Tag: 2000

  • William Hague – 2000 Speech on Common Sense for Pensioners

    williamhague

    Below is the text of the speech made by William Hague, the then Leader of the Opposition, on 24 May 2000.

    A few weeks ago the Evening Standard published a story under the headline ‘Trendy oldies join Cool Britannia’. It read: ‘Ministers want to “rebrand” pensioners with a trendy name that will appeal to younger people. Some of Whitehall’s finest minds are working on the problem, while the Government is also seeking outside help to try to come up with the new title … Ministers believe words like “pensioners” or “elderly” carry a grey image with deters young people from thinking ahead’ (29th March 2000).

    That story sums up this Government’s attitude towards Britain’s pensioners.

    It sums up the attitude of Tony Blair when he talks about Britain becoming a ‘young country’ and has no time for those forces of conservatism who don’t fit in it.

    It sums up the attitude of Peter Mandelson, the man in charge of Labour’s election plans, who says there is ‘no mileage’ in targeting elderly voters because they are not ‘aspirational’ (Sunday Times, 16 April 2000).

    It sums up the attitude of the Chairman of the Labour Parliamentary Party, who recently came out with the breathtaking insult that pensioners are often ‘racist’. Of course he also said they were ‘predominantly Conservative’ (Sunday Times, 16 April 2000) and we intend to prove him right at least about that.

    It sums up the attitude of the Chancellor of the Exchequer, who has patronised older people by trying to buy them off with a series of badly targeted, bureaucratic gimmicks and then was only able to offer them a 75 pence increase in the basic state pension.

    Britain’s eleven million pensioners know that they are the unwanted, unwelcome, uncool guests at New Labour’s banquet. And they know that they have paid the price through their pockets.

    For three years pensioners have been at the sharp end of the Chancellor’s policies.

    At the sharp end of £150 average rises in Council Tax for Band D properties as Labour Councils and a Labour Government worked together to waste their money. The Government talks of a £150 winter fuel payment. Many pensioners have found that by the time they’ve paid their increased Council Tax the money has all gone.

    At the sharp end of increases in petrol prices. Pensioners who depend on their cars to preserve their independence have seen prices driven close to the £4 a gallon mark.

    At the sharp end too, when this Chancellor scrapped dividend tax credits, leaving 300,000 pensioners whose income is below the income tax threshold, having to pay an average of £75 a year more to the exchequer.

    In the same £5bn a year raid on pension funds, Gordon Brown set a timebomb for future pensioners by forcing working people to put up to £200 a year extra into their pension funds. Last year he abolished the Married Couples Allowance for all future pensioners too.

    He has also scrapped the Widows Bereavement Allowance without compensating all widowed pensioners properly, scrapped tax relief on medical insurance for the over 65s and abolished retirement relief for older people selling off their small businesses.

    Pensioners remembered all these blows when they reacted so angrily to the 75p basic rate rise.

    Gordon Brown hoped no one would notice. He hoped the anger of pensioners wouldn’t matter. How wrong he was.

    As anyone who campaigned in this year’s local elections, who knocked on doors and listened to hard pressed pensioners, knows: boy, did they notice, and boy, are they angry.

    Angry at a Labour Government that promised to be the pensioners’ friend and has comprehensively betrayed them.

    Angry at a Labour Government that used every low-down trick to win pensioners’ votes at the general election and then forgot all about them the day after.

    Angry at a Labour Government that has produced one gimmick after another, but doesn’t trust pensioners with a decent weekly income they can spend as they see fit.

    I have listened to their anger and their feelings of betrayal first-hand in hundreds of meetings around Britain.

    I listened to the elderly man in Bolton who told me ‘Labour’s priorities are all wrong – look at Europe, the Dome, these asylum seekers – more should be done on health and for the pensioners’.

    I listened to the lifelong Labour supporter in Plymouth who summed up what she thought of Tony Blair and his policies: ‘He thinks people like me are old has-beens, who aren’t important or glamorous, people who they think can simply go to the back of the queue’.

    I listened to the pensioner in Leeds who could barely contain his anger when he said to me ’75p was a joke, an insult … We don’t want all these gestures and gimmicks – we just want a decent basic pension’.

    And I listened also to another pensioner here in London who had a message for Conservatives. ‘I voted Labour because they promised so much. I’m terribly disappointed but I wonder if there is any alternative’.

    We’ve been busy listening to people while this Government has been busy forgetting them.

    Now we are offering an alternative. Our Party has listened to all these people, and in all sorts of areas we are now offering an alternative to the failed polices and broken promises of this Government.

    We offer a law and order policy that will back up the police, punish the criminal, and protect those, such as the elderly, who are particularly vulnerable to crime.

    We offer a health policy that will build a stronger NHS that puts patients before politicians, and which doesn’t treat older people as second class patients.

    We offer a long term care policy that protects the assets of responsible people who save for their retirement.

    Today, I want to build on those policies by tackling the central concern of millions of pensioners: the level of their weekly income and the basic state pension.

    What pensioners say over and over again is that they would rather have a reliable weekly income which is theirs by right to spend as they think best, than a series of handouts and gimmicks.

    Today we are setting out a carefully costed package based on a Conservative pension uprating in April 2001. It shows what we would do for pensioners in hard figures and in hard cash. We are calling it Common Sense for Pensioners.

    We would start by putting the money used on the winter fuel payment and the free TV licence into the basic pension instead. This also brings a bureaucracy bonus as we can save £40 million currently being wasted on administering, often very incompetently, these new schemes. Many pensioners received their winter fuel payments as winter drew to a close. We’re going to take that £40 million out of the budgets of bureaucrats and put it directly into the pockets of pensioners.

    We have also identified extra social security savings. We would abolish the New Deal for Lone Parents which is a £90 million a year flop. On the Government’s own figures, it is having zero impact on the employment prospects of lone parents. We have already announced separately our far more effective approach to lone parents. We would also recoup some money from the Social Fund, which has recently been increased substantially by the Government.

    Taken together, these measures yield almost exactly £2 billion. We would then put all this money into helping pensioners in the most straight-forward, honest, and effective way – increases in the basic contributory state pension. We would add it to the expected increase in next year’s pension uprating which, if awarded on the basis of current inflation forecasts, would be £2 to a single pensioner and £3 for a married couple.

    On this basis, if the normal uprating followed inflation, the Conservative uprating in April 2001would be:

    · £5.50 extra (£73 a week) for a single pensioner aged under 75.

    · £7 extra (114.90 a week) for a pensioner couple aged under 75.

    · £7.50 (£75.25 a week) for a single pensioner aged 75 or over.

    · £10 (£118.15 a week) for a pensioner couple aged 75 or over.

    We would also adjust tax allowances for older people to compensate pensioners for any extra that they might otherwise pay. And we would adjust means tested benefits to ensure that the poorest pensioners gain at least as much as other pensioners. I heard the Social Security Secretary on the radio this morning claiming that the poorest pensioners would lose out from our proposals. So let me make it absolutely clear that these increases will go to all pensioners, including those on means tested benefits. All pensioners will be entitled to these increases.

    These, then, are big increases in the basic state pension.

    In the main, we achieve these increases by consolidating all of the gimmicks into something which pensioners would far prefer – reliable increases in their weekly income. In other words, no more gimmicks means more on the basic pension.

    But on top of that we are also adding the £40 million bureaucracy bonus, as well as adding money found elsewhere in the social security budget. In total, this amounts to £320 million of new money for pensioners. Our increase in basic state pension will leave all pensioners better off with the Conservatives than under Labour.

    And to make sure pensioners can rely on it and that they will know that this is a promise that will be delivered, these increases in the basic state pension would be financed out of National Insurance. It would be a return on all those contributions pensioners have made through their working lives.

    This reform means dignity and choice and respect for pensioners. It means a larger state pension as an entitlement rather than making pensioners depend on occasional handouts from Government.

    By turning the handouts into entitlements, into a proper return on national insurance contributions, and by adding in the extra savings, all pensioners will be better off with the Conservatives. In other words, Common Sense for Pensioners means we are offering a real improvement in the income of all pensioners.

    Unlike the Labour Party, I am not going to make exaggerated promises that unrealistically raise people’s expectations only to shatter them later. I know that many pensioners find it difficult to make ends meet. I don’t pretend that an extra £10 a week will solve all the problems of pensioners.

    Let me tell you what I do promise.

    First, Common Sense for Pensioners means dignity and respect for pensioners.

    It rightly angers pensioners, who have paid national insurance contributions their entire lives, to have the government announce payments on budget day as if they were the charitable act of a merciful Chancellor. The basic state pension is not charity, it is a return on years of payments. Understanding this and reflecting this in pension policy is a matter of respect for pensioners. My Party is determined to show that respect.

    Quite apart from the fact that the Chancellor’s measures restrict pensioner choice and personal independence they are also patronising. They assume the Government knows better than pensioners how to budget for periods of greater expense and shouldn’t give pensioners money until the Government thinks they should spend it. This patronising attitude, too, shows little respect and is accordingly resented.

    Second, our policy simplifies a key part of the benefits system. This is true to another Tory principle that deplores government waste and inefficiency. Gordon Brown has deliberately made both our tax and benefits system more complicated. He prefers to act by stealth. In this way he is undermining confidence in politics and Government. With our reform pensioners will know exactly what they are getting and how much it is worth. That really is common sense.

    But let me deal here in advance with some of the slurs and attacks which I expect from our political opponents.

    Labour will claim that their policies are targeted on poorer pensioners, whereas we offer across the board increases. That is rubbish. Many of their schemes have been indiscriminate. The winter fuel payment goes to the 220,000 more affluent pensioners in residential accommodation or nursing homes who do not claim Income Support; but the payment is not available for the 280,000 in such accommodation who do claim Income Support. In other words better off pensioners get it and worse off ones don’t.

    What we are proposing is better targeted than Labour’s measures. We guarantee that this increase in the basic pension will reach all pensioners including those on means-tested benefits, so that poorer pensioners getting at least as much from the package as others. Moreover, we know that poorer pensioners tend to be older and we have therefore put extra money particularly towards pensioners aged over 75.

    Labour will also try to scare pensioners by claiming that the Tories are simply abolishing the winter fuel payment and the free TV licence.

    To save them the effort, let me remind the Millbank spindoctors now of what their own former Minister, Peter Kilfoyle, says: ‘pensioners believe that winter fuel payments and concessionary television licences are a diversionary measure … What pensioners want is an increase, week on week, in the basic pension. This is not just a matter of economics: it is a question too of pensioners’ dignity’ (Hansard, 27th March 2000).

    The dignity of pensioners is what our package is all about. The key fact, that no amount of Labour lies can obscure, is that all pensioners, regardless of which gimmicks they currently receive, will be better off.

    There will be others who say that our policy is no substitute for far-reaching welfare reform. I completely agree. This is not our last word on pensions policy. It is the beginning of presenting our vision for the future, one in which more and more pensioners enjoy rising living standards as a result of the savings and the funded pensions they have built up during their working lives.

    We want to ensure that pensioners participate in the rising living standards of the country as a whole. We will be setting out further proposals to spread funded pensions still more widely to the next generation of pensioners.

    But that is a policy for people of working age who have yet to become pensioners. It is too late for current pensioners. Many of the pensioners who are managing on such modest incomes retired without any entitlement to a funded pension. However strongly we push forward better funded pensions for the next generation, we still have a debt to the current generation of pensioners. That is what today’s package is all about.

    It gives pensioners a real choice, a choice which gets to the heart of the difference between our two parties.

    They can choose New Labour’s way. The way that treats pensioners as unfortunate misfits in their dreams of Cool Britannia. The way that patronises pensioners with handouts and treats them almost like charity cases.

    Or they can vote for a genuine Conservative alternative, from a Party which has been listening – a reliable guaranteed increase in the contributory basic state pension.

    It is quite simply a choice between being treated with contempt or being treated with respect.

    Today’s pensioners have contributed so much to building Britain into the great nation it is today. They have served in our armed forces and fought to keep our nation free; they have worked in our country’s businesses and built up its economy; and have they raised our generation and bequeathed us a Britain that begins this new century free and proud and prosperous.

    Yet despite all they’ve done their contribution isn’t in the past. They are part of our nation’s future too. For they are among our most active citizens. Among the most important contributors to voluntary organizations. Among the most important supports for family life. They support much which this country depends on.

    Today’s pensioners do not want sops or charity. They want to feel that they are getting benefits to which they have all their lives contributing to. They want the independence and respect that they have every right to deserve.

    This year, the Conservative Party has been speaking for the great mainstream majority of the British people on crime, on asylum seekers, on tax and on Europe. That is why we won the local elections so convincingly.

    Now we are moving on to new areas – areas which Labour have for too long regarded as their own. Today we are speaking for the great mainstream majority of pensioners who feel betrayed and neglected by this Government; today we offer substantial increases in the basic pension instead of gimmicks; today we offer a bold, common sense policy for pensioners.

  • Francis Maude – 2000 Speech on Nations and Networks

    Francis Maude
    Francis Maude

    Below is the text of the speech made by Francis Maude, the then Shadow Foreign Secretary, on 8 June 2000.

    1. INTRODUCTION

    Anniversaries are a time for taking stock. The fiftieth anniversary of the Schuman Declaration is no exception.

    On any audit of achievement, the European Union has much to be proud of. Working together through trade and co-operation, behind the NATO shield that made it possible, has helped to make war between member states unthinkable. The prosperity of Europe`s citizens has improved greatly, with the biggest single market in the world and with free trade in a continent previously more prone to protectionism and national insularity. The opportunities open to millions have expanded, with travelling, working or studying across Europe now easier than ever before.

    We should relish these benefits. So in this spirit, let me reaffirm: membership of the European Union is of real value to Britain.

    It contributes to our prosperity and, as one of a number of networks to which Britain belongs, it contributes to our influence in the world. So for those who may be anxiously analysing the nuance of every phrase to detect a shift in the Conservative Party’s European policies, this will be fruitless. Lurches – in either direction – are emphatically out.

    A year ago this week, the Conservative Party won the European election in Britain. We did so comprehensively. And we did so because we campaigned on a view of Europe – that Britain should be in Europe, not run by Europe – which is shared by the mainstream majority of the British people. We have always wanted to see a stable, prosperous, outward looking, free market and democratic Europe.

    We have always wanted to see such a dream realised – and spent a good many lives in maintaining that vision. We have no intention of moving from this ground, in either direction; rather we are building on it. So there is nothing new, no change of direction, in upholding that dream. We want to see an open Europe of free, democratic and independent kingdoms and republics, stretching from the Brest on the Atlantic coast, to the Brest on the border of Belarus, co-operating closely but flexibly.

    For as I will show, it is becoming increasingly apparent – to many who have a very different perspective from mine – that the EU model of endless uniform supranational integration has got to change.

    For, on this fiftieth anniversary, by far the EU’s greatest challenge is not to look back but to look forward. So today I will set out a positive vision for the EU. For a relentless process of ever closer political union should no longer be seen as the only, or indeed the best, way to bind peoples together.

    In the network age a rigid and centralised model of European power will not just be inappropriate – it will be a recipe for division and fracture. We now have the duty to be every bit as imaginative and every bit as forward-looking as was Robert Schuman, and every bit as attuned to the needs of our age as he was to his.

    2. THE FORK IN THE ROAD

    Enlargement

    For the world is changing. The EU has not begun to catch up with that change.

    With its enlargement to cover the post-Communist states, as well as Cyprus, Malta and eventually Turkey, the Union will begin to reach out to the whole continent. This is a solemn obligation, not a choice.

    Enlargement is a cause at least as noble as that which prompted the founding of the Union fifty years ago. We who have benefited from the security and prosperity that have accompanied European construction have an obligation to extend it to our European neighbours. Nations once bound up – against the will of their peoples – in the shackles of Soviet control see EU membership as the end point of their journey to freedom and free enterprise. We should be welcoming them with open arms. Hungary. The Czech Republic. Poland. Estonia. These countries are an integral part of Europe.

    Taking full part in the family of European nations is their birthright. Yet, eleven years after the fall of the Berlin Wall, the haggling over membership continues. With the sole exception of the former East Germany, each of the former communist states is still waiting in line.

    And why this shameful delay? It is that the EU hides, ostrich-like, from the implications of enlargement.

    Implications of Enlargement

    For enlargement points up stark choices; choices we would face before long anyway. Our fast-changing world would see to that. Enlargement means decision-time has now arrived.

    Don’t just take my word for this.

    “The simple but fundamental question is how the Union is to operate effectively when it has 20, 25 or even 30 members”.

    So states the European Commission in its submission to this year’s inter-governmental conference. It continues:

    “Decision-making in a Union of 28 members is clearly not the same thing as decision-making in a Union of 15. The Union will inevitably become less homogenous; the economic, cultural and political differences between the Member States will be more pronounced than ever before in the history of European integration”.

    In his seminal speech to this University last month, the German Foreign Minister raised some pertinent – and fundamental – questions.

    “Just what”, he asked, “would a European Council with thirty heads of state and government be like? How long will Council meetings actually last? Days, maybe even weeks? How, with the system of institutions that exists today, are thirty states supposed to balance interests, take decisions and then actually act? How can one prevent the EU from becoming utterly intransparent, compromises from becoming stranger and more incomprehensible, and the citizens’ acceptance of the EU from eventually hitting rock bottom?”

    I believe these are the right questions. But, of course, the real issue is getting the right answers. The most dangerous course of all would be to pretend these issues don’t need answers; to pretend that the EU can go on as it has up to now. Yet this is precisely the approach taken by the British Government.

    For domestic political reasons, it refuses to participate in the debate raging in Germany and across Europe, or even to acknowledge its existence. That is not the act of a good European. That’s why the Inter-Governmental Conference is so badly needed.

    This IGC is no unnecessary distraction. For the EU now faces an historic choice. Its response will set its course over the next fifty years just as surely as Robert Schuman and his colleagues determined its course over the last fifty.

    The Fork in the Road

    The EU today has reached a fork in the road. It must choose one of two routes.

    Only if we have the right vision will we make the right choice.

    One route at this fork leads to an open, flexible, free-enterprise Europe; a Europe which celebrates diversity. This can be a “network Europe”, a Europe of nation states co-operating together.

    But there is another route at the fork. The route of uniformity and uniform integration.

    An EU where the national veto is all but abolished. An EU with eyes bigger than its stomach – starting tasks but not completing them; with a tangle of subsidies and protective practices still in place; an unreformed budget; and agricultural and fisheries policies that belong to a bygone era.

    An EU with its own government, its own taxes, its own foreign policy, its own criminal justice system, its own constitution and its own citizenship, as well as its own currency.

    This would be “bloc Europe”, a single European superstate.

    Both these routes could overcome the danger of gridlock in an enlarged Europe. But bloc Europe, superstate Europe, would imperil exactly the security, prosperity and unity that Schuman dreamed of.

    The Changing World

    Why do I believe so fervently that the first – the network – route is right? The first reason is the one given by the Commission, in the extract I read earlier about enlargement:

    “The economic, cultural and political differences between the Member States will be more pronounced than ever before in the history of European integration”.

    The wide diversity, in culture, ethnic background, language, history, outlook and perspective, is one of Europe`s major strengths, not a threat to be submerged.

    The British philosopher JS Mill identified the dangers of uniformity in his essay “On Liberty” a full century before the EU was conceived:

    “What has made the European family of nations an improving instead of a stationary portion of mankind? Not any superior excellence in them, which, when it exists, exists as the effect, not as the cause; but their remarkable diversity of character and culture. Individuals, classes, nations, have been extremely unlike one another: they have struck out a great variety of paths, each leading to something valuable…Europe is, in my judgement, wholly indebted to this plurality of paths for its progressive and many-sided development”.

    An EU of six might have got by with the bloc model of rigid uniformity. It barely works for one of fifteen.

    Low turnout in European elections; falling support in opinion polls. Bloc Europe is failing the public, and the public knows it. To expect it to work with almost 30 is optimistic in the extreme. Especially in today’s globalising world.

    Replacing the world of blocs and hierarchies is a world of nations and networks; networks between people, commercial networks, networks between nations. Trade and competitiveness is more global and less local. The EU’s tariff wall is absurd and obsolete.

    In this new world, nations and groups of nations can choose whether succeed or fail. The EU can choose whether to join the fast world or slow. Whether to be future or past.

    Of course some believe we can simply rest on our laurels. Europe can sit back and admire its history as it watches the world go by. But I don’t believe that is its destiny. We must lift our sights higher than that. If we want to succeed, we need agility, adaptability, flexibility, a light touch from the state. Europe has no opt-outs from these universal laws.

    A democratic Europe needs flexibility and diversity. Its nations need freedom and choice. With this IGC, there is a tremendous opportunity to start to fashion just such an EU. We must not let it pass.

    3. THE FEDERALIST ROUTE AND THE IGC

    The Wrong Route

    Tragically, we are in danger of doing just that. Too many of the statements from Europe’s institutions and Europe’s leaders still seem wedded to the old dogmas of the bloc era, and to the false safety of the old introspective, integrationist, regulatory orthodoxies. And as the EU heads in the wrong direction, Tony Blair timidly tags on behind.

    “The concept of Europe as a superstate”, says Foreign Secretary Robin Cook, “is one that is deeply unfashionable”.

    He still claims that “Maastricht was a high water mark of integrationism”. But events disprove him every day.

    Meanwhile the French Prime Minister says the EU must harmonise more of our taxes and reduce the national veto, the German Foreign Minister calls for a European Parliament and a European government to exercise real legislative and executive power within a Federation, and the Commission President says the Commission behaves like a growing government, “step by step”.

    The tide of federalism on the continent of Europe is still inexorably rising.

    The Treaty of Nice

    So what actually is going on in the IGC?

    We hear nothing of substance from British Ministers; the agenda is “minimalist”, they say; it is just a matter of mopping up the leftovers from Amsterdam, it insists; all in all, the Treaty will be of little consequence to the future of the nation state. The reality is rather different.

    Qualified Majority Voting

    For one thing is certain: the IGC looks set to agree, extending qualified majority voting, to scrap the legislative veto in yet more areas. The British Government conceded this principle before the discussions had even begun. It will be considered case by case, it says. Case by case, stage by stage, step by step. That is how the one-way process of integrationism proceeds.

    We are all too familiar with the pattern by now – under governments of both colours. First the veto is conceded in a seemingly innocuous area of policy. Ministers claim that there is no legislation planned and that the concession is therefore cost-free. Then when harmful legislation does appear, it’s too late.

    Then the cycle repeats itself at the next IGC. Case by case. Step by step. Stage by stage. This process of uniform one-way integrationism has got to stop. Any further loss of the legislative veto would be highly damaging. Of course, it would make it easier to decide things. But it would do so by overriding national interests.

    There should be no further extension of QMV on European legislation at all.

    Charter of Fundamental Rights

    But that’s not the only step towards the superstate likely to be taken at Nice. The Charter of Fundamental Rights is now taking on a life on its own.

    Of course it is important that countries co-operate together to protect citizens from the unnecessary diminution of their rights by the European institutions. But that is not what this Charter is achieving. Instead, it is emerging as a route for further interference in national life. It will not be binding, we’re told. It’ll just be in an Annex to the Treaty. We know that is tantamount to being fully incorporated. It mustn’t happen. Otherwise step by step, stage by stage, fewer decisions get taken by nation states and more taken by European institutions.

    The risk is that this charter would lock Britain into the steel handcuffs of the old continental social model, at the very time when countries like Germany are seeking to escape it.

    Defence Identity

    The third part of the integrationist package likely to emerge from Nice is the Common European Security and Defence Policy. We strongly support greater European defence co-operation, and a stronger European commitment to NATO. Indeed, it was a Conservative Government which started the process, with the Petersberg tasks. There is a crying need for the European nations to step up their capability, to share more of the burden.

    But this doesn’t do that. Indeed, nearly all EU countries are cutting their defence budgets. All this does is to construct new institutional architectures, autonomous from NATO and within the EU, which threaten to encase European defence in committees, bureaucracy and the creeping embrace of the EU institutions.

    There is absolutely no military case for giving the EU a role in Europe’s defence. The case is purely political – a challenge to supposed American dominance of NATO, the establishment of a rival power bloc, the move towards what Romano Prodi habitually calls a European army.

    It is designed by people who are concerned first with endowing the EU with another of the trappings of statehood. In a speech last month M. Jospin talks of a “single European defence structure”, of the “pooling” of Europe`s armies. If this were done the EU would have “crossed a milestone towards the creation of a united political Europe”.

    Not about creating a superstate?

    It would be folly to lock Europe’s defence forces into a single structure when it is inconceivable that Europe will have a single foreign policy. NATO already provides the ideal flexible structure for different combinations of European nations to move together on a particular mission. At its worst ESDP is a visible expression of a chilling, and growing, anti-Americanism in some parts of Europe.

    This mindset is worse than simply being unrealistic and vain. It is actively harmful. If it encourages America to turn its eyes further westward to the powerful allure of Asia, we will have inflicted a devastating blow at the basis of our security, the Atlantic Alliance. We must not allow the cancer of anti-Americanism, now growing in some parts, to get hold.

    Summary

    We have no doubt, then, that the integrationist agenda for the Nice IGC is damaging and wrong:

    More qualified majority voting on EU legislation.

    A Charter of Fundamental Rights eventually incorporated in the Treaties.

    An EU defence identity, autonomous from NATO.

    Three integrationist solutions – each one of them giving the wrong answer to some important questions.

    Yes, the EU needs to adjust to enlargement. But it should do so through greater flexibility, not through a further loss of the national veto.

    Yes, Europe needs to reassure the public. But it should do so by ensuring that more decisions are taken at national level, not through a binding Charter that threatens yet more interference.

    And yes, of course Europe’s nations should co-operate more closely on defence. But they should do so through NATO and through greater co-operation between the nations of Europe, not by setting up new competing bureaucracies.

    Ratification

    So the Conservative Party will campaign strongly against an integrationist Treaty containing such measures. Such a Treaty should not be ratified by the British Parliament without the people first having their say, either in the general election or in a referendum.

    And I make it clear: a Treaty which had won the support of the public neither in a referendum nor in an election could not be left unchanged. After the election we would insist on revisiting its provisions.

    4. THE CONSERVATIVE VISION FOR EUROPE

    Support for Europe

    Our view of the future shape of Europe is drawn strongly from our long history of dogged support for British membership of the EU for 40 years. Unlike Labour, we have never wavered in our support. We have perhaps been boringly consistent.

    And it is precisely because Britain’s place is within the European Union, that we want it to be a success.

    Vision for the Future

    Just as Conservatives believed that British entry into the EU was right in the 1970s; just as we helped to press for the internal market in the 1980s and 1990s; so today, we must set out our vision of how the EU must adapt to the new century.

    For, if enough vision and imagination is shown, this year can be just as clear a milestone in Europe’s development as was 1950. It can have just as profound an impact on preparing our continent for the half-century ahead, this time fashioning a flexible network of nation states. This doesn’t need a dramatic big bang “fundamental renegotiation”.

    The new Europe will be a Europe of constant adjustment, continuous change.

    Closer Co-operation

    Some change may be towards closer co-operation.

    Single Market

    We have long called, for example, for the completion of the single market, and the full implementation of the four freedoms: free movement of people, goods, services and capital.

    We have long sought a strengthening of public procurement rules, so that taxpayers can be assured of value for money and businesses can compete on even terms.

    Environment

    In the field of the environment, air and water pollution are no respecters of national sovereignty. We would look favourably on moves to co-operate more closely on these issues.

    It does not require a loss of the national veto for such co-operation to occur.

    For example, the Commission could ensure that every state has its own environmental inspectorate. It could be chasing up those states which do not meet their Kyoto commitments on reducing CO2 emissions. It could enforce existing directives, such as the Urban Waste Water Directive.

    Defence

    Nor does it require integrationist solutions to co-operate in the area I have already mentioned: defence. The EU is certainly the wrong vehicle; but there is still something serious to be done.

    Looser Arrangements

    Equally, in a constantly changing Europe, there are areas where the next steps forward would sensibly be to loosen arrangements – with more decisions taken at a national level.

    The need for such reform is becoming more and more apparent. Last year’s fraud crisis showed how the EU’s institutions have been biting off far more than they can chew. Some £3 billion from the European Union’s annual budget is unaccounted for.

    It is because the EU’s ambitions over-stretch themselves; its reach exceeds its grasp.

    Part of the answer is that it should do what it does better. But the main part is that it should do less.

    Tony Blair’s challenge at this IGC is to start to work for this better EU. Here’s where he could start.

    Common Agriculture Policy

    An IGC intended to clear the way for enlargement cannot leave unchanged the biggest impediment to enlargement that there is – the CAP. Born out of honourable motives, with the aims of ensuring support for farming and eliminating the threat of food shortages, the world has moved on since then. As my colleague Tim Yeo has argued, these aims can better be achieved today by giving greater flexibility to Europe’s nation states.

    CAP reform will provide an opportunity to examine whether some decisions currently taken at EU level would be better taken by the Governments of individual member states.

    Today’s CAP is indefensible socially, economically, ecologically, environmentally and morally. It needs drastic change.

    No-one seriously believes that a centrally controlled policy for agriculture makes sense today. If it doesn’t make sense for fifteen members, how much less will it for twenty or twenty-five?

    In Britain, moving to greater national responsibility would allow us to guarantee farmers the same level of support as at present, while still providing a dividend for taxpayers and consumers.

    So here’s Mr Blair’s first challenge: to press for a fundamental modernisation and loosening of the CAP.

    Common Fisheries Policy

    If the CAP is today indefensible, then the Common Fisheries Policy is more so. A policy designed to conserve fish stocks that results in hundreds of tons of dead fish being thrown back into the sea each year doesn’t have too many friends. Tony Blair should be pressing for national or local control to be established over our own waters, through zonal management, coastal management or in some other way.

    The Common Fisheries Policy currently applies in neither the Baltic nor Mediterranean Seas. It is not obvious why our waters should be different.

    International Development

    In few areas has EU policy failed so badly as in the area of international development. Listen to this.

    “Anyone who knows anything about development knows that the EU is the worst agency in the world, the most inefficient, the least poverty-focused, the slowest, flinging money around for political gestures rather than promoting real development”.

    Strong words – perhaps stronger than I might use myself. So said Britain’s International Development Secretary.

    No-one disputes that there’s a problem. Commissioner Patten has announced welcome reforms. But the core problems may be political, not administrative.

    In almost every case bilateral aid provides better value for money than EU aid programmes. There is a clear case for looking again at this issue.

    The EU should have one year to sort out its aid budget. If it fails, a large part of its development budget should be left with member states for them to disburse bilaterally.

    So Tony Blair should seek changes at the IGC that would give ministers the freedom to do this.

    Flexibility

    So these are three specific policy areas – the CAP, the CFP, the aid budget – where Tony Blair should be pressing for specific reforms at the IGC.

    Building a diverse EU

    But there is today a more fundamental choice to be made about the future shape of the EU. As the Economist said recently:

    “the EU’s main modus operandi – that all should move together, or not at all – looks unworkable. Different countries have different aims, and for perfectly good reasons, not the least of which is that their electorates feel differently about the whole process of European integration…. A multi-system Europe, in which groups of countries proceeded to integrate and co-operate in different ways according to their different choices, would offer a more stable and viable way to run a large, liberal community of 30 or more countries”.

    I agree with that analysis. Others are heading in the same direction. Herr Fischer said in his recent speech:

    “Precisely in an enlarged and thus necessarily more heterogeneous Union, further differentiation will be inevitable”.

    Valéry Giscard d’Estaing and Helmut Schmidt, in their recent article in the Herald Tribune, came to the same conclusion:

    “It is obvious that full integration is not a realistic goal for thirty countries that are very different in their political traditions, culture and economic development. To attempt integration with that many countries can only lead to complete failure.”

    I think it is time that in Britain we accepted that among much of the political class on the continent the federalist drive towards full political union is alive and well. For years we have tried to persuade ourselves that “Europe is coming our way”; that federalism has reached its “high water mark”.

    I profoundly wish it were so. But it isn’t. Nor should we take any satisfaction in endlessly railing against those who seek it. There is nothing dishonourable or evil in such a desire. It is simply a desire that very few in Britain share.

    A modern European Union must accommodate those who wish to retain their nationhood, while accepting that others may wish to abandon their own. I could not support the Commission’s proposal for “reinforced co-operation” to be created by QMV. That would allow smaller groups of member states, as few as a third, to proceed with schemes of closer co-operation on their own, using the EU’s institutions.

    It would be rash to give up the veto on such schemes of new integration. But I will say this: that I would expect the presumption to be against Britain exercising its veto, save where necessary to protect our national interests.

    A readiness to allow others to proceed in this way would of course provide the opportunity for those countries concerned to retain a robust national independence to develop such a relationship within this more heterogeneous Union. Joschka Fischer’s view is that such an arrangement would allow a hard core, built around France and Germany, to forge ahead alone. I believe this is unlikely.

    The notions of inner circle and outer tier, of concentric rings, of first and second class members; these belong to yesterday. Far more likely an outcome is the gradual development of a Europe of interlocking and overlapping groupings, of nations, as the Economist predicts, combining in different combinations for different purposes and to different extents. Europe has already edged in this direction, with the Maastricht opt-outs, Schengen and the single currency. John Major’s speech at Leiden in 1994 foreshadowed such a Europe.

    But if such a hard core did emerge, perhaps based around the Euro 11, however much we might regret it, it is not obvious that people who believe in the sovereign right of nation states to decide their own destiny should be seeking to prevent other nation states from dissolving themselves. Some may fear that accepting condemns Britain to being forever on the edge, excluded from the heart of Europe. This misses the point.

    A network Europe in a network world would not have a centre for anyone to be “at the heart” of. Equally there may be some in Britain who reject such an idea simply because it is supported by prominent pro-Europeans on the Continent; who see in it some dark plot. This is old-think.

    There are some who might oppose it on the grounds that there is always a tendency for countries to give up their opt-outs. But we must point out that no country has ever been compelled to give up an opt-out; when Britain signed the Social Chapter, it was a democratically elected Government that exercised a free choice to do so.

    There is nothing inevitable about an opt-out being subsequently surrendered, as the continued robust health of the single currency opt-out in Britain and Denmark amply attests. So greater flexibility would reduce the constant tension between those countries which feel the process of integration is going too slowly and that others are holding them back, and those which feel they are being dragged against their will into a superstate.

    In short, a diverse and flexible Europe would be a Europe able at last to be at ease with itself.

    Accession arrangements

    If this flexibility is to be the shape of the future Europe, then we should start today to shape enlargement appropriately.

    Labour should press at the IGC for the accession states to be given the opportunity, if they choose to take it, to have exemptions from some Community law – the “acquis communautaire” – outside the areas of the single market and core elements of an open, free-trading and competitive EU.

    The candidate countries may not be pressing for this publicly. They have been made to feel that any request for derogations will be treated as an admission that they are not “ready” for membership. Accepting the full acquis is seen as some kind of test of a country’s machismo; query it and you’re derided as seeking only to be a “second class member””. But it simply doesn’t make sense for countries that have only recently escaped from the yoke of supranational domination to be required to accept burdensome centrally imposed obligations that have nothing to so with fair trading and everything to do with outdated collectivism.

    Future legislation

    In addition, outside the areas of the single market and core elements of an open, free-trading and competitive EU, the Government should also press for a new Treaty provision which would allow countries not to participate in new legislative actions at a European level which they wish to handle at a national level.

    There is growing hostility to the way in which extra burdens can be imposed by a majority of states on a dissenter. This inevitably creates strains and tensions. They need to be allayed.

    We regard such a clause as being an essential component of an acceptable Nice Treaty. A more flexible EU would be good for jobs and prosperity, allowing countries to reject new regulations which eroded our ability to compete in the new world economy. And it would reinforce the link between government and the taxpayer by supporting democracy, with governments accountable to their electorates for their decisions.

    5. REASSURANCES IN BRITAIN

    Reserve powers

    Changes along these lines would start to create new Europe fit for a fast-changing world. And just as we accept that the European Union is the appropriate level at which to take certain decisions, so there are some matters where the supremacy of our national Parliament ought to be recognised.

    There is a great deal of concern in the United Kingdom that the institutions of the EU – and in particular the European Court of Justice – have sometimes extended their competence beyond what was set out in the Treaties. In order to prevent such “Treaty creep”, the next Conservative Government will amend our domestic legislation in order to guarantee the supremacy of Parliament over certain areas of policy. This is not to say that Britain would then be precluded from joining common European initiatives in these areas.

    But such participation would come about only after a deliberate decision by Parliament, and not as the result of some imaginative re-reading of the law by the Luxembourg court. By creating reserve powers, we should in effect be bringing ourselves into line with other member states, where such powers are enshrined in written constitutions.

    This would prevent EU law from overriding the will of Parliament in those areas which are currently excluded from the Treaties – for example defence matters and the armed forces, education, health and direct taxation. It could also prevent EU law override where the Treaty specifically required unanimity, but where treaty creep has permitted a proposal to be passed under majority voting.

    For example, under this provision it would simply not be possible for a measure such as the Working Time Directive, which was of a type explicitly reserved for unanimity in the Single European Act, to override the will of the domestic Parliament having been passed n the Council of Ministers by qualified majority voting.

    Such a change would reassure our voters that their parliament remains accountable to them. By giving them the same reassurance that other Europeans have, we would Britain a more confident, and thus an easier, partner in Europe.

    Scrutiny

    The second change to be brought about by the next Conservative Government will be to provide for better scrutiny at Westminster of European legislation and its implementation.

    It has been too easy for the implementation of EU directives to become a cloak for the imposition of domestic regulation going well beyond what is required. This gold-plating should stop. Both Houses of Parliament need much greater power to scrutinise such measures. There needs also to be better scrutiny of decisions in the Council of Ministers as well.

    6. CONCLUSION

    All these measures will help to safeguard the EU and Britain’s place within it.

    They have the aim of finding a way of allowing the EU to develop much more diverse and flexible structures in the future, while safeguarding some extraordinary benefits that the European Union has delivered. We must shed at last the illusion that the EU can only change in an integrationist direction.

    Such a trend is neither ‘inevitable’, as some defeatists argue, nor is it the badge of good Europeanism, as others suggest. The EU should not feel like a one-way street taking us deeper and deeper into a superstate of full political union.

    That old one-size-fits-all dogma belongs to yesterday. Down that road lies discord and disharmony, as national interests are overridden, as diverse nation states are forced into rigid uniformity.

    There is a better way, a flexible Europe, where nations have greater freedom to match policy to their own requirements, in a diverse and fast-moving world. Then and only then will we have a Europe open to all, and an EU in which all its members feel at ease.

  • William Hague – 2000 Speech on Common Sense for Schools

    williamhague

    Below is the text of the speech made by William Hague, the then Leader of the Opposition, on 4 July 2000.

    Today, I set out the bold agenda of the next Conservative Government to set Britain’s schools free; and I am particularly delighted to do so under the auspices of Politeia which, under Sheila’s energetic leadership, has made such an important contribution to the debate about education in our country.

    Conservative education policy could not be more ambitious: quite simply, I want Britain’s children to be the best educated, most motivated and inspired in the world – ready to seize with both hands all the opportunities which the twenty first century and the new global economy have to offer. I believe that is not possible unless our children are taught in schools that are free of bureaucratic state control, and by teachers who enjoy the professional respect and freedom they deserve.

    Good education is an end in itself. In a civilised society, every person has the right to be given the chance to stretch their mind, develop their talents and to realise their full human potential. But good education is also a social benefit. It is about creating good citizens, not by teaching classes in citizenship but by educating children in an environment that teaches civility and respect for others. That leads to a more ordered and law-abiding community. And a good education is also an economic necessity. If our country is to prosper in an increasingly global knowledge based economy, and is to be able to afford better health care and transport and other public services, then we have to have a well educated workforce.

    For all these reasons, Britain needs a first class schools system. But you do not need me to tell you that, today, we fall a long way short.

    For listen, as our Conservative candidate did, to the children in one school in Tottenham. They will tell you about how the drug dealers openly gather around the school gates. They will tell how discipline in the school has collapsed ever since the teachers were forced by the local authority to take back the young thug who threatened his classmates with a knife. Those children in Tottenham know they are being let down by the system, but they are powerless to do anything about it.

    Listen, as Theresa May and I did, to the heads of the teaching unions who came to see us last month and told us that the morale of their members has never been so low; or to the teachers I meet in every school I visit who are drowning in a sea of paperwork, Whitehall plans and meaningless targets.

    Listen, as I did, to the two dozen chairmen and chief executives of our leading technology companies, who sat around the table with me a few weeks ago and told me bluntly that unless Britain’s education system improves dramatically so that they can recruit youngsters with the right skills and motivation, then we will lose our foothold in the new global economy.

    The National Skills Taskforce reported a week ago that 25 per cent of today’s job vacancies cannot be filled because applicants do not have suitable basic skills to cope with the world of work. Improving the skills of our workforce also means improving our university and further education – and that is a whole subject for another day. Today I am focussing solely on schools.

    Of course, not every school is letting its pupils down; discipline has not broken down in every playground; not every school leaver is ill-equipped for the new economy. There are countless examples of outstanding personal achievement in our education system, and many tens of thousands of teachers who do a fantastic job.

    But individual success stories can seem like points of light in the gloomy scene of a state education system where, in too many areas, bad schools are still tolerated, parents have little choice, standards are stagnant, the lowest common denominator prevails, teacher morale is at an all time low, headteachers are powerless, discipline has broken down, waste is widespread and bureaucracy is rampant, grammar schools are victimised, the tyranny of political correctness has run riot and the whole thing is in the grips of a liberal establishment whose theories of progressive education have, over 40 years of mismanagement and interference, have brought some of our schools to their knees and betrayed too many of our nation’s children.

    It is that left-leaning liberal establishment, of which this Government is the living and breathing manifestation, which is failing our children, failing our teachers, failing the mainstream majority who expect to live in a civil and law-abiding society, and failing Britain as we compete to be a leader in the new world economy.

    We have to defeat that liberal establishment. The next Conservative Government will have to defeat it. We have to realise that ambition of becoming the best educated nation in the world by transforming one of the most mediocre education systems in Western Europe. For I issue this warning that if we do not, then Britain will decline into an educational and economic backwater and we may never return.

    That is why transforming our education system is the greatest challenge the Conservatives face when we return to office, but one which I relish.

    Of course, there was another politician not so long ago who said ‘education is my number one passion’, and who repeated it three times just in case anyone had missed the point – ‘education, education, education’.

    Three years later the sense of betrayal felt by many millions of parents was summed up by the mother I met in Birmingham, who said to me: ‘Tony Blair keeps harping on about education, education, education; but it’s all been a lot of wind, a lot of hot air and broken promises, and my daughter’s school has not get better it has got worse’.

    Tony Blair promised as the very first of his ten contracts with the British people that Labour would ‘increase the share of the national income spent on education’.

    But despite all David Blunkett’s gimmicks and re-announcements of extra money, the House of Commons Library confirms that over the five years of its term in office this Labour Government will spend an average of 4.7 per cent of GDP on education – less than the average of 5 per cent of GDP which the previous Conservative Government spent.

    Tony Blair promised, as every parent in the country remembers, to cut class sizes and appeared during the election brandishing one of his famous mugs embossed with the pledge of ‘smaller class sizes’.

    Since the election, class sizes for all but 5 to 7 year-olds have risen. The leading accountancy firm Chantry Vellacott has estimated that the proportion of school children taught in classes with 31 or more pupils has actually risen by 14 per cent. This is borne out by the experience of head teachers. As the headmaster of Haybridge High School in Worcestershire put it earlier this year: ‘class sizes in my school have definitely increased and it is very frustrating’ (Sunday Telegraph, 9th April 2000).

    Labour’s failure to deliver on education has not been lost on parents and teachers, so why is it that some commentators continue to credit the Government with substantial achievements in this field?

    The answer seems to be that they still believe David Blunkett is really a ‘Conservative’. The believe that the man who, as Council Leader, presided over the failures of education policy in Sheffield has re-invented himself as the radical Tory itching to put Politeia pamphlets into practice.

    Well it is time someone shattered this cosy myth of the education establishment. David Blunkett is not a Conservative in disguise. In fact, many of the things he has done are left-wing, centralising, bossy, interfering, bureaucratic, and gimmick driven. He is a modern municipal socialist presiding over an education system in which the freedom of parents and teachers and schools is being steadily diminished, and standards are stagnant.

    Look at how this Government actually runs Britain’s schools.

    First, they have greatly restricted the freedom of parents to choose the best education for their children – a freedom that more than anything else drives up standards in the class room.

    In the past three years, all the impetus from the Department for Education has been towards re-creating a monolithic comprehensive system in which choice and diversity have no place.

    In an act of sheer educational vandalism, Grant Maintained Schools, which took power out of the hands of local bureaucrats and gave it to parents, staff and governors, have been abolished and former GM schools have had their budgets cut by an average of £125,000 per school.

    Despite a ‘personal guarantee’ from the Prime Minister before the election that ‘a Labour Government will not close your grammar schools’, open season has been declared on these centres of excellence. David Blunkett has introducing a rigged ballot system and encouraged Labour Party activists all over England to re-ignite the class war. The whole exercise has divided local communities, consumed enormous amounts of energy in the schools under threat, and flown in the face of parental choice.

    Labour has also abolished, for no other reason than dogmatic hostility to private education, the Assisted Places Scheme – which gave gifted children from less well-off backgrounds the unique opportunity of studying at some of the best schools in the country.

    Now the Government is planning to take its crusade against parental choice and school diversity into the sixth form. The funding formula in the Learning and Skills Bill currently before Parliament could starve them of finance and force many school sixth forms to close. The impact on individual schools could be severe because, without a sixth form, they will find it harder to attract good teachers. It is all part of Labour’s levelling agenda of enforcing monolithic conformity, and denying pupils choice by pushing them into tertiary colleges.

    And there is New Labour’s assault on parental choice which flows from the Government’s desperate efforts to meet its early pledge on class sizes.

    The bizarre side effects of the Government’s Class Size Reduction Scheme are brought home in the letter which the Shadow Education Secretary Theresa May received a fortnight ago from a headteacher of a primary school in Kent.

    He writes of the case of a young boy who lives in the village and is presently in kindergarten with other children his age. This autumn, however, this boy will be the only child who does not go to the local primary school because the Class Size Reduction Scheme will not allow the school to take 31 pupils in the class. Instead he has to leave his local community and travel every day to another primary school in another village. In the words of the headmaster: ‘because of a policy made without reference to our school, the parents of a four year old child will soon have to explain to their son why all his classmates are going to one school and he is going to another’.

    This is not the behaviour of a Government that cares about choice and diversity in education.

    Forget, too, the spin about the Government giving freedom to schools, for this Education Secretary has tied headteachers and teachers in knots with a string of Whitehall diktats, meaningless targets and paperwork.

    Only last week I received a letter from a school which is being forced to lose a teacher this year because of budget cuts. At the same time, this school has been given a capital grant of £98,000 by the DfEE to up-grade all its windows, despite advice from the local glaziers that there is nothing wrong with the windows and that they will last another 20 years at least. The school would much rather spend the £98,000 on retaining the teacher, but Whitehall rules say it cannot.

    Thanks to New Labour’s obsession with gimmicks and pointless plans and irrelevant target setting, this kind of interference is now commonplace throughout our education system. We have had 17 plans including the education development plan, the early years development plan, the ICT plan, the community plan, the school organisation plan, the admissions plan, the class sizes plan, the new deal plan, the asset plans, the post inspection plan, and, my favourite, the education plan of plans.

    These plans are designed to meet targets. And we have had the target for truancy, the target for school leavers, the target for exclusions, the target for GCSE grades, the target for numeracy and literacy, and, of course, the target for the number of 16 year olds going to adventure camps every summer.

    These plans and targets are the extending tentacles of central government, as it seeks to control and regulate and interfere in everything going on in our education system, and destroy all freedom of initiative in our schools. This Government is turning headteachers into mere functionaries of the central state, and teachers into clerks filling in forms.

    As the Government’s own Better Regulation Taskforce investigation into the teaching profession reported in April this year: ‘there is a widespread and deeply held view that increased red tape is acting as a distraction from the drive to raise standards … Over-elaborate processes are being used to achieve straight-forward objectives, leading to unnecessary duplication and confusing excessive lines of accountability’.

    According to one survey, schools have received 685 publications and 377 regulations from the DfEE since the election. Add together the various forms, and you have the equivalent of over 17 million lessons a year in teaching time wasted on filling in paperwork. As the headteacher of one secondary school in Hampshire wrote recently to Theresa May: ‘we have received 477 documents from the LEA since 1st April 1999 and only three were relevant and the rest is administrative tripe’.

    That will only get worse with the Government’s so-called Performance Related Pay Scheme. It must be a good idea to reward good teachers with more pay, but any proper performance pay related scheme would award bonuses on a year by year basis rather than as a one off payment for all time. As it is, the main feature of the Government’s scheme seems to be the enormous amount of paperwork involved. Some teachers have told me that it is taking them up to twenty hours to fill in the form. Headteachers then have to spend a further two hours on each one of their teacher’s forms, which in large school means weeks of paperwork. The process does not end there. The Government is spending £25 million on an army of hired assessors to go through every single form all over again. Given the failings of the scheme itself, the Government might have spent the money better as a pay-rise to all teachers and save all those wasted hours of form filling.

    All this bureaucracy and Government interference not only costs the taxpayer large sums of money, it also affects standards in the classroom. For teachers raise standards by teaching well, not by filling in forms. Headteachers raise standards by managing and leading their schools well, not by following the latest Whitehall plan. Parents raise standards in schools by demanding good teaching from teachers and choosing the best school for their children, not by being forced to choose between identikit schools that cannot respond to their needs.

    The single most damaging act of this Government on standards in the classroom has been to restrict the freedom of schools to maintain discipline. We all know how one disruptive child can wreck the education of an entire class. We also know that learning about order and respect for the law at school is vital to creating a law abiding society.

    But all this is lost on the Government, which has set schools the completely arbitrary and unacceptable target of cutting the number of expulsions or – to use the proper jargon – the number of permanent exclusions by a third over the next two years. And to make sure their targets are met, they are fining schools up to £6,000 for every disruptive pupil excluded beyond the targets set by civil servants in Whitehall.

    If you want to know what that means in practice, listen to story of two London secondary schools which two months ago were forced to re-admit pupils they had permanently excluded for wielding knives and conducting gang-like vendettas. ‘Now’, say the headteachers, ‘all the other pupils are desperately frightened’ and the education of hundreds of children has been jeopardised for the sake of a tiny minority.

    Or listen to the story of Angeles Walford, a head-teacher seconded to a failing school, who said recently: ‘I excluded a boy who hit a teacher but was forced to give him a second chance. He came back and hit another teacher’.

    It is symptomatic of an Education Secretary in thrall to a liberal consensus that says you have to put the interests of the unruly minority over and above the rights of the mainstream majority. In this case, the rights of a few disruptive pupils are taking precedence over the rights of the many children to an ordered classroom in which they can learn.

    The same attitude expresses itself in the Government’s approach to school uniforms. When David Blunkett was in charge of Sheffield’s schools, he waged an obsessive battle against uniforms. Now he has escalated the war to the national stage. A recent DfEE Circular on Pupil Inclusion prevents headteachers enforcing the wearing of school uniforms. It says pupils may not be excluded for ‘breaching school uniform policy including hairstyle and wearing jewellery’, because heaven forbid any headteacher might try to ensure that the children at their school are tidy and well presented.

    What all this amounts too, of course, is the slow creep of political correctness through our schools.

    In recent months, a number of stories of political correctness in the classroom have caught the headlines. We have had the Prime Minister’s drive to abolish Section 28 and Margaret Hodge’s barmy plans to abolish musical chairs.

    But the real damage to our children’s education has been going on for decades, caused by a liberal consensus and its progressive teaching methods. The fashions may change, and the jargon is different, but the assault on more traditional teaching methods continue.

    For example, David Blunkett already insists that school children attend special ‘citizenship’ classes. Last week he announced at the C’Mon Everybody Citizenship Conference that he was going to spend a further £300,000 on this pet project.

    Of course, we all want children to learn to think for themselves, and we all want them to become good citizens. But good citizenship is not something you learn from a textbook in a citizenship class; good citizenship is something you develop from being in an ordered and civil environment, in which people understand their duties and respect the rights of others.

    Now we are told that the Education Secretary is planning to put so-called ‘thinking skills’ into the National Curriculum, with ‘thinking classrooms’ in which children become ‘active creators of their knowledge’. Children learn how to think by studying science or history or literature, not by going to thinking classes.

    Citizenship classes and thinking classrooms are part of the world of an out of touch elite in which all must be treated the same, everyone must sink to the lowest common denominator, the best must not be allowed to succeed, the worst must not be allowed to fail, everyone passes, nothing must be too difficult or too challenging, no one must be told to try harder.

    It is this patronising attitude that has led to failing schools, poor standards and children who cannot even spell the word ‘Oxford’ let alone aspire to go there. It is an attitude that, whatever the New Labour rhetoric, has pervaded so much which David Blunkett and Tony Blair have done with Britain’s education system in the last three years.

    The previous Conservative Government began to turn the tide with grant maintained schools, city technology colleges, the National Curriculum and regular schools inspections. But we did not go far enough and we were hampered in our efforts by left-wing local education authorities. Sadly, some of the improvements we did make have been dismantled by the present regime.

    The next Conservative Government will not just turn the tide – we will defeat once and for all the attitudes that are holding back our education system and we will set Britain’s schools free.

    Three simple but radical principles will underpin our policy.

    The first principle of Conservative education policy is that every school will be a Free School, free of bureaucratic and political control.

    All schools will receive all their funding directly, rather than via a local education authority. Headteachers and governors will then be free to manage their own budgets, free to employ their own staff, free to set their teachers’ pay, free to determine their own admissions policy, free to run their own school transport, free to manage their own opening hours and term times, and free to set and enforce their own standards of discipline. Small schools will be able to get together, if they wish, and pool their management.

    LEAs as we know them will cease to exist, although the local council will still have a role in certain areas of education – which we expect will include educational welfare, special needs statementing, and discharging the ultimate responsibility of seeing that every child gets an education.

    The second principle is that every school will be accountable to its parents.

    Parents will be free to apply to whichever school can best bring out the potential of their child. Government money will then follow the pupil, putting financial power behind parental accountability. There will also be some basic safeguards backing up parental accountability. We will give all parents a Guarantee that provides a means of changing the management of a bad school. We will retain the National Curriculum, albeit in a more flexible form. We will retain the literacy and numeracy hours, which owe their origins to the previous Conservative Government. We will give Ofsted greater powers of inspection, and publish expanded, value added league tables. And we will reform teacher training – an issue which I will leave for another speech.

    The third principle of Conservative education policy is diversity, for no one will have a monopoly on the provision of education.

    We will allow good schools to expand. We will allow new schools to be created, including new grammar schools and specialist schools. There will be state run and state owned schools, but there will also be privately run state owned schools and privately run privately owned schools all operating within the overall taxpayer funded education system. We will ensure that children with special education needs get the right help, and also introduce a form of the assisted places scheme for particularly gifted children. We will set out our policies for both special educational needs and gifted children in greater detail in the future.

    These three principles of freedom, accountability and diversity are the pillars upon which we will build an education system fit for twenty first century Britain.

    But school structures and funding mechanisms are the dry bones of the policy. What will Free Schools actually mean for the teacher in the classroom and the parent who just wants their child to get a good education.

    What do Free Schools mean for the school child?

    They mean the right to being taught to a standard that gets the very best out of them, and develops their full potential.

    In the current comprehensive system, far too many pupils are still taught in mixed ability classes. The result is that less able pupils struggle to keep up, while more able pupils are not stretched. In Free Schools the headteacher and governors will be totally free to stream or set classes according to ability, so that every child gets the appropriate level of teaching. They will be free to keep their sixth forms, which are so important to attracting the best teachers. And they will also be free to set their own school timetables and term times. It will be possible to find time in the week for extra classes for pupils who may need more help, and for pupils who can go much further in their learning. Under a Conservative Government, all schools will be Free Schools, so all schools will have the freedom to innovate in this way.

    One of the few restrictions on a school’s freedom will be the National Curriculum. The National Curriculum was introduced because some schools were failing to teach their pupils even the basics of a standard education. In our judgement, that safeguard needs to remain in place longer – at least until the Free Schools system is up and running, and delivering higher standards.

    However, I have listened to many teachers who have told me that the National Curriculum is far too prescriptive – and I agree. We will therefore simplify the Curriculum, and we will reduce the Curriculum requirements of consistently high achieving schools, who have demonstrated that they can be trusted to deliver a good rounded education.

    It is also crazy that pupils who are struggling to read, write and add up, are forced by the Curriculum to move on to other lessons. We will allow schools to exempt children who have not yet reached basic standards of literacy and numeracy from National Curriculum requirements, at least until they have caught up. Children who cannot yet understand English should not be forced to try to learn French. And we will give post 14 year olds, who feel that academic subjects offers them little, vocational curriculum options that train them for the world of work.

    We have also listened to Ofsted and accept their view that Literacy and Numeracy Hours in primary schools are proving a valuable tool in ensuring that for at least two hours a day, young children are taught the basics. The Literacy and Numeracy Hours owe their origins to the work of the last Conservative Government, were developed by the present Government, and I can tell you that the next Conservative Government will keep them.

    Free Schools give all school children the right to the best education suitable for their needs and their ability. But that right is meaningless if they cannot be taught in disciplined classrooms, where the education of the mainstream majority is given precedence over the disruptive behaviour of a few.

    I have already spoken about how this Government has undermined school discipline, and tied the hands of teachers, with its arbitrary exclusion targets and financial penalties.

    The next Conservative Government will abolish artificial exclusion targets and the stiff financial penalties. Good school discipline will no longer mean a heavy blow to school budgets. We will give headteachers and school governors the complete freedom, within the law, to set the standards and rules of discipline in their classrooms.

    There is absolutely no point excluding disruptive children from schools if you are unable to provide them with support. Or else, as we all know to our cost, today’s child terrorising a class room becomes tomorrow’s youth criminal terrorising a whole community.

    So we will draw on the pioneering work of the Zacchaeus Centre in Birmingham that has achieved remarkable results with difficult and disruptive children. We will establish a network of centres – which we shall call Progress Centres – that will provide everything from a one week’s special teaching for a child at risk of being excluded to full-time education for those pupils who are permanently excluded.

    These Progress Centres could be financed either by schools buying a course for a disruptive pupil; or, in the case of permanent exclusions, the Centre being paid the funds that would otherwise have gone to the school. We will also abolish the Government’s ineffective and gimmicky on site school ‘sin bins’ and use part of the money saved to help fund the work of the Progress Centres.

    When I announced these policies last month I received the near universal support of teaching unions whose members are fed up with having their authority undermined and their judgement second-guessed. Nigel de Gruchy of the NASUWT said Conservative policies on school discipline were ‘spot on’.

    Creating a strong school ethos in which children learn about civility and respect for others does not simply require good school discipline. A school ethos comes from pride in the school, a sense of team spirit, a bond between the teaching staff and the student body, and mutual respect between teachers and parents. There are many ways to bring that about – voluntary service in the community, a particular religious affiliation, interesting school trips, competitions against other schools, a healthy dialogue between teachers and pupils. Competitive sports are clearly very important in this, as are organised sports in primary schools, and we will be setting out our policy to encourage these over the coming months.

    A school uniform can also be a vital component of a strong school ethos. The liberal establishment have waged a long war against school uniforms, the latest salvo in which is the Government’s new rule that headteachers cannot exclude pupils who refuse to wear a uniform. The excuse they have used is that parents do not want to pay for a uniform. They clearly have never actually listened to any real parents.

    In my experience of speaking to many hundreds of parents, they want their children to go to school looking smart and wearing a uniform. As one parent in Maidstone said to me, ‘school uniforms are a great leveller. They make children respect each other’. The alternative, where children compete with each other to wear the latest brand fashions, is actually more expensive.

    The next Conservative Government will give schools the complete freedom to require their pupils to wear a school uniform, and give them the powers to ensure the uniform is worn.

    So Free Schools mean giving school children the right to a good education in a disciplined environment. What do they mean for parents?

    Above all, Free Schools mean accountability. Every parent wants his or her child to have a good education. Yet every morning, tens of thousands of parents wave goodbye to their children knowing that those children are going to a bad school. And they also know that there is absolutely nothing that they can do about it, because power in our education system rests with local education authorities and Whitehall bureaucrats. No wonder the parents I meet are angry and upset and bitter.

    The next Conservative Government will put the power in our education system where it belongs – in the hands of parents, heads and governors. We will do it by giving parents the freedom to apply to any school they feel is best for their child, and then make the money follow the child.

    That means schools that offer a good education and a good ethos will attract more pupils and more funding, and schools that offer nothing but bad teaching, low standards and disorder will attract fewer pupils and less funding. In other words, there will be a real incentive for schools to improve and a parent-driven mechanism for forcing the worst schools to close. This does not mean abandoning children in bad schools. Far from it. We will not allow bad schools to continue to fail their children.

    We will also give parents a real choice of different schools to suit the ability and talents of their child. Under a future Conservative Government, a great diversity of different schools will flourish.

    We will abolish the surplus places rule that prevents good schools expanding. Free Schools will be free to determine their own admissions policies, so that some of them can specialise in areas like art or science or sport or information technology. Some will wish to select 20 or 30 or 40 per cent of their intake, others will wish to be wholly selective. That will mean that new grammar schools can be created, reversing a 30 year policy which has done more than anything else to lower standards in our state education system.

    All the evidence suggests that even where all the schools in an area are free to determine their own admissions policy, no pupil falls through the net. For example, in Bromley, where all but one of the secondary schools was Grant Maintained, the schools regularly got together to make sure every child had a place.

    Just to make sure, we will give to local councils the ultimate responsibility of ensuring that every child in their area receives an education.

    We will also end the monopoly on education provision that has created such a barrier between the state and independent sectors. When David Blunkett took office, he liked to talk a lot about bringing private firms in to run schools and creating education action zones. Three years later, education action zones have run into the sand. Only one school has been contracted to a private company, and that was only because it was in a Conservative-run authority.

    We will sweep away the barriers by allowing independent foundations, be they companies or charities or religious groups, to run existing state schools – all under the umbrella of a taxpayer funded education system. We will also allow these independent foundations to found and build completely new schools, which will also receive taxpayer funding on an equal basis to existing schools. These schools will be called Partner Schools, and, to coin a phrase, they will be in the state education system but not run by the state education system.

    I believe this could be the most exciting and far-reaching development in state education since Rab Butler’s 1944 Act. Of course, there are those who will be enraged by this. They will hate the idea that some schools might do better than others. They will loathe the idea that anyone but the state might run a school. They will complain bitterly about replacing Whitehall Knows Best with Parents Know Best.

    So they will kick and scream, and claim that what Free Schools really means is that the Tories are abandoning sink schools in bad areas, and all that we are interested in is good schools in good areas.

    These people have obviously never visited schools like Archbishop Tenison’s School in a deprived area of inner city South London, as I did a month ago. A former grammar school, forced to go comprehensive, losing its sixth form, managed by Lambeth’s loony left, Archbishop Tenison’s was a monument to the absolute failure of our education system. That was until along came the freedom of grant maintained status, and with it headmaster Brian Jones. Now the school, which draws over 80 per cent of its intake from the Afro-Caribbean population, is one of the 29 most improved schools in the country, sends many of its pupils on to university, including this year to Cambridge.

    Give parents real power in our education system, and set schools free, and it is schools like Archbishop Tenison’s that will thrive, regardless of where they are located.

    Sometimes, however, it is not enough to allow parents simply to vote with their feet. In some areas and for some parents, the choice of schools is limited. That is why we will also introduce the Parents’ Guarantee. Where parents feel their school is not delivering an adequate education, we will give them the right to call for a special Ofsted inspection. Where the inspection confirms the judgement of the parents, then a new management will be sought for the school.

    If parents are to make informed choices about which school is best for their child, then they need access to high quality, independent information about the performance of different schools. National league tables and an independent schools inspection service were one of the most important achievements of the Conservative years. We propose to go even further.

    Alongside the raw data of school inspections, we will publish value-added league tables that enable parents to see clearly what progress children are making over a period of time in a particular school. That means knowing the point from which the children start, which is why we will publish for all schools the reading and maths results of Key Stage One – information which the Government currently keep secret.

    We will also beef up the powers of Ofsted. Chris Woodhead, Her Majesty’s Chief Inspector of Schools, has done more than anyone else in Britain to drive up standards in our classrooms and challenge our failing schools system. I do not just praise his work, I propose to build on it.

    At present, schools know long in advance when the Ofsted inspectors are coming. The result, as one parent in Bury told me, is that ‘everyone in the schools gets ready for it. For the week the inspectors are there, it all runs to clockwork. But as soon they’re gone, it’s business as usual’. That may be unfair on some schools, where the preparation for a visit by Ofsted can lead to a permanent improvement; but there is more than a ring of truth to it. So under a Conservative Education Secretary, Ofsted inspections will take place with little or no notice. But we will also reduce the level of surveillance of schools with a consistently high record of achievement, so that the inspectors can focus their work on schools with real problems.

    I have talked of the parents and the school children. But what does Free Schools mean for teachers, who today find themselves under more and more pressure and feel valued less and less?

    Free Schools means freedom for teachers. It means slashing away all the bureaucracy and paperwork and red tape that stops teachers doing their job. It means trusting headteachers to lead their schools to the best of their ability and judgement, and let teachers teach.

    Politicians are always promising to cut red tape, without ever getting specific. So that you know I mean business, let’s gets down to the specifics.

    We will abolish the early years development plan, the area educational development plan, the ICT plan, the school organisation plan, the admissions plan, the class sizes plan, the new deal plan, the asset plans, and, yes, the education plan of plans. And we will abolish all those Government targets on exclusion and university entry and adventure camps and so on.

    We will get Government off the back of teachers. All those hundreds of hours wasted filling in pointless forms will disappear, so that teachers can spend more time with their pupils – in other words, doing what they are paid to do. By trusting teachers to teach, and headteachers to run their schools, I believe we will dramatically raise the morale of our teachers and the status of the teaching profession in our society.

    Let me finally turn to the gritty question of money. What does Free Schools mean for the funding of education?

    Teacher and Parents have all got used now to this Government’s trick of announcing with a fanfare great telephone sums of money for our schools, and then, on closer examination, for those sums to turn out to be a tiny fraction of what was implied. And they have got used to Education Ministers re-announcing the same sums again and again. As no less an authority than the Guardian put it: ‘the truth is that Mr Blunkett’s £19 billion is largely conjured out of thin air by trickery, double counting, treble counting, and a steady stream of fundamentally misleading public statements’.

    The big difference between this Government and the next Conservative Government will be the way that money gets to schools. At present, well over £3 billion of the total schools budget is kept back by LEAs to spend, as they see fit, on their own activities and bureaucracy. A further £1 billion is kept back by the DfEE to spend on gimmicky grant schemes and pointless bureaucracy such as the near 300 person strong Standards and Effectiveness Unit.

    Under the next Conservative Government, these DfEE grant schemes would disappear and LEAs as we know them would cease to exist – the functions which we expect local authorities will retain financial responsibility for are statementing and special support for children with Special Education Needs, and Education Welfare services.

    All the money will go direct to the schools. Schools will be paid on a per pupil basis. And because £4 billion will no longer be kept back by Whitehall and local councils, every school in the country will get on average £540 more per pupil to spend as best they see fit. Of course, schools will have extra responsibilities such as organising school transport.

    But it is still £540 more per pupil per school – a real cash boost for headteachers to spend as they wish in the education frontline. And the most important thing is that a pound spent on schools will be a pound spent in schools.

    Free Schools mean higher standards for pupils, better discipline in our classrooms, real choice and real accountability for parents, a great expansion in the diversity of education provision, freedom for teachers to teach, and £540 extra per pupil going direct to the school. It means creating the high quality education service that Britain deserves, building an architecture of excellence on the foundations of freedom, accountability and diversity.

    I do not pretend that all this will happen overnight. There will be an important transition period, and we will consult widely with parents and teachers and governors and local councillors on how that is best carried out.

    But what I have set out today are the principles and practical applications of a radical Conservative education policy that will transform our schools system, put power in the hands of parents and governors, and give freedom to our teachers.

    The Government talked of ‘education, education, education’ and has delivered nothing but failure, failure, failure. Where they have failed, we will succeed. The watchwords of the next Conservative Government will be: freedom, standards, discipline.

    And our ambition is quite simple: to set children free to realise their full potential; set parents free to choose for their child a better education than they themselves received; set every teacher free to teach; set Britain free so that with skills, the civility and the aspiration, we can be the world leader in the new global economy.

  • William Hague – 2000 Speech on Lord Norton Report

    williamhague

    Below is the text of the speech made by William Hague, the then Leader of the Opposition, on 10 July 2000.

    A year ago, I asked Lord Norton of Louth to chair a Commission of distinguished parliamentarians and constitutional experts to `examine the cause of the decline in the effectiveness of Parliament in holding the Executive to account, and to make proposals for strong democratic control over the Government’.

    In the months that followed, the members of the Commission took their responsibilities with the utmost seriousness. They took evidence from half a dozen ex-Cabinet Ministers, numerous ex-Ministers, journalists, academics, pressure groups, a former Speaker and a former Head of the Civil Service, as well as many current MPs of all major parties including – I am delighted to say – a former Minister of the current Labour Government and the current Chief Whip of the Liberal Democrats. No one can credibly claim that this has been a work of political partisanship.

    One year later, the Norton Commission has produced its Report on Strengthening Parliament which is of outstanding quality and far-reaching vision. It is the most important contribution to the debate about parliamentary democracy in Britain in a generation.

    The Norton Report takes a fresh look at what Parliament is for, and boldly reminds us why we need proper democratic accountability. It examines with great thoroughness Parliament’s decline under governments of all political persuasions, and sets out the case for radical reform. And, most usefully of all, it proposes many detailed recommendations that are not the stuff of fantasy, but are practical, workable and in sympathy with the history of our country’s institutions.

    In short, Philip Norton and his fellow Commission members have done a first class job. I sincerely thank them for all their work, and I think Parliament should thank them too.

    The Norton Report confirms what I have long feared: that Parliament is no longer able properly to hold the Executive to account, that legislation does not receive the quality of scrutiny necessary for good governance, and that the House of Commons has become less and less the focus of national political debate.

    This is something every Briton should be concerned about. For only in a country with a strong Parliament is there genuine representative democracy; only with a strong Parliament is government genuinely accountable; only with a strong Parliament is political decision making both robust and sensitive; and only with a strong Parliament do the people of that country have a say in the decisions that affect their lives.

    However, the Norton Report also confirms what I have long hoped: that the decline is not irreversible, that there are practical reforms we can make which will revive representative democracy, make government genuinely accountable and put a stronger Parliament back where it belongs – at the very heart of our national political life.

    The Report is 66 pages long and it contains almost 90 major recommendations for reform.

    The recommendations cover everything from the format of oral questions, to the timetabling of legislation, to the composition and powers of Select Committees, to the publication of draft Bills, to the handling of exclusively English laws, to the career structures of Members of Parliament, to the facilities available to the media, to the number of Government Ministers and the overall size of the House of Commons.

    It would be an insult to the work of the Commission to announce within minutes of the Report’s publication which recommendations my Party accepts, and which we reject. Each one of these recommendations deserve careful consideration not just within the Conservative Party, but, I would hope, within all political parties.

    For the future of Parliament does not belong to one political leader or one political party – it belongs to all parliamentarians, who hold our democracy in trust, and who, I believe, owe a responsibility to pass on to future generations a better and more effective Parliament than the one which they inherited.

    However, I am conscious that previous Oppositions have launched policy commissions with great fanfares, and then conveniently left their reports on the shelf gathering dust when they return to Government. To make sure that that does not happen with the Norton Report, I can today make three specific commitments that will form part of our Manifesto for the next general election.

    First, as Prime Minister, I will accept the Norton recommendation that the current single Question Time on a Wednesday should be replaced with two Prime Minister’s Questions a week.

    As soon as he entered Downing Street and without consulting Parliament at all, Tony Blair cut Question Time down to once a week. It means that in the fast changing world of politics, Members of Parliament and the Opposition only get one chance to hold the most powerful person in the land to account.

    Tony Blair’s decision to cut in half the number of times MPs could ask him questions showed his total disdain for the House of Commons and proper democratic accountability. I want to see the Prime Minister of the day held properly accountable to the representatives of the British people. Like the Norton Commission, I also want to see the Chamber of the House of Commons ‘restored to its position as the indisputable arena in which government can be challenged and embarrassed’. That is what democracy is all about. So, as Prime Minister, I will answer questions twice a week in the House of Commons, and I will do so for twenty minutes each time – which, over the course of the week, is longer than any Prime Minister before me.

    A second principle which we can immediately accept is that appointments to Select Committees should no longer be controlled by party managers and whips.

    Select Committees were proposed by the last Conservative Opposition and introduced shortly after we came to power. I agree with the Norton Report that they have been ‘a major success’ but that ‘in terms of parliamentary scrutiny, they represent the classic half full, half empty bottle’. The present Government has grossly abused the Select Committee system, with its own hand-picked members on Committees to leak Committee Reports to Ministers. The Norton Report makes a number of important changes to strengthen the work of departmental select committees, including changing the way in which the members are selected.

    As a former member of a Select Committee, as a former Minister who has been cross-examined by them, I agree that we need to make them stronger and we need to start with the membership. For it must be wrong that the Government, through the Whips Office, chooses the people who are supposed to hold the very same Government to account. I am not alone in thinking this, for Parliament’s own all-party Liaison Committee has reached the same conclusion in its First Report.

    So the next Conservative Government accepts the principle set out in the Norton Report and the Liaison Committee Report that appointment of Select Committee Members should be taken out of the hands of the whips and party managers. We will consult with all parties as to what appointment system we replace it with that guarantees the independence of Committee members.

    The third commitment I can make today is much broader in nature. Although the specific recommendations of the Norton Report deserve fuller and further consideration, what I can announce is that the work of the Norton Commission will be the route map by which the next Conservative Government dramatically strengthens the powers of Parliament to hold the Executive to account.

    Of course, we will be making a rod for our own back. That is why we will make our far-reaching changes to Parliament within weeks of a general election victory – and before ‘governmentitis’ sets in.

    By making Parliament stronger, and democracy stronger, the next Conservative Government will stand in stark contrast to the present Government that has, from the moment it took office, sought to diminish our democracy and side-line our Parliament.

    This week, we saw the latest instalment of that campaign with the Government-inspired proposals of the Labour-controlled Modernisation Select Committee. These include changing the voting procedures of the House of Commons in order dramatically to reduce the opportunities of the Opposition and the Government’s own backbenchers to scrutinise legislation and hold Ministers to account. The Modernisation Committees latest proposals on voting are a disgrace and we will have no part of them.

    Instead, today we have, with the enormous contribution of the Norton Commission, put on the table proposals for reform that will make Parliament stronger and make Government more democratically accountable. We have also made specific commitments to reintroduce two longer Prime Ministers Questions and set the appointments to Select Committees free from the control of party managers.

    For I believe the people of Britain deserve a stronger Parliament, better government and a revived and refreshed democracy, and I believe it is our duty to provide it.

  • William Hague – 2000 Speech on Believing in Britain

    williamhague

    Below is the text of the speech made by William Hague, the then Leader of the Opposition, on 5 September 2000.

    Today, with the publication of Believing in Britain, the Conservative Party takes another step to advance our common sense revolution.

    This Outline Manifesto sets out both the basic principles that guide our Party and the key elements of a bold programme for the next Conservative government.

    Today we are sending a copy of Believing in Britain direct to the home of every member of our Party, together with a ballot paper. For the first time in the Party’s long history, the basic principles of our programme for office will reflect the democratic will of the whole Party.

    I hope and believe that Party members will vote overwhelmingly to endorse Believing in Britain. And in doing so, we will send out a message that there is one political party that still has confidence in our people and ambitions for our country.

    There are some themes in Believing in Britain that will be familiar to many of you. Our commitment to a strong, low tax, competitive economy. Our determination to win the war against crime. Our concern to protect the countryside and enhance rural life. Our belief in a Britain that is in Europe not run by Europe. Our pledge to keep the Pound. And with these familiar themes, we set out new thinking and new policies about how we might achieve them – for example, you have already heard this week of our plans to put British companies at the forefront of the IT revolution, and about our proposals for ‘reserved powers’ that will protect the independence of our country.

    But Believing in Britain also contains many new themes and new policies for the Conservative Party.

    Policies to endow our universities and set our schools free, so that the next generation are the best educated and trained people in the world. Policies to transform our inner cities and get rid of the worst tower blocks that blight the lives of so many. Policies to provide young people who want it with a funded alternative to the basic state pension, so that tomorrow’s pensioners share in the wealth our country. Policies to give Britain a health service we can be proud of, in which doctors and nurses are set free from political interference. Policies to end the scandal of children in care; policies to help disabled people return to work; policies to encourage charities and voluntary groups to flourish.

    In short, Believing in Britain is a striking new social agenda for Conservatism based on one very simple, very Conservative principle: Freedom.

    Freedom for parents, for families, for pensioners, for teachers and doctors and nurses; freedom for inner city communities, for universities and schools, hospitals and local councils; freedom from big government, bureaucratic control, and all the targets, and gimmicks, and bossy, nannying, Whitehall interference that are the hallmark of the present Government.

    This new Conservative social agenda of devolving power to local people and local institutions and local communities shows that we have listened and learnt, and that we trust the instincts of the British people.

    It shows that we have the energy and the ideas to tackle the deep seated social problems of our country.

    It shows that we are not just interested in a healthy and strong economy, but also in a healthy and strong society too.

    Conservatives know the sort of Britain we want.

    We want a Britain where the creative and the talented can get ahead, because the government gets out of their way.

    We want a Britain where communities thrive and public services serve the public, because the government has handed back power to local institutions and given choice to local people.

    We want a Britain where the old and the sick and the vulnerable are cared for because the government reforms the welfare state to strengthen family life and personal responsibility.

    We want a Britain where women are safe to go out in their own street at night and parents need have no fear when their children play outside because government supports the rule of law with all its might.

    We want a Britain where the people of this country can hold their government to account because the country still governs itself.

    We know the sort of Britain we want.

    We want a Britain which the people of Britain themselves are crying out for – an ambitious, self-confident, prosperous, decent, responsible, independent country that is, quite simply: the best place in the world to do business, the best place in the world to live, and one of the most admired and influential counties in the world.

    Believing in Britain reflects those three ambitions.

    It shows how the next Conservative government will make Britain the best place in the world to do business.

    We will make Britain a world centre for the new economy, because we understand the way new technology is changing the rules.

    As business becomes more mobile, Conservative Britain will be cutting taxes. We will reduce the burden of tax and spend more on vital public services. That is because we will plan spending increases in line with the growth of the economy. For Government cannot spend what the nation hasn’t earned.

    As global trading becomes easier, Conservative Britain will also be cutting regulation. We will establish regulatory budgets for Whitehall departments and exempt small businesses from whole classes of red tape.

    As the opportunities provided by the internet and the IT revolution expand exponentially, Conservative Britain will be the capital of the new economy. Today, we set out a comprehensive package of specific policies to help IT industries flourish in our country – including reforming damaging brain-drain taxes, radically deregulating the telecommunications industry and encouraging more competition in local internet connections.

    And as good education becomes the most important resource a country can possess, Conservative Britain will transform our schools and universities so that they equip the next generation with the skills they need and liberate all people by giving them the chance to reach their full potential in a first class education service.

    One of the most exciting policies in Believing in Britain is our proposal to set our universities free for suffocating government control to become world-class centres of excellence. We will use the money raised from future government sales similar to the sale of the mobile phone licences to endow universities so that they are progressively less dependent on government funding.

    Believing in Britain also shows how the next Conservative Government will make Britain the best place in the world to live.

    We are going to have a common sense revolution in the way our public services are provided.

    We may be the fourth largest economy in the world at the dawn of the twenty first century, but you wouldn’t know it if you visited some of our schools, or many of our hospital wards, or tried to travel on our congested roads, or spent time in parts of our inner cities.

    It is not surprising when our public services are interfered with constantly by politicians who are blind to the choices and preferences of those who use it, patronising and untrusting of the people who work in it, and have turned their back on all that we know makes enterprise work.

    Today we show how will use patient choice, and the clinical judgment of doctors and nurses, and co-operation with the independent sector to help us transform the National Health Service from its present state of crisis into health system the people of Britain deserve.

    Today we show how we will use parent choice and the trust of teachers to help us transform education in Britain from a heavily centralised system where too many schools suffer from low standards and poor discipline, into a great diversity of high achieving, ordered, parent and teacher-run Free Schools where the money goes straight to the classroom and not to bureaucrats.

    Today we show how we will support families with Family Scholarships and by reintroducing a recognition of marriage into the tax and benefits system. And we show too how we will encourage charities, faith-based groups and voluntary organisations, so that people do not always turn to the state when they need help.

    We are going to have a common sense revolution too in the way welfare works.

    Our welfare system and policies to protect vulnerable are failing. As presently constituted how could they do anything else but fail? Anything would fail that penalised responsibility, was so badly targeted, was so needlessly complicated, was so unwilling to police its own rules, was so tolerant of a culture of failure.

    Today we show how the welfare bureaucracy will be transformed so that those who work in it are rewarded most when they get people off welfare into work.

    We show how welfare for disabled people will be reformed so that those who want to work are helped with rehabilitation and so that those who are able to save aren’t penalised when they do so.

    And, in one of the most important sections of this document, we set out our plans to reform the pension system so that today’s pensioners are given real dignity and choice, and so that tomorrow’s pensioners – today’s young people – are given the chance to build up a funded alternative to the basic pension. Let’s be clear. The basic state pension will still be paid to all who want it, but now people will have a genuine choice.

    Believing in Britain brings the common sense revolution to transforming our inner cities, which for a generation have trapped people in poverty and bad housing and crime-ridden estates. We’re going to get rid of the worst tower blocks, we going to protect people from ‘nightmare’ neighbours and we going to make sure these communities get the good schools and the proper law enforcement they deserve.

    We will expand on both our pensions policies and our inner city proposals in due course.

    And we are going to have a common sense revolution in the war against crime.

    Today we commit ourselves to reversing Labour’s cut in police numbers, to making sure criminals serve the sentences handed down in court, to abolishing special early release, to getting persistent young offenders off our streets, to tackling the evil of drug and child abuse, and by fighting the war against the criminal with no holds barred.

    And as we make our country the best place to do business and the best place in the world, we will ensure that Britain is one of the most admired and influential countries in the world. We do believe in Britain.

    Extraordinarily, the Conservatives will be the only major party fighting the next election determined to stop the surrender our most precious right as a country – the right to govern ourselves.

    By a combination of deliberate act and complacent failure to act, within a decade, perhaps less, many of the things that make our country a country, that make our nation a nation, that make Britain ‘Britain’, could have disappeared. And there we would all stand, the generation that threw away the rights and independence that so many of our countryman lived for and sweated for and died for.

    Say what ever else you like about a Conservative Britain, but at least a Conservative Britain will still be Britain.

    We live in a time of peace, of stability and of prosperity. The great mistake would be to do nothing and to change nothing and to reform nothing. Spend the money, take the stability for granted, let the future look after itself.

    That is what we fear our country is doing. Even though we have a Government that started with every political and economic advantage: a strong economy bequeathed by their predecessor, one of the biggest parliamentary majorities in history, unprecedented goodwill from the public and the media. They are frittering it away and squandering the chance. Our taxes are rising, our public services are failing, our inner cities are not improving, our welfare system is unreformed, our independence as a country is being undermined.

    Within a few years the money will have gone and we’ll still have the bills to pay. Within a few years business will have moved away and we’ll have the memory of a happy yesterday. Within a few years we’ll try desperately to act but even our power to do so will have been given away. Our country will pay dearly tomorrow for today’s complacency and drift.

    There is an alternative. I think the British people can take it. I think they can take it because they are ambitious for Britain. They have confidence in Britain. They believe in Britain. And so do we.

  • Ian McCartney – 2000 Speech to TUC Conference

    Below is the text of the speech made by Ian McCartney to the 2000 TUC Conference in Glasgow.

    On the quay, just opposite, which you will see, that was where I, at the age of 15, joined my first iron ore carrier and went to sea as a member of the National Union of Seamen. After three weeks I thought I had better have a career change when I came back. But it was an all too short visit to look at places far and wide.

    Last year, a few days after we presented these awards, my son died. It was the strength and support of the letters, phone calls and the friendship from trade unions and trade unionists across Britain which helped me and my family through the past difficult year. With your generosity of spirit and also your generosity in financial terms, in this City today, there are four projects up and running now to assess young people who have got a drug, alcohol or abuse problem. With your generosity, there will be young people who will be alive today who may not have been. I want to thank you on behalf of my family for that generosity.

    Colleagues, I am known for my diplomatic skills. When I was in the DTI I had to go to Japan to meet our colleagues there, and I went to a factory which made robots. The Japanese are very proud of their robots. In front of the assembled workforce was the president of the company, and I was asked to watch robots playing traditional Japanese drums. I just knew that at the end of it he was going to ask me what I thought of this, and being a diplomat, at the end of it when we all cheered and clapped the robots, I said to him, “When they can play the bagpipes, come back and see us”.

    Colleagues, I hope this morning is going to be as much a credit as it was last year. There are three awards; the Women’s Gold Badge, the Men’s Gold Badge and the Youth Award. The recipients are the embodiment of all that is good in the labour movement, representing without fear or favour their fellow workers. Day in, day out, month in, month out, year after year, they have represented workers in their place of work, promoting good practice, promoting the cause of trade unionism and promoting the skills and abilities of their fellow workers, and sometimes they do it at their personal cost. So the awards today to the three people concerned are not just personal awards to them but a recognition to the tens of thousands of men and women who each and every day go about their jobs on behalf of our movement, without whom we would not have the strong, vibrant movement that we have today. So it is a recognition to both them and to the movement as a whole.

    Being a trade union representative is not an easy task. Yes, it has been a bit easier in the past year as trade union membership has increased and employers are recognising more the worth of the trade unions in the workplace, but there will never be a day when every employer will be on board for collective representation in the workplace. It is like painting the Fourth Bridge – when you get to the end you have to start again. That is why it is important that we recognise the worth of our members, because it is our members who gather the strength of the Movement, year in and year out, with employers large and small across the country. So, it is a privilege for someone like me to be asked to come and preside over these awards.

    The words which I have been given this morning, are about three very special people. They are not my words but the words of their fellow representatives from the T&G, the GMB and the MSF. It is what their fellow workers, their fellow trade unionists, think about their contribution, and that is why these words are most powerful.

    Let me tell you, John and Rita, that I have been head-hunted by the CBI. They have offered me a full-time job. At the last meeting of the CBI, Digby Jones said, “I think it is time you came and worked here full-time”. Thompson raised a finger, and he said, “Perhaps we should ask someone to give us a resum’e of this man’s career. Perhaps we should ask someone to give him a reference”. This was agreed. Somebody leaked it to John Monks and John Monks passed it to me last night. I will read it to you. This is a letter to Digby Jones. “I saw Ian on Question Time last night. He is a most ignorant, arrogant, lying, uncaring, hypocritical, bombastic, thieving little sod this nation has ever seen.” This is a reference for a job at the CBI. “I would not trust him with my dog. A disgusted Peter Mandelson.” So I will stick with my day job in the Cabinet Office at the moment and work part-time for the TUC at weekends.

  • David Steel – 2000 Tribute to Donald Dewar

    Below is the text of the speech made by the then Presiding Officer of the Scottish Parliament, David Steel, made as a tribute following the death of Donald Dewar. The speech was made on Friday 13th October 2000 in the Scottish Parliament.

    This is not a meeting that any of us would have wished to hold. The news of our First Minister’s death came with such devastating suddenness, after we had all assumed that he had come safely through his serious heart operation.

    It is cruel how Scotland has been robbed in recent years of so many able politicians in their prime: John P Mackintosh, Labour; Alick Buchanan-Smith, Conservative; Allan Macartney, SNP; John Smith; and now Donald Dewar. Donald, however, at least had the satisfaction of leaving behind the completion of what he described as first a hope, then a belief, then a promise and then a reality – the restoration of Scotland’s Parliament after 300 years.

    He questioned the title “father of the nation”, but he was without question the father of the Parliament. Under his leadership, this new Parliament had already found its head, its energy and its skills. Today, as it meets to mourn his death, it has found its heart.

    Over the past two days, hundreds of tributes have been paid to Donald Dewar, so many that it is difficult to find anything new to say about him. We do not need to find anything new to say, because what is remarkable about all the newspaper coverage is that the same words keep leaping out from different pages – decency, integrity, trust, dignity, scholar, service and commitment.

    Tributes have been coming in from all manner of people. He visited the Irish Parliament a few months ago. Its Presiding Officer wrote to me:

    “Having paid tribute to the integrity and proficiency of such a fine politician, the members of the Dáil rose in prayerful silence.”

    In May, we had a visit from the President of Malawi. Donald’s heart trouble had already been diagnosed and he had cancelled most of his engagements prior to his operation. However, he was due to give a dinner in Edinburgh castle for the President and he told me, “That is one I am going to keep”. He not only gave the dinner, but he spent the evening showing the President round the castle and over the honours of Scotland, revelling in expounding our history and discussing Scotland’s links with Africa through David Livingstone and others. On Wednesday evening, within hours of the tragic news, I was astonished to receive a telephone call from the President of Malawi himself, expressing his sadness and conveying his condolences to the Parliament. Those two tributes show how Donald touched and impressed those whom he had met but fleetingly. How much more painful, therefore, is his loss to those who knew him well.

    However, tributes have come not just from the great and the powerful, but from every walk of life. One Scottish organisation wrote:

    “While we and he had not seen eye to eye on every aspect of policy, it had been a comfort to know that the Executive was headed by a man who personified the highest possible standards in public life.”

    I add the words of two typical individuals, which I have chosen at random. One said that he

    “was not a supporter of his party but, like many others, knew him to be a great ambassador for Scotland and a genuinely good man.”

    Another stated:

    “Yesterday should have been a day of celebration for me – it was my 40th birthday. I had never met the man, but when I heard the news of his death, I simply had no stomach for a party.”

    Furthermore, one entry in our condolence book contains, alongside the signature, just one word: “Thankyou”. That is what we come together today to say. However, Donald would not forgive us if we turned this into a greetin meeting, because there was one other characteristic of Donald’s that I have not yet mentioned – he was always enormous fun to be with. I am going to miss our tête-à-tête dinners dreadfully.

    Let me tell you about two episodes with Donald, which both – like all good Donald stories – involve food. More than 40 years ago, a group of Scottish university students visited the Soviet Union. Donald was one, I was another and the Deputy Presiding Officer, George Reid, was also there. We spent a week in Moscow and a week in Leningrad, and the food – especially student food – was of disgustingly poor quality; indeed, a few of us, including Donald, were quite ill.

    On our arrival in Kiev for the third week, we sat down to lunch. Suddenly, plates of cream buns appeared and Donald more or less led a standing ovation. He inquired hopefully whether, by any chance, any of the rest of us did not like cream buns and generally displayed such excessive enthusiasm that, to his delight, our host produced cream buns again for dinner. He also produced them for breakfast the next morning, and again at lunch, and for every single meal during that week. I blame Donald for the fact that I have never since then been able to face a cream bun.

    On Monday evening, the night before he died, I formally opened the new visitors centre at Holyrood. I spoke of the progress on our new building and of the importance of public access to its development. I paid tribute to architect Enric Miralles, whose widow was with us. I had just finished my speech when Donald shambled into the room. I had not been expecting him and mockingly scolded him saying, “You’ve just missed the best part of the evening”. With a withering look, he said, “Your speech? Oh, I don’t think so. These look like excellent canapés.” He added, “As a matter of fact, David, I think I have just demonstrated for you yet again my impeccable sense of judgment and timing.”

    Donald Dewar elevated the profession of politician. As an occupation, politics is too easily derided, but to be a politician should be the highest and noblest calling of all – involvement in the responsible and accountable governance of people’s lives. In a television interview about a decade ago, Lord Hailsham said:

    “Nobody I think who knows enough about politics really wants to be a leader. Only a fool would want to stand in that position when you are exposed to the whims of fortune and chance and all the rest of it.”

    I do not agree. Of course leadership involves taking knocks and Donald had his share, both personal and political. However, it also provides an opportunity to point a course, to stamp a platform and to gather others to one’s cause – Donald used his qualities of leadership to do all of those.

    Now that he is gone, where does that leave us? I commend to you lines by Archbishop Darbyshire, who wrote:

    “Not names engraved in marble make

    The best memorials of the dead;

    But burdens shouldered for their sake

    And tasks completed in their stead.”

    All of us in the chamber have tasks to complete in his stead.

  • Stephen Timms – 2000 Speech to British Insurers

    stephentimms

    Below is the text of the speech made by Stephen Timms, the then Financial Secretary to the Treasury, to the Joint Association of British Insurers / British Venture Capital Association Conference on 29th February 2000.

    Introduction

    Thank you for inviting me to speak, and for organising this conference, on what is an extremely important issue for our economy.

    Let me just first set this in the context of the government’s wider aims.

    My favourite way to explain what this Government is trying to do is that we are building a new Britain which will be modern and decent – fair and enterprising – both of those things at the same time.

    The first economic priority after the election was to achieve a new stability in the UK economy after decades of boom and bust. That has been achieved in a remarkable way, so our focus now is on locking in that hard won stability, and building on it for the future. It gives us the chance to express a new optimism about the future, and so the Chancellor set out at the Pre-Budget Report in November four new ambitions for Britain in the coming decade which encapsulate what we are trying to do:

    That we should be closing the gap with our competitors on productivity after years of slipping behind;

    That we should have a higher proportion of the workforce in employment than in the past, and keep it like that. Actually, we already have more people in work than ever in our history, but we want to achieve the highest proportion and on a durable basis;

    That for the first time over half of our school leavers should go on to study for a degree;

    That we should halve the number of children living in poverty, on the way to the Prime Minister’s target of eradicating poverty altogether within 20 years.

    The Chancellor this morning, speaking in my area in East London, set out more of his thinking along those lines as he prepares for the budget in three weeks time.

    Institutional investors have a key role to play in making all this happen, providing the finance so that our high-growth businesses can become world-class businesses.

    I want to speak briefly about the key building blocks we are putting in place, building on this new foundation of stability, to create a new culture of enterprise and entrepreneurship; where institutional investors can flourish and contribute – with private equity and in other ways – to the changes we are working to achieve.

    Competition

    The first building block is the most pro-competition policy in the world. Greater competition at home is the key to greater competitiveness abroad. So we are asking in every area what we can do to enhance competition and opportunity. We are building on the decision to create a new independent competition authority with our new Competition Act which contains new powers to prohibit anti-competitive practices.

    For cartels and anti-competitive behaviour, the Office of Fair Trading will be given new investigative resources and trust-busting weapons, including the power to impose fines of up to 30 per cent of turnover.

    For banking and financial services, the Financial Services Authority will now, for the first time, be required to facilitate competition – with a new scrutiny role for the competition authorities.

    For the regulatory system, the government will consider how to scrutinise regulatory bodies and review existing and proposed regulations to ensure that they are promoting – not impeding – new entrants and new investment, and the joint work by BVCA, ABI and NAPF will feed into this process.

    In sum, Britain is open to competition, and at the leading edge of change. And nothing should stand in the way of greater competition in every sector of every industry.

    A more favourable tax environment

    A higher degree of enterprise calls for higher levels of investment and entrepreneurship. So our second building block is the best tax environment for investors in start-ups and high tech businesses, with improved rewards from enterprise and wealth creation. On tax a great deal is being done:

    On business tax, we have already cut small business tax from 23p to 20p and introduced a new starting rate of tax for small companies of 10p in the pound. Every company making profits of up to 50,000 pounds will benefit.

    Corporation tax has been cut from 33 to 30 per cent. To encourage and reward new business investment, we have cut the long-term rate of capital gains tax from 40p to 10p. We have proposed a cut in the taper so that those investing for five years will pay only 10p and for three years only 22p. Final decisions – following our public consultation – will be announced in the Budget.

    A new R&D tax credit will, from this April, also mean that nearly a quarter of new investment in small and medium-sized business research and development is under-written even before a penny profit is made.

    The Budget will introduce a new tax incentive to promote corporate venturing too. Large companies investing in growing companies for a specified period will receive a tax relief of 20 per cent, underwriting one fifth of their investment. This 100 million pounds incentive can bring Britain additional investment of 500 million pounds every year.

    We need to encourage those who already have a successful track record to play a key role in building up small high-risk companies. We recognise the significant role stock-options have to play here and we are currently looking at the role of employer NICs charges which we know is causing concern particularly in the entrepreneurial community.

    We are introducing a new targeted tax cut for people with skills and talent who are prepared to move from safe, secure jobs to risk time, effort and savings to create wealth in a more challenging environment. From next year, a third approved option scheme, the Enterprise Management Incentive, will enable growing enterprises to offer their key employees tax-advantaged options over shares up to £100,000.

    That measure reflects our recognition that nearly a quarter of all UK business failures are thought to be directly attributable to poor management practice. For Britain to succeed in the knowledge driven economy we need to raise our game. We want to take steps to ensure that our smaller firms can recruit and nurture the best talent, rewarding the real risk takers who are creating wealth and jobs.

    Venture Capital

    Turning to private equity and venture capital – the particular interest of this conference – we want new encouragement from the venture capital industry and from institutional investors for investment in start up and early stage ventures. The problem here is not so much access to finance but finance on the right terms.

    We have already the best developed venture capital market in the Europe, and we are the focal point for US investors looking for access to Europe=s growth companies.

    Our venture-backed growth companies are proven job-creators. Between 1993 and 1997, employment in VC-backed companies rose by 24 per cent compared with one per cent for the economy as a whole.

    BVCA’s own survey of the economic impact of venture capital showed that VC-backed companies now account for 2 million jobs in the UK, or 10 per cent of the private sector workforce.

    Venture-backed growth companies are also proven sound investments, as the record of overseas investment demonstrates. The last speaker (Anne Glover) also showed that returns to early-stage investments are increasing.

    In 1998, overseas sources provide three times as much finance for VC-backed companies as UK sources. Overseas pension funds are now the largest single source of funding for our VC-backed firms, and overseas banks are the second largest source. I was in Cambridge a few weeks ago and the venture capital specialists I met there made the point that there was a very high level of interest from elsewhere in Europe in venture investment in start up firms there.

    UK pension funds invest less than one percent of their money in venture capital. In the US, the comparable figure is closer to six per cent. And in 1998, UK insurance companies represented only 3 per cent – £152 million – of money raised by the UK venture capital industry.

    We cannot – neither would we want to – make UK insurance funds invest more, but I would encourage them to look very carefully at all their options and make sure they are alive to the opportunities around.

    Last year, following a speech by the Prime Minister, three leading consulting actuaries and benefits consultants (Bacon and Woodrow, William M Mercer and Watson Wyatt Partners) welcomed the Government’s call for a more enterprising approach to the investment of institutional assets. They considered that the time had come for some institutional investors to put more emphasis on other opportunities, particularly unquoted securities. We will shortly be discussing with the actuaries concerned what the response has been.

    To help institutional investors take the leap to invest in early-stage venture capital, we are taking forward a UK High-Technology Fund and nine Regional Venture Capital Funds to invest in early-stage high growth businesses which have historically found it difficult to raise finance. The funds will be run by experienced fund managers and will complement existing market provision, using public resources in partnership with private sector funds to address recognised gaps in the market. And all the funds will invest on a wholly commercial basis, expecting robust commercial returns.

    Making Britain the knowledge capital of the world

    The third building block for our enterprise Britain open to all is to make Britain the knowledge capital of the world.

    Knowledge is the key to future business success. Our future competitiveness and prosperity will be directly related to our creativity, our imagination and our knowledge base. That puts a great premium on education and skills. I have visited a number of our universities in recent weeks ­ Cambridge, Oxford, Warwick, Newcastle, Durham, Sheffield ­ to have a look at what they are doing to commercialise the superb research which is being undertaken by them and I have been heartened by what I have seen.

    That premium on education and skills in the modern economy is exactly why we are pushing through huge educational reform, investing an extra 19 billion pounds in education – so that everyone has the opportunity to master the skills and technologies of the new information age.

    In 1997, barely one in ten schools was connected to the Internet. Now, two thirds are – the most in any G7 country. The number of primary schools connected has gone up four fold in the last year. By 2002, every school will be connected.

    And this year, we are working to raise education levels amongst adults: a whole network of adult learning centres is being created; incentives are being provided to upgrade skills; and a new University for Industry which uses internet and digital TV technology will be bringing education into the home and workplace.

    These reforms will help in the next stage of the technological revolution which we are determined to lead.

    Our target is that within three years we want to become the world’s best environment for e-commerce. This is a huge challenge for everyone: Government needs to put in place the right framework and lead by example; individuals need to get skilled; and business needs to be confident and sufficiently ambitious to grasp the new opportunities.

    Conclusion

    There is a great deal at stake in getting all of this right. But we are optimistic.

    We have started with a foundation of a new stability which we are determined to lock in. The building blocks we are putting in place now for an enterprise Britain open for all – in competition, in investment and enterprise and in the knowledge economy – those building blocks will help British investors and entrepreneurs make the most of the challenges ahead.

    Thank you for the contribution you are making, and let’s work together to make this a success for all our people.

    Thank you.

  • Michael Portillo – 2000 Welsh Conservative Party Conference Speech

    Below is a part of the speech made by the then Shadow Chancellor, Michael Portillo, to the Welsh Party Conference on 9th June 2000.

    A couple of weeks ago Peter Mandelson, the Northern Ireland Secretary, tried seize control of Government policy on the euro. Now that the Prime Minister has weakened his Chancellor, by failing to endorse his class war language, new ministerial minnows are coming forward to seize Gordon Brown`s territory.

    Fresh from his debacle in a South African suit Mr Byers dresses himself as the Cabinet’s greatest euro enthusiast. He makes plain that Gordon Brown’s five economic tests are mere decoys and are not to be taken seriously. The Government plans to join the euro irrespective of the economic conditions.

    The plan to con voters into the euro has been carefully laid, and new dishonesties are being carefully crafted. While every European statesman says openly that the euro leads to creating a country called Europe, Mr Byers plans to tell us that British sovereignty is not at stake. Fortunately, his subtlety is no greater than his sincerity. We can see him coming.

    The moderate majority want to keep the pound and will not be easily fooled.

    Gordon Brown seems to know nothing of enterprise. He talks of it like he has learnt a foreign language. It sounds okay, but it is devoid of meaning or understanding. Why else would he make extravagant claims to be creating an enterprise economy while piling new regulations on businesses, inventing new forms and slapping on extra stealth taxes?

    Labour claim they are building an information society in Great Britain. In their dreams. We are lagging dangerously behind the US. We are beset by restrictions. The government keeps talking but their words mean nothing. Business is giving Gordon Brown a slow handclap.

    Enterprise is actually open to all. It`s the university of life. It has no doors and no admissions policy. It is not a zero-sum game. One success does not block another or exhaust a quota.

    In fact, one success stimulates the next. Enterprise feeds on freedom and starves under a system of control. Centralisation strangles it. Given the choice, Gordon Brown will regulate not liberate. Enterprise under Labour will always be sickly. And we are condemned to watch from the sidelines while the US shows us how things might be.

  • Chris Patten – 2000 Speech on South East Europe

    Below is the text of the speech made by Chris Patten, a then EU Commissioner, at the Foreign and Commonwealth Office in London on 7th July 2000.

    Keith, Ministers, Ambassadors, Ladies and Gentlemen, Can I add my own warm welcome to those of Robin Cook and Keith Vaz.

    As Keith has just said, since I became a Commissioner about nine months ago no subject has occupied more of my time and my attention than South East Europe, and rightly so. We have a formidable amount at stake there. The region in my judgment offers the defining test of our nascent common foreign and security policy, of our ability to close the gap between our rhetoric and brutal reality and of our ability to project stability, for me one of the primary goals of Europe’s external relations policy into our immediate neighbourhood. We know the history of the region. Its peoples began the last century as the victims of crumbling imperialism, endured the rise and fall of communism and ended the century with the descent at the hands of extreme nationalist politicians into wars of mediaeval barbarity. And the rest of Europe, well we must accept our share of the blame, from the Congress of Vienna to the fall of Vukovar. In the closing decade of the last century some suggested that the hour of Europe had dawned even as Sarajevo, one of the cradles of our civilisation, was being reduced to rubble. We failed to stop the bloodshed, but now we can make good in part on that failure by helping to build the peace, drawing on our own experience within the European Union.

    That is certainly our goal, with the rest of the international community, including of course our friends in the United States. The commitment by the European Union alone is formidable, political, military, financial, moral. From the Krajina to Kosovo, from Podgorica to Pristina, we are supporting refugee returns, reconstructing homes and infrastructure, supervising elections, reforming the media, providing budgetary support to Governments, creating border and customs services, stabilising currencies, supplying emergency humanitarian assistance, building institutions from independent judiciaries to dependable police services. Over 28,000 troops from European Union Member States are serving in Kosovo, thousands more in Bosnia.

    We have spent, and here there is a difference in addition between the Foreign Office and the European Commission, not conceivably for either the first or the last time, we think we have spent seventeen billion of European taxpayers’ money in the region since 1991 and this year – no dispute about this figure – we are spending three hundred and sixty million in Kosovo alone. Just worth noting that it is more than we are spending in the whole of Asia. It’s a high investment, a huge investment in peace and in stability. But lots of money and lots of troops don’t by themselves produce lasting peace. Building that requires a comprehensive strategy tailored to the needs of individual countries, but designed to meet the needs of the region as a whole.

    IMPLEMENTING THE STRATEGY OF INTEGRATION

    We have, I believe, such a strategy, accurately reflected in the title of this conference, to integrate as fully as possible the countries of the region into the European mainstream. We want to welcome them warmly into the European family by transferring not just resources from the European Union and its member states, but the values and principles that underpin the Union itself, democracy, the market economy, the rule of law, the values on which we have built our modern prosperity and extinguished old animosities.

    And we have the tools to implement this strategy. The Stability Pact, led by my colleague Bodo Hombach, is fostering intra-regional co-operation and nurturing the process of Europeanisation. On the part of the European Union, our enlargement process, which includes Bulgaria, Romania, Hungary and Slovenia, is already helping to project stability more widely. Specifically for South East Europe we have the Stabilisation and Association process, a policy which aims to do just what it says, stabilise the region and associate it more and more closely with the European Union. Stabilisation and Association agreements offer substantial benefits, better trade access, formal political relations with the European Union and above all the prospect one day of membership of the Union.

    The agreements will each include a so-called evolutionary clause holding out this long-term prize, the symbolic and practical importance of which it is hard to overstate in the region. That prospect was set out clearly by the European Union’s Heads of Government in Cologne last year, and most clearly to date at the Feira Summit last month, which declared that ‘all the countries concerned are potential candidates for European Union membership’.

    But Stabilisation and Association Agreements, like membership of the European Union itself, don’t just bring benefits, they also entail obligations, to respect human rights and the rights of minorities, to respect the rule of law, to carry out economic reforms, to move towards free trade, to align legislation with European Union standards. In fact the agreements are a reform agenda in themselves.

    ELECTORAL AND INSTITUTIONAL REFORM

    At Lisbon in March, Javier Solana and I were given a remit to get a tighter grip of the overall European Union effort in the Balkans. To be frank, it had been Balkanised, to ensure better co-ordination and to push ahead with the process of integrating the region into European structures. We have made progress in the last few months. We held the very successful Stability Pact Regional Funding Conference in March which raised 2.4 billion for quick start projects with a regional dimension, much more than the 1.8 billion that we had hoped and expected. Now we must translate those pledges into projects on the ground. In Montenegro, which I have visited twice in the last few months, we are determined to make a stand. We are using all the means at our disposal imaginatively and visibly and we have dramatically increased the scale of our assistance in recent weeks to help the democratically elected government cope with enormous pressure from Belgrade, pressure which clearly is going to increase after yesterday’s events.

    Working closely with the United States, the other major donor in Montenegro, we are, I hope, demonstrating that we have learnt the lessons of recent years by working to prevent a potential crisis. We are now providing 55 million euro to Montenegro this year, 20 million for infrastructure and institution building, 20 million in budgetary assistance to help pay pensions and social welfare payments, 10 million in food security and 5 million in humanitarian assistance. These are sizeable sums for a community of 600,000 people, but justified to assist, as I believe they are doing, in stabilising the situation.

    In Kosovo we are making headway with an urgent reconstruction programme over the summer with our reconstruction agency concentrating on the key sectors of housing, power, water and transport. We are working round the clock to make a substantial difference before the onset of winter. I was in Kosovo last week and announced the signature of a major contract for the overhaul of the Kosovo-B power station.

    We are pressing ahead with the stabilisation and association process, we launched negotiations with Fyrom in March, I was in Skopje last week, the start of the negotiations has itself added welcome impetus to the process of economic reforms there. We hope to start negotiations with Croatia after the summer, in direct response to the dramatic political change in Zagreb and the courageous efforts of the new government, a message that I hope will be heard by the people of Serbia. We are working closely with the Albanian government to help it prepare for future negotiations and we have set out very clearly for the authorities in Bosnia Herzegovina in the form of a road map of detailed measures what they need to do to enable us to start negotiations with them.

    ECONOMIC INTEGRATION

    Integrating the region politically and institutionally is important, but equally important is economic integration. The oldest form of international cooperation is trade. Communities that trade more closely and more openly together, grow closer together. The single market is a prime example of that. Open markets, open minds. That is why I believe passionately that the European Union should display vision and boldness in opening up its markets to the Balkans. It is, I am convinced, one of the best and most immediate practical things that we can do to make a real difference fast.

    In the last few weeks the Commission has put forward radical proposals for opening up the European Union market to Balkan trade. I was delighted that Robin Cook referred to them. Our proposals for asymmetric one-sided trade liberalisation would open the European Union market completely and immediately to industrial products from Bosnia Herzegovina, Albania and Croatia, as well as Macedonia. They do the same for agricultural goods, except wine, beef and some types of fish. They also cover Kosovo. They are tied to greater trade access between the countries of the region themselves. In the case of Montenegro, we have proposed a special provision to allow them to export their aluminium duty-free to the Union, aluminium being one of Montenegro’s most valuable exports.

    These proposals, drawn up with my colleagues, Pascal Lamy, the Trade Commissioner, and Franz Fischler, the Agriculture Commissioner, and with the backing of the whole Commission, would provide a turbo charge to economic activity across the region, they would boost prosperity, create jobs and ultimately reduce dependency on European Union aid. From the European Union’s point of view the costs will be minimal, total European Union imports from these countries account for just 0.6% of our total imports and in the case of agriculture just 0.16%. I say would because the decision lies with the member states. I hope that Ministers who are currently examining our proposals will endorse them rapidly and that we can put them into effect without delay.

    Let me be clear about this. We got these proposals through the European Commission in pretty well record time, it wasn’t easy but we are all committed to them. Now I hope that the member states will endorse them, if not equally rapidly, at least as soon as possible. We have got a summit, proposed by the French Presidency, in the autumn. I think it would be an extremely nice gesture if by the time of that summit we were able to say that we had opened our markets to the products of the region, otherwise I think we may have some explaining to do.

    I hope that our trade measures will be met by a redoubled effort by the countries of the region to press ahead with economic reform, with the establishment of a fair and open regulatory environment, compatible with European Union practice, with transparent privatisation, with structural economic reforms. The investment compact is a valuable contribution to this process of achieving an attractive investment environment, but it is not enough to get the right laws on to the Statute Book, they have to be enforced fairly and uniformly too.

    I hope too that the countries of the region will work with the Union to maximise the opportunities offered by the information society, the opportunities offered by e-commerce which is blind to ethnic and political division and which can allow economies to leapfrog less technologically advanced rivals. The Internet is a powerful tool for creating open societies and open economies. It is already helping the independent media in Serbia, but Internet access in the region is still patchy. In Croatia the marketing value of a quality website is increasingly appreciated. But elsewhere in the region those with Internet access are thin on the ground, due not just to the lack of availability of computers, but poor telephone infrastructure. We need to address these issues as part of our overall reform efforts, for example by encouraging telecoms liberalisation, by getting the regulatory environment right and by making sure that young people and older ones too are equipped with basic IT skills.

    EU FUNDING

    Many of you work with EU funding. Let me say a word about the action we are taking to speed up its delivery and effectiveness. We have now put forward proposals for root and branch reform of the way we run things. I want to demolish our reputation for late delivery and chronic inefficiency, that means doing away with the ludicrous procedures that tie us and our beneficiaries in Kafkaesque knots.

    It means devolving authority to qualified people in the field like the best aid programmes do, and it means providing enough staff to get the job done. The Commission has 2.9 staff for every 10 million of aid that we manage. The figures in member states range from 4 to 9. The figure in Britain, where dwells one of our most enthusiastic critics, is 6.5. So my message is simple. Give us the people, let us reform and we will do the job. Otherwise, to be candid, we will just have to cut back dramatically on the scale of our programmes, but we certainly can’t go on as we are. Where we are implementing reforms it is already making a difference.

    In Kosovo for example, while the overall structure within which it has to work is far from perfect, our reconstruction agency is delivering impressive results. It does have the resources it needs to perform well. As a result the money is being disbursed, the contracts are under way. 54% of our funds for this year had been contracted by the end of May, 94% in the housing sector. In my meeting with NGOs in Pristina last week several praised the agency for its speed and efficiency. This is not something to which I am generally accustomed. The European Parliament delegation that visited Kosovo in April was impressed and concluded that there was no problem in terms of absorption capacity for the substantial sums that we judge necessary to fulfil our share of the European World Bank Needs Assessment.

    In Sarajevo, where likewise we have devolved authority to our office to sign contracts and disburse funds in Bosnia without constant reference to Brussels, and where we have beefed up their staffing, we are getting rather better results. I want to build on this by introducing a new regulation which will be called, after some difficulty, Cards, governing our assistance to the region. It is simple, light and designed to let us run programmes under the broad guidance of the Council of Ministers, but without the constant micro-management and second guessing by member states’ officials.

    We have plenty to do in the coming months, we have elections in Albania, Bosnia and Herzegovina, in Fyrom and probably in the FRY. We will work to try and ensure that those elections, including in the FRY, strengthen the hands of democrats and reformers. We have got to implement the agenda agreed at the Feira European Council last month, especially in the justice and home affairs field, working to combat organised crime.

    SERBIA

    I warmly welcome therefore President Chirac’s proposal for an EU-Balkan Summit in the autumn to take stock of our efforts in the region. I am particularly pleased that it will be held in Croatia, which will advertise widely what a difference fresh, decent and sensible leaders can make very fast. I hope that that message will get through to the people of Serbia because for the time being their country stands needlessly apart from this positive agenda. There can be no true and lasting solution in South East Europe without Serbia.

    Ten million people, crucial geographically, potentially the most productive economy, but for now Serbia drifts on isolated and alone while the rest of Europe passes it by. We look forward to the day when we can welcome Serbia to the fold and we will continue to do all we can to hasten its arrival, by tightening the screw on the Milosevic regime while lending our support to the opposition, to civil society and to the independent media. We have strengthened the financial sanctions and we are maintaining the visa ban. Javier Solana is working with us and others to promote closer ties with civil society, with NGOs, with the churches and so on, and by promoting links between Serbian and European Union municipalities. We have stepped up our support to the independent media to enable the Serbian people to hear the truth about what is happening in their country and its neighbours.

    I very much hope that the Commission will be able to launch within the next few weeks a new programme entitled Schools for Democracy in Serbia to provide small scale infrastructure improvements to schools in all opposition-controlled municipalities. It will supply visible help, blackboards, basic repair work, new desks, books and so on. This will follow on from our very successful Energy for Democracy programme over the winter, launched with the help of the G17 Group in Serbia which helped to keep the heating and lighting on in some opposition towns through the winter. It was an extremely difficult programme to run, but I am delighted that it went well and has just received an endorsement from Europe’s Court of Auditors.

    CONCLUSION

    I hope it is clear from all I have said what a central element our efforts in South East Europe represent for the European Union, for the European Commission and for this Commissioner. Our commitment is starting to make a real difference, allied to the will and the commitment of people of goodwill throughout South East Europe. We have got to remain vigilant for new flashpoints, new crises, but for the long term I am an optimist. There are more grounds for Hope – hope with a capital H – in South East Europe today than there have been for many years. Croatia, Macedonia, Bosnia, Albania, Montenegro are all at varying paces and in varying degrees now joining the European mainstream. Countries and peoples are starting to work and trade with each other again, seeing each other as markets and partners instead of political problems.

    We are forging a ring of democracies all around Serbia, a mutually reinforcing network of increasingly stable and open societies, growing in confidence all the time, less vulnerable to the malign influence of Belgrade, more and more able to demonstrate to the Serbian people that there is another road open to them – the road to Europe. This conference will I hope mark another small step along that road.