontline officers and staff.  Just as the police service’s leaders seized and met the transformative challenge of neighbourhood policing, I believe they can seize and meet this new challenge across all frontline functions.

    Much of my focus in this speech will be on savings in non frontline functions.  But before I move to those I want here to give some examples that show how the frontline can become more productive:

    West Yorkshire Police have significantly reduced the time to investigate a crime – improving the standard of initial investigation they reduced the average time to investigate low level crime by 85 per cent

    Wiltshire has significantly reduced the time neighbourhood and response officers spend in custody centres and off the streets from an average of 27 minutes to an average of 10 minutes. This is worth 3,000 extra hours of street policing

    In Brighton, Sussex Police, my own force, have put in place a dedicated team for secondary investigations, reducing the amount of paperwork that response officers have to complete and allowing them to return quickly to the streets after answering a call.  This saved nearly £1 million, improved response times, and sped up the time it takes to complete an investigation.

    At the same time, the police service needs to minimise what it spends on non-frontline functions.  Some of these are back office functions (like finance and HR) and some of these are what we tend to call middle office functions (such as training, custody and criminal justice administration).  These functions have grown disproportionately as the money rolled in and bureaucracy predominated. As Peter Fahy, Chief Constable of Greater Manchester Police, told the Home Affairs Select Committee earlier this month: ’ … some of our headquarters operations had got too big.’

    I’m not saying that these functions can or should be abolished. I am saying that they need to become much leaner. They need to cost the minimum consistent with supporting the frontline in the context of a less bureaucratic approach to public service delivery.

    Delivering change

    I want now to explain the national part in making sure that the necessary changes happen.  It is true that the primary responsibility is local.  That realisation is at the heart of the government’s approach across the piece. Indeed, rejecting Whitehall’s costly bureaucratic accountability and replacing it with local democratic accountability, and alongside this restoring professional discretion, is at the heart of our new approach.

    We’re not going to be micro-managers.  Micro-management from Whitehall is what causes unnecessary bureaucracy and a focus on feeding the machine.  The Home Secretary has made clear that this is the wrong approach.  It’s an approach that doesn’t save money – it has created many of the costs which now need to be reduced.

    But there’s a paradox of policing over the last few years.  While central government has interfered too much in matters that should be determined locally, it has been weak in areas where a stronger grip was required.  The imperative of dealing with the threat of terrorism, backed by a huge investment, saw a strong national counter terrorist network developed.  But the fight against serious and organised crime, as Sir Paul Stephenson reminded us last year, remains patchy.  There has been too little focus on ensuring value for money.  And following the failure of compulsory force amalgamations – to which I shall return – the centre was weak in setting a new vision or driving collaboration.

    The time has come to reverse this situation – giving more space for local determination with stronger local accountability, while ensuring real leadership where national organisation is required.

    So let me set out the elements of a new approach to driving savings.

    Transparency

    First, transparency – a principle which is running through our agenda for public service reform. Transparency of data and use of comparative data are absolutely key parts of enabling and driving change – data on costs and service which is accessible to the public to reinforce the behaviours that drive value for money.

    This is the fundamental significance of HMIC’s Value for Money Profiles which set out publicly that information for forces, authorities and the public.

    HMIC lead in publishing comparisons – and will publish the next edition of the Profiles shortly. And let me be clear that revealing key information about performance is not the same as managing performance.  I am committed to moving away from micro-management and reducing the burden of compliance and bureaucracy on forces.  But without information the consumer cannot be king and the taxpayer cannot ensure value.  We must not confuse the demand for information with the demand to do things in a certain way.

    Let me give an example of how this approach can help to identify savings.  In the summer, HMIC took a look at the different levels of spending between similar forces across a number of functions.  Suppose each force managed down its costs to the average of its peers.  Not to the best – but to the average.  That would save well over £1 billion a year.  Neither HMIC, nor I, are saying that this can be done without effort – indeed it requires a transformational effort.  But it shows what could be achieved just by asking all forces to match the average performance of their peers.  And I note that there is cross-party agreement that these savings, which can be realised while protecting the frontline, would be expected by any government.

    But why shouldn’t forces be able to go further by matching the performance of the best, rather than merely the average?  That doesn’t seem to be an unreasonable ambition on behalf of the taxpayer.  Suppose we look across a range of support functions – for example, back office functions (like finance and HR) and the middle office functions (such as training, custody, control rooms and criminal justice administration).  If forces improved productivity and adjusted to the level of spend of that typical of the more efficient forces, that could add another £350 million to the savings calculated in HMIC’s summer report.

    Pay and other conditions of service

    Second, we cannot avoid the issue of pay. It accounts for the bulk of total police spending – around £11 billion last year.  And any organisation in which the majority of cost is pay and which is facing hard times has to look at its pay bill.  The government has announced a policy for a two year pay freeze across the public sector.  Subject to any recommendations from the Police Negotiating Board and agreement on staff pay, this might save some £350m.

    We have also asked Tom Winsor to review the remuneration and conditions of service of police officers and staff.  It’s vital that we have a modern and flexible police service.  Through allowing more modern management practices, this review will help ensure chief constables can deliver the frontline services people want, while providing the value for money that is so vital in the tough economic times we face.

    The government has asked the review to make recommendations that are fair to, and reasonable for, both the taxpayer and police officers and staff. And I do want to emphasise the importance of fairness to police officers who cannot strike and who often do a difficult and dangerous job on behalf of the public. Tom Winsor’s first report is due to be published in February, with the second part due in June.

    IT, goods and services

    Third, we also need to look at what police forces buy. Police non-pay spending amounted to some £3½ billion in 2009/10 – around one-quarter of the total of revenue and capital spend. So while this is much smaller than spending on pay, it’s still a very substantial amount of money which has to form a key part of the approach to the next few years.  The potential savings are not to be dismissed, they are not small beer.

    For too long the police service has been a fragmented customer for goods, services and IT. This also means it has been more difficult and costly than it ought to be for the private sector to sell to the service.

    There has been some collaboration in these areas. However, without the incentive of the need to save, this work has not proceeded quickly enough.  We have clear agreement now with the leaders of the police service that the right way forward is a concerted, nationally-led approach.

    With this change, we estimate that we can save some £380m on procurement of goods, services and the police IT programme, ISIS.  The vast bulk of this – around a third of a billion or more – will be additional to the savings which HMIC have projected.

    We can do this by getting better contracts, reducing the volume of unnecessary spend, reducing the multiplicity of IT systems, and helping police leaders focus on policing not procuring.

    We announced in our consultation document Policing in the 21st Century that the government would specify the contractual arrangements to be used by the police service to procure equipment and services. We have already consulted widely on the first regulations to specify frameworks that the service would be required to use.  This is a big change – moving away from multiple frameworks and buying by each force separately, or in ad hoc partnerships.  Instead we will increasingly have mandated national frameworks.

    Let me turn to another key element of this part of the approach – ISIS: the police Information Systems Improvement Strategy. This isn’t a new programme – the previous government wanted to converge police IT – but progress has been limited.  There remain 2,000 different IT systems across the 43 forces, employing 5,000 staff.  The budgetary situation today demands action.

    So I can now set out for you the approach which I have agreed with police leaders to ensure this work is driven forwards.

    We will move to national arrangements for police IT rather than locally delivered arrangements.  We will prefer delivery in partnership – particularly with the private sector – to ‘in-house’ delivery.  We want a broader focus on common business processes for policing rather than just a specific focus on IT. We want IT delivered as a series of services with forces paying for the IT they consume rather than continuing with a systems based model. And we will learn the lessons of costly government IT failures in opting for an incremental approach, which will still yield early opportunities, rather than a ‘big bang’ solution.

    Collaboration

    Fourth, we need to look again at collaboration.  Let me be frank.  While the service has made progress in collaborating on protective services, collaboration in order to save money isn’t going ahead quickly enough.  Some useful progress has made in using collaboration to manage specialist resources and build capacity.  But in general there is simply not enough progress being made in sharing forces’ middle and back offices to save money.

    HMIC made this observation in their report last June on “Valuing the Police”.  I say we are not seeing enough signs of change.

    This isn’t a matter of losing local identity.  Local policing services and their command must stay local.  I’m a passionate believer in that.  Compulsory force mergers are off the table.  I don’t believe in them, the public doesn’t support them, and the House of Commons wouldn’t vote for them.  But we cannot allow a vacuum simply because a regional structure was preferred and then dropped.  Forces don’t need to merge commands to share services.

    We must now see a step change in collaboration between forces.  We’ve seen leadership on national arrangements through the successful development of police databases like the PNC. Imagine policing without them.

    And ACPO, through the work of Chief Constable Alex Marshall, has shown leadership in developing proposals for a National Police Air Service, which would save £15 million a year.  If the service’s operational leaders have concluded that this is the way forward, I hope and expect that police authorities will rapidly endorse the proposals.

    We now need the same leadership from the service in a new space – middle and back office collaboration, identifying what services could be candidates, bringing forces together, and agreeing common business processes.

    Support and advice to forces

    Fifth, we must provide the right support for forces.  Intensive continuous improvement programmes such as Quest have shown the value of assistance from the centre.

    Cross-agency work in West Yorkshire and Sussex has shown what can be achieved by partnership and active, well-led, business process re engineering.  In both these counties, the police and partners mapped out processes truthfully end to end.  They looked at the stocks and flows of cases, and the drivers of performance and cost.  They developed quantified actions and turned them into detailed implementation plans.  Then they carried out the plans using robust management information to tweak solutions and track progress.  In West Yorkshire, for example, this reduced so called “cracked and ineffective” trials – wasted work in other words – by a third.  The time it took cases to get to trial also fell by a third.

    Working with the private sector

    Sixth, I particularly want to highlight an area where we are working to assist the police service – and that’s with the private sector.  Indeed the title of this conference is “A new strategic partnership between the police and industry”, one I believe we must forge.

    A key strength of police leaders is their ability to bring in partners to work with them.  I’ve seen this, time and again, in good local partnerships between the police and other parts of the public sector.

    The challenge requires the police service to develop that capability further, to bring in the private sector’s skills to work alongside those of the police.

    There are already good examples of work with the private sector, with forces such as West Yorkshire re-engineering their business processes.

    What we need to do is bring in key commercial skills that the public sector does not naturally have.  This can go beyond help with business process re-engineering, to include outsourcing – a journey on which the police service has only just begun.

    Some people talk about an incompatibility between profit and public service.  But if the private sector has the middle and back office skills which forces need – and the right price can be negotiated – it’s not serving the public to reject the outsourcing option.

    And outsourcing need not stop at back office functions.  Where operational functions in the middle office could be run better and more cost effectively by the private sector, there should be no ideological barrier to change.  We have already seen improvements through contracted out functions such as custody suites.  Other forces have looked further, including into functions such as control rooms.

    Because what matters to the public is the frontline – the police officer who is there for them, patrolling the street, responding to a 999 call or investigating a crime.  The public does not see the back or middle office which supports the officer who helps them, and they do not mind who runs those functions.  What they do want these functions to be as lean as possible so that the visible and available policing which they particularly value is protected and indeed enhanced.  They want their officers to be crime fighters, not form writers.

    Conclusion

    And that’s what I want to see, too.  Every pound we save by re-engineering the back and middle office will contribute towards maintaining the frontline policing which must be prioritised.

    And the potential savings I’ve quantified in this speech are considerable.  They amount to £2.2 billion a year, outstripping the £2.1 billion real reduction in grant – and that ignores the contribution from the local taxpayer.  £1.15 billion outlined already by HMIC.  A further £350 million from bringing middle and back office functions to the level of spend of that typical of the more efficient forces.  Some £350 million again from the potential pay freeze.  A further £350 million or more from a new approach to procurement and IT.

    I do not suggest that achieving these savings will be easy.  To achieve them we all need to change the way we do business.  Dealing with reductions in government funding will create a new imperative for action, changing the incentives on local decision makers.  It already is.  But to achieve the scale of change necessary, we need to drive this re-design of police organisation across the 43 forces.

    The time for talking about IT convergence, collective procurement, collaboration, sharing and outsourcing services is over.  We cannot afford not to do these things, and we cannot afford delay.  And where necessary, the Government will mandate the changes required. I hope that won’t be necessary. But let’s be clear about one thing, the era of 43 fiefdoms is over.

    That is why in the Police Reform and Social Responsibility Bill currently before the Commons we are introducing strong duties to collaborate on both Police and Crime Commissioners and Chief Officers, and introducing new powers for the Government to be able to set out strategic expectations for collaboration.  I expect forces to join with other forces to save money in their back and middle offices.  HMIC will be looking further at whether they are doing so, and chiefs need to exercise strong leadership to make this change happen.

    I am very grateful to the NPIA for the work it has done in identifying savings.  But this organisation cannot take forward solutions which aren’t accepted by the individual forces.  We need a new approach.  We have announced the phasing out of the NPIA.  But – as we have also made clear – this will not mean that value for money related programmes such as those I’ve mentioned in this speech will end.  We need to de-clutter the national policing landscape, but these programmes will continue – picking up pace, not retreating.

    And the government is taking a direct interest in ensuring that savings are realised.  We have set up a High Level Working Group, which I now chair, with representation from chief constables and police authorities to identify the right change programmes and agree that they should be taken forward.  We all recognise that it is no longer business as usual.

    Together with the Cabinet Office we are helping the police service to organise so that it gains the maximum benefit from working with the private sector – and the taxpayer gains the maximum value.

    Yesterday’s approach saw individual forces making their own deals with the private sector. Today we will combine the purchasing power of the 43.

    The basic mission for which the police exist, as Sir Robert Peel stated, is to prevent crime and disorder. Every chief constable I have met has impressed on me his or her determination to do everything possible to protect frontline services while dealing with the reduction in funding.

    But this requires more than a focus purely on tactical cost cutting. What’s needed is transformational change which places service improvement at its heart.

    The government is determined to play its part in driving this change. I don’t underestimate the challenge, but I am absolutely confident that forces can rise to it.’

  • Nick Herbert – 2010 Speech at Oxford Farming Conference

    nickhertbert

    Below is the text of the speech made by Nick Herbert at the Oxford Farming conference on 5th January 2010.

    Good morning ladies and gentlemen

    Thank you very much indeed for having me here to speak at the Oxford Farming Conference.

    I didn’t know there was a university here.  And so it’s a huge pleasure to discover that there is.

    As Heather explained, I read Land Economy – allegedly – at the real Magdalene College, Cambridge.  I studied with somebody called Rob Andrew.

    He was, in effect, studying rugby; I was studying racing.  One of us isn’t doing quite as well as we should be at the moment – I’ll leave you to judge who that is.

    We know what the key challenge is.

    There’s no dispute about that now.

    We know that there is a fundamental issue that confronts not just us as a country, but the world – which is the challenge of ensuring food security, the growing world population matched by the pressure of climate change, food supplies become scarce in a very short space of time, food availability for many parts of the world – as the Secretary of State rightly reminded us – already in scarce supply.

    And I welcome the fact the Government has – I’m afraid belatedly – recognised the importance of increasing food production in this country.  I’m not going to depart from that note of consensus without observing that over the past decade British food production has actually fallen.  And indeed it was the explicit position of the Government up until recently that it didn’t matter where our food came from, that it could be simply sourced from abroad and indeed to be in denial about the issue of food security.

    It’s incredibly important that we have an understanding and a debate about these issues now – about the importance of production both internationally and domestic and increasing production – and that we don’t sweep these issues under the carpet in the way that the energy security debate was swept under the carpet by politicians for far too long.

    I want to talk about two challenges which are components of this food security challenge.

    1. The fiscal challenge

    The first is one that doesn’t feature that highly in the Government document published today.  It is that we face a resources challenge which is in part a fiscal challenge.  That’s the unmentioned thing, which is not in the document.

    The reality of the economic situation in this country today …

    The fact that the country has been brought close to the edge of bankruptcy …

    That other EU Member States face similar pressures on their budgets.

    And that that will inform the next round of CAP negotiations in the run up to 2013.

    Pressure on the EU Budget …

    Pressure on domestic financing …

    Pressure on departmental budgets …

    We have to understand that reality.

    And it’s therefore clear that when we talk about boosting production, what we’re not talking about is increasing Government spending.

    What we’re not talking about is the return to the days of intervention, or floor prices.

    The direction of travel of CAP reform will be maintained.

    And that means that we have to think carefully about what we all actually do understand about Government support for agriculture if boosting production is the agreed aim.

    What does that Government support actually mean?

    And I think that we need to look at this under two key headings.

    A fair market

    The first is the importance of ensuring a fair market that works in everybody’s interest.

    I’m a believer in free markets, but where there is market failure, I believe that it is the duty of governments to act.

    We need to ensure in the market in which agriculture in this country operates – within the CAP – that we have a level playing field.

    And the ongoing process of reform will mean that we will need to ensure that it remains a level playing field, and that attempts at government support through the back door by Member States that would distort that market, and distort that playing field, are resisted.

    But here at home we also need to ensure that the market is operating properly in response to the needs of the consumer.

    That’s why I’ve said today that we agree with the Competition Commission about the importance of ensuring that the Code of Practice in relation to Grocery Supply can be enforced and needs to be enforced by the creation of an Ombudsman.

    Indeed the Competition Commission was clear that the absence of proper enforcement or an effective code could mean less investment and innovation by producers and that would be to the detriment of consumers in the longer-term.

    So here’s an example of a practical policy that a Government can and should introduce, can do so very quickly at relatively low cost.

    We would site the Ombudsman within the existing Office of Fair Trading to ensure that we weren’t creating another quango.

    A practical policy to ensure that the market can operate fairly, and one that will be in the interests of producers, too.

    Honest labelling

    Similarly we need to ensure that the consumer really is king.

    And to be king, the consumer requires real information.  And that information isn’t being given to consumers at the moment who are being misled by produce – meat for instance – that can be imported from other countries, falsely labelled, and passed off as British.

    That let’s down our producers.  It means that the relatively high animal welfare standards in this country are undermined.  We’ve seen the effect on our pig production.

    That’s why honest labelling is so important.

    But it’s not enough to talk in some vague way about the importance of honest labelling.  It’s not enough to say that there are negotiations going on in the EU – particularly when we discover that actually officials who are involved in those negotiations are vetoing the very compulsory labelling that the Government claims it wants to introduce.

    We actually need action.

    Just as we need action in relation to the supermarkets and the Code of Practice, so we need action in relation to honest labelling.

    And I’m delighted that the major supermarkets have responded to our Honest Food campaign, and have agreed to re-label many of their products.  That’s a step in the right direction.

    But if they won’t agree and there are recalcitrants, then Government must be ready to act, to make the case forcefully in the EU, and if necessary to introduce domestic legislation.

    Local food is increasingly important.  It’s a feature now of the modern agricultural industry.

    The growing interest in food is a very good thing for British producers.

    Sustainable government procurement

    We can do so much more to help to promote that.  And Government itself can use its own influence and lead by example.

    That’s why I think that Government departments should be made to procure food sustainably.

    And that will in most cases mean local food.

    We have a very variable performance across Government departments at the moment.  Why not make it mandatory that Government departments procure their food in a sustainable manner and then drive that policy out across the public sector?

    A sector that spends in total £2 billion a year on food procurement.

    It would make a huge difference to producers in this country and to our goal of boosting production if we were to have government with a small “g” leading by example and using its own spending power to back local production.

    I visited a farm near Taunton just before Christmas.  The farmer was supplying one of his local hospitals with milk.  The other hospital did not source from him.  Interestingly, he was supplying at a lower price than the other hospital was actually paying.

    Local food procurement does not necessarily mean higher prices.  Indeed it can mean lower prices.  And it can certainly mean better quality and a boost for the local economy.

    So here, then, are practical measures we can take to ensure this first key principle: the operation of a fair market if what we want to do is boost domestic production.

    A competitive industry

    The second thing we need to ensure is that we have a competitive industry.  And again it is not good enough to talk in vague terms about ensuring a competitive industry unless we are willing to take the tough measures to ensure that British producers can compete in the market.

    And one of the first responsibilities of Government is to ensure that we have a system of animal health that enables our producers to survive and indeed flourish.

    It is necessary for instance to take action on Bovine TB.  Yes, with a badger cull if necessary, because we cannot funk that decision.

    We cannot ignore the impact on our producers …

    …the cost to the Exchequer

    …or the implications for animal welfare

    … if we simply sweep these issues under the carpet.

    There will – in my view – have to be cost and responsibility sharing in relation to animal health going forward.

    But that must be on the basis of true responsibility sharing, not imposition by the Government.

    Effective regulation

    Similarly, if we’re serious about ensuring a competitive industry, then we need to act in relation to regulation and be serious about a de-regulatory agenda.

    We have seen the imposition of regulation on British farming, much of it driven by the EU and much of it, by our own Government’s estimation, unjustified and imposing cost.

    We can’t take farmers close to the market and keep this as a central ambition and at the same time tie farmers’ hands behind their back.

    That’s why I think that we need to be making the case in the EU, as I sought to do at the end of last year, for proper cost benefit analysis of regulation before it is introduced.

    So that things like EID, the Pesticides Directive – regulations which actually we do not believe in our country are proportionate, justified or necessary – can be challenged.

    And we must ensure that when we are introducing regulation in our own country that we are not gold-plating.

    We must move to a system where we are measuring performance much more on outcomes rather than on process.

    Whether I visit a farm …

    Whether I visit a GP in his surgery …

    Whether I visit a local police officer …

    Whether I visit a head teacher …

    They all say the same thing to me.

    ‘Will you please stop telling us how to do our job?’

    ‘We are professionals and we know how to do the job.’

    We need to move to a system where, yes, we are specifying the outcomes – we don’t give up on the high outcomes that we want, whether it’s in relation to protecting the environment or ensuring safety – but we need to try move to a system where we are much more interested in the outcome and less interested in dictating the process.

    Because that dictat of process not only undermines the morale of the professional – ties that person up in endless form-filling and bureaucracy – it’s also immensely costly.

    And if we’re serious about the agenda of delivering more from less, of reducing the burden of government, then we’re going to have to find serious ways of freeing people from that burden.

    Research & Development

    Thirdly, if we want to ensure a competitive industry, then we’re going to have to focus more on research and development ….

    Both on the science which is going to be so important to drive up productivity and boost production in the future to prepare for a world where there’s increasing pressure on natural resources ….

    But also to ensure that our farmers are properly equipped with the skills that they need to adapt to increasingly tough competition in the marketplace.

    Increasingly, I think we will see funding through the CAP directed through the Second Pillar.

    This presents an opportunity to secure the kind of investment that I’m talking about.

    And we must be led by the science.

    We must have a rational debate about the future of new technologies, including GM.

    It’s important that we don’t turn our back on the potential for progress.

    2. The natural resources challenge

    The second resources challenge is equally important.

    I started by talking about the resources challenge of fiscal resources and pressure on the public finances – that’s pressure across the EU.

    But the environmental challenge is of course fundamental.

    We need to ensure that as we boost production, we do so in a sustainable manner.

    I read a letter in the Farmers Weekly in the autumn, written by a farmer from the West of England.

    It said that protecting the environment was incompatible with increasing food production ….

    That agriculture should be left with its own Ministry and that environment should be taken off somewhere else.

    I fundamentally disagree with that.

    If there’s one thing that we have learnt over the last year, it is that you cannot live beyond your means.

    Individuals cannot live beyond their means.

    Businesses cannot live beyond their means – no businessman actually needs reminding of that.

    Governments cannot live beyond their means.

    And just as you cannot live beyond your economic means, so you cannot live beyond your environmental means.

    We cannot turn the clock back

    Boosting domestic production cannot mean ushering in a new decade of intensification regardless of the environmental impact.

    We have to find a way of boosting production sustainably, and conserving natural resources.

    Science is going to be immensely important.

    But production and protection cannot be alternatives.

    Finding strategies to conserve water – and I have proposed, for instance, the re-regulation of the water industry to ensure that we value water properly ….

    Finding ways to ensure soil quality …

    All of these will be immensely important.

    And part of that sustainability agenda also presents an opportunity for farming in the need to reduce waste.

    The opportunity of using farm waste to generate energy.  A massively underexploited technology in this country as we search for new ways to produce energy through renewables.

    These are challenges, yes, for farming, but also potential opportunities.

    Climate change

    But as we seek to lower the carbon footprint of agriculture – as we must – we must have a sensible debate about the means to do that.

    I do not regard campaigns which are jumping on the bandwagon of the crucial issue of ensuring action against dangerous climate change, campaigns which are seeking to reduce our meat consumption, as a sensible contribution to that debate.

    And it’s important that Government makes up its mind about what it thinks about this crucial issue.

    You cannot have one Government department saying it wants to boost production, and another Government department – as happened just before Christmas – producing a report saying that it wants to cut livestock production by a third.

    Which is it?

    What we need to do is ensure that there is the investment in the science and research to reduce methane emissions from livestock.

    And I’ve called for Britain to sign up to the Global Alliance pioneered by New Zealand to ensure that research in that vital area is pooled.

    Because we have a shared interest with many other countries in ensuring that.

    We need to have a sensible debate about the role of farming in the lower carbon world – not one that is driven by pressure groups or fads.

    And the last thing that I want to say about the environmental challenge that farming faces is that the natural environment and protecting the natural environment will remain a core concern of any government.

    And we have to remember the vital role of farming in delivering that protection.  Where 70 per cent of the land area is farmed.  That’s why the Campaign for the Farmed Environment is so important.

    That’s why the future of agri-environment schemes – covering some two thirds of farms – is important.

    That’s why we must be focussed on the outcomes of those schemes to ensure that they are delivering as much bang for buck as possible.

    Because reversing biodiversity decline cannot happen without that very important input from the people who actually manage most of our land.

    So those are the first two key challenges.

    The resources challenge fiscally, and the resources challenge environmentally.

    3. An international agenda

    But there is a third and last key challenge.  Because when we talk about food security we are actually talking about a global challenge: the need to boost food production on an international scale.

    Britain can and should increase production of the food we can grow ourselves.

    That helps to improve our own security.

    It makes environmental sense ….

    It makes sense in supporting our local economy.

    But Britain cannot produce its way out of this global problem.

    We need to see a global increase in production of a serious scale, if we are to meet the challenge of demand in a very short space of time.

    That requires, in my view, a new focus on reducing trade barriers and lowering tariff barriers as a contribution to boosting production.

    And that is something we have lost focus on when so much attention has rightly been on Copenhagen and the need to secure an international climate deal.

    And it also means looking again at the way we are helping underdeveloped and developing countries boost their agriculture.

    I was in Zambia at the end of last year, talking to the Minister of Agriculture about his desire to increase production.  A potentially fertile country which could grow a lot more – adjacent to Zimbabwe which we all know used to be the breadbasket of Africa.

    Actually when you look at what has been done in that country in order to try and support the development of their agriculture, it is relatively little.

    If the world community is serious about increasing production, then we have to be serious about an international agenda that is going to facilitate that.

    About supplying the skills, the knowledge and the co-operation that is going to enable these countries to rise to this challenge.

    Conclusion

    I want to end by saying this.

    We’re moving, it seems to me, to a new era in relation to agricultural policy.

    If we had been sitting here twenty years ago, I suspect we would have been talking about food surpluses.

    Politicians were.

    It was wine lakes and food mountains.

    Farming was seen not as the solution, but as a problem.

    The despoiler of the environment ….

    A cost on the public purse.

    The goal was to reduce those costs and minimise the environmental damage.

    And there is a danger, of course, that we lost sight of the importance of this primary industry.

    This industry which puts food on our tables.

    This industry which is essential for life.

    There is always a danger in politics of over-reaction.

    And it seems to me that the formal policy that said that it didn’t matter where our food came from was wrong.

    And the devaluation of our farming industry was wrong.

    We need to move forwards not backwards.

    But that does mean being serious about an agenda of supporting agriculture.

    If you want a 20-year plan and believe in Soviet-style plans, then that’s fine.

    But it’s no good just talking about food labelling unless you’re willing to deliver it.

    It’s no good just talking about a fair market unless you’re willing to deliver that.

    It’s no good just talking about competitiveness unless you’re willing to ensure that farmers really can be competitive and are equipped to be so.

    I believe we are entering a new age of agriculture.

    And that, actually, there is an enormous amount for us to be optimistic about.

    This isn’t an age any longer where farming is seen as a problem.

    This isn’t an age where the value of farming can any longer be discounted.

    This is an age where everybody is starting to see the importance of food production, of feeding the world.

    And so as we enter this new decade, I think we can be optimistic about the future of farming.

    Government has a vital role to play to ensure that our farming industry can rise to the very real challenges that it faces, as we move through this period of adjustment.

    But I think, collectively, we can look forward to an era where farming is truly valued again.

    Thank you very much.

  • Edward Heath – 1972 Speech on Inflation

    tedheath

    Below is the text of the statement made in the House of Commons by the then Prime Minister, Edward Heath, on 6th November 1972 on the subject of inflation.

    The Prime Minister : With permission, Mr. Speaker, I will make a statement on the breakdown of the discussions between the Government, the TUC and the CBI, and on the action which the Government now propose to take.

    In my speech in the debate on the Address last Tuesday, I gave an account of the earlier stages of these discussions, and I explained the difficulties which at that time seemed to stand in the way of an agreement, particularly over the issue of a voluntary arrangement or the use of statutory powers.

    The Government and the CBI both made clear their strong preference for completely voluntary arrangements over the whole field, pay as well as prices, though they were prepared, for the sake of reaching agreement, to accept that voluntary arrangements should be supported by backing-up legislation over their whole range. The TUC representatives, on the other hand, had made it a prior condition that there should be statutory control of prices but they were not able to accept the introduction of similar statutory controls on incomes.

    I had therefore asked the TUC representatives whether the TUC was prepared to accept either completely voluntary arrangements, or voluntary arrangements backed up by statutory powers over the whole range of any agreement. This issue was so fundamental that it would clearly have been pointless to go on discussing other matters until the answer to this question was known. The TUC representatives said that they could answer that question only after reference to their General Council, and we adjourned on Monday evening to enable them to consult it.

    The representatives of the TUC consulted the General Council on this question on Wednesday morning. At the beginning of the tripartite meeting on Wednesday afternoon, the TUC tabled a proposal requesting that the Government should give an unqualified guarantee that the retail price index in general, and food prices in particular, would not rise by more than 5 per cent. in the year ahead.

    At the end of the meeting on Wednesday, the Government and the CBI made it clear that they would only accept arrangements which were either completely voluntary or were supported by backing-up legislation over their whole range. The representatives of the TUC said that they understood this position and would continue to negotiate on this basis.

    At the opening of the meeting on Thursday, I explained why it was impossible for any Government to give a guarantee of the character sought by the TUC. However, I reminded the meeting of a number of features of the Government’s proposals which together would ensure a strict limitation of prices. Let me remind the House what those features were.

    First, there was a CBI recommendation to its members to undertake not to increase prices of manufacturers over the next 12 months, except where unavoidable, and then only as little as possible. The intention was that the increase in the price of manufactured goods should not exceed 4 per cent. on average over the 12 months.

    Then there was the Government’s request to the nationalised industries generally to limit their price increases to an average of 4 per cent.

    Thirdly, there were the undertakings by the large majority of the British retail trade to reflect this restraint and to hold their gross percentage margins at no more than current levels. Further, the food distributors had offered to collaborate with the Government in a system of maximum retail prices for certain foodstuffs. Maximum prices for a number of manufactured foodstuffs were to be increased only if a tripartite monitoring body agreed In relation to goods other than food, the remainder of the retail trade agreed not to increase their cash margins on individual items by more than 5 per cent. without the approval of the monitoring body.

    Fourthly, the Government agreed to consider taking action to limit prices where they had the ability to influence them.

    The general intention thus was that the rise in retail prices attributable to the rise in domestic costs should not exceed 5 per cent. over the 12 months. We also envisaged the possibility of action to limit or offset price increases arising from other causes.

    There were further proposals designed to provide and protect an improvement in the living standards of wage and salary earners, particularly those on low pay. The flat rate increase of £2 proposed by the Government would have allowed average earnings to rise by over 8 per cent. For those on or below £20 a week it would have allowed increases of 13 per cent. or more, and thus an appreciable improvement of living standards.

    Threshold agreements were also proposed, to allow additional increases of pay if towards the end of the year, because of certain special factors, the rise in the retail price index exceeded 6 per cent. These would provide a safeguard for all wage earners.

    I repeat that the effect of these proposals was, for anyone earning up to about £40 a week, not merely to protect but actually to improve living standards, while at the same time reducing the rise of inflation.

    At the meeting on Thursday, I went on to make a number of further proposals designed to improve the position of those in low paid employment and pensioners. These included the following proposals. The needs allowance should be increased by 50 pence in order to limit the effect of rent increases in 1973 for tenants in receipt of rent rebates and housing allowances. The period for which family income supplement, free school meals and free welfare milk are awarded should be extended from six months to one year, so that entitlement to these benefits would continue throughout the year for those receiving them, irrespective of increases of pay or other changes in circumstances. When reaffirming the Government’s intention that, as a result of the review of pensions in the spring, at the next up-rating pensioners should have the benefit of a share in the nation’s increasing prosperity, I stated that, as an earnest of that intention, the Government would pay a special lump sum to those over national insurance retirement age in receipt of retirement pensions and supplementary pensions, as soon as the necessary arrangements for payment could be made.

    In addition, I said that the Government were consulting the local authorities in order to moderate the rate of growth of local rates.

    All these proposals, together with the very important arrangements made with the retail trade, were additional to those which the Government had made on 26th September. Moreover, in reaffirming its own intentions, the CBI had already stated its willingness for dividends to be controlled.

    As the House will be aware, the representatives of the TUC stated that they did not regard the total package of proposals as a basis for negotiation. They said that, although they would take them back to the General Council, they would do so without being able to recommend their acceptance. The General Council met this morning. The statement which it has issued shows that there has been no change in the TUC’s position.

    Although it has not been possible to reach agreement in this round of discussions, the Government are fully prepared to continue to take part in tripartite discussions with the CBI and the TUC on subjects of mutual concern to the three parties.

    The responsibility for action now rests with the Government. We have come to the conclusion that we have no alternative but to bring in statutory measures to secure the agreed objectives of economic management in the light of the proposals discussed in the tripartite talks.

    These measures will take time to work out in detail and to implement. In order that the fulfilment of the objectives should not be prejudiced in the meantime, the Government propose to introduce tomorrow an interim Bill to provide for a standstill on increases in pay, prices, rents and dividends, subject to a limited number of defined exceptions. The standstill will come into operation immediately, and will run for 90 days from the Royal Assent to the Bill, with provision for an extension of up to 60 days, by order subject to affirmative Resolution.

    The arrangements for the standstill are set out in a White Paper, which will be available in the Vote Office at 4.30 p.m. The draft of the Bill is contained in a separate White Paper which will be available later this evening.

    Although it has not proved possible to reach a tripartite agreement, the Government intend to implement their proposals for increasing the needs allowance; for extending from six to 12 months the period of entitlement to family income supplement, which carries with it exemption from National Health Service charges, and to free welfare milk and free school meals; and for paying a lump sum to pensioners. As regards the latter, the payment will be made as early as practicable in the new year, and will consist of £10 to each retirement and supplementary pensioner – that is, £20 for a married couple both of whom are over retirement age.

    The CBI’s and the TUC’s acceptance of the Government’s invitation to join in discussions on the objectives and methods of economic management signalled a major change in the conduct of economic policy in this country—far in advance of anything even tried for by previous Governments. I know that I was not alone in thinking that it was one of the most hopeful things that had happened in Britain for many years. I deeply regret that last Thursday’s disagreement has forced us to take action which I regard as less satisfactory than a voluntary arrangement could have been.

    I profoundly believe that the course upon which we had embarked was the right, rational and sensible course for Britain. I therefore hope that this setback will not be allowed to stand in the way of our resuming discussions between the three parties in due course on the objectives and problems of economic management.

    In the meantime, the Government have a duty to the nation to carry through the proposals which I have now put before the House.

    Let me remind the House again of the objectives: the maintenance of a high rate of growth and an improvement in real incomes; an improvement in the position of the low paid and the pensioners; and moderation in the rate of cost and price inflation.

    All those round the table at Chequers and Downing Street were in full agreement on these objectives. But I would go much further than this. I believe that they command the support of the great majority of the people of this country. The opportunities now open to the country and to us all are immense, if we can, together, succeed in these objectives.

    The Government’s proposals are designed to secure these objectives. I therefore commend them with confidence for the approval of the House, and for the support and co-operation of all those concerned, on both sides of industry, and of the whole nation.

    Mr. Harold Wilson : The right hon. Gentleman will know that, as we said publicly on Friday, we share his disappointment at the breakdown of the discussions. I take it that his words mean that he wishes the talks to be resumed at an early date. In our view, if they were resumed, there would have to be a radically different approach on the Government’s part to certain fundamental issues affecting prices and the wider living costs of the average household. If there is to be any agreement emerging from future talks that will have to be the fundamentally changed approach of the Government.

    This is not the time to remind the right hon. Gentleman of all the many strongly worded statements, since he became Leader of the Conservative Party, in every debate in this House, on every proposal of the Labour Government, and during the General Election—and of the fact that this represents the biggest reversal of positions he has taken on any subject since he broke his “at a stroke” promise on coming to office.

    We have repeatedly warned the right hon. Gentleman that no agreement would be fair and just, or workable, which did not provide for guarantees on food prices, not only domestically created prices—the right hon. Gentleman again referred to domestic prices—and a limited range of other essentials—rents, both private and public, rising mortgage interest rates, VAT and school meal prices, which he is to increase next April, as well as the dividends referred to in his statement. The right hon. Gentleman has moved a little in his three months’ proposals, but he has not met the main requirements for a fair agreement as we put them to him.

    Has the right hon. Gentleman recognised, in all these long-drawn-out talks, that those he has to meet are not so much employers or trade union leaders as trade union members and, above all, the wives of trade union members responsible for balancing their family budgets? Does he agree that a three-months freeze – for it is only three months; even if the further 60 days are added, it will take it only to early April – would mean on 1st April, or soon afterwards, increases in rents of up to 50p for many families, many private rent increases – he has not told us, or perhaps I did not hear him correctly, whether private rents are to be included in his controls, but I hope they are  increases in school meals, taxation of school and other children’s clothing and V.A.T., as well as three months of rising European food prices and rate increases, all next April? Does he recognise that, even at the end of this period, that will be the position, whether the freeze is renewed for 60 days or not?

    Will the right hon. Gentleman tell the House his proposals for dealing with the wide range of prices that have been pushed up since the breakdown of the talks, on Friday, Saturday and again this morning? They are on record already in the Press – for example, pharmaceutical and other manufactured goods. How does the right hon. Gentleman propose to catch those in his Bill? Of course, as a public employer he has caught many wage discussions and held them back since 26th September while allowing rents to rise on 1st October and other prices to rise since last Thursday. What machinery has he in mind? Recalling that he scrapped the National Board for Prices and Incomes, in a mood of euphoria after the last election, will he now restore that Board and the Consumer Council?

    The right hon. Gentleman referred to exceptions. What exceptions has he in mind? For example, do they cover increments in public and private employment? Do they cover pay increases for the police, atomic energy, local authority and electrical workers which have been agreed but not yet paid? Will he explain the answer to that question?

    Finally, is the right hon. Gentleman aware that, in our view, no proposals will be workable, or fair and just, which fail to deal with food prices, rents, both private and public, school meals, mortgage rates and taxation of children’s clothing, and that, because such proposals will be neither workable nor fair, we shall oppose them?

    The Prime Minister : On the right hon. Gentleman’s first point, of course he is right. As I said in my statement, we are prepared at any time to carry on further talks with both the TUC and the CBI. They realise this and I hope that it will be possible.

    I reiterate my belief, of which the right hon. Gentleman is well aware, that in a free society it ought to be possible to make these arrangements on an entirely free and voluntary basis. No Government have tried harder than we have tried during the past three months to achieve that result. Indeed, this has been widely recognised by both the CBI and the TUC. I regret that it has not been possible to do this. Therefore, we must look forward to the time when we can have an arrangement of a similar kind, which I hope can be negotiated voluntarily.

    The right hon. Gentleman will find the answers to the detailed points he raised set out in the White Paper. However, I will deal with some of the major ones. He asked what machinery would be used. Government machinery – Government Departments – will be used. One of the first things I learned in the discussions was that the National Board for Prices and Incomes had been anathema as much to the TUC as to many other people. Therefore, there was no desire to recreate that body. [Interruption]. Let us discuss these matters frankly. This is what I was told.

    Incremental payments will be excluded. I hope the right hon. Gentleman will agree that that is right. In the nature of their payment, they are not in fact wage increases.

    Concerning the other matters mentioned by the right hon. Gentleman, concentration is not only on domestic costs. As I pointed out in my statement—and it was said on Thursday to the TUC and the CBI – the Government have undertaken to use the means available to them for influencing and holding down costs outside domestic costs. We gave our full undertaking to do that.

    Many of the other matters mentioned by the right hon. Gentleman—I must frankly say this to him—are political. They are not matters which directly affect the discussions which we have been having. Every Government has the right to carry through its policy. I told the CBI and the TUC that I was not prepared to repeal the Act taking us into the European Community, nor to repeal the Industrial Relations Act, nor to repeal the fair rents Act, but that the Government were prepared to take into account the results of that legislation. That is what we have told them all the way through. When we said this, we said that the Chancellor of the Exchequer in framing his next Budget will, of course, take into account the consequences of membership of the European Community and of the other factors in the economy. This is the right position for Government and Parliament to take up, and then to discuss with those concerned how best we can deal with these items. That is what we have done.

    Mr. Wilson : One of the first points the right hon. Gentleman made when he said that the Government had a policy for food price increases that arose from causes other than domestic causes, was – I think his statement was to this effect – that he envisaged the possibility of action to offset price increases. Was he able to tell the TUC, or can he tell the House today, whether there is a firm Government proposal for shielding the British consumer from the increase in food price rises that will result from entering the Market in January and from other increases arising from outside causes? Is the right hon. Gentleman prepared to answer that question? Will the right hon. Gentleman, following what he has just told the House about the discussions on other prices, now give an undertaking that he has powers to deal with them? When he refers to political matters, is he not confirming that it is the right hon. Gentleman’s own political prejudices which stopped an agreement on rents and on other matters?

    The Prime Minister : In no circumstances do I accept that. As to the food prices of the Community, they do not have an effect until the spring in any case. The Government have in mind certain items of food the prices of which they can influence. As my right hon. Friend the present Leader of the House pointed out on Friday, it is quite incorrect to say that the rise in food prices has been due to levies by the British Government – quite untrue. It is due to the impact of the rise in world food prices. We told the TUC and the CBI that in dealing with other factors we would take account of what was going on in this sphere.

    Mr. Powell : Does my right hon. Friend not know that it is fatal for any Government or party or person to seek to govern in direct opposition to the principles on which they were entrusted with the right to govern? In introducing a compulsory control of wages and prices, in contravention of the deepest commitments of this party, has my right hon. Friend taken leave of his senses?

    The Prime Minister : The present Government were returned to power to take action in the national interest when they were required to do so.

    Mr. David Steel : Is the right hon. Gentleman aware that we on these benches also share his regret at the breakdown of the talks? He said that no Government had tried harder in the past three months to seek agreement. Is he aware that his party has been in office for two years and three months and that we regret that this approach was not adopted when the Government came to power in June, 1970? Can the right hon. Gentleman say whether the exceptions during the 90-day period will include exceptions for the lowest paid and whether the Government are moving towards a national minimum earnings rate?

    The Prime Minister I am grateful to the hon. Gentleman for what he said. I must emphasise that the present Government, when they came into power, asked the CBI and the TUC to consult and co-operate with them. It was through no fault of the Government that consultation was refused. I have no desire in any way to make it more difficult to achieve a resumption of these talks and I therefore do not wish to discuss that matter further. Whether the reluctance to consult was based on political motives is not for me to say. The Government have always been fully prepared to consult and co-operate with both the TUC and the CBI.

    On the second point which the hon. Gentleman raised, he will see the exceptions set out in the White Paper. The one to which I would particularly draw his attention is that of wages councils’ awards. These are concerned with those who are the lowest paid in the country, and where the proposal has taken place before the standstill and it is more than a year after the last award it will be possible for it to be an exception.

    Sir Harmar Nicholls : Is my right hon. Friend aware that although the method that he has announced is a change of direction for the Conservative Government, the nation as a whole will recognise and respect the great efforts that he has made to arrive at a voluntary agreement? Is he also aware that the one thing he could not do, under the circumstances that exist in this country at the moment, was, as the Leader of the Government, to do nothing, and that what he has done by underwriting the offer he made to the bodies when they were discussing the matter will help to restore the credit of this country when it is badly needed in a time of crisis?

    The Prime Minister : This country now has expansion going at a rate of 5 per cent., faster than we ever had under the last Administration, with capacity for further expansion for at least another year, with capacity for investment to carry on that expansion over further years ahead. In addition, we are now providing more jobs and greater productivity. [HON. MEMBERS: “Where?”] We are not going to see this expansion and the future of the British people thrown away by excessive wage increases.

    In reply to what the right hon. Gentleman said, the great mass of trade unionists and of their wives believe that the proposals which were put to them by the present Government were fair and gave them a better chance of a steady improvement in their standard of living than ever before.

    Mr. Eadie : The right hon. Gentleman is very fond of using the expression “economic management”? Is he aware that if he applies the test of economic management to the Government which he is leading he will fail in that test and, therefore, that he should resign as a consequence of what he has said this afternoon or reconsider his position? Is he aware that a former Conservative Minister has said that the policy that he is presenting to this House this afternoon cannot succeed unless he has a long-term economic strategy? However hard the right hon. Gentleman may try to convince or influence this House, he cannot say that he has a long-term economic strategy.

    The Prime Minister : I have constantly told the House that the economic objectives were agreed around the table. Those objectives are very clear, and I believe that they have the full support of the country.

    Sir D. Walker-Smith : Does my right hon. Friend appreciate that thinking people, who tend to respect the constitutional principles of this country, will support efforts to resist any attempt by organisations or people, however respected and however powerful, to deny the function of government to the elected representatives of the nation?

    The Prime Minister : Yes, Sir; I am sure that that is the view of the majority of the people of this country. It is time that all three parties in this House made it absolutely clear that when Parliament has passed its legislation the law should be observed by everyone, regardless of his position, wealth or power.

    Mr. Sheldon : Is the right hon. Gentleman not aware that the whole argument about a prices and incomes policy is an argument about who gets what? What the Prime Minister and the Chancellor have ensured over the past two years is a redistribution in favour of the well-to-do. When the Prime Minister went to those tripartite talks, he did not go with clean hands. If he ever wants to get a voluntary agreement, he will have to reverse those policies which he has carried out already.

    The Prime Minister : The hon. Gentleman’s first sentence touched on what obviously proved to be one of the major matters in the discussions—namely, whether the higher paid wage earners are prepared to see, in this stage, the lower paid getting proportionately larger increases. This is what was agreed around the table, but when the proposals were put forward at the end of the day they did not secure acceptance.

    Mr. Edward Taylor : As steel is one of the basic costs of manufacturing industry, and a crucial one for Scotland, will the right hon. Gentleman confirm that any restraint on the prices of nationalised industries during or after the 90 days will apply to steel also? Will he obtain the agreement of the ECSC for this to be done?

    The Prime Minister : As I said in my statement, the Government have requested all nationalised industries to comply with the voluntary policy. Now that we are moving into the standstill, obviously the nationalised industries themselves—all of them—are involved.

    Mr. Palmer : Would the right hon. Gentleman not agree that many of the wage and salary claims at present before negotiating machinery are for the rectification of unjust and unsatisfactory differentials? Will not this proposal simply freeze an artificial payments structure and mean that it will take a very long time for the country to recover from it?

    The Prime Minister : I do not think that the hon. Gentleman’s last sentence is justifiable, in view of the fact that the intention of this proposal is for a 90-day standstill, in order then to get through the legislation which will enable the further stage to take place. But of course the hon. Gentleman is right that many of the problems of wage bargaining arise from differentials which some groups believe to be unjust. The real problem is how that can be dealt with without causing inflationary wage increases. What we were trying to do in the talks was to get agreement about a basic approach for this first year only and to establish priorities. The priority which was agreed was to help the lower-paid workers. Of course, this affects differentials right the way up, but it is a priority which was agreed. What one has to do in any attempt at a policy which will prevent inflation is to see how these can be adjusted fairly.

    Dame Joan Vickers : In view of the fact that many proceedings are going on under arbitration, including those for Her Majesty’s Dockyards, when the arbitration court decides on the award, will the Government agree to accept that without any further delay?

    The Prime Minister : I would ask my hon. Friend to await the White Paper. These matters are set out quite specifically, stating what will be done in the particular cases. It is much better that it should be seen in the whole context.

    Several hon. Members rose—

    Mr. Speaker : Order. I want the help of the House, if I may have it. There is to be a business statement next, the contents of which I know. There is an important debate on poverty today and there is a debate on the industrial situation tomorrow. I hope that it is the wish of the House that I should not continue these exchanges indefinitely.

    Mr. Strang : Is the right hon. Gentleman aware that his proposal to increase the rent rebate needs allowance by 50p will mean in practice that council tenants in Scotland who were facing increases of £1 a week will have it reduced by a derisory 8½p? Will the local authorities which have refused to implement the Housing Finance Act have present rent levels frozen, and will council tenants who have had increases imposed on them as a result of the Act have them withdrawn?

    The Prime Minister : No, Sir, and those councils which have refused to carry out the law will not be exonerated by the Bill.

    Mrs. Knight : Would my right hon. Friend be reluctant to prescribe either excessive medication or the surgeon’s knife except in a case in which the patient is quite incapable of recovering otherwise? In view of what he has recently said, will be assure us that the fears that some of us have entertained since hearing what the Post Office Corporation intends to do about putting up prices, will be allayed by his statement?

    The Prime Minister : As I have said, this applies to all the nationalised industries. Therefore my hon. Friend’s fears can be allayed during this standstill period.

    Mr. Roy Jenkins : May I ask the right hon. Gentleman one question on a matter on which I think the House is entitled to know the state of his current thinking? Has he now abandoned his constantly reiterated view that a statutory policy could only make inflation worse in the long run, or does he now regard the short-term situation that he has produced as so disastrous that he cannot afford any longer to think about the long run?

    The Prime Minister : I have already told the House that I believe that, in a free society, it ought to be possible to manage the economy in co-operation with the TUC and CBI in a voluntary way. I have read with great interest a reprint of the speech which the right hon. Gentleman made, in which he himself said that these matters should be voluntary and that there should be as little legislation as possible. I am glad to see the right hon. Gentleman nodding his head. Therefore, we are both in agreement on that matter.

    What I am saying is that, in the situation when these talks have not led to agreement, it is essential to have this standstill for 90 days and then to move on to the next phase. But I believe that there is a difference between the situation in which we are doing this and that in which the right hon. Gentleman had to do it. He was doing it at a time of a stagnant economy, at a time when he was deflating continuously through heavy taxation and at a time when he was trying to reduce the real standard of living of the British people. We are doing it at a time of expansion. Our sole objective—I am sorry that the right hon. Gentleman turns away—is to protect the expansion and the improvement in the real standard of living of the whole nation.

    Hon. Members: Resign!

     

  • Edward Heath – 1972 Speech in Brussels

    tedheath

    Below is the text of the speech of the then Prime Minister, Edward Heath, in Brussels on 22nd January 1972.

    We mark today, with this ceremony, the conclusion of arduous negotiations over more than ten years which have resulted in another great step forward towards the removal of divisions in Western Europe.

    This uniting of friendly States within the framework of a single community has been brought about by the sustained and dedicated work of many people. Their efforts were essential to the success which we are celebrating.

    My tribute here is to all who have laboured in this great enterprise — not only to those who have negotiated, Ministers and officials, together with the members of the Commission who have contributed so much, but to all who, in their many different ways, have supported and advanced the idea of a united Europe.

    Just as the achievement we celebrate today was not preordained, so there will be nothing inevitable about the next stages in the construction of Europe. They will require clear thinking and a strong effort of the imagination.

    Clear thinking will be needed to recognise that each of us within the Community will remain proudly attached to our national identity and to the achievements of our national history and tradition. But, at the same time, as the enlargement of the Community makes clear beyond doubt, we have all come to recognize our common European heritage, our mutual interests and our European destiny.

    Imagination will be required to develop institutions which respect the traditions and the individuality of the Member States, but at the same time have the strength to guide the future course of the enlarged Community.

    The founders of the Community displayed great originality in devising the institutions of the Six. They have been proved in the remarkable achievements of the Community over the years. It is too early to say how far they will meet the needs of the enlarged Community.

    For we are faced with an essentially new situation, though one which was always inherent in the foundation of the Community of the Six, which was visualized in the preamble to the Treaty of Rome and which has been created by its success.

    Let us not be afraid to contemplate new measures to deal with the new situation.

    There is another cause for satisfaction.

    “Europe” is more than Western Europe alone. There lies also to the east another part of our continent: countries whose history has been closely linked with our own. Beyond those countries is the Soviet Union, a European as well as an Asian power.

    We in Britain have every reason to wish for better relations with the states of Eastern Europe. And we do sincerely want them.

    Our new partners on the continent have shown that their feelings are the same. Henceforth our efforts can be united. The European Communities, far from creating barriers, have served to extend east-west trade and other exchanges.

    Britain has much to contribute to this process, and as Members of the Community we shall be better able to do so.

    Britain, with her Commonwealth links, has also much to contribute to the universal nature of Europe’s responsibilities.

    The collective history of the countries represented here encompasses a large part of the history of the world itself over the centuries.

    I am not thinking today of the Age of Imperialism, now past: but of the lasting and creative effects of the spread of language and of culture, of commerce and of administration by people from Europe across land and sea to the other continents of the world.

    These are the essential ties which today bind Europe in friendship with the rest of mankind.

    What design should we seek for the New Europe?

    It must be a Europe which is strong and confident within itself.

    A Europe in which we shall be working for the progressive relaxation and elimination of east/west tensions.

    A Europe conscious of the interests of its friends and partners.

    A Europe alive to its great responsibilities in the common struggle of humanity for a better life.

    Thus this ceremony marks an end and a beginning.

    An end to divisions which have stricken Europe for centuries. A beginning of another stage in the construction of a new and greater Europe.

    This is the task for our generation in Europe.

  • Edward Heath – 1967 Conservative Party Conference Speech

    tedheath

    Below is the text of the speech made by the then Leader of the Opposition, Edward Heath, to the 1967 Conservative Party Conference.

    Throughout our history, Mr, President, the abiding inspiration of the Conservative Party has been a deep love of our country and a wholehearted respect and affection for our fellow countrymen; the love of our country, the sea, the cliffs and the sand, of the hills and the beautiful countryside; the respect and pride in its great achievements and in those who have served it so well in the days of Empire and Commonwealth.

    Above all, we are mindful of our country’s good name. We have a respect for our fellow countrymen, for their rights in the community, for their individual liberty, for their spirit of freedom and independence. These are shared by others in this country today who, perhaps, are not members of our Party and who do not call themselves Conservatives. These are the people whom we welcome to our ranks and we invite them to join us at this time, because never in our country’s history were these two qualities, love for our country and respect for our fellow countrymen, more necessary than they are in the state of Britain today.

    It can give us no comfort and no pleasure that in the councils of the world Britain’s influence today is so low; it can give us no satisfaction that her word counts for so little in the councils of the nations. Sir Alec yesterday, in a far-reaching and far-seeing speech, told us why this was so. It is due, he said, to the fact that the present Government has abdicated its responsibility to the people of this country. We see the trouble spots – difficulty in Gibraltar, chaos in Aden, trouble in Hong Kong, withdrawal from Malaysia and from Singapore. But these are not isolated incidents spread across the world. They all together reflect one thing. They reflect the fundamental weakness at home of the British Government, its loss of nerve and its failure of will.

    We recognise that we have clear and specific commitments in the Middle East and in the Far East, and we will carry them out. We do not complain about this Government because Britain today is no longer a super-power. We do not criticise the Government because it has not got the resources of the United States or of the Soviet Union. But we condemn the Government because it fails to maintain British interests abroad. Those interests can be sustained at a cost which this country can bear. No one has given greater study to the make-up of the forces today than Enoch Powell, to whom we listened with such joy at this Conference. He knows – we know – that when this country’s economy is strong, as it would be under a Conservative Government, then it is not only that we would sustain British interests, but that we would then have the resources with which to do it. That is what a Conservative Government will do in overseas affairs.

    How sad it is at home today to see this country torn by industrial strife in a way which I cannot remember in my time, which is damaging our trade, which is harming the individual livelihood of our people and which is bruising its very spirit. We see the spread of violence and crime; we see lethargy permeating too much of our industrial life; we see cynicism and disillusionment through large sections of our people. That is the situation here at home today. But, above all, it is characterised by a declining respect for law and order in our community. That can be no wonder with a Government which shows such scant respect for constitutional processes in Parliament and in Government today. From the very first this has been so: the imposition of building licensing without any authority from Parliament; the creation of the Ombudsman without the necessary resolution of the House of Commons; the imposition of ‘D’ Notices when they were proved to be unjustifiable; the attempt to evade the courts by arrogant, high-handed action by the Secretary of State for Education in the Enfield case; the attempt to impose comprehensive education right across this country not through Parliamentary powers, but merely by the use of the financial weapon; the use of that weapon without Parliamentary authority, to achieve the dogmatic purposes of a Socialist Government. All of these are instances of where the Government itself has paid scant attention to the constitutional processes and the law of this country. Until we have a Government which is prepared to observe the law and order and constitution of our country, then we shall not restore respect for it by the people of this country themselves.

    Let us look for one moment at the dangers which may confront us. We have already seen that this Government, to achieve its purposes, has postponed the elections in the London boroughs. What more are they prepared to do to achieve their own ends? Delay the implementation of the Boundary Commission for this country in order to save themselves seats?

    Let us beware lest they attempt to tamper with the very processes of Parliament itself. The Land Commission Bill, in its original form, would have enabled a man’s house, a man’s property to be seized without any right of appeal – just a buff envelope dropped through the letterbox, that is all there would have been to it. We fought it bitterly in the House of Commons so ably led by Geoffrey Rippon. We fought it night and day, but we failed to alter it. It then went to the House of Lords. It was there that the right of appeal was inserted into that Bill and maintained in the House of Commons later. That is the part which the House of Lords plays in safeguarding the very liberties of the people of this country. Let us, then, beware of what this Government may have in mind to do to our Parliamentary institutions in order the better to achieve their Socialist purposes.

    But this situation can only be dealt with by a Government which is sure of its purpose; which is prepared to take clear and difficult decisions in the interests of the people of this country; which will take action without the weakening effects of continuous compromise; a Government which is going to dominate events and not be pushed around by them; above all, a Government which will stand up for British interests abroad and the liberty and interest of British people at home. That can only be done by a Conservative Government.

    Since we last met we have had immense successes in the local government elections, in which every one of you here must have taken part. Never at any time in British history has so much of the local government of this country been under the control of Conservative administrations and so little under Socialist councils. What an opportunity that is for our local councillors – many of them after years and years of tireless effort to achieve control in the local council chamber. As I have gone round the country on my tours I have seen how quickly they are seizing those opportunities, how rapidly they are putting into effect the Conservative policies on which they fought the elections, how carefully they are serving the interests of the electors.

    But what responsibilities rest upon them as well. They know that they will be judged by the electorate in their own local elections. But there is much more at stake than that. It is not only the local councillors who will he judged by what they do in these three years; when the election comes – when the General Election comes – then we, the Conservative Party, are going to be judged also on what our local councillors have done, what they have shown themselves to be in the years meantime.

    To what are our successes due? They are due to the efforts which have been made in Parliament by my colleagues in the Shadow Cabinet and on the Front Bench and by all the back benchers who support us, all of us working together as a team, fighting ceaselessly, tirelessly. If any of you ever have any doubts – just ask a member of the Government or one of their back benchers what it is like to be in the House of Commons fighting against a formidable Opposition like this. Many of them thought that they were going to a House which would be something nice from 10 to 5, and for the rest they could put up their feet by the fire at home. It has been the most formidable Opposition of modern times, and to the Party here I want to express my very sincere gratitude for the immense amount of work that my colleagues both on the Front Bench and on the back benches have put into this Opposition.

    But our success is also due to you, the Party workers. It is you who have worked tirelessly on the doorsteps, who have raised and are raising the funds, who are carrying on the daily job of persuading other people to change their minds and to support us in our cause. So it is to you, the Party workers and to all those whom you represent, that I wish to give the thanks of the Party in Parliament for the work you have done, and for your achievements; because they have been achievements not only in local government but in the by-elections as well. The great victory of Pollok in Scotland, and then Cambridge and West Walthamstow – these are tremendous triumphs in the first eighteen months of a Government.

    But, above all, these triumphs are due to one thing. This has been the most difficult period in the Party’s history. After the defeat of 1906 – and in centenary year one might perhaps be forgiven for glancing back for a moment or two – the Party tore itself apart over tariff reform. In 1929, after a great defeat, the Party was then tearing itself apart over India. In 1959, the Labour Party tore itself apart over Clause IV and nationalisation. On this occasion we, the Conservative Party, despite our problems and our difficulties, have maintained our unity, and this is due above everything to the fact that you, our loyal Party workers, kept your heads. It is for that above all that we have to thank you.

    But let us be perfectly frank – we have also been helped by the Government. I do not wish to mention names here, but I cannot help mentioning George – we have been helped by George. And we have been helped because all of their policies have failed: those first policies of inflation which won them the 1966 Election failed, and the policies of savage deflation after failed to solve the country’s problems as well. That is clear beyond a peradventure.

    And, of course, the confession of failure came when Mr. Wilson reshuffled his Government on August Bank Holiday Monday. When something like that happens on a Bank Holiday Monday I cannot help asking why. It must be done to hide something or other. It was an attempt to hide the failure of three years of Socialist rule – and those failures were so brilliantly exposed by Iain Macleod in his speech to the conference.

    It was not only a confession of failure by the Government, but a confession of no confidence by Mr. Wilson in every one of his colleagues. He appointed himself the supreme economic overlord. I must confess to you that this appointment did not give some of us quite all the encouragement which it was meant to do. We remembered that he had appointed himself supreme overlord of the Rhodesian crisis which still, alas, drags on; that he himself made the tour of the European capitals – alas, that situation still drags on; that he himself took supreme command of the Middle East crisis which has been damaging and expensive to this country; and, above all perhaps, it was he who took supreme command of the economic crisis of July 20th 1966 – those panic-stricken, ill judged measures which have led to so much of the trouble in this country today.

    We were not, therefore, greatly encouraged, but we were prepared to be fair and to watch events. What did we see? He announced his appointment on the Bank Holiday Monday. On the Tuesday, he sent his telephone number to the Trades Union Congress and the CBI and announced to the world that he was ‘in touch.’ On the Wednesday he rested. On Thursday he announced that all hire-purchase restrictions were to be eased and this would put £100 million into the pockets of the people, to enable expansion to begin. That was on the Thursday. On Friday he announced that all electricity charges throughout the country were to be put up, and this would take rather more than £100 million out of people’s pockets and effectively continue deflation. On the Saturday and Sunday he went to Chequers, there, no doubt, to reflect that he was the first economic overlord ever to make it cheaper to buy a fridge and more expensive to run it at one and the same time.

    The by-elections of Cambridge and West Walthamstow showed that the people of this country have rejected the policies of the Labour Government, whether they were the policies of inflation or whether they be the policies of savage deflation. They have rejected compulsory prices and incomes. They want to reject the squeeze and the freeze. In addition, those by-elections showed a disillusionment – disillusionment with the Labour Party and the Labour Government. And who can blame them, after all the promises they were given at the two elections and all the promises which were so speedily broken?

    It is sometimes said that perhaps there is not much difference between the two parties. We have had the Labour Government for three years. During those three years they have put up taxation. Let us look at our last three years. We lowered taxation by £450 millions. In three years the Labour Government has raised taxation by £1,000 millions. In our last three years, the deficit on our trade was only £42 millions. In their three years, the deficit is £342 millions. In our last three years, production went up 14 per cent. In their three years, we have had stagnation.

    But then it is said, ‘But the Labour Government is spending a great deal on the social services for the people of this country; for every £100 it was spending when it came into power it is now spending £145.’ But what about our last three years? For every £100 we spent £143, a difference of £2. And what is it made up of? The great increase in the unemployment benefit which this country has to pay to the people who are out of work.

    People are leaving this country. In 1966, under this Government, more people left in the brain drain than in the last three years of the Conservative Administration put together.

    Let no one say that there are no differences in action, in what has happened, under three years of Labour compared with three years of Conservative administration.

    They say that they were always blown off course, blown off by the shipping strike, blown off by the Middle East, or blown off by some other strike. But, they tell us, they are always rounding the corner – not, if I may say so, a very nautical way of putting it. In fact, of course, they have only their own policies to blame for their own failures.

    Now the time has come when the people of this country are prepared to listen to the policies which we put forward. Our policies are there. They have been debated at this conference, admirably debated, with, if I may say so, replies of a very high standard from those who have answered our debates this week. These policies flow, as I have said, from the abiding inspiration of the Conservative Party, its belief in freedom, its belief in order, its belief in individual responsibility. This is the theme which we put before our country today, out of love for our country and respect for our fellow countrymen. It is because we believe in freedom that we also support private enterprise, as Mr, Maudling, our Deputy Leader, to whom we owe so much, said in his reply to the debate on the Motion this week.

    We are the party of private enterprise. Never let us stop saying so. We believe that it should be free, that it should be enterprising, that it should be competitive, and that the Government should support it in all those activities, not subsidise it. Support it, give its backing, enabling it to be free and enterprising and competitive.

    It is because we believe in freedom that we want to see the changes in taxation which have been described to you so often. We want to see people having greater freedom of choice with their own resources. We want them, therefore, to have the incentive to use their potential to the utmost.

    It is because we believe in freedom that we want to see trade union reform. We want to see the man at the bench able to make the most of his abilities, without being held back by restrictive practices. We want him to be able to look after his family better, without being damaged by the strike activities of a small minority of his colleagues.

    We want to see the agricultural system changed, because this will give freedom to the British farmer to expand, and it will at the same time give to any Chancellor of the Exchequer some more resources with which he can help to reduce taxation or improve social service benefits.

    We want to see the future resources in the social services used for those who have the greatest need – to give freedom of choice to others, and to give a better service to the poorer sections of the community. It is because we want the citizen to be free to use his own resources to the greatest extent that we want Government expenditure to be controlled and the interference from central Government or local government reduced. Let us leave the citizen free to make his own decisions and to accept his own responsibility.

    That, then, is our theme. It is the theme of freedom for our people, order and responsibility. Unless order is restored, then we cannot have our trade unionists working in freedom. This, perhaps, is the most immediate and crucial problem which faces us in this country today. The events which we are now witnessing do not arise from the fact that the trade union movement and its leaders are too strong but, as Robert Carr pointed out yesterday in his brilliant speech and analysis, it arises from the fact that they are too weak, that they do not have influence and control over their members in order to prevent many of the industrial difficulties which so often confront us.

    It is because we have a conception of the trade union movement in a modern industrial society which corresponds to the importance of the position it holds, because we want to see the trade union leaders able to influence their members and because we want to see them playing a full part in improving the effectiveness and the efficiency of our industries that we want to bring about the reforms which we have put before you. Let no one say that we do not have detailed policies. The details have been worked out. They have been placed before you. They are there to be discussed. We are willing and anxious to discuss these with every part and sector of industry, trade unionists or employers. However, what I say to the Government is this: you can dally no longer over this matter which is so vital to our national life. It is not enough to have set up a Royal Commission. It is not enough to have emergency powers. The Government must set about the problem of trade union reform without any further delay. Let them go to it.

    These policies, flowing from this central theme, form together one cohesive whole. There is no point in our trying to put one into effect on its own; they must be put into effect together.

    Sometimes people say to me, ‘What would you advise the Government to do today or tomorrow? You must know.’ However, there is no point in telling the Government what to do. First of all, they ignore all advice. Secondly, this assumes that we would have got into this position ourselves, and nothing can he further from the truth than that. Even more, it assumes that this Government would be able to put into effect the policies which we have put before you at this Conference. That assumes that a Labour Government can have the confidence, either in this country or abroad, which a Conservative Government would inspire.

    I am not going to say to you today whether this Government ought to consider the parity of the £. I do not believe it should, but I am not going to discuss it in detail. Nor am I going to say whether there ought to be import controls, surcharges or whether there ought to be a little more reflation or deflation. Those are matters which the Government of the day must decide on their own responsibility. However, in this country so many have become so obsessed with the daily problems of the management of the economy that they are entirely failing to pay attention to the fundamental reforms which have got to be brought about in our economic life if we are, once again, to have a strong, stable and prosperous economy. It is our task constantly to put before the people of this country the measures which have to be taken by a Conservative Government directly we get back into power. That is what we shall continuously do.

    It can only be done by all of us together, by you, our loyal, hardworking Party supporters, by us in the House of Commons, by the National Union and by the Shadow Cabinet. I know how much is involved. I know full well the chores which go with political life. Having always fought a marginal seat, I know what is demanded of our Party workers up and down the country, and how generously they give of their time, their energy and their thought. Our only desire is to serve you and to serve the people of our country.

    However, you must sometimes ask yourselves, ‘What is the purpose?’ We are sometimes still accused of materialism. I do not believe that to improve the conditions of life for the people of this country, which Disraeli, nearly 100 years ago, told us was one of the three main principles of the Conservative Party, is something which is to be condemned.

    However, there is much more to it than that. Our purpose is to give a strong, secure and material base on which our fellow countrymen can enjoy the culture, the recreation and the spiritual activity which they want and which they deserve. I always feel that when we think of our purpose like that, then it makes all those chores worthwhile. I do not believe the people of this country yet recognise what modern life can hold for every one of us. I do not believe in telling people that they should work harder. What I do believe is that they should work more effectively and that we should use all the resources at our command – our savings for capital, our plant and industry and the new techniques which Ernest Marples is exploring for us. We should use all these things to enable each of our fellow countrymen and women to have more time, more leisure, which they can use for their own interests. I believe they should have the freedom to decide for themselves how they are going to build their own lives, the lives of their family and their children.

    Sometimes it is thought that progress interferes with much of this. It is true that technical advance very often carries grave disadvantages, but these are accepted for the overall benefit which it brings. However, what surely is important is that we should look to our land, our countryside, the cliffs and the sea, to make sure that for all of our people there are those recreational facilities which will enable them not only to escape from their daily tasks, but to avoid many of the disadvantages of technical advance, and there find that refreshment of body and soul which is more and more essential for us as modern life becomes more and more complex.

    Therefore that is our purpose. I believe it is a great one, worthy of all that our Party has been able to achieve in the past and worthy of giving us that inspiration for the future.

    It is worthy of our great traditional inspiration, love of our country and respect for our fellow countrymen and women. This, I believe, is what they want. They want to show the traditional character of the British people.

    Therefore, when you ask me what I want to achieve as Leader of the Party, I would say this: I want to restore confidence to the British people, and I want the whole of the Conservative Party now to devote all of its energies to doing just that.

    It was Lord Randolph Churchill who said, ‘Trust the people.’ We trust the people to take their own decisions on their own responsibilities. The British people can trust us. They have no cause to be disillusioned with the Conservative Party. We have told them the truth, and we have been proved right. We shall go on trusting the people. But now we have one task as you go back to your constituencies, and that, more and more in the interests of our country, is to rouse the people. Let us go forth and rouse them to the situation which exists today, to the policies which are needed to put it right, and, above all, to the Party which alone is able to do it.

    So often I think of those words at the end of King John which I give you here today: ‘Nought shall make us rue, As long as England to herself do rest but true.’