Tag: 1995

Below is the text of John Major’s speech to the Conservative Way Forward Dinner on 3rd February 1995.

When you first invited me to address this dinner some six months ago, I was delighted to accept.

Your very name begs questions we are wise to address: I’d like to set out some thoughts tonight on the way forward on the economy, on Europe and on Northern Ireland. But before I turn to these, let me touch on the wider question.

There’s often the tendency to search for a new Holy Grail – a single big idea to enthuse the mind and attract the millions.

In truth, one idea – however big – won’t do.

The world changes continually – faster today than ever before – and we must catch and mould that change. That is why I have put in train Policy Groups not only to provide the widest possible review of the right policies for the next Election, but for the new Millennium as well.

These groups will look at Britain’s role in the world, and the opportunities that lie ahead.

This will be wide-ranging. And I would certainly welcome contributions from Conservative Way Forward.

Of course, some will say “We’ve won 4 successive General Elections. Why change?” The answer is we won 4 successive General Elections because we changed. We changed the way governments fought inflation, fought union power, reduced punitive levels of personal taxation and increased our prestige in the world.

These changes played to our natural instincts. They also reflected what people wanted – articulated what people felt. They put the country first and they increased choice, opportunity and freedom. Now and always, that is always the right way forward for the Conservative Party.

We are different from other political parties. We are not interested in the nanny state. We’re not interested in managing a graceful decline for our country. We have faith in Britain and in the talents of the British people. We believe Britain’s influence can grow. We plan to make it grow. And we have a lineage and maturity unmatched by any other British political party.

Our broad objectives are simply stated. First, to build a more powerful economy without which all our other ambitions fail. Second, to lift our national ambitions, and exercise our influence both in Europe and the wider world.

Over recent years, national morale has been bruised. The recession hurt. It was longer and deeper than anyone expected. But the point is, we’re through it. It’s over. Its time for Britain to be more confident. To reassert our merchant venturing spirit. To be more outward looking and assertive. And we’re right to be so because we’ve come out of our difficulties in better economic shape than anyone imagined.

That hasn’t happened by magic, by chance. It’s happened because we’ve taken economic decisions to build long-term success, not short-term popularity. We ignored siren voices with quack remedies; those who said don’t worry about the deficit, it’ll go away; go soft on inflation, it won’t rise. We said no.

And because we did we are now on track to deliver stable growth and low inflation for the long-term. The prospects are good. The pessimists are being confounded. They said

– manufacturing was dead. It’s expanding.

– The trade gap would widen. It’s narrowing.

– Inflation would take off. It hasn’t.

– Unemployment would reach 5 million. It’s half that and falling.

The pundits have recast the old phrase “no news is good news”. Now it seems to be “good news is no news”. Well, let me offer an alternative news summary.

Last year we had growth of 4 per cent. More than anyone else in Europe. That 4 per cent growth went into investment and exports. It packaged the feel-good factor and has cut unemployment by 500,000 over the past two years.

Exports are booming. Month after month new records are set.

Not many years ago our motor industry was a basket case. Now we are set to be a net exporter of motorcars.

A few years ago the British steel industry was at death’s door. Now it is one of our top ten exporters.

A few years ago the British motorbike industry was ridden off the road. Now British companies are exporting high value motorcycles to the Japanese.

The fact is British industry is hugely competitive. It’s penetrating markets more deeply than ever before and it is doing so while its markets are still coming out of recession. As they grow, so should our exports.

Let me just offer one final thought for our alternative news summary. It illustrates our changing circumstances very vividly. When you put visible and invisible trade together, the United Kingdom is now in surplus with Japan.

All this is important because economic success not only creates jobs, but yields taxes to enable us both to meet our social ambitions and diminish the impact of tax.

It means as the economy grows, we can return to our tax cutting agenda.

The policies of the other parties are to put taxes up. The Liberal Democrats have kindly pointed that out by costing Labour’s programme and calculating it would put 5p on the standard rate of tax. The fact is; as Labour head for 30p, I tell you this: we’re still heading for 20p.

Let me turn now to Europe.

Europe is important. It is important for our security, and for our industry. Economic well being is at the heart of our European policy. The European market is half of our trade. It is the main reason why companies in Japan, Korea, the United States choose to invest in the UK. It’s one reason why the City remains the world’s leading financial centre.

So Europe’s future matters to us. To our livelihood. To our living standards. To our jobs. We should debate it. And we have an obligation to shape it and make it congenial to us. The basis of our approach is the framework I set out at Leiden. Let me hammer home some of the points.

We must have an intelligent, informed and commonsense debate about what is best for the United Kingdom and for the prosperity of Europe as a whole. I believe we are developing a policy that will command the support of the broad mass of the British people.

It is high time we de-mystified next year’s Intergovernmental Conference. We want it to succeed. We should strip away the speculation and the scare stories and look at the realities.

I know many people fear the IGC is going to take a leap towards a centralised, high-spend, interventionist Europe.

But it isn’t. It is not what the people of Europe want. It is not what their economies need. And it is not what a growing number of Europe’s leaders expect. And it is not what Douglas Hurd and I will accept.

Popular opinion across Europe can’t be ignored.

Ambitious schemes for centralism simply will not get through. Britain for one will not accept them. Nor will electorates across Europe, where in many countries a referendum would have to be held.

What we will aim for is a more flexible European Union. That is the only way forward which makes sense as Europe enlarges.

A Europe of 15, possibly 20 around the turn of the century and more than 25 beyond that, cannot be the same as a Europe of 6. Talk of fast track and slow track misses the point. We do not all have to do the same things at the same time in the same way and we shall resist pressure to do so. Unless Europe is flexible it will simply grind to a halt.

In the negotiations, a balance will have to be found between competing interests. I’ve set out recently some areas where our position is firm. Ken Clarke made the point again yesterday. We cannot accept that sterling should be part of a single currency in ‘96 or ‘97. We don’t believe anyone could sensibly want to go ahead then but, if they do, we wouldn’t be with them. Nor can we accept a prejudgement – one way or the other – about some unknown time in the future. The right for our Parliament to take the decision it wants when it wants is undoubted.

That lies in the future. To say “yes” now or “no” now is to operate on hunch not facts. No one knows what future economic circumstances will be. I will tell you my fear: unless economic conditions were right, a single currency would tear the European Union apart. And, by the right economic conditions, the Government does not only mean the Maastricht criteria – they are a necessary but not a sufficient condition to justify a single currency. Ken Clarke will go into further detail on this next week. The plain fact is that the powerful forces of free markets will massively determine these events. And they cannot accurately be foreseen now.

Nor will we agree to a more prescriptive, centralist Europe, or removal of the nation states veto. The Cabinet are clear about that and our European partners know our views. Moreover, although they may only mutter it sotto voce, a number of our partners agree with us on these points.

But to categorise this position as though it was our only view on Europe, and therefore – to use the buzz words –“sceptical” or “negative” or “anti” European is just plain wrong. We have our own vision of Europe and we are going to set it out and fight for it just as does every other nation in Europe.

We will have a detailed menu of positive changes to improve Europe; to make it more responsive to the needs and concerns of its peoples; to make it more effective and more efficient; to make sure it works to our advantage.

For example, the Single European Market is of huge importance to Britain. We were pioneers in creating it. We have to make sure that its rules are kept.

We need also to improve the common European contribution to NATO and Malcolm Rifkind and Douglas Hurd have worked long and hard on our plans to do so.

In this area, Britain must lead Europe and we are well placed to do so. For the Community itself, we need fewer laws but better laws; and we need those laws properly enforced right across the Union. For example, we are rightly concerned about fraud. We know it takes place in nation states. So we need a better mechanism to stop it. Clearly the UK cannot stop fraud in another EU country, so we need a cross-European mechanism to do so. We will need to provide those powers and Michael Howard’s proposals will help achieve this.

We need recognition that those who make the largest contribution and have the largest populations should have a larger say. So voting weight and patterns need to be considered.

We need to re-examine and review the institutions of the European Union.

To re-inforce the democratic authority of the Council of Ministers as the voice of the nation states.

To make the role of the European Parliament more relevant. To ensure it exercises effective scrutiny of the Commission’s work. And we need also to involve national parliaments more in the legislative process.

We need fewer Commissioners and a more efficient, cost-conscious Commission. We need to continue to reduce the burden on business and to oppose unnecessary intervention and regulation.

This list is simply illustrative of the matters we must consider as we approach the IGC.

One thing above all rules my approach to Europe. Not impractical, elitist opinion, pro or anti. Not dogma or emotion. But a hard-headed view of what is best for this country and for Europe.

I know there are plenty of things wrong with Europe that we must change. But there are also plenty of opportunities in Europe that we must take.

We would not help our national interest by turning away or simply trying to obstruct. We help our national interest by changing what is wrong and convincing people of our case. We have a good case. One that suits this country. One that will improve Europe for all its participants. We should not shrink from putting that case and we will not.

Next year’s Conference will give us an opportunity to do so and we should approach it in that spirit.

From Europe, let me return to the UK.

This has been a difficult week for Northern Ireland.

People have been unsettled. Rumours and fears have swirled around that could damage the prospects of peace.

I’ve never promised that the present initiatives would lead to a permanent peace.

I hope they will.

I pray they will.

But I’ve never promised.

These negotiations are difficult and delicate. We’re seeking to overcome generations of mistrust and put in place a better future.

In preparing a Framework Document, we’re doing what the parties asked us to do. Proposing ideas to help the political talks. And that is what they are – ideas. There’s not a prescription that is going to be imposed.

I believe it would be a tragedy if this process failed – and a double tragedy if it failed on the back of a misconception. So let me deal with some of the points that worry people.

Are we going to remove British citizenship from those who cherish it?

This is inconceivable.

The people of Northern Ireland are British.

But they also have long had a right – if they so choose – to citizenship of the Republic.

We have no intention of changing this.

The birthright of Northern Ireland’s people, from either tradition, is not an issue.

Is it true, as The Times said, that a North/South body will “make policy” towards the European Union?

This is nonsense.

The European Union deals with all sorts of people right across the United Kingdom. It is helping in Northern Ireland.

But making policy is a wholly different matter. The Government of the United Kingdom represents Northern Ireland at all levels in Europe. We shall continue to do so. There’s no question of surrendering control of European policy to any other body – in Northern Ireland or elsewhere.

But what about this plan for the British and Irish Governments to intervene jointly in Northern Ireland? For some over-arching mechanism?

Let me put it very simply. There will be no joint sovereignty, no joint authority between London and Dublin, and no joint intervention by the British and Irish Governments. I cannot be clearer than that.

If problems arose, and I naturally hope they wouldn’t, it would be the United Kingdom Government’s responsibility to deal with them – and ours alone. That is our role, and our responsibility.

Are the people of Northern Ireland going to be on a slippery slope?

Of course not. The consent principle is our foundation stone.

The parties must consent to any outcome. And when they have done so the people must consent in a referendum.

Am I going to be a “persuader” for a united Ireland?

The answer emphatically is – No.

Some time ago, I said about Scotland that “no nation can be held within a Union against its will”.

Equally, the people of Northern Ireland cannot and will not be forced out of the Union against their will.

They have a constitutional guarantee.

For my part, I cherish the United Kingdom, and Northern Ireland’s part in it.

So I take the view it is not for the Government to tell the people of Northern Ireland what their future should be. It is for the people of Northern Ireland to decide that future for themselves.

To all of these concerns, there is one fundamental answer.

The sole purpose of the Framework Document will be to help the parties reach agreement. There will be no outcome to these talks unless the parties agree. And the outcome will not be implemented unless the people of Northern Ireland vote for it.

That is why I repeat that they have nothing to fear.

Let me also mention the exploratory talks with Sinn Fein and the Loyalist representatives.

This is an unprecedented dialogue with an unprecedented backcloth.

In the past 5 months, two murders have tarnished the peace.

But during the “ceasefire” of 20 years ago, there were around 150 violent deaths.

A different climate is being established.

Our assurances have been critical to the dialogue.

We said that there had been no secret deals to favour one side over the other.

We promised a level and open playing field – for all who would live by peaceful, democratic rules.

And on this basis, talks are taking place.

What matters is that everyone should be ready to talk about all these issues, however difficult.

Then we can make progress.

I have no illusions about the task.

But we shall not concede to the fear of failure.

For what is the alternative?

As Archbishop Robin Eames said yesterday:

“I cannot see an alternative to a political process, an alternative to patient groping on the way forward. The price of failure is to return to where we have come from, to constant human cost in lives and everything else.”

There is no more to be said.

At the next election the stakes will be high. There are differences between we Conservatives and the opposition on the economy, on Europe, on the constitution, on health, on education. Right the way across the present Government agenda.

No one should fear that there is not a distinctive choice to be made.

The next election will determine whether our world-beating industries stay competitive or sink under a morass of rules from Whitehall and Brussels.

It will determine whether the state will take ever more money out of the pockets of the people, or whether we will get back to the natural Tory principle of reducing taxes as fast as possible.

It will determine whether we continue to be a self-determining nation state or not.

In the 1990s we can build on the great achievements which we have made since 1979 – or we can throw it all away, giving power to the very people who resisted each and every one of the changes that have revolutionised the lives of Britain’s people.

This fight matters as much as any we have conducted before. These are the policies I believe in. These are the policies I am going to fight for and with which I believe we’ll win.

Below is the text of John Major’s speech made at a meeting with Northern Ireland Mayors and Councillors on 23rd January 1995.

I’m very glad you could all be here. I tend to spend most of my time concentrating on the political process in Northern Ireland, and I believe we are making progress. But the nuts and bolts of how we help the peace work on the ground is equally important. It is up to the politicians to make the peace. But it is up to the people to make the peace work. So I am really looking forward to your ideas.

Economic progress will be essential. The prospect of peace of already boosting the local economy. I was struck by the sea change in attitudes when I visited Belfast last month. We have seen the sales rise in Belfast’s shopping malls by up to 90%, a CBI survey rating confidence in the Northern Ireland economy at the highest level since 1987, unemployment down and the number of jobs up. So a spectacular recovery is already underway. But Northern Ireland needs more investment, more prosperity and more jobs if the peace that we seek is to be successfully underpinned.

That was why we held the Investment Conference in Belfast last month. This generated a tremendous response. It reflected the new mood of hope on the ground. This will bring more jobs to the Province. And it will change the way people look at Northern Ireland.

Today, Northern Ireland is an exciting investment opportunity. Many of those at the Conference saw that potential. Already, I understand that nearly 20 possible new projects are now being explored. But in the end the prosperity of Northern Ireland depends on the people of Northern Ireland. And that is why I am so hopeful.

As leaders of the District Councils, you have a major role both in local economic development and in helping to heal community division. You can help create the climate in which peace can take root. And if you succeed, we shall all look back on this time as an historic turning point.

I see this meeting as the start of a process of close consultation. All the Northern Ireland team are here today to listen to what you say and then carry it forward.

One of the issues we must discuss is how to deploy the welcome package of extra EU help. It won’t be possible to please everyone. But we want your views before we discuss with the European Commission how to allocate these funds. We aim to make the best use of them.

But you also want greater resources to promote local economic development. So let me announce today two initiatives which I hope will help:

– I know that District Councils would like to spend more of the District rate on local economic development. I have therefore decided that the Government will introduce legislation soon to double the present provision from 2p in the £ to 4p in the £.

– Second, we shall increase the resource elements in your General Grant by £2 million from a total of £17.8 million to just under £20 million. This will help you exploit this unique opportunity to use your district rate for economic redevelopment.

We have also allocated a further £5 million to the Community Regeneration and Special Programme (CRISP). This will enable a further 25 projects in disadvantaged towns and villages over the next three years.

I mentioned earlier the crucial role of the District Councils in developing community relations. Because I see you as uniquely placed to promote this, I have decided to extend the District Councils Community Relations Programme for a further three year period up to March 1998.

Before calling on the first speaker, let me say a word about something which is not on our agenda today – the Joint Framework Document.

There has been a great deal of speculation about it, which can unsettle people.

So let me stress four points:

– First, the document has only one purpose, which is to help the political Parties themselves to find an agreed way forward in the talks process. It will indicate one set of ideas, drawing on the talks of the past four years, on how a settlement might be found which would gain the necessary wide support across the community. But, as we have repeatedly said, there will be no question of the two Governments imposing a blueprint on the Parties. These will be proposals for negotiation.

– Second, our proposals are not yet completed. I want to complete them as soon as possible, so that we can then publish them. The people of Northern Ireland will then be able to judge for themselves all the suggestions – including our parallel suggestions for new arrangements within Northern Ireland. They will be able to comment on them to us and to the political Parties.

– Third, when the proposals are published, you will find no provision for the British and Irish Governments to exercise joint authority over the affairs of Northern Ireland. That has never been our intention, and that will not be our proposal.

– Fourth, the need for consent remains paramount. And agreed outcome will finally be put to the people of Northern Ireland in a referendum. The voice of the people will decide these matters.

I am taking this opportunity to reassure anyone who has been concerned at partial interpretations of what many be in a very full and careful set of proposals. I cannot yet say when they will be completed. But when they are, I hope that people will read them with equal care before forming their own opinions.

Let me now return to the business of this meeting.

We have three agenda items, one in two parts:

– economic growth

– urban and regional regeneration

– finance

We have four speakers, who will give a brief introduction to each item. I shall then call for short interventions from others, so that we can gather in as many ideas and opinions as possible.

Below is the transcript of John Major’s speech to the British Retail Consortium on 24th January 1995.

President, Chairman, Ladies, Gentlemen.

Napoleon once referred to the British as a “Nation of Shopkeepers”. Today the Retail Consortium would rightly take that as a compliment. At the time, the British army didn’t.

And Napoleon was left to reflect on St Helena on the wisdom of his remark. He had plenty of time and not much to do. There were no superstores there and precious few shops. No wonder Napoleon tried to escape. He failed – so he was able to consider at leisure the merits of both the British Army and the British retail trade.

Whatever the merits of retailing then, no one doubts today it has undergone a revolution. The variety and diversity of goods in our shops has expanded beyond all belief.

In our supermarket are green beans from Kenya, lemon grass from Thailand, asparagus from Peru and starfruit and ortaniques from Morocco. Ortaniques. And once we used to think bananas were exotic!

And in the high street, are small specialist shops, selling socks or ties or Belgian chocolates. The idea of a viable consumer market for shops like these would have seemed incredible even a few years ago.

Has any peacetime activity had a more dramatic effect on our lives in the twentieth century than retailing? Personally I doubt it.

It used to be so very different. As GK Chesterton – who belonged to the Napoleon School of Charm – wrote:

“God made the wicked grocer

For a mystery and a sign

That men might shun the awful shops

And go to inns to dine”.

Rather unflattering – and totally out of date. Today, Chesterton would be tucking into pre-prepared haute cuisine from the chill cabinet, washed down the chateau bottled supermarket wine.

ECONOMY

I know, for many of you, the going has been tough in recent years. The economic and competitive pressures have been intense. But the prospects ahead are now enticing. The economic recovery is established, is virtuous and offers the opportunity to build sustained growth into the next century.

Over the last year manufacturing has grown 5%, with productivity up over 6% and unit wage costs falling. There’s been more good news from the CBI survey only today. We hear so much claptrap about British manufacturing from people who don’t understand how it’s changing – how good its prospects are. In fact it’s once again playing a key role in the economy.

And that feeds through to exports. Exports are leading this recovery and how refreshing that is. Up 13% on last year, with our first trade surplus since 1987. We’re net exporters of machine tools, TV sets, pharmaceuticals. British Steel are now one of the UK’s top ten exporters. Shorts in Belfast doubled their aerospace exports last year. British exports to China rose an astonishing 43% last year. We even have a current account surplus with Japan.

With growth at 4% last year, the British economy is growing faster than any other big European country. Every year we’re seeing the international economic forecasts updated in Britain’s favour. They said we’d grow faster in 1993. We did. They said we’d do it again in 1994. We did. Now, they predict we’ll grow faster than all our main European competitors this year too. So we will. From 1994 to the end of 1996 we expect to have grown by 10%. Who’d have predicted that two years ago?

This hasn’t happened by accident. It’s happened because sixteen years of supply side reforms have revolutionised the attitude and performance of British industry. And because the decisions taken over the last few difficult years –unpopular though they have been – were aimed at ensuring a recovery that would last.

Inflation has now been below 3% for 15 months running – a record not achieved for 30 years. Of course it will fluctuate. But the underlying level is still the lowest for a generation. And we intend to keep it low.

Tax cuts there will be. We are instinctively a tax cutting party. Every improvement in the PSBR brings that day closer. But we will only cut taxes when it is prudent to do so, and not before.

ECONOMY AND RETAILING

I know that my bullish assessment of our economic prospects is not yet reflected in every part of the retail sector –especially those which depend on a buoyant housing market. But the overall picture shows retail sales at record levels – up on last year and well above the last peak in 1990.

But consumers are more careful and cautious today. This recovery isn’t coming in a rush. The evidence suggests that the biggest dampener on consumer spending isn’t taxes or take home pay but the fear of unemployment. President: if so, that should soon change. Because unemployment in Britain has been falling for two years – last month’s fall was one of the biggest since records began. It’s falling in all regions. Vacancies are at their highest levels for over four years. The prospects for jobs are good. Over 70% of new jobs are now full-time. So there is good reason for consumer confidence to return more strongly.

COMPETITIVENESS:

Let me turn to two aspects of competitiveness: one in your control, one in the Government’s.

First, quality and supporting local firms. In the 1970s, people turned to German or Japanese goods because British goods were often seen as unreliable or shoddy. But that has changed.

The best retailers have long known this: now others are joining in. Your Consortium – with DTI and the Textile Confederation – are encouraging greater UK sourcing of clothing, textiles and footwear. Of course, retailers want to offer their customers a world wide choice. But, where it makes sense, they’re buying British.

This is not just about national preference. It’s about enlightened self-interest. Increasingly “British” has quality stamped right through the product. And increasingly, quality is selling Britain right around the world.

DEREGULATION

So, better local sourcing to build on quality is something you can do for yourselves. Deregulation is an area where I can help you.

I am committed to cutting red tape. Of course we must protect consumers. But over-regulation is deeply damaging. It costs profits, investment, efficiency and jobs.

We have already made significant progress. Last year we reformed the law on Sunday trading. We have legislated to relax outdated rules on late night shopping and to enable children to go with their parents into suitable hostelries. In the last budget Ken Clarke announced our plans to simplify VAT rules to help up to 600,000 small businesses with their cash flow.

One area that particularly concerns me is the plight of smaller businesses. Over seven million people – 35% of the workforce outside Government – work in businesses with fewer than twenty employees.This is where the new jobs will come from. So we mustn’t strangle business – especially small business – in red tape. Otherwise over-protected consumers may become unemployed workers.

We’re tackling three aspects of this problem.

First, over-fussy regulation. I know that nothing makes businessmen’s blood boil more easily. That dreadful phrase “It’s more than my job’s worth” is the inevitable prelude to over regulation.

The new Deregulation Act has given us new powers to ensure that rules are enforced fairly and consistently. We intend to make good use of them.

So we’re reviewing all laws affecting business, to bring them into line with three key principles.

– Businesses should have the basic right to a clear, written explanation of what action an enforcement official wants them to take. A retailer told to renew his floor or his tiles should be able to ask why; whether it’s just the enforcer’s whim or whether it’s the law; and whether his competitors are having to do the same.

– Businesses should also have the right to put their point of view to enforcement officials before action is taken –unless it’s a genuine emergency.

– And in future there will be a new model appeal system to hear the merits of the case. We’re working on that right now and will be consulting business about it.

The result should be a radical shift in power. The onus will be on the enforcer to avoid excessive action; not on the business which has to count the cost.

Second, we will continue to sweep away unnecessary regulation.

The Deregulation Act will give us new and quicker ways to cut red tape without requiring full-scale legislation. We have long needed this power – and we mean to use it. We’re earmarked fifty-five measures already. We shall be bringing the first batch to Parliament very soon.

We’ll be scrapping bureaucratic controls over a wide area. Cutting back paperwork that burdens building societies and the insurance industry. In future, you’ll be glad to hear, the Transport Secretary will no longer have to approve parking control equipment. We’ll also be changing absurd rules – like those on greyhound betting. At the moment there’s one rule for horses and another for dogs. In future, you’ll be able to bet through the tote on the greyhound derby at Wimbledon, even if you’re enjoying an evening at the track at Hove. At present, for some daft reason, you can’t.

And we’ll be cutting back on the excessive information businesses have to provide in areas like consumer credit. Of course we’ll protect consumers, but too much paper confuses everyone and it’s a burden on small business in particular.

Deregulation helps business. But it also makes life simpler for everyone. We will simplify licensing procedures for community buildings, like village halls. We mean to combine licence applications and reduce inspection visits. This should be a real help to local groups like Women’s Institutes, charities and playgroups.

We have been looking at the rules on how charities can invest their money. Clearly charities must act wisely and prudently. But the present law came into force thirty years ago. I can tell you tonight that Michael Howard will shortly act to increase the proportion of money charities can invest in equities from the present 50% limit, to 75%. On the charities’ own figures, this simple change could boost their income by up to 200 million pounds a year.

These measures are early steps. I hope you’ll go on helping us identify others: that’s a genuine invitation.

I can announce one further measure tonight. The present law on sales of liquor on Sunday is absurd. Why can people buy liquor in a shop at noon but not at 11.30; or in a pub at 3.00 o’clock in the afternoon but not 4.00 o’clock? Now we have Sunday trading there is no logic in these regulations. They are old fashioned, out of date, patronising, Government-knows-best restrictions. And they should go.

So we propose as soon as we can to sweep them away, and replace them with simple and sensible laws. Supermarkets will be able to sell liquor throughout the six hours they may open on Sundays. Smaller off-licences will be able to trade from 10.00 in the morning to 10.30 at night. And the compulsory afternoon break on Sundays, when pubs now have to close from 3.00 o’clock to 7.00 o’clock, will be abolished – though the licensing magistrates will be able to re-impose the break if local circumstances make that necessary.

Thirdly, as we sweep away out-dated rules here, we must make sure that new rules don’t flood in to replace them. Not least from Europe. That’s why we continue to oppose the European Social Chapter, which all other political parties are committed to introduce in Britain. I’m sure they are sincere but I’m also sure they’re wrong. They are arguing for more regulation. For a minimum wage. I believe both would cost jobs. I want jobs. So we won’t have Social Chapter regulation and we won’t have a minimum wage.

I do not believe many people realise just how damaging the Social Chapter could be for this country. Before I secured our opt-out we had seen the harm that could be done by attempts to bring in costly social legislation. The attempt to impose rigid hours of work on all employees across the Community in the Working Time Directive. Or the original version of the Parental Leave Directive – which would have imposed costs of over a billion pounds on UK business every single year.

The Social Chapter could open the floodgate to a new tidal wave of damaging and unnecessary legislation. The European Union shouldn’t decide rules on redundancy payments. They should be decided here. The European Union shouldn’t lay down rules on workplace creche facilities. They should be decided here. The European Union shouldn’t decide terms and conditions of employment for part time workers. They, too, should be decided here.

It is vital to our competitiveness and jobs that Britain remains outside the Social Chapter. Our opt-out is not negotiable. So far as I’m concerned we’re out and we’re staying out.

PLANNING

President, deregulation affects the whole climate in which you work – you need the assurance that Government will not overburden you with red tape. You also need a clear framework for planning where to put your business. Where to expand.

We will shortly be responding to the Select Committee’s report on shopping centres and their future. But let me make two things clear now:

– New development is necessary. I know it’s often controversial. But we can’t treat our towns and villages as museums of the past:

– So our policy is not to smother investment – in either town or country. We have introduced tougher tests for out-of-town development. But we haven’t padlocked the gate to every new, green field site.

As so often in Government, we have to balance competing interests. The consumer wanting choice and access. Retailers – large and small – who must remains competitive. The attractions for many of large scale shopping. But the need, too, to keep our high streets and town centres vital places both to live and work in.

Survival was never achieved by standing still. Town centres themselves must adapt – whatever their size. We all have an interest in meeting this challenge: Government, local authorities; and not least you, the retailers.

One hundred town centre management projects are already under way. I warmly welcome the involvement of a number of you present here this evening – Boots, Marks & Spencer and others – who have been pioneers in this field.

The age of the motor car has forced many changes on rural areas in particular. We need innovative ideas to help improve choice for country communities which have lost the village shop and for people without cars, particularly the elderly. Can we make better use of new technology in these areas? Can retailers think of better ways to provide transport to shops?

This year, the Government will be publishing a White Paper on rural issues. There is, I know, a concern amongst those who live and work in the countryside that our thinking is dominated by urban considerations. It isn’t. To prove that, the White Paper must set out a coherent view of the relationship we expect between towns and cities and the countryside. It must take account of changing economic circumstances as well as the need to preserve and enhance the beautiful parts of our country. I intend the White Paper to set out a policy which will last well into the next century, so it is very important that everyone contributes to the debate. I hope the British Retail Consortium will put their ideas to John Gummer and William Waldegrave who are taking this forward.

CRIME

Lastly, I want to say a few words about crime.

We know how devastating crime can be for the victim. What is not so well known are the economic consequences. This is a vital issue for your members. Crime costs retailers some 2.5 billion pounds every year. Or to put it another way: retailers’ profits would increase by over 20% if crime could be eliminated.

When we think about retail crime, instinctively we think of pilfering and petty shoplifting. They are bad enough. But alas, too often nowadays we are seeing crimes of quite a different order. Arrogant gangs of intimidating youths on organised shoplifting sprees. Ram-raiders who drive their trucks through shop windows. And not least, a number of appalling crimes of violence against your staff.

You have already launched the Retail Crime Initiative. We will continue to work in partnership with you – retailers, local authorities and the police – to establish effective crime prevention schemes.

First, we need to get planners and local authorities to think more carefully about town centre designs. We need better liaison between police and retailers to share intelligence. Paging and ring round schemes to give early warning and quick response. Radio links between retailers, private security firms and the police. Local crime prevention panels and security committees. There’s a lot going on. But we need more.

Second, I believe we’ve got to get more closed circuit TV schemes in city centres. These schemes have huge potential in the fight against retail crime.

Already, about 250 schemes are up and running or planned:

– In Airdrie, CCTV in the city centre cut crime by 73% in six months;

– In King’s Lynn, car thefts fell by over 90%;

– In Newcastle and North Shields, crime levels were cut by 20%. And business insurance premiums fell too.

Crime prevention makes excellent commercial sense. Yet only about a fifth of retailers join in crime prevention schemes. A recent survey suggested that a further half of all retailers would like to get involved. I believe we must involve them in schemes like business watch and City Centre TV. And quickly.

Third, we have to challenge the attitudes that accept crime as a way of life and effectively punish the criminal.

We’ve given the courts the power to pass long prison sentences for serious crimes: up to life imprisonment for robbery and serious violence, including violence against retail staff. Burglary and theft can also carry substantial prison sentences. We’re acting to tackle persistent juvenile offenders can be dealt with more effectively. Stiff sentencing not only keeps the criminal out of circulation, but clearly demonstrates society’s abhorrence and intolerance of crime.

These changes have all been put in place. They take time to work but they amount to a comprehensive change in our attitude to the criminal. We will continue to look at what further initiatives may be necessary.

President, I have always admired the way the retail industry contributes to the community as a whole. The extent to which you take part in voluntary activities – nationally and locally. Charities, sport, help for the needy and disadvantaged.

Retailing is above all a local activity. And your long term interests have always been intertwined with the interests of the local communities. So I welcome the way in which retailers are becoming increasingly involved in social projects which tackle crime at its roots. It is important for you and it is vital for our society that we help young people to discover that there be better alternatives to crime. You can help to put this message across.

President, you said in your introduction that retailing is a British success story. I agree. After nearly two hundred years, we are still a “nation of shopkeepers”. We take pride in that. So let’s ensure that in the years to come, we can still take pride in that. Getting that depends on a healthy and flexible economy and a stable and secure society. Tonight I have set out some ways in which we can work together to achieve this. My task above all is to keep the economic framework sound. To avoid the bad old days of boom and bust. I pledge to do so.