Tag: 2005

  • Queen Elizabeth II – 2005 Christmas Broadcast

    Queen Elizabeth II – 2005 Christmas Broadcast

    The Christmas Broadcast made by HM Queen Elizabeth II on 25 December 2005.

    The day after my last Christmas message was broadcast, the world experienced one of the worst natural disasters ever recorded.

    The devastating tsunami struck countries around the Indian Ocean causing death and destruction on an unprecedented scale. This was followed by a number of vicious hurricanes across the Caribbean and the inundation of the city of New Orleans. Then in the autumn came the massive earthquake in Pakistan and India.

    This series of dreadful events has brought loss and suffering to so many people – and their families and friends – not only in the countries directly affected, but here in Britain and throughout the Commonwealth.

    As if these disasters were not bad enough, I have sometimes thought that humanity seemed to have turned on itself – with wars, civil disturbances and acts of brutal terrorism. In this country many people’s lives were totally changed by the London bombings in July.

    This Christmas my thoughts are especially with those everywhere who are grieving the loss of loved ones during what for so many has been such a terrible year.

    These natural and human tragedies provided the headline news; they also provoked a quite remarkable humanitarian response. People of compassion all over the world responded with immediate practical and financial help.

    There may be an instinct in all of us to help those in distress, but in many cases I believe this has been inspired by religious faith. Christianity is not the only religion to teach its followers to help others and to treat your neighbour as you would want to be treated yourself.

    It has been clear that in the course of this year relief workers and financial support have come from members of every faith and from every corner of the world.

    There is no doubt that the process of rebuilding these communities is far from over and there will be fresh calls on our commitment to help in the future.

    Certainly the need for selflessness and generosity in the face of hardship is nothing new. The veterans of the Second World War whom we honoured last summer can tell us how so often, in moments of greatest trial, those around them seemed able to draw on some inner strength to find courage and compassion. We see this today in the way that young men and women are calmly serving our country around the world often in great danger.

    This last year has reminded us that this world is not always an easy or a safe place to live in, but it is the only place we have. I believe also that it has shown us all how our faith – whatever our religion – can inspire us to work together in friendship and peace for the sake of our own and future generations.

    For Christians this festival of Christmas is the time to remember the birth of the one we call “the Prince of Peace” and our source of “light and life” in both good times and bad. It is not always easy to accept his teaching, but I have no doubt that the New Year will be all the better if we do but try.

    I hope you will all have a very happy Christmas this year and that you go into the New Year with renewed hope and confidence.

     

  • Ben Wallace – 2005 Maiden Speech in the House of Commons

    Ben Wallace – 2005 Maiden Speech in the House of Commons

    The maiden speech made by Ben Wallace, the Conservative MP for Lancaster and Wyre, in the House of Commons on 24 May 2005.

    I am delighted to follow the hon. Member for Swansea, East (Mrs. James), whom I congratulate on her succinct speech.

    This is my maiden speech. Yesterday, while I was waiting all day to be called, it struck me that a maiden speech is a bit like a first bungee jump, leap from an aeroplane or chance to walk a girl home—while one is waiting, one does not know whether one will get one’s chance; while one is waiting for the chance, one is not sure whether one has done the right thing.

    It is an honour to speak as the new Conservative Member for Lancaster and Wyre and to represent my constituents in this House. I pay tribute to my predecessor, Hilton Dawson, who represented the people of Lancaster and Wyre for the past eight years. He was a friendly and approachable constituency MP who always managed to get out and about, and, more often than not, he put the people before his party or his politics. He worked tirelessly for the rights of children at home and abroad and always did his best to better their welfare. I wish him well in the cause to which he has returned since leaving this House, and I will always support him in the community if he needs me to.

    Geographically, Lancaster and Wyre is sandwiched between Preston and the Lake district. It is bordered on the west by Morecambe bay and on the east by the Yorkshire dales. The constituency is steeped in Jacobean and mediaeval history; indeed, the seat of the Duchy of Lancaster has been there since the 14th century. The city of Lancaster was also the first city in England to welcome the young pretender on his march south in 1744–45, so it was no surprise that, as a Member of the Scottish Parliament, I always received a warm welcome from the city. To this day, the constituency has strong links north as well as south, and I look forward to doing my best to represent the north in this House in the south.

    The constituency also has ancient history. The town of Garstang has been a market town for the past 800 years and it historically prided itself on its rural economy and trade. Now, it prides itself on being Britain’s first fair trade town, and I look forward to supporting that and increasing what is on offer to the people. The settlements of Poulton-Le-Fylde and Thornton have been in existence for nearly a millennium.

    The rich history of the constituency is reflected in the two local regiments: the King’s Own Border Regiment, which recruits from around Lancaster, and the Queen’s Lancashire Regiment, which recruits in Preston. They are well-recruited regiments with a first-class history in serving the Crown. It is a great shame that the Government, under their proposed umbrella for reform, are due to abolish those two proud regiments. It may be of note that the commanding officer of the Queen’s Lancashire Regiment is perhaps due to stand trial for action in Iraq. It is a scandal that the country does not stand by the soldiers that have been sent to Iraq on Government business. As an ex-serving officer, I would say that if our senior officers are to stand trial, perhaps some people from other Benches in this House should face a similar fate.

    I wanted to speak yesterday in the home affairs debate, because I wanted to point out that a major factor in the history of Lancaster and Wyre has been law and order, in which it has a great tradition. Lancaster castle is the oldest and longest continually running prison in Europe. It has housed debtors, executed witches and deported thieves. Poulton-Le-Fylde boasts some of the best examples of antique stocks and whipping posts. That is a bit too tough on crime and the causes of crime nowadays, but it shows the great theme in my constituency for upholding law and order.

    On a more positive note, there are good examples in the education sector, from first-class primary schools, such as St. Hilda’s and Carlton, to Garstang high school and Lancaster university. They all turn out first-class students, and the challenge for economic development in the constituency is to provide jobs for those skilled people to enter the labour market. In manufacturing, British Aerospace is south of my constituency and Glasson Grain is in it. Both struggle with fierce overseas competition and it is hoped that the Government will do more to help the manufacturing sector.

    During the general election, I campaigned on three main issues. The first was cracking down on crime, especially youth crime and antisocial behaviour, which now blights all streets across the country. I wanted to campaign also for local communities to have more of a say in planning so that, as so often happens, their decisions are not overruled from the centre. Thirdly—and more appropriate to this debate—I campaigned for better access to national health service dentists. A recent survey found that only 30 per cent. of dentists in Lancaster and Wyre would take NHS patients. If all the investment is going in at the top, why can people not get access to dentists? That surely shows that there is a flaw in the plan somewhere.

    It is appropriate in this debate for me to speak to the Conservative amendment, because my constituents are not concerned about who delivers their health care, but who commissions it. They want access to a GP out of hours, an NHS dentist and health visitors, and they also want their primary care dictated predominantly by their needs instead of being anticipated by the centre and targets.

    I want to thank the electorate of Lancaster and Wyre for sending me here, and I shall try to do my best over the next four or five years to represent their needs. I want also to thank my association, which obviously backed me; otherwise, I would not be standing here.

    I came here because I believe in defending, not denying people’s liberties. I came here because many of the constituents whom I represent live on the edge of the means test. They are not eligible for any of the benefits, but are eligible to be taxed. They do not have the cushion to absorb such measures as tuition fees or higher council tax. I came here because my constituents deserve good government, not big government. During the next few years, I shall do my best for them and for the party.

  • Gordon Brown – 2005 Speech at DfID/UNDP Seminar

    Gordon Brown – 2005 Speech at DfID/UNDP Seminar

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at Lancaster House in London on 26 January 2005.

    Let me first of all thank you for giving me the chance to speak to this gathering of men and women concerned about international development in advance of the first G7 Finance Ministers meeting of 2005. And as we prepare at the same time for the report of the Commission for Africa which will inform our discussions at G7 and G8 let me also thank UNDP and Mark Malloch Brown in particular for their leadership on development – and I welcome the recent challenging Sachs Report setting out practical proposals to achieve the Millennium Development Goals.

    Tomorrow we recall the sixtieth anniversary of the terrible events of the Holocaust.

    Let us remember how out of the chaos and tragedies of the 1940s was born the United Nations to embody our aspirations and hopes for a better world.

    And let me also thank all churches, faith groups, non-governmental organisations, all those concerned with development represented here, for your visionary, often pioneering, work. In his book ‘The Power of Myth’ Joseph Campbell described a hero as someone who have given their life to something bigger than themselves. So I want to honour you and members of your organisations as our modern heroes: fighting for great causes, standing for the highest ideals, often working in difficult conditions and bearing huge burdens and bringing the greatest of hope to those in the greatest of needs. And I congratulate you for coming together in the unique global coalition – Making Poverty History.

    I believe that this year – already a testing time for the international community – is a year of great challenge but also a year of great opportunity and – potentially – a year of destiny: for I believe that in this year we, the international community, can agree a plan for a new deal between developed and developing countries as bold and as generous as the Marshall Plan of the 1940s.

    And my purpose in speaking to you this morning is to set out detailed proposals in advance of the G7 Finance Ministers, the first of four G7 Finance Ministers meetings this year, the first to prepare for the G8 summit to be chaired by Tony Blair at Gleneagles this summer, the first when funding for work on HIV/AIDS, malaria and building trade capacity will join debt relief and funding for development on the agenda of a G7 Finance Ministers summit.

    2005 is important not simply because British chairmanship of the G7 and G8 will lead us forward to the vitally important September UN Millennium Summit where we must discuss the progress, or lack of progress, in meeting the Millennium Development Goals.

    2005 is also the twentieth anniversary of Live Aid, for millions of people the first time they were confronted by the reality of famine and death in Africa.

    And I believe that already this year the response to the tsunami – the modern world’s greatest natural disaster – has demonstrated to us all the willingness of the British people and other peoples to come to the aid of fellow human beings who suffer.

    Indeed, far from there being compassion fatigue, perhaps for the first time millions more people are understanding just how closely and irrevocably bound together are the fortunes of the richest persons in the richest country to the fate of the poorest persons in the poorest country of the world. Events which bind the world together are drawing them to the conclusion that even strangers who may never meet and may never know each other at first hand are neighbours brought together by shared needs, mutual interests, common purposes and our linked destinies, As Martin Luther King put it, increasingly we can see ourselves as each strands in an inescapable network of mutuality, together woven into a single garment of destiny.

    But it is not just enlightened self interest that is encouraging people to be concerned about the needs of the needy and the suffering of the sick, but a moral sense that we all share that leads us to conclude that when some are poor all are impoverished, when some are deprived our whole society is diminished, when some are hurt the whole society shares that suffering. That we are part of one moral universe and wherever and whenever there is poverty, deprivation and need it is our duty to act.

    And I am convinced that millions of people in Britain and in every continent who have given more generously than ever before in the aftermath of the tsunami now yearn for that unprecedented demonstration of generosity to be given enduring purpose – as Make Poverty History argues – with a new deal for all developing countries that will address the underlying causes of their poverty, their illiteracy and their disease.

    So in pursuit of this Tony Blair who set up and chairs the Commission for Africa will give a major speech at Davos on these very issues and our International Development Secretary Hilary Benn – who has played such a big part working with NGOs, organising emergency aid and visiting South East Asia in the response to the tsunami – has this morning announced a major new initiative on education funding. Indeed because the first millennium development target – gender equality for boys and girls in education – due to be met in 2005 – is not likely to be met, the United Kingdom will provide by 2008 over £1.4 billion for education with a particular focus on the education of girls. And our aim is that the 105 million children, 60 million girls, who do not go to school today will be able to go to school.

    No statistics however depressing can prepare you for the hopelessness and human loss that lies behind the numbers but I saw too amidst terrible suffering hope, optimism and a determination especially among mothers to see things change.

    From the suffering in Africa I witnessed and the potential in Africa I could glimpse it is our duty to act and to act urgently.

    In Tanzania I saw 8, 9, 10, 11 year old children begging to continue in school – but denied the chance because their parents could not pay the fees.

    In Mozambique young mothers desperate for their children to go to school waving their pay cheques of £5 a week – and raising their hands as one to complain angrily that they cannot even begin to afford the fees.

    In Kenya children chanting free education – but secondary education forever beyond their grasp.

    Yet surely it is our belief that every child is precious

    Every child is unique

    Every child is very special

    Every child deserves our support

    No child should be left out

    Every child matters

    Every child counts

    You cannot blame a child for her poverty

    You cannot hold a child responsible for her deprivation.

    You cannot condemn a child for no fault of her own.

    You cannot consider a child, however sick, as of no consequence… and dismiss her as unproductive or uneconomic.

    But that is what we allow to happen.

    But our great obligation as adults is to the child, especially the most vulnerable.

    And in turn children have a right to expect adults to take care of them.

    It is because every child counts that the potential of every child should be the foundation of our policies internationally and nationally.

    And just like the draft report of the Commission for Africa – and we look forward to the Commission’s final report – our agenda for the G7 is founded on the realisation that despite the promise of every world leader, every government, every international authority that by 2015 we would achieve primary education for all, a two thirds fall in infant mortality and a halving of global poverty, at best on present progress in sub Saharan Africa:

    primary education for all will be delivered not as the Millennium Development Goals solemnly promised in 2015 but 2130 – that is 115 years late;

    the halving of poverty not as the richest countries promised by 2-0-1-5 but by 2-1-5-0 – that is 135 years late;

    and the elimination of avoidable infant deaths not as we the richest nations promised by 2015 but by 2165 – that is 150 years late.

    Africans know that it is often necessary to be patient but the whole world should now know that 150 years is too long to ask peoples to wait for justice.

    And I say to this audience: justice promised will forever be justice denied until we remove from this generation the burden of debts incurred by past generations.

    Justice promised will forever be justice denied unless we remove trade barriers that undermined economic empowerment.

    Justice promised will forever be justice denied unless there is a plan for Africa and all poorest countries as bold as the Marshall Plan of the 1940s, releasing the resources we need to match reform with finance to tackle illiteracy, disease and poverty.

    So the first essential element of a 2005 development plan for a new deal is that we take the final historic step in delivering full debt relief for the debt burdened countries with a new agreement on multilateral debt relief that will enable billions to be reallocated to education and health in the poorest countries.

    I have seen what has been achieved because of debt relief so far.

    Because of debt relief in Tanzania 31,000 new classrooms have been built, 18,000 new teachers recruited and the goal of primary education for all will be achieved by the end of 2005.

    Because of debt relief in Mozambique half a million children are now being vaccinated against tetanus, whooping cough and diphtheria.

    But when many developing countries are still choosing between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    Up to 80 per cent of the historic debt of some of the poorest countries is now owed to international institutions and I have set out detailed proposals to use IMF gold to write off debt owed to the IMF; to ask World Bank shareholders to take over the debts owed by up to 70 of the poorest countries to them; and having signed long term agreements already with Tanzania, Mozambique and then with other countries, we – Britain – have announced that from now until 2015 we will take responsibility for our share – 10 per cent – of the World Bank debts —- making this offer not just to the 37 heavily indebted poor countries but to all low income countries, as long as they can ensure debt relief is used for poverty reduction.

    We make this offer unilaterally but we are now asking other countries to join us contributing in this way or to a World Bank trust fund.

    And I also ask the European Union which deserves credit for more than 1.5 billion euros of debt relief so far to match that generosity with deeper multilateral debt relief.

    Alongside more debt relief, 2005 is the opportunity that may not easily return if missed to agree a progressive approach to trade.

    We all know the damage that rich countries protectionism has done to the poorest and our proposals mean Europe and the richest countries must agree to open our markets, remove trade-distorting subsidies and in particular, do more to urgently tackle the scandal and waste of the Common Agricultural Policy. We must also amend the Rules of Origin requirements – requirements which instead of promoting fair trade have become a barrier to fair trade – and agree new simple Rules of Origin coordinated across continents. And I call on the EU in its work on Economic Partnership Agreements to take a non-mercantilist approach and put development first so that poor countries are able to sequence their trade reform within their poverty reduction strategies and participate on equal terms in the international economy.

    But – as I have heard from every African President, Prime Minister, Finance Minister and Trade Minister I have met – although trade justice matters so too does making sure developing countries have the additional resources they need to take advantage of trading and investment opportunities – and to prevent their most vulnerable people from falling further into poverty as they become integrated into the global economy.

    It is not enough to say ‘you’re on your own, simply compete’.

    We have to say ‘we will help you build the capacity you need to trade’.

    Not just opening the door but helping you gain the strength to cross the threshold.

    Infrastructure is key.

    Even today for 12 African countries less than 10 per cent of their roads are paved.

    Telecommunication costs are such that calls from the poorest countries to the USA are five times the costs of calls from a developed country.

    While water and sanitation underpin health and development, even today 40 billion working hours in Africa each year are used up to collect water.

    And while tariff costs are often highlighted, it is actually transport costs that often constitute a bigger burden of the cost of exporting. With freight and insurance costs representing 15 per cent of the total value of African exports it is difficult for them to be competitive.

    So we must also provide developing countries with the additional resources they need to build physical infrastructure – road, rail, electricity, telecommunications – institutional capacity – from legal and financial systems to basic property rights – and, of course, investment in human capital to enable growth, investment, trade and therefore poverty reduction.

    We support the proposals put forward by the Africa Commission on infrastructure:

    a fund to support infrastructure priorities;

    loan finance for small and medium sized businesses and for micro-credit;

    a science and technology and tertiary education plan;

    and a plan for rural development, irrigation, research, encouragement of local markets, land reform and environmental improvement.

    And at its very core this economic development plan demands that all of us, rich and poor countries alike, be fully transparent in our dealings, unapologetically address corruption, be truly accountable, show where the money goes. And the way to achieve this is for all of us to put transparency and the best governance into practice by all of us, rich countries and poor together, opening our books – with, in particular, a new honesty amongst the richest countries about the levels of developed country protectionism and of tied aid. So I repeat: we will open our books, all countries must also open their books.

    But to progress what voices all over Africa demand on debt and trade cannot happen unless there we take a third step — a substantial increase in resources for development, to tackle illiteracy, disease and deprivation.

    Making better use of existing aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek. But we must recognise that while ten years ago aid to Africa was $33 per person, today it has not risen but fallen to just $27 so we are a long way short of the predictable, regular financing necessary to make the difference that is needed.

    While the Marshall Plan transferred 1 per cent of richest country’s national income to the poorest, our proposal is for each of the richest countries to reach 0.7 per cent of national income in long-term and predictable aid for investment. I congratulate Par Nuder and the Swedish Government for their leadership – having already reached 0.7 – and I urge all countries to join us in becoming countries which have either already reached 0.7 or have set a timetable towards it.

    We are of course prepared to consider all proposals for raising international finance including international taxes and are happy to do so in detail. But I believe that even as we do so we should also agree to create now, this year, on the road to 0.7 per cent, an International Finance Facility (IFF) that each year from 2005 to 2015 generates $50 billion a year more of resources — the quickest, most effective way of guaranteeing long-term, stable, predictable funding.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional $16 billion already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    I welcome President Chirac’s proposals today to raise additional international finance and his initiative on international taxation to back and complement the IFF. And I thank him for his support for immediate implementation of the IFF.

    With one bold stroke: doubling development aid to halve poverty.

    $50 billion more in aid a year each year for the poorest countries.

    Our fourth objective made possible by the International Finance Facility is to provide the $6 billion more a year needed to fund primary education free of charge – ensuring the 105 million children today and every day denied schooling can learn with classrooms, teachers and books. And with the IFF we can ensure all developing countries have the increased, predictable, up front funding they need to abolish user fees and enable more effective teacher recruitment and training, greater provision of teaching and learning materials, improvements to school buildings and sanitation facilities, and special help to get girls into education.

    Our fifth objective for which there is a detailed implementation plan drawn up by and coordinated by the Department of International Development is that the IFF provide the proper funds that would allow us to build health care systems, match the medical breakthroughs now being achieved in developing a preventive vaccine for malaria by the farsightedness of an advance purchase scheme that could prevent the loss of more than 1 million lives a year because of this dread disease, and tackle HIV/AIDS with the first comprehensive plan from prevention to cure and care.

    AIDS is not a curse that we must deny said Nelson Mandela, it is a disease that can be defeated and the way forward on HIV/AIDS cannot involve one initiative in isolation but requires a comprehensive strategy:

    a global advance purchasing scheme to ensure that vaccines go into commercial production and are available at affordable prices;
    prevention, treatment, and care for all those who need it including increased and more predictable funding for the Global Fund to Fight AIDS, TB and Malaria;

    the development of essential healthcare systems with well-trained staff and equipment, and the abolition of health user fees for basic health services;

    a global anti-poverty strategy – in particular funding the development of education and sanitation systems which can reduce the chance of infection and help sick people stay healthy longer.

    And because only £400 million a year is spent on research for a preventive HIV/AIDS vaccine and because the challenge is to internationalise HIV/AIDS research, coordinating it worldwide, sharing information globally, more widely and more rapidly, with resources directed to the top scientific priorities, the G7 will – for the first time – discuss a joint UK-Italian paper on financing a worldwide infrastructure for sharing and coordinating research in AIDS and then for encouraging the development of viable drugs, vaccines and other technologies such as microbiocides.

    And let me give you a glimpse into what is possible by applying the principles of the International Finance Facility to the work of the Global Alliance for Vaccines and Immunisation (GAVI).

    Over the last five years GAVI have immunised 50 million children round the world – the most successful global immunisation programme in history.

    So Hilary Benn and I welcome the announcement made yesterday by both the Gates Foundation and the Norwegian Government for an additional $1 billion for GAVI to spend on immunisation over the next 10 years.

    GAVI have, together with the UK, France and the Gates Foundation, developed a proposal to apply the principles of the IFF to the immunisation sector — with donors making long term commitments that can be leveraged up via the international capital markets in order to frontload the funding available to tackle disease.

    On behalf of the United Kingdom the International Development Minister Hilary Benn will announce today that we propose to make a substantial contribution for 15 years to this new financing facility for immunisation of $1.8 billion.

    We are urging other donors to also contribute. And if, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over the next ten years, it would be possible to save the lives of an additional 5 million people between now and 2015 and a further 5 million lives after 2015.

    If this is what we can achieve by applying the principles of the IFF with one fund and one initiative think what we can achieve not just in health but in education and economic development.

    So the aim of the International Finance Facility is to bridge the gap between promises and reality.

    Between hopes raised and hopes dashed.

    Between an opportunity seized and an opportunity squandered.

    It is about action to right wrongs this year, now, urgently. No longer evading, no longer procrastinating, no more excuses, not an idea that will take years to implement but one which can move forward immediately.

    I welcome the support given to the IFF by almost fifty countries. And in the forthcoming G7/8 discussions we will ask all countries to join those who have already given their backing to support and sign up to the IFF — and we will be setting out a framework within which we can implement it.

    It is because I believe the need for action is urgent that we must act now.

    I saw in Africa – more clearly than anything else:

    a healthcare system in crisis;

    and education in crisis too;

    and the terrible human cost of these failures.

    We take it for granted that education and health are universal and free. But the people of Africa are doubly disadvantaged for instead of a free education and free health service African countries increasingly charge for secondary schooling and charge even for the most basic of medical drugs and fees for visits to doctors.

    And just as I have seen in the countries I visited displays of real anger at charges in education so too I have seen real anger at charges for health care.

    Just as millions of school age children who have hopes and aspirations for themselves and their country are deprived of their potential, so too millions of people who are sick or injured or simply frail are deprived of the life saving health care they urgently need.

    Yet when Kenya made education free over 1 million more children turned up for school. When Uganda made education free numbers in school rose from 2.6 million to 6.5 million in three years. When Malawi introduced free primary education there was an immediate jump in enrolments of 50 per cent – an increase of more than 1 million children going to school. And when South Africa and Uganda abolished health users fees the poor started to appear in our hospitals and surgeries for treatment.

    What I want for my child, I want for all children and there is a strong case for children and families not just in some developing countries but in all developing countries enjoying basic health care services free at the point of need based on need not ability to pay. And there is a strong case for recognising that to develop the potential of not just some of our children but all our children, education should be universal and free and so send a message that the best way you can defeat poverty is through free education and free health care available to all.

    Indeed I believe that the response to the tsunami showed what the debate this year on a new deal for developing countries will show: that, as Rabbi Jonathan Sacks has written, we cannot feast while other starve, we cannot be well while other languish in sickness or disease, we are not truly free when others are in servitude. More than that, as he writes, societies achieve true and enduring greatness not because of the way they help the strong but because of the way they come to the aid of the weak, not by how they acclaim those who have power but by their concern for the powerless – and not by how they reward the wealthy but by the care they show for the poor, and the compassion they show to the vulnerable.

    And this is what happened in 2000 when first hundreds, then thousands, then millions of people first in one country then in one continent, then in all countries, and in all continents came together to demand an end to the injustice of unpayable debt and in doing so changed the world. And we can do this again. For I believe support for a year of change is growing wider and deeper with already in ‘Making Poverty History’ more than a hundred aid, development, and trade organisations and anti poverty organisations coming together in demonstrations, campaigns, petitions – in challenging Government to make poverty the issue of the year.

    And so when people ask whether we can make a difference this year, when they say that our proposals are too difficult, we should reply:

    doubters thought the original plans for the World Bank were the work of dreamers;

    doubters thought that the Marshall Plan unattainable;

    doubters thought apartheid would last for ever and Nelson Mandela would never be released;

    and just as in 1997 doubters thought debt relief an impossible hope, doubters even in the last year thought no more countries would sign up

    to a timetable for 0.7 per cent in overseas development aid and yet in that year alone five countries have done so.

    And so next week in this very building I will start my discussions with my G7 colleagues about debt relief, 0.7, the International Finance Facility and funding for trade capacity, education and health.

    A few months ago I quoted a century old phrase saying ‘the arc of the moral universe is long but it does bend towards justice’.

    This was not an appeal to some iron law of history but to remind people in the words of a US President that ‘the history of free peoples is never written by chance but by choice’ – ‘that it is by our own actions that people of compassion and goodwill can and do change the world for good’.

    And I believe that:

    with our determination not diminished but intensified;

    with the scale of the challenge revealed;

    with the clamour of public opinion calling for action now – resonating here in Britain and reverberating across all countries; and

    with a determination among world leaders to be bold;

    the arc of the moral universe while indeed long will bend towards justice in the months and years to come.

    To remind you of Seamus Heaney’s poetry about Nelson Mandela’s release:

    ‘A further shore is reachable from here…
    Once in a lifetime justice can rise up
    And hope and history rhyme’

    That is our task, our challenge, our opportunity.

  • Gordon Brown – 2005 Speech at the Volunteering Conference

    Gordon Brown – 2005 Speech at the Volunteering Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 31 January 2005.

    Let me start by welcoming you all to the Treasury for this conference held at the start of 2005 – the Year of the Volunteer.

    In the last few weeks the generosity of the British people has been humbling.

    More people giving spontaneously to the tsunami appeal than at any time and in any previous appeal.

    Mothers and young children giving often more than they can afford.

    More money raised for a single appeal than at any time in our history.

    Men and women drawn closer than ever together by a shared determination to help, to care, to heal the wounds.

    This concern for others has resulted in £250 million being raised by the British public for the tsunami victims so far.

    And we estimate that after Gift Aid – and the waiving of VAT on the national concert and record – nearly £300 million will have been raised.

    The facts that are now available show that 81 per cent of the adult population gave to the tsunami appeal.

    I believe that in Britain giving per head amounted to twice that of the USA and three times that of some of our European neighbours.

    So Britain can indeed be proud that the demonstration of sympathy and solidarity has been followed by a demonstration of financial support and voluntary action – people responding urgently and generously.

    But something else happened which makes me believe that while 2004 ended in the horror of the world’s greatest modern natural disaster 2005 has begun in hope – that millions of people can come together for good.

    We have seen the extraordinary power of nature to destroy but we have also seen the extraordinary power of humanity to build anew.

    And not only has money been given but while doctors, nurses, aid workers went from Britain to the scene of the disaster, throughout Britain also thousands of men, women and children gave up their holidays and their spare time to help in charity shops and volunteer for relief organisations – showing the deep seated generosity of spirit of the British people.

    In Britain today there is no compassion fatigue: in Britain today there is a goodwill mountain waiting to be tapped.

    So in addition to the more simplified Gift Aid scheme which makes it easier to give and which is worth over half a billion pounds a year, I can say that we are discussing for implementation, and are interested in hearing from you today, how we can do more to extend regular payroll giving to charity especially among employees of small business. And we are today publishing details on how businesses can give more easily to charities.

    And I sense a new spirit in Britain: that the people of Britain want this unprecedented demonstration of generosity to be given enduring purpose.

    And I believe at the heart of that enduring purpose is that we make it possible for more men and women – and especially young men and women – to engage in voluntary action nationally and internationally.

    Already 3 million young people volunteer each year.

    41 per cent of young people are involved in formal volunteering and 67 per cent in some sort of informal volunteering.
    But we can do more.

    So it is appropriate that in 2005 – the Year of the Volunteer – we now ask how we can do more to convert what have been magnificent spontaneous acts of generosity from people never before involved in giving of money or time into lasting commitment to engagement in our community — and this is the theme of my remarks today.

    And so I want today to discuss with you:

    – how for the future we can do more to make possible the giving of time by volunteers – in particular, to deliver a step change in the participation of young people in volunteering activity;

    – how we can help young and older people fulfil their potential by expanding and extending the scope of mentoring – including by using modern means of communication to provide access to help, advice, information and guidance;

    – and how business as well as individuals can be more involved in volunteering and mentoring activity.

    In the 1960s from America there was launched the Peace Corps – an international commitment to harness the idealism many felt in the face of threats to human progress.

    Now here in Britain in 2005 we are considering a new British corps – with the same objective of harnessing the idealism of young people, to make them partners in human progress.

    Since the 1960s we have seen President Clinton’s Americorps and President Bush’s Freedom Corps and today in the United States four times as many young people have signed up for voluntary work than in the 1960s.

    And just as young people are engaged in national community service in America and now in South Africa, the Netherlands and Canada – working across racial and regional lines to build a stronger national community, constructing tens of thousands of homes, immunising hundreds of thousands of children against disease, and teaching millions to read – so too
    I believe that a new call to service should be issued to all young people in Britain – with a new national framework and new opportunities to engage a new generation of young people in serving their communities.

    And from the Russell Commission – set up by the Treasury and by David Blunkett last year – which has been listening to what young people want, working with organisations like many here today that are already working successfully with young people, is emerging a proposal for a step change in the numbers of and level young people engaged in voluntary activity – with proposals to provide nationally and locally the means by which they find it easy to participate and to make the experience more appealing, more accessible, more relevant and more rewarding to them.

    And so in this Year of the Volunteer Charles Clarke and I want to build upon the ambition of the Russell Commission’s early proposals.

    Building upon the current engagement of young people – 3 million each year in voluntary work – we find that a majority of young people aged 15 to 24 year old – 59 per cent – want to know more about how to get involved in their communities.

    And this is the goodwill mountain I have talked about that – with the Russell Commission’s recommendations on the way – is waiting to be tapped.

    Let us set an objective: that national youth community service becomes a feature of the lives of the majority of young people.

    Let us set a practical aim: that the majority of young people do volunteer and that over the next five years 1 million new young people become volunteers.

    Let us now set a national framework: business, government and the voluntary sector working together to encourage, enthuse and engage youth in community action.

    And let us create new opportunities for national community service from short-term projects to one year of national community service.

    A gap year should not be available just to those whose parents have money and can afford to pay their teenage sons and daughters through a year off from studies.

    So from this spring through Project Scotland 450 young Scots will have access to new volunteering opportunities, including help with travel and basic living expenses.

    Here in England our pilot gap year programme encourages school-leavers who cannot afford to do so from their own funds to enjoy a gap year — a year of service in their own communities. And more than 250 volunteers have benefited from this programme so far.

    But we need to go further – to tap into the enthusiasm young people have at an early age, to build support for volunteering in the community, to encourage lifelong volunteering not just a one-off gap year project.

    And in particular we know that young people are keen on two to three month or part-time volunteering and community service opportunities – with the finance to back up their efforts.

    I know that Ian Russell is talking to the top 100 companies in Britain and calling for their engagement.

    I look forward to the Russell Commission’s report in the spring.

    And then we will set out how, in direct partnership with the voluntary and community sector, business and – crucially – with young people themselves, we can do more.

    But why do we believe these volunteering opportunities are so important ?

    I was brought up in the town of Kirkcaldy – the home of Adam Smith who described in his Wealth of Nations the economic benefits of markets – ‘the invisible hand’- but the same Adam Smith in his Theory of Moral Sentiments extolled the virtues of co-operation and altruism – that is ‘the helping hand’.

    And the community where I grew up revolved not around only around the home but the church, the youth club, the rugby team, the local tennis club, the scouts and boys brigades, the Royal National Lifeboat Institution, the St Johns and St Andrews Ambulance Society…community not in any sense as some forced coming together, some sentimental togetherness for the sake of appearances, but out of a largely unquestioned conviction that we could learn from each other and call on each other in times of need, that we owed obligations to each other because our neighbours were part also of what we all were: the idea of neighbourliness woven into the way we led our lives.

    And while some people say you have only yourself or your family, I saw every day how individuals were encouraged and strengthened, made to feel they belonged and in turn contributed as part of a intricate local network of trust, recognition and obligation encompassing family, friends, school, church, hundreds of local associations and voluntary organisations.

    And while it is easy to romanticise about a Britain now gone, I believe that there is indeed a golden thread which runs through British history not just of the individual standing firm for liberty but also of common endeavour in villages, towns and cities – men and women with shared needs and common purposes, united by a strong sense of duty and fair play.

    There is a strong case for saying that in the age of enlightenment Britain invented the modern idea of civic society – rooted in what the Scottish philosopher Adam Fergusson called our ‘civil responsibilities’, eventually incorporating what Edmund Burke defined as ‘little platoons’: ideas we would today recognise as being at the heart not only of the voluntary sector but of a strong society.

    And this is my idea of Britain and britishness today. Not the individual on his or her own living in isolation sufficient unto himself but the individual at home and at ease in society. And in this vision of society there is a sense of belonging that expands outwards as we grow from family to friends and neighbourhood; a sense of belonging that then ripples outwards again from work, school, church and community and eventually outwards to far beyond our home town and region to define our nation and country as a society.

    Because there is such a thing as society – a community of communities, tens of thousands of local neighbourhood civic associations, unions, charity, voluntary organisations and volunteers. Each one unique and each one very special. A Britain energised by a million centres of neighbourliness and compassion that together embody that very British idea – civic society. And I believe that in future charities, voluntary groups and community organisations can have an even bigger role in our social provision.

    Call it community, call it civic patriotism, call it the giving age, or call it the new active citizenship, call it the great British society – it is Britain being Britain. And my vision is of communities no longer inward-looking and exclusive, but looking outwards, recognising that when the strong help the weak we are all stronger. National leadership not seeking centre stage, but creating space for the neighbourliness and voluntary energies of millions of people to light up our country.

    And this is voluntary action not doing things for people – and creating a dependency inducing relationship – but doing things with people, working for the common good. People – over the life cycle from the cradle to the grave – helped in childhood, helping in youth and adulthood, helping again – and helped in old age – reciprocity across the generations – making a reality of Burke’s definition of society as ‘a partnership extended over time’.

    And we all know the real strengths of voluntary action and volunteering.

    That volunteering is most often about the one to one, person to person, face to face, help advice and support that is not available in impersonal or standardised services but where, with the emphasis on the individual, the person who volunteers can provide solutions that others cannot.

    John Dilulio – former head of the White House Office of Faith-based and Community Initiatives – quotes a conversation between Eugene Rivers, a Minister in Boston, worried about his hold on a new generation of young people and a local youth who has not only become a drug dealer but has a greater hold now over the young people. ‘Why did we lose you?’ asks the Minister to the drug dealer. ‘Why are we losing other kids now?’ to which the drug dealer replies: ‘I’m there, you’re not. When the kids go to school, I’m there, you’re not. When the boy goes for a loaf of bread …or just someone older to talk to or feel safe and strong around, I’m there, you’re not. I’m there, you’re not…’

    So voluntary action is indeed about being there.

    And voluntary action, while sometimes conducted through national organisations, is characteristically local: volunteers working on the ground, at the grass roots, at the heart of local communities, far better positioned than ever a government official could be both to see a problem and to define effective action.

    As has so often been said, you do not rebuild communities from the top down. You can only rebuild one family, one street, one neighbourhood at a time. Or as faith based organisations often put it – one soul at a time.

    Indeed, in the face of drugs, crime, vandalism and social breakdown, volunteers – there on the ground, one to one, person to person – really do matter and make the difference that others cannot.

    And so too does the second great strength of those who volunteer – their ability to identify unmet needs and to meet them.

    Long before government took notice, individuals in community action and voluntary associations saw wrongs that had to be righted – from university settlements, organisations to help the homeless and feed the hungry and care for the sick – to, even today, innovations from the hospice movement and the treatment of AIDS to playgroups, mothers and toddler groups and volunteering amongst old people.

    And through their capacity to innovate, to do new things, to break new ground, to cross new frontiers, to do what standardised services often cannot do – to try things out, to work informally, to do things differently – volunteers and voluntary organisations often change the way we see things and do things.

    And that brings us to the third great strength of volunteering – never to be matched by government action: that it is in itself an education in citizenship for volunteers and recipients alike.

    Volunteering doesn’t just have practical benefits to for those that give up their time – boosting employability for example – but, as the Russell Commission has found for young people, it broadens people’s horizons, giving them a chance to experience new possibilities, develop new skills, gain confidence, build networks that will benefit them throughout their lives and is thus an education in citizenship.

    And even more than that. Those who embark on voluntary action out of a sense of duty often end up with the realisation that it has brought a new richness of meaning to their own lives – that in the giving, they have received in a different way as well.

    And because voluntary and community action is so important, we as a Government have tried to work with voluntary groups, nationally and locally, to enable them to do more and to make the difference they want to achieve.

    A lot has already been done.

    But despite the wonderful efforts of many great organisations, many people still don’t know how to volunteer, where to go, who to ask for help.

    Many don’t understand that you can give some of your time without giving all of your time.

    And many – particularly the young – find formal volunteering complicated and confusing.

    And so I believe we must look at new and innovative ways of helping.

    In the United States some firms give their employees a week off for voluntary work. In other places, the expenses of volunteers are paid, and in some places the tax system works to make things easier. But often it is not about financial incentives to volunteer, but about making the connections so that those who need help can link up with those who want to help.

    And I want to set down what we will and can do

    First, we need to make information about, and access to, volunteering easier. Too often in the past we have been very conservative and we have got to do better. In particular there are huge opportunities through better use the internet, TV, media, and just local word of mouth — and I am pleased that earlier this month Charles and I were able to launch the new Year of the Volunteer website which will provide information and advice on how to volunteer.

    Second, we need to widen the range of opportunities available. Too often volunteering can be seen as boring rather than exciting; not stretching or challenging. Indeed, sadly, volunteering remains a persistently old fashioned concept to many.

    Third, we must also play a greater role in recognising volunteering – encouraging schools to do more and persuading businesses to give employees more time off for volunteering and better reward the importance of qualifications from volunteering experience when recruiting.

    And, fourth, we have to examine and then remove any barriers to volunteering — looking at possibilities such as help with travel and living expenses, with government and business both playing a role.

    And in addition to encouraging volunteering in new ways, I turn to initiatives to encourage mentoring.

    The central element of mentoring is a long-term, personal, one-to-one relationship in which, over time, the experience and knowledge of one person helps another to learn and to grow.

    It is an approach that is being adopted everywhere from schools to the career service to the workplace, and for everyone from looked-after children, to new entrepreneurs, to the long-term unemployed, and from gifted children to under-achievers.

    You might say mentoring is about befriending; about people helping people and people needing people to make the most of themselves and be all they can be – bridging the gap between what they are and what they have it in themselves to become. Giving advice and help on everything from school courses to careers in music or businesses to very personal advice on growing up. And while adult mentors are most common, a young person will often benefit from having another young person as a mentor, especially one who shares similar life experiences. And that young person often will go on to mentor someone else. It is a rare form of volunteering – one that generates its own recruits.

    In one programme for young people at risk in the United States, those befriended or mentored were 46 per cent less likely than others to use drugs and 27 per cent less likely to use alcohol. They were also less likely to get into fights or to be truant from school.

    On a smaller scale, we are seeing similar encouraging results in Britain: Chance UK, a child mentoring scheme, has found that three quarters of mothers interviewed saw positive changes in their child’s behaviour; four out of five regarded their child’s mentor as a good influence; and over two thirds reported benefits for their own relationship with their child. Another programme – Roots and Wings – showed that mentoring can significantly increase the chances of young people staying on at school.

    So for the schools still with no mentoring, new programmes are being sponsored by both the Home Office and the Department for Education.

    Mentoring is also an important component in the Connexions Service – the new careers and guidance service for 13 to 19 year olds – with young people acting as peer mentors and role models for other young people.

    And this month Fiona Mactaggart launched a new national Mentoring and Befriending Foundation, backed up by over £4 million, to help mentoring organisations expand their activities into communities that are not yet being reached and create new regional mentoring information points.

    But there is much room for growth, much more to be done.

    I wonder, for instance, whether – whilst taking consideration of child safety issues – we could not explore more innovative ways of utilising technology in recruiting and training mentors and to link those who need help and advice to those who can help and advise.

    In America the superb site www.mentoring.org provides a modern and accessible national infrastructure for local mentoring organisations. And here in the UK, the voluntary sector is already taking advantage of new technologies – Timebank and Do-it for example are using the internet to register both volunteers and opportunities and can connect and match volunteers with opportunities in a highly efficient way.

    In particular, there is a phenomenon that I know is already happening on-line which I think promises perhaps the biggest and most exciting new opportunity for the growth of mentoring – and that is the phenomenon of spontaneous community.

    Just look at the success, for example, of the big websites such as Ebay, Friends Reunited (with 8.5 million members alone), u.date – using the power of it to create social networks, connections and affiliations.

    On these websites and hundreds of others, thousands of people who will never and would never meet are finding out that they share life experiences, opportunities and problems and are entering into informal, anonymous, often temporary relationships which nevertheless are deeply supportive and meaningful to them at what are clearly key moments in their lives.

    I have seen connections made and interventions happen on-line that simply would not have happened in ‘real life’, either because those people would never have met to discover that they share a problem, experience or opportunity, or indeed that they would never have confided in anyone else to the extent that they do in an anonymous forum. Effectively they are e-mentoring each other.

    And if this phenomenon could be harnessed, made safe and facilitated, the potential for this type of informal engagement could be huge. It will teach people that there own life experiences are valuable to others going through the same thing, thereby making more social capital available to more people. It will demonstrate that everyone can give and receive advice and support. And of course it will give millions of young people a positive experience of social engagement which could, if captured, provide ‘training wheels’ for deeper involvement and a broad scale feeder mechanism for the volunteering movement as a whole.

    I’m aware of a very exciting cross sector initiative that is under way to launch exactly this kind of ‘life experience exchange’ called ‘Horse’s Mouth’, and I would encourage you to find out more about it while you’re here today.

    And this leads to the final area where I want to make new suggestions – how we work together to translate the widespread social concern that exists among employers and employees alike into effective action for the common good.

    There are already good examples of here in the UK.

    Businesses like BT, IKEA, JCB and the City Group Foundation who donated time, money and expertise to the tsunami appeal – indeed in total companies have given around £50 million to the appeal.

    Organisations like Business in the Community, Heart of the City and the Charities Aid Foundation which are matching business support with charities that need help.

    Initiatives like:

    – Pro-help – through which 900 firms have donated their professional services to community and voluntary organisations;

    – Cares – now operating in 21 cities already, engaging 35,000 employee volunteers and ready to expand into new areas;

    – Business Action on Education – which encourages and facilitates business engagement in schools;

    – Business Broker Pilots – to get businesses more involved in neighbourhood renewal;

    – Business Bridge – where larger businesses mentor small and medium sized enterprises;

    – Tsunami Promise – which encourages employees to give through their salary to the charities involved in the reconstruction effort;

    – and many more, not least the full range of mentoring projects which companies have embraced.

    But now is the time to look at what more can be done, to scale up activities, share best practice, and make even more of a difference.

    We know from America that corporate giving of money and time can reach new heights – through organisations like ‘Business Strengthening America’, for example, 1000 businesses and 100,000 employees are engaged in service in their communities and in total 35 per cent of us employees give to charity through their payroll compared to only 2 per cent in the UK.

    That is why the Treasury and the Home Office is today publishing a new guide explaining the tax incentives for corporate giving and making it easier for business to contribute.

    And Charles Clarke and I are today issuing a call to business to do more with Corporate Challenge – where more than 60 companies have already nominated champions but much more can be done.

    You would expect me to conclude with some remarks about money.

    Since 1997 the Government has tried to encourage the giving of money:

    the more simplified Gift Aid scheme which makes it easier to give;

    improving payroll giving by removing the limit on donations, introducing and then extending the ten per cent government supplement and

    promoting the scheme to employers with new grants to encourage payroll giving amongst small business – which has together led to a near trebling of payroll giving in the last four years.

    In the coming few years our public spending discipline will not waver. We will meet and continue to meet our fiscal rules. There will be no relaxation of that discipline in our election manifesto. Priorities will be rigorously selected and pursued. And there will be no short cuts or easy options adopted in the maintenance of fiscal prudence.

    But you know the priority we accord to support for voluntary action – indeed I know you will be discussing many of these issues in more detail with Paul Boateng this afternoon – and so with 2005 the Year of the Volunteer I believe it is the moment also to do more to encourage the giving of time —- for we all know that we need, in this generation, to encourage young volunteers, new kinds of volunteers, lifelong volunteers and in doing so to create new volunteering opportunities and together encourage networks that match those who can give help to those who need help.

    We have tried to work with you on key initiatives – not trying to set the direction but enabling you, often with seed-corn finance, to build the infrastructure of caring you need:

    the internet-based database – www.do-it.org.uk – providing individuals with free and direct access to volunteering opportunities throughout Britain;

    Timebank – which since its launch in 2000 has matched over 50,000 people to volunteering opportunities in their local communities;

    Community Service Volunteers – with more than 40 years experience in providing high quality volunteering opportunities;

    and Millennium Volunteers – which to date has signed up 150,000 young people.

    But – as I have set out today – I believe we can go further

    My late father always said that each of us could make a difference. We could all leave in his words, ‘our mark for good or for ill’.

    He said that it was not IQ or intelligence or, for that matter, money that defined whether you made the best mark in your society.

    He believed in Martin Luther King’s words, that everybody could be great because everyone can serve.

    So I certainly grew up influenced by the idea that one individual, however young, small, poor or weak, could make a difference.

    Robert Kennedy put it best

    ‘Let no one be discouraged by the belief there is nothing one man, one woman can do against the enormous army of the world’s ills…against misery and ignorance, injustice and violence’ he said. ‘Few will have the greatness to bend history itself but each of us can work to change a small portion of events and in the total of all these acts will be written the history of this generation’.

    And together, across the country, volunteers are ensuring not only that service remains an honourable tradition in Britain but that as
    old person helps young person;

    young helps old;

    neighbour helps neighbour;

    mentor helps mentored;

    business helps community;

    service can make us a stronger, more caring, more resilient society.

    Indeed, I believe we can realise a new greatness in Britain not in high politics but in the millions of quiet, often uncelebrated, deeds and acts of kindness courage and humanity of people all over our country.

    And that is why the Year of the Volunteer is so important – an opportunity to celebrate the achievements of not just those volunteers here today but all those across the country; a chance to tell everyone about the volunteering opportunities available and encourage more people, more employers, more organisations to get involved as we strive in 2005 to engage a new generation in serving their communities.

  • Gordon Brown – 2005 Speech at the Sustainable Communities Summit in Manchester

    Gordon Brown – 2005 Speech at the Sustainable Communities Summit in Manchester

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Manchester on 2 February 2005.

    It is a pleasure to be here in Manchester today.

    The economic heartland of our country. Once remembered most for its role in the industrial revolution, now the largest and fastest growing city outside London. Home to six higher education institutions and 90,000 students. Leading in high-quality research with specialist facilities like the Daresbury laboratory.

    And I want to congratulate Manchester on becoming one of our first science cities nurturing world-beating businesses in hi-tech sectors from biotechnology and pharmaceuticals to digital electronics.

    Now I can genuinely say that the Treasury and I are privileged to be associated with the challenge, led by the Deputy Prime Minister John Prescott, of creating sustainable communities in our towns, cities and rural areas.

    And I want to start this morning by welcoming our distinguished international visitors to Britain and by congratulating all the participants here:

    councillors

    local authorities

    regional development agencies

    town planners

    academics

    community groups

    companies

    specialists in every field and from every continent

    on the huge advances that have been made in our understanding of, and action on, what makes for quality of life in our communities: advances in the study and practice of geography, planning, the built environment, the role of cities in regions and – my theme today – understanding of the economic and social forces at work in poorer communities.

    And I want to thank you for the work you do, the service you give and contribution you make.

    The fact that you have all come together today; that you are focusing on the role of regional development agencies, local government, local communities; that you are discussing how working together we can transform communities into sustainable communities; is a reflection of how both economic policy and how regional and urban policy are being transformed – and you might say humanised – and it is this I want to talk about today.

    I think most of you would agree that 50, 20 or even 10 years ago the idea that the Treasury would be interested in issues like public space, the design quality of public procurement, environmental standards, devolution, regionalism and social exclusion would be almost unthinkable.

    But we know that not only are these questions vital to successful, economically vibrant communities but they are at the heart of the agenda for social and economic progress.

    The goals we seek should be high and stable levels of growth employment and sustainable development.

    So I now believe that Finance Ministers faced with the challenge of environmental degradation and the need for sustainable communities have to ensure that economic, social and environmental policies are better in balance than ever before.

    But there has been a second major change that Finance Ministers have had to recognise – and it goes to the heart of what you have been discussing in each of your sessions yesterday.

    The old idea in regional economic policy was of help directed from the centre.

    Think of Britain’s first generation of regional policy, before the war: essentially ambulance work getting help to high unemployment areas – central government providing first aid.

    And then the second generation in the 1960s and 1970s was based on large capital and tax incentives delivered by the then Department of Industry and then overseen by Brussels.

    When you think back the policies of the 1930s were just about first aid – to paper over the cracks of mass unemployment – and there was little that was comprehensive or organised about the planning behind them.

    When a Labour Prime Minister stood up in the House of Commons to explain why four areas of the country had received first aid when faced with unemployment and this region – the north-west – with similar levels of unemployment had been refused he replied: ‘there is no logic in the conduct of human affairs’. At best it was rescue not regeneration.

    And so we moved to that second era of regional and industrial policy – all advanced industrial economies trying to attract as much major company mobile investment as possible.

    But as with first aid and ambulance help for the depressed areas in the 1930s, so too reliance of incoming multinational investment later did not do enough to close the gap between the areas of high unemployment and areas of low unemployment, and ensure both social and economic regeneration.

    That is why just as we have moved macroeconomic policy from simply a concern about high and stable levels of employment to a concern also about sustainable communities, even Finance Ministers are now recognising that supply side or microeconomic policy must be about more than first aid, more than reliance on external investment to solve the problem, more about what I call the third stage of British regional and urban policy where the new emphasis is about local action and using all levers for regeneration.

    An emphasis not just on encouraging inward investment – important as it is – but on encouraging investment generally —- building local indigenous strength through encouraging local innovation, local skills and local investment, and doing so at a local level in an integrated way. And that is why both our regional development agencies and local authorities have new freedoms and flexibilities for local people to make decisions based on local needs.

    So from the top down centralised systems of regional and urban policy – the dirigiste systems of the mid twentieth century – the focus is on local indigenous creativity.

    It is based on the recognition that production need no longer be based where the raw materials or ports are but where there are skilled, adaptable, flexible labour markets. And that it is local attention to skills, enterprise, business creation, innovation and investment that will bring the most jobs, wealth and prosperity.

    And so in this third stage of regional policy our emphasis is firmly on people – their skills, their flexibility, their willingness to change, their dynamism.

    And so to reduce the persistent regional disparities – to help those on the margins, those whom prosperity has passed by:

    we must continue to make the right long term choices about stability and growth and in the next Parliament intensify the economic reform agenda. And when the G7 Finance Ministers meet this weekend we will look at how each continent can contribute to that – Europe by economic reform, the United States by tackling its deficits and Japan by financial sector change;

    we must ensure the finance necessary to back reform and modernisation in local public services – the task of last July’s spending review;
    and we must also, more fundamentally, tackle not just the consequences of unemployment and poverty and its symptoms but the underlying causes — being aware more than ever before of just how employment, skills and enterprise backed up by investment in innovation and infrastructure are the route out of poverty and deprivation for individuals, towns and cities and regions.

    And while it is right in this third generation of regional policy for central government to establish clear long term goals, the people closest to the ground in the regions and our local communities should be equipped and empowered with maximum local flexibility and discretion to innovate, respond to local conditions and meet special needs.

    So what is the policy agenda that follows from our recognition that policy should be geared to high and stable levels of growth, employment and sustainable development; and that only a focus on local people, their jobs, skills, enterprise and creativity is the way to building strong sustainable local communities?

    First, the Treasury and central government generally will continue to devolve power away from the centre.

    Leading the way, John Prescott has sponsored regional development agencies, given them responsibility to promote enterprise, employment, skills and regeneration in their regions – and the resources to do so. They now have budgets worth in total £1.8 billion a year, £2.3 billion by 2008 with, I believe, unprecedented freedoms – within a single budget without the old ring fencing – to decide how to use these resources.

    Now backed by a £100 million fund, the three northern RDAs are working with business on what is called the ‘Northern Way’ — tackling the £29 billion gap in output between the North and the rest of the UK and creating a corridor for jobs and growth from Newcastle in the North, to Hull in the East, and Liverpool in the West.

    Across the country, local authorities are being given additional freedoms and flexibilities alongside new pilot Local Area Agreements that enable local bodies – including councils, primary care trusts, local police and private and voluntary organisations – to work in partnership to target resources on local priorities.

    And the true devolution of power also means going beyond regional and local devolution to public authorities and devolving more power from government altogether and into the hands of local communities. Giving local people the tools to make improvements to their own neighbourhoods through programmes like sure start, the new deal for communities and the safer communities initiative.

    Second, Finance Ministries must do more to sponsor and support policies to regenerate local environments.

    Following the recommendations by Lord Rogers, highlighted by John Prescott yesterday, the Deputy Prime Minister and I have developed a series of measures to renew run down local high streets and urban estates including:

    a 150 per cent accelerated tax credit to clean up contaminated land and bring it back into productive use;

    100 per cent capital allowances to enable owners and occupiers to obtain full tax relief when creating flats for letting over shops and other commercial premises;

    breaking with flat rate VAT by targeted VAT reductions to encourage the renovation and conversion of existing properties to bring vacant homes back into use; and

    measures to tackle the crime that hits businesses, particularly retailers, in inner city areas;

    showing that our objectives for growth and employment are not at odds with but complementary to our objectives for environmental care and protection.

    As all of you who have travelled here today know, transport is critical. And this will be discussed in other sessions at this conference.

    Good management of public spaces and high standards of design are key to creating communities that are attractive, sustainable places to live in, invest in and do business in. That is why, in the Spending Review last July, we introduced a new target to make communities cleaner, safer and greener – in recognition of the way in which what people call ‘liveability’ can drive a neighbourhood up or down. And through building regulations, planning guidance, our new Code for Sustainable Buildings and the Community Infrastructure Fund we are determined to drive up standards of energy and water efficiency, increase housing density and green space and tackle flood risk, while protecting and increasing the area of Green Belt.

    To reverse decades of neglect, the Government has invested over £35 billion more in housing since 1997. We are implementing Kate Barker’s recommendations to increase housing supply. And because the renaissance or our cities and communities depend on us addressing the problems of low demand and the challenge to be more flexible, we have not only established pathfinders to improve the choice and quality of housing available – including refurbishing over 15,000 homes in the north-west – but we are establishing within each region a single body responsible for managing housing markets and housing investment.

    Creating a society with opportunity for all demands that we get to grips with the vicious cycle of deprivation in our most deprived estates — where worklessness, poor education, high crime and poor housing are all linked and mutually reinforcing.

    So we are investing more than £1.6 billion to improve our poorest neighbourhoods through the new deal for communities, neighbourhood renewal fund, neighbourhood management pathfinders and neighbourhood wardens – all excellent examples of policy areas where local communities are in the driving seat. Within a strategic national framework, including challenging floor targets, local strategic partnerships are being given both responsibility for deciding what is needed in their area and discretion for deciding how it will be delivered.

    And I particularly welcome the Deputy Prime Minister’s announcement at this conference that he will pilot the development of mixed community estates in Leeds, London and here in Manchester – a comprehensive strategy to overcome deprivation by mixing housing tenures and incomes, regenerating housing stock to attract new residents, and improving local public services and the local environment.

    Third, in pursuit of indigenous economic strength – the route to sustainable communities in every city, town and rural area of our country – Finance Ministries should do more to back local enterprising people and local enterprising firms.

    The facts we have to confront are shocking.

    For decades many areas have been no-go areas for enterprise.

    As late as 2000 the rate of business creation in our high unemployment communities was one tenth of that in our prosperous areas with all the consequences for fewer jobs, less prosperity and less income for local authorities.

    If the same rate of business creation prevailed in our poorest areas as in our richest areas we would have over a hundred thousand more small businesses in Britain.

    But we have to recognise the problems faced by many people trying to start up businesses in high unemployment communities and the need to put in place the right incentive structure to stimulate business-led growth.

    When we considered the challenge we recognised that inner cities areas cities and old industrial areas should not be seen as simply “problem” areas but as new markets where businesses can thrive because of the competitive advantages they often offer – with strategic locations, untapped resources, a high density of local purchasing power and the potential of their workforce. And we want to remove all unnecessary barriers to unlocking this potential.

    This has led to our policies for enterprise at the local level to help firms start up, invest, hire and expand, including:

    encouraging investment through the Phoenix Fund, new regional venture capital funds and the Small Firms Loan Guarantee Scheme – now more generous to start ups;

    more help with hiring, employing and training – the special work of the New Deal and training programme;

    support and advice for business – the remit of the new Small Business Service;

    cuts in small business tax, corporation tax and capital gains tax;

    reductions in red tape by removing the independent audit requirement on small firms, introducing a new flat rate VAT scheme and removing or reforming over 400 separate regulations;

    and 2000 enterprise areas in the most deprived wards in the country where we encourage home grown economic activity through stamp duty exemptions, incentives for renovating business premises, fast track planning and community investment tax relief.
    Together, these measures offer a systematic and coordinated attempt to create a stronger economic base in previously run down and high unemployment areas.

    And in the Budget we will do more to break down the barriers to enterprise and spread an enterprise culture – with Britain now putting in place the best incentives for small business creation, backing a new generation of venture capital for expanding businesses, encouraging every school to value enterprise… and building on the success of enterprise areas we are now consulting with entrepreneurs, business and local and regional government on what more we can do to support, incentivise and remove the remaining barriers to enterprise in our most deprived areas.

    And to achieve this requires the devolution of more power to the regions. So regional development agencies now have greater responsibilities for boosting enterprise and science. And from April the business link service will be locally administered by the RDAs – improving the delivery, effectiveness and coordination of business support at the regional level.

    But the best ambassadors for this change are not me or you but local people themselves.

    Because all their business rates income went to central government, in the past local authorities had no direct financial incentive to encourage new business creation.

    Now under our business growth incentive scheme local authorities keep a proportion of the additional business rate income generated by new business creation.

    Based on historical data we estimate that in total as a result of this measure local authorities could gain up to £1 billion over the next three years.

    A further incentive to encourage local indigenous business creation.

    Every community across the country benefiting from more businesses and more jobs.

    But encouraging enterprise is also about encouraging innovation and creativity.

    And every successful region must encourage its scientists, its inventors and its innovators.

    We found in Britain when we looked at the gap between rich and poor regions that some regions spend just 1 per cent of GDP on R&D compared to 3 per cent in others.

    In one region it was £650 per head on R&D in another just £100.

    With the Government’s 10 year plan for science – and the one billion pounds of additional public investment in science over the next three years – as the foundation, we are already moving from centrally administered R&D policies to the encouragement of local technology transfer between universities and companies and the development of regional clusters of specialisms. And I believe we can do more to encourage the development of new local science and industry partnerships.

    Regional development agencies are rightly taking the lead – recognising the importance of science and innovation as drivers of regional growth, and putting science and innovation at the heart of their regional economic strategies.

    Building on the model pioneered here in the North West, all regions have now established science and industry councils to forge better links between businesses, universities and other regional agencies and support the development of hi-tech industry clusters.

    And in the Budget I will renew our commitment to the best incentives for research and development, with backing for science cities and for stronger links between higher education and the hi-tech firms of the future.

    Fourth, Finance Ministries must do as we, the Treasury, plan to do: step up our efforts to boost employment and skills.

    Sustainable communities are not just about places but about people — as entrepreneurs, as skilled workers, as employed men and women.

    It is about a Britain of ambition and aspiration where there is no cap on potential, no ceiling on talent, to limit to progress. A Britain of ambition and aspiration where because the aspiration and ambition is so enthusiastically shared by all that all have the chance and are challenged to do well.

    So any solution based on renewing economic activity must tackle the persistent, often chronic, problems of employment and employability.

    When we came to power, seven years ago, our new programme – the New Deal – was not only based on the principle that work was the best route out of poverty and the need for rights and opportunities to work to be accompanied by new responsibilities and obligations to work, but the new deal and our new tax credits were designed to offer special help to people and areas left behind.

    As a result of the New Deal and our other employment programmes, 2 million more people are in work than in 1997. And it is a measure of the achievement of the New Deal – for which I thank business small and large, local authorities, voluntary and charity groups and the public services – that in the 1980s 330,000 young people were long term unemployed, today the figure is just 6,000.

    But this is not the time to relax our efforts but to step them up.

    And after eight years of a national programme I am more convinced than ever that if we are to get more of the long term unemployed and inactive back to work, and more successfully fill local vacancies we need to match our national framework of incentives and sanctions with more local discretion and flexibility.

    If we raised employment rates in the three northern regions to the level in the South East, for example, nearly half a million more people would be in work – a huge prize. And we would be closer to full employment than ever, making our goal of full employment come true not just for the country as a whole, but even for previously depressed regions.

    So it makes sense for local job centres with local knowledge to develop programmes more sensitive to, and tailor made for, local and regional conditions and to have greater local powers and new resources to match vacancies to jobs more quickly, to meet local employment and skills needs and of course to help all those out of work realise their full potential.

    And just as we have tackled unemployment, so too we must tackle inactivity. 90 per cent of people coming onto incapacity benefit want to get back to work. Our task as a government is to help them to do that, building on the successful pathways to work approach, through an active, positive strategy offering incentives backed up by responsibilities so people can meet their own aspirations. The Secretary of State for Work, Alan Johnson, is today setting out details of reforms based on obligations as well as opportunities to give more incapacity benefit claimants the opportunity to work.

    And in the Budget, reforms in maternity rights – higher pay, more time off, better children’s benefits – will be matched by closing the loopholes that prevent mothers benefiting from these new rights.

    Improving employment means improved employability. And because some regions have 18 per cent of the working population with no formal qualifications compared to just over 11 per cent in others, at the coming election we will make a historic promise: for the first time guaranteeing to every single member of the workforce and every unemployed man and women who is without basic skills, the resources and the learning facilities to acquire the skills they need, giving them the choices they need to make the most of their talents.

    Building on the 100,000 individual success stories of those given time off for training through the employer training pilots – the majority of them women, the majority of them with no prior skills, the vast majority of them successfully attaining their qualifications – we are rolling them out to the whole country creating for the first time a national employer training programme.

    But we increasingly understand that policies to engage many thousands of businesses and millions of adults with new opportunities for skills cannot be run from central departments or agencies but must directly engage with regional priorities, local needs and individual businesses and workplaces.

    Already 90 per cent of the learning and skills budget is devolved to the regions and the new regional skills partnerships will play a key role in setting priorities for expenditure and making the right connections within each region between skills needs and the wider productivity agenda, with regional development agencies and local learning and skills councils working much more closely together.

    So in conclusion I want to match the radical environmental, social and quality of life improvement to which you are all contributing with these major changes, economically, over the next few years in our communities that will help enhance the quality of life:

    more people moving into jobs and more skilled jobs with the work ethic reinvigorated in every community of Britain as we advance to full employment not just in one region, but in every region;

    more people able to transfer their ideas and hopes into small firm start ups and growing businesses as we encourage a new spirit of enterprise and create a Britain of high and stable levels of growth and sustainable development where enterprise is open to all.

    more people living in better quality housing in safe and sustainable communities;

    all these measures underpinned by devolution of power and responsibility – local people making local decisions about meeting local needs – as the way forward.

    And just as this conference has already shown that public space, quality of life, the built environment and quality infrastructure can help create world class communities, so too I hope I have shown that new economic and employment policies can contribute to community regeneration with Britain leading the world in its commitment to full employment and enterprise for all.

    More importantly I believe this conference shows that working together – central and local government, business, voluntary organisations and local communities – we can, and will, deliver our aim that prosperity should be not for some but for all in every city, every town, every community in our country.

  • Gordon Brown – 2005 Speech at Advancing Enterprise Conference

    Gordon Brown – 2005 Speech at Advancing Enterprise Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 4 February 2005.

    Let me welcome distinguished guests who have come here today from every continent to join our dialogue on global economic change.

    The starting point of this conference today is that no country can take its future prosperity for granted.

    Nations will rise and fall depending on their willingness and their capacity to face up to the difficult long-term decisions about the future.

    And I believe that if here in the United Kingdom we – business and government – listen and learn from each other, work closely together, and forge a shared long term economic purpose, we have the strength – because of our stability, our scientific and creative culture, our commitment to education, our global reach – to be one of the most successful enterprise centres of the world.

    Over the last year I’ve made it my business to meet as many businesses as possible from as many continents as possible – and many of you are here today. You’ve told me how much you value the stability we’ve created in Britain since 1997. You’ve told me about the importance of removing all barriers to an enterprise culture. And you’ve also told me that change in the new world is so fast in its pace and so pervasive in its impact – and now the rise of China, India and Asia so important – that an economy like ours has to become more flexible, more adaptable, more skilled and more outward looking.

    The facts that we will hear this morning from our guests from China, India and Asia are that within twenty years half the world’s manufactured exports could come from developing countries and within a decade 5 million US and European jobs could be outsourced. Indeed China is already consuming half the world’s cement, over a quarter of the world’s steel and a third of the world’s iron ore. And between them China, India and the rest of Asia already account for nearly a quarter of the world’s trade.

    And so for companies like yourselves, there is hardly a product or increasingly a service you produce that is not subject to global competition. And these global competitive pressures are now such that at every point you have to look not just at where you source your materials, labour and skills but where your competitors source their materials, labour and skills.

    And in this global restructuring that focuses advanced industrial nations away from low skill, low tech products and processes to the technology driven and high value added, Britain will not only have to be more enterprising and recognise there is no escape from an uncompetitive position by resorting to protectionist shelters or tolerating the old inflexibilities but we must also understand that as emerging economies their technologies – even now India and China produce 125,000 computer science graduates a year and Britain only 5,000 – Britain will only attain a new and competitive place for ourselves if we strive for, and win, world leadership in science and skills and enterprise.

    Churchill warned of countries facing change who were so timid that they were ‘resolved to be decided only to be undecided, resolved to be irresolute, adamant for drift, solid for fluidity, all powerful to be impotent’. And he also said that instead of building the present upon the image of the past, we must face up directly to the challenges of the future.

    Indeed to those who want to postpone long term decisions and want guarantees about the status quo and then tell us that there should be no change without security, we all know the answer: there can be no security without change.

    So there are important long term choices about our economic future as a nation which – because these decisions need to be made, acted upon and followed through on a sustained basis – require a consistency of purpose and direction in the British national interest that goes beyond one year or even one parliament and demands a shared vision and a common purpose – in a non-partisan way – across all sections of British society: a shared commitment to become world leaders in stability, science, skills, enterprise and the creative industries.

    I can tell you that at a time of rapid global change and uncertainty I agree with Alan Greenspan who will address us this afternoon, with Mervyn King and with all of you who run businesses, that the precondition for Britain’s economic success is locking in economic stability for the long-term.

    To those who question whether Britain’s seven high growth years must inevitably be followed by lean years, let me answer directly: our new monetary and fiscal framework, this British model we have created – strategic decisions we took to make the Bank of England independent, impose a symmetrical inflation target, cut the national debt and entrench long term fiscal rules – will continue to make us well placed to cope with the ups and downs of the economic cycle.

    In the last seven and a half years inflation – once more volatile than almost any other industrial nation – has been consistently nearest to target and the least volatile of any country.

    Of the major industrialised economies, only Britain, once the stop-go economy of the industrialised world, has maintained growth free of recession in every quarter.

    And we not repeat the mistakes of the past and will do nothing to put at risk our new won and hard won stability.

    Any government in which I am Chancellor will complement monetary vigilance with fiscal discipline.

    Let me tell you where we stand today. Debt has risen to 44 per cent of national income in America, 46 per cent in France, 55 per cent in Germany, and 84 per cent in Japan. But in the UK debt is just 35 per cent.

    The deficit in France is 3.7 per cent of national income, in Germany it is 3.9 per cent, in America 4.4 per cent, in Japan 6.5 per cent. Our deficit is just under 3 per cent falling to 2 per cent. 10 years ago the deficit in Britain was the equivalent in today’s money of £90 billion, today it is just a third of that —- and we will meet our fiscal rules.

    So while at this stage in the economic and political cycle past governments have resorted to short-termism in fiscal policy and raised the rate of spending in a pre election spree, I can assure that we will not go down that short term road.

    You – leaders of business – know that it is right to invest sensibly for the long term and that to fail to do so often catches up with you. And if you run a company you know you have to make decisions on priorities. So in can confirm that while we will be prudent in borrowing for investment we will maintain the national debt at a low level and we will achieve over this and the next economic cycle a current balance or surplus.

    But world leadership in stability is not enough to guarantee success in the new global economy. It is a necessary but not sufficient condition for economic prosperity.

    So if I can encapsulate my message today and my mission in government in one thought it is this: we want Britain to be not only the most stable environment but the most attractive location to do business and to create new business.

    And to win this prize, we are prepared to remove any unacceptable barrier, legislate any necessary reforms and introduce far reaching new incentives.

    This is not rhetoric: it is our considered and determined view.

    We have much to build on.

    The fact – and this might surprise you – that of 800 multinational headquarter relocations since 2002 Britain has secured 20 per cent, 50 per cent more than the USA, more than any other country.

    With 1 per cent of the world’s population we have over 11 per cent of the world’s most cited scientific papers.

    And more than at any time since the first decades of the industrial revolution we are now turning our scientific genius into technology led economic growth for Britain.

    I can tell this audience – and this too may surprise you – that today a higher share of our growth is delivered by science-based innovations than in any other industrial nation including the United States of America. And Britain has the highest share of R and D coming from all over the world than any of our major competitors.

    And because of our successes in business and financial services, today the UK exports twice as much business services as we import and four times as much financial services.

    All of this shows us that we in Britain now have the chance, if we make the right long term decisions, to become the best location for scientific research and development and world leaders in the new enterprises of the future.

    Measures I will announce in the Budget will reinforce our determination that our incentives to attract research and development are the worlds best, our universities are world class, and we should aim to lead the world in strengthening the links between higher education and the hi-tech firms of the future.

    I can tell you that more than ever our investment effort, both for inward and indigenous investment, will focus on encouraging and stimulating creative firms that are high value added, research based, and technology led.

    We will continue to welcome qualified people with skills from other nations to study in and contribute to Britain.

    And I want Britain to lead the world in resolving the controversial issues of genetic research, animal experimentation and GM foods — so we can value and celebrate science and the joy and excitement of scientific discovery.

    We are developing plans for science cities. And the ten year framework for the advancement of British science – announced last year and which has already led to £2.5 billion pounds more science investment – will be constantly updated to meet the challenges of a rapidly changing world of knowledge.

    As part of our commitment to make the UK one of the leading world centres for pharmaceuticals, biotech and the life-sciences, the newly created UK clinical research collaboration already embraces the NHS, business and universities. Our aim is to make the UK the premier location for new research from medical trials to the tracking of results. And we will also take the necessary steps to become the world’s number one research centre for genetic and stem cell research.

    I want Britain to be not only a centre for the science-based industries of the future but also the hub for creative industries as a whole.

    Here too we can build from solid foundations. In the last decade Britain’s knowledge intensive sector has grown twice as fast as the overall economy.

    By adopting new digital media and harnessing the entrepreneurial flexibility which makes our inner city areas new ‘knowledge factories’, we are creating a critical mass of creative industries with global reach – so that one in every five new jobs here in London is now in these sectors.

    Creative industries from digital electronics and communications to film, design and fashion – once only 1 per cent of GDP – now contribute 8 per cent of the UK GDP.

    This growth highlights extraordinary talent. And the opportunity now is to build on its extraordinary promise —– by backing risk takers with new incentives for new enterprise and with a new generation of venture capital for expanding business.

    And our challenge is not just to encourage creative industries, our priority is to encourage all industries to be creative. It is both about maintaining the entrepreneurship and creativity within established large businesses and about doing more to enable those who want to start up new businesses to turn their ideas and ambitions into reality.

    In Britain today 4,000 new businesses start every week. There are 300,000 more businesses now than in 1997. But with our rate of business creation still half that of the USA, we still have a long way to go.

    If we are to have enterprise in our boardrooms it must start in our classrooms. In 1997 less than 15 per cent of schools offered enterprise education. Now half of all schools do. By 2006 every school will.

    Today only 1 per cent of college or university students are engaged in enterprise. I want to see every college and every university twinned with a ‘business champion’.

    And if the UK could achieve the same levels of female entrepreneurship as the US – and today’s action plan is designed to improve business creation rates – Britain would gain three quarters of a million more businesses.

    I want a Britain of ambition and achievement where there is no ceiling on talent, no limit to potential, no cap on aspiration.

    And, celebrating enterprise, we are today, after a nationwide competition, naming the rejuvenated town of Ollerton in Nottinghamshire as Britain’s town of enterprise for 2005.

    Every one of you here who runs a company – large or small – knows that you must draw on the potential of everyone in your company to be successful; its no different for a country. Skills are the new commanding heights of the economy. And by acquiring better skills employees can become the beneficiaries not victims of globalisation.

    Our mission not just that of British government but that of the whole British society must be to make our people the best educated and most skilled in the world.

    I believe this is the shared and settled view of every section of British society

    And together we are prepared to support the long-term decisions necessary to achieve this aim.

    So I commit us to moving our education system up a gear: demanding, in return for investment, the highest standards in our schools and colleges; making university and college funding a priority in the next Parliament; working with you – the leaders of business in this country – to invest in employee training… all the time encouraging and incentivising a work-your-way-up ethos of self improvement and self reliance.

    What happens in schools is critical to our long-term future. But we cannot just leave education to the schools. Of the workforce we will have in 2015, 80 per cent have left school and are already in work. And it is their skill levels and flexibility that will, over the next decade, determine the prosperity of our country.

    Learning from successful training policies amongst our European competitors, we have already witnessed over 100,000 individual success stories of those given time off for training through the employer training pilots – the majority of them women, the majority of them with no prior skills, the vast majority of them successfully attaining their qualifications. And I would like to congratulate all the businessmen and women who have contributed to this success. Now we are able to go further and announce their roll out to the whole country creating for the first time a national employer training programme.

    I said earlier that the modern task of government is not only to make all necessary reforms but also to remove all unnecessary barriers: with our emphasis on stability, education and science to do what needs to be done but to do no more than what needs to be done.

    So let me tell you how the Budget and our programme will reflect this – our shared agenda.

    Planning: we must make our planning laws quicker, more flexible and more responsive – and we will.

    Transport: we must work with you – private and public sectors together – to tackle decades of under-investment and lack of commitment —- and we will.

    Flexibility: we must and will do more to encourage local and regional pay flexibility.

    Competition: we must and will build upon what we have already created – the most open competition regime in the world.

    Regulation: a problem raised in every industrial country for many years where there is, as you know, always invariably a tension between the flexibility you need and the standards the public request.

    It is because we recognise the limits of government that we have already removed the independent audit requirement on small firms and moved to a more simplified system of VAT.

    And for all businesses large and small we have removed or reformed over 400 separate regulations; the Financial Services Authority have introduced a series of reforms to reduce compliance costs; and in the budget we will do more.

    I have set in train a major review – led by Philip Hampton – of the complex, often out of date systems by which regulations are inspected and enforced.

    And in the Budget I will set out proposals not just about the burden of regulations but about the volume and flow of regulations.

    My position is that in this new global economy government must of course do all – principally through stability, education and infrastructure – that it is necessary to do but no more – and we will continue to remove barriers that are not justified.

    So it is in the national interest that we continue to resist inflexible regulation from the European Union.

    Flexibility is the best way forward so we have agreed with Ireland, the Netherlands, Luxembourg, Austria and Finland to put regulatory reform at the heart of our six EU Presidencies through to 2006, putting every new and existing regulation through strict new tests for their impact on enterprise and competitiveness.

    And in our Presidency of the European Union we not only hope to sign up all 25 EU countries to our deregulation initiative but I want to consult at every stage with you, the businesses of Europe.

    As we tackle regulation to create the best environment for business to thrive, we also have to design our tax system to encourage and reward work, savings, investment and enterprise.

    To pay for improvements in health care we have raised national insurance by 1 per cent – but to put the costs in context, business costs for health care have been rising much faster in the US – by more than 10 per cent each year – and in France employers pay health insurance of around £60 a week for an employee on average earnings and in Germany around £30 a week, compared to just over £10 a week in the UK.

    But as far as corporation tax, capital gains tax, small companies tax and personal income tax, we have cut corporation tax from 33 pence to 30 pence, cut long term capital gains tax for business assets from 40 pence to 10 pence, cut small companies tax from 23 pence to 19 pence and we have also cut the basic rate of income tax by 1 pence.

    And we will continue to look with you at the business tax regime so that we provide incentives for investment in wealth creation and rewards for success.

    Indeed, we have an opportunity before us now to create a consensus on tax as well as well as on stability to make the Britain the best place to do business.

    Twenty years ago companies thought mainly of national markets and were considering new opportunities in European markets.
    Today the success stories are companies who have transformed themselves to succeed in global markets.

    Britain was the pioneer of free and open trade.

    Now to take advantage of the vast opportunities global markets offer we must lead the way again in breaking down international barriers to trade and commerce.

    We are pressing for a successful and ambitious conclusion to the world trade talks.

    Because 55 per cent of our trade is with the European Union we will, in our presidency of the EU, push forward our proposals to liberalise the single market, the greatest single market in the world.

    Because transatlantic economic relations are worth over $2.5 trillion dollars each year, I can tell this audience that we will use our EU Presidency to push forward a new transatlantic trade and investment partnership to remove regulatory and other barriers between the European Union and the USA including in financial services.

    Today we welcome to our conference representatives from four of the major emerging market economies – China, India, Brazil and South Africa. Because only 1 per cent of our exports go to China and only 1 per cent to India – now two of the largest economies in the world – we are instituting a new Asia Taskforce – business and governments together working to maximise trade – and in the fast expanding financial services, we will match the successful UK-China Financial Dialogue with a new UK-India Dialogue that India and the UK are agreeing today.

    Conclusion

    And what has been, and can be, achieved in this area and other areas at the Treasury for employment, investment and prosperity must be centre stage in the national debate on our future in the months to come. And I look forward to it being the central issue we will take forward in the coming Parliament.

    I said at the outset that together we have to rise to the global challenge. And to do so we have to build a shared economic purpose.

    Successful companies achieve this.

    The successful countries of the future will have to achieve this.

    And my vision is that if we, government and business, work together, we can build in Britain a progressive consensus.

    World leaders in stability.

    World leadership in science, skills and enterprise.

    A Britain that looks outwards to Europe and the international economy.

    Then globalisation is indeed made for Britain and British prosperity.

    And we can be one of the global economy’s greatest success stories and look forward to a twenty first century of British achievement.

  • Gordon Brown – 2005 Speech in Beijing

    Gordon Brown – 2005 Speech in Beijing

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Beijing on 21 February 2005.

    It is a pleasure to be here in Beijing, to have been invited to address this distinguished audience at this distinguished Academy of Social Sciences, and to be able to do so at the end of a memorable day in which I have had the privilege of meetings with Premier Wen Jiabao and Finance Minister Jin Renjing.

    Indeed it is a great privilege to be able to see – even in such a short visit – so many of your historic places; to have the chance to witness at first hand so many of the important developments here in China; to have been welcomed with such kindness for which I am grateful; and to have the special privilege of discussing with your leaders all the important issues that effect the future of our global economy.

    This, I believe, reflects the growing and deepening partnership between China and Britain:

    today there are more than 4000 joint ventures involving UK companies and Chinese partners;
    each year an additional 400 new joint ventures are being entered into;
    the UK is the largest European investor in China – investing almost $20 billion a year;
    indeed trade between our two nations has grown by 230 per cent in the last five years
    bringing to fruition the hope expressed by Premier Wen during Tony Blair’s visit to China two years ago of Britain becoming China’s leading European partner.

    And our partnership is reinforced by the work we have entered into together over the last few years – in financial services, science, industry, the environment, international development and many other areas.

    My theme today is: while the next stage of global economic changes brings insecurities as well as challenges, great opportunities now arise for China and Britain together.

    The context is a global economy undergoing the most rapid and extensive transformation the world has ever seen – in pace of change, in scale of change, in the impact of change.

    It is a measure of the global economic change that is now taking place that over the past decade global trade has increased twice as fast as output.

    In just one decade world trade in services has risen by over 60 per cent and world trade in goods by 70 per cent.

    In 1980 less than a tenth of manufacturing exports came from developing countries.

    Today it’s almost 30 per cent.

    In twenty years time probably 50 per cent.

    So we are witnessing the most rapid shift in the global balance of production the world has ever seen.

    Twenty five years ago, only a quarter of the exports of developing country were manufactured goods: today 80 per cent.

    And with 3.5 million American jobs and as many as 5 million European and American jobs in total likely to be moved offshore between now and 2020, we are undergoing a global economic and employment transformation that will dominate the first decades of the 21st century.

    Twenty years ago, China had less than 1 per cent of world trade. Today it is 7 per cent and Asia now has 23 per cent – soon to equal the euro area.

    So we are seeing economic change on a continental scale – the potential for Asia to be the 21st century’s equivalent of America’s rise in the 20th century.

    Two hundred years ago a British politician George Canning said that the new world had been brought into being to redress the balance of the old.

    Today a new economic world is already in existence challenging the old.

    Globalisation is now rapid in its impact, so pervasive in its effects, that nations will rise and fall with speed depending upon their ability to adapt.

    The rapidity and pervasiveness of change brings both unparalleled new opportunities and an unprecedented degree of insecurity.

    So no country can take its future prosperity for granted.

    All nations must adapt and modernise or fall behind.

    And as global restructuring continues apace – focusing advanced industrial nations away from low skill, low tech products and processes to the technology driven and high value added – all countries will increasingly only have a competitive edge if they develop world leadership in the most technologically intensive and science based industries and services.

    For most of the last twenty centuries China led the world….and so today we are seeing China’s re-emergence to its rightful place as a leading world economy.

    Indeed the scale of this extraordinary change is here for all to see in Beijing.

    This morning I visited Beijing Airport Expansion Project – one of the world’s largest construction projects in the world and one of 50 new airports being built in China.

    I congratulate you on winning the Olympics in 2008. We will attempt to emulate you by winning the 2012.

    Already China is the world’s largest user of cement, steel, copper, iron ore and tin – today now consuming, for example, half the world’s cement, over a quarter of the world’s steel and a third of the world’s iron ore. China has been responsible for one third of the recent growth in demand for oil.

    25 per cent of the world’s washing machines are produced in China
    30 per cent of the world’s television sets
    40 per cent of the world’s microwaves
    50 per cent of the world’s cameras,
    70 per cent of the world’s photocopiers
    90 per cent of the world’s toys

    And the question businesses everywhere around the world are asking before placing a contract is what are the costs of goods produced in China, ‘what is the China price?’

    But China is not just competing on the basis of low costs. You are also already a 21st century player with very significant hi-tech achievements.

    China’s re-emergence as a leader in scientific research should surprise nobody. The country that invented paper, printing, gunpowder and the compass is now producing 2 million graduates a year including 270,000 in science and engineering. In 2003 you put your first person in space. You are decoding DNA. 50 per cent of industrial GDP in the industrial heartland of Shenzhen – which I will be visiting on Wednesday – is now accounted for by hi-tech companies. And with Chinese companies now investing back in Western economies, and with the hi-tech, higher value added sector in China now growing rapidly, this is a global economic transformation that will dominate the first decades of the 21st century.

    Taken together China is now exporting more than France, Italy and Britain and now is the world’s number one destination for foreign direct investment.

    Some people in the advanced industrial economies view the rise of China and the next stage of globalisation as simply an economic threat to the advanced industrial economies.

    That leads to calls for protectionism against lower cost imports and protectionist attitudes against outsourcing and off-shoring.

    But let us be clear that this is not only a sterile attempt to stop the clock and resist inevitable change. This is to also misunderstand the contribution made by the rise of China and in recent years the emerging market economies.

    China has been responsible for keeping the world economy growing as the advanced industrial economies went into a downturn.

    China has itself contributed more growth to the world economy in the last few years than all the G7 combined.

    Indeed without China, world trade growth which slowed more than at any time in recent world downturns would have been negative for more than one year.

    China’s role as a major economic player stabilising the world economy should never now be discounted.

    So I am here not only as Finance Minister of Britain but as Chairman of the International Monetary and Finance Committee to support China’s increasingly important role as a stabilising force in the world economy.

    This year Britain chairs the G7.

    And China chairs the G20.

    And it is right to agree a shared agenda about the challenges – in macro economic policies, in trade, technology, the environment, labour markets, and corporate standards – we – and the whole world economy – face entering the next stage of global economic change.

    But while others may wish to see China and globalisation as a threat, I see the rise of China and the new stage of globalisation not as a threat but as an opportunity.

    An opportunity because China is a huge market with huge opportunities for British companies; a dynamic market which challenges Britain to be equipped for the new world and to respond.

    An opportunity because China’s development helps us understand the need for change and to persuade British people to change.

    In the last century in the last industrial revolution Britain realised all too late that other countries were not only catching up with us but doing better in applying technology to products and processes.

    Now that we can see clearly the challenge ahead – the changes in both technology and in trade – arising from the global sourcing of goods and fast increasing global flows of capital – there are big questions all of us must ask ourselves about how each of us can benefit from the next stage of global economic change and how the benefits of globalisation can flow not just to some people but to all people

    So my task here in China in this speech is to identify how we can together adopt the right global economic policies to help our countries meet and master the challenges of change in this new world – and how can we work together to ensure that globalisation offers opportunities fair for all.

    In a world of ever more rapid global financial flows, the first policy conclusion is the need to entrench stability in macroeconomic policy.
    Capital is, of course, more likely to move to environments which are stable and least likely to stay in environments which are, or become, unstable.

    So for every country, rich or poor, macroeconomic stability is not an option but an essential pre-condition of economic success.

    And for the world economy, creating the conditions for entrenching stability in each continent is an important task for the international institutions.

    It is important therefore that as we look forward to the coming challenges Britain and China as Presidents of the G7 and G20 in 2005 work together to address these challenges.

    And I am pleased that today we have agreed to work together to study and address macroeconomic and structural vulnerabilities in the world economy.

    A joint policy paper from Britain and China will be submitted to the G20 Meeting in October.

    This paper will analyse the global economic challenges that we are facing,

    The paper will identify areas where countries can learn from each others experience.

    And it is already clear that if we are to maintain stability and growth, each continent has a role to play: America in addressing its deficits; and Europe and Asia in addressing the vexed questions of structural economic reform.

    In the new global economy there will be a changing role for the international institutions. Founded sixty years ago, they must continue to adapt to support the stability that is vital to the modern economy. And as G20 and G7 Presidents we are committed to re-examining the strategic role of the IMF and World Bank for the years to come – in particular the importance of a more independent role for the IMF in the vital task of the surveillance of the world economy.

    Greater stability in world economic arrangements should be accompanied by greater attention to policies for national economic stability.

    Starting with the independence of the Bank of England and then the adoption of new British monetary and fiscal objectives, rules and systems of accountability, Britain has sought to develop a modern British way to economic stability that make sense for the far more open liberalised capital markets of an increasingly globalised economy.

    I know that China is pushing forward fundamental reforms to expenditure management and the banking sector.

    And I welcome your Government’s decision to publish the IMF Article IV reports on your economy for the first time.

    The debate continues on the importance of codes and standards. The agreed position of the membership of the International Monetary Fund is that – because for every country, rich or poor, macroeconomic stability is not an option but an essential pre-condition of economic success – it is in the interests of stability that we seek a new rules-based system for the global economy: a reformed system of economic government under which each country, rich and poor, has a responsibility to adopt agreed codes and standards for fiscal and monetary policy for the financial sector and for corporate governance.

    In a modern open economy capital account liberalisation is the way forward but so that it is not destabilising it will be best achieved in a sequenced way.

    So from experience a sequenced approach can benefit not only China but the global economy as a whole.

    Second, openness to trade is crucial if the world economy is to expand to the benefit of all.

    The importance of open trade is a lesson we have learned from our own history.

    In December in Hong Kong vital decisions will have to be made to finalise a global trade round. And as globalisation continues apace, it is not protectionism but trade – and competition – that will be the main drivers of productivity, growth and economic development.

    So 2005 is a crucial year for making progress towards a freer and fairer world trading system that delivers real improvements in market access. Like our Agricultural Minister Margaret Beckett, I want to tackle the waste and excesses of agricultural protectionism. And I believe that it is critical that China and the UK continue to work together to achieve an ambitious outcome to the Doha development trade talks by the WTO Ministerial in December.

    People often talk of trade as a global public good because all of us can gain when trade flows successfully. In the modern world the same can now be said of structural economic reform. As we consider the global economic imbalances and differential growth rates between continents the importance of structural economic reform can no longer be discounted. Balanced growth will arise when continents like Europe enhance their structural economic reform with greater labour, capital and product market flexibilities and when continents like Asia engaged in wider and deeper structural economic reform to substantially raise their productivity levels.

    Indeed today, more so than even trade, innovation is the driver of change, forcing structural reform on to the agenda. It took nearly forty years for the first 50 million people to own a radio, just 16 years for the first 50 million people to own a PC, but just 5 years for the first 50 million to be on the internet.

    Seven years ago when we came into government in Britain there were no DVDs, no digital TV, no broadband, a fraction of the number of people with mobile phones.

    And the speed of change in the next ten years will be even more dramatic. Indeed people think it will be even more dramatic than the changes of the last two hundred years.

    With the global sourcing of goods and now services, the nations that are the most innovative and flexible will be the most successful in securing comparative advantage and value added.

    So the advance of science, technology and innovation will be absolutely crucial in determining which nations are successful and which fail in the next stage of globalisation.

    And it is because I am clear that the nations that are the most innovative, enterprising, adaptable and flexible that will be the winners that we must push forward with new policies to become world leaders in science, technology and creative industries.

    I do not believe that in the next stage of the global economy success for one country need mean failure on the part of the other.

    Globalisation is not a zero sum game where one country or continent will only succeed at the expense of another.

    But I do believe that if we are to make the most of the opportunities that arise from global economic change wide deep and extensive structural economic reform will be essential.

    Indeed to be successful each country must summon up the resolve and demonstrate the strength of character and economic purpose to meet and master the challenges ahead – seeking out what gives it comparative advantage.

    And I believe that if we do so and make the right decisions this next stage of globalisation is made for Britain and China.

    As I have said, the UK comparative advantage in the 21st century starts with the strength that comes from our economic stability.

    But to succeed we must become world leaders not only in stability but in science, enterprise, education and trade.

    So Britain must make the right decisions in its policies to promote science, enterprise, skills and trade – to make globalisation work for us

    We must be prepared to make any necessary reforms, implement any legislative changes, and introduce any additional incentives to secure the comparative advantage we seek.

    And we want to work with business – often getting out of the way and concentrating on what government can do best – education, public investment in science, skills, our infrastructure and welfare – to ensure businesses and people can respond.

    So in the globalisation game, we see Britain’s comparative advantage as our stability, our scientific genius, our world class universities and our global connections. But if Britain is to continue to thrive in the future, it is not enough just to rely on established historic advantages.

    It is also in our nature as British – and part of the British entrepreneurial spirit – always to explore, to seek out new markets, to boldly search out new opportunities where others have hesitated to go. We look out not in. And we have done so for many centuries.

    Strongly anti-protectionist on trade, we are pioneers of free and open trade and today its greatest exponents.

    And we are fiercely anti-protectionist too in our attitudes and open to new ideas, new influences and new people and we seek to be a beacon for talent not just British but from the rest of the world. And it is precisely because we are anti-protectionist that we are aware too of the continuing need to be flexible.

    So while Britain has always been internationalist in its approach to the world and has always seen the English Channel as a highway and not a moat, I want us to think of a Britain in this new global age that leads the world in championing free trade against protectionism and that is open to new ideas new influences and new people – a Global Britain always looking outwards with connections in every continent and seeing change not as an enemy but as a friend. Indeed our commitment to the future of the European Union is because we want Europe to be less like a trade bloc looking in on itself and more like a Global Europe looking out to the rest of the world.

    So one of our greatest comparative advantages in the new global economy could be our ability to respond flexibly, quickly and openly to global change.

    And I can say that this Global Britain will show by the structural economic reforms we are prepared to make that we can and will respond to change with enhanced flexibility and through structural reform we will encourage the expanding elements of the new global economy where we can secure comparative advantage – to celebrate and not constrain scientific exploration and discovery, to nurture the new creative industries, to continuously innovate in new financial products and services and to create a skilled and adaptable workforce in a Britain of ambition and aspiration where there is no cap on potential and no ceiling on talent.

    Over the next few days, as part of these structural economic reforms, I am publishing plans in three areas – financial services, science and education – showing where Britain is and plans to be a world leader in the future and showing in particular where cooperation with China will yield beneficial results for both economies. Their development will help us double exports to China by 2007 and quadruple exports by 2010.

    Our financial services sector is the best in the world – London, a pre-eminent financial centre. We are already taking our skills and knowledge to the rest of the world and the rest of the world is coming to us. And we are determined to lead in the new services that will be a feature of the decades to come.

    Tomorrow I will publish our plans for developing our financial services links with China.

    I am delighted that our banks and insurance companies sell products here in China. I am delighted that China’s companies list on the London Stock Exchange.

    Now we wish to see more companies from China and around the world listing in London.

    And we will also seek to develop from the City of London our financial services, and business and management services.

    My speech by video to a science conference in Manchester in Britain earlier today highlighted our ambitions for scientific and medical research – that Britain lead the world as a location for R and D, for world class universities, and for effective technology transfer between education and business.

    While today more Nobel prices than any country except America and a higher share of British growth delivered by science-based innovations than in any other industrial nation including the United States of America, Britain is determined to win in the science based and high value added products and processes of the future. And we are determined to drive up our lead in creative industries from film, fashion and design to communications and digital electronics, now in total accounting for 8 per cent of our national output.

    And the proposals I am outlining tomorrow will make it possible for more British universities and research institutes to develop links with their counterparts in China, more British high-technology firms to develop links with their Chinese counterparts and more skilled researchers and students to move between our two countries, making the best use of the facilities we both have to offer.

    Britain is determined to lead the world in the provision of educational services. In future years we see it as one of our greatest export earners.

    In just five years the value of British education as an export has almost doubled, from £6.5 billion to £10.3 billion. Education and education related services are our fastest growing export earner and have already eclipsed food, tobacco and drink exports, insurance, and ships and aircraft. Indeed, I believe that if we continue to make the right decisions, by 2020 education exports could contribute over £20 billion a year to the UK economy.

    Nowhere is the expansion of education as a British export happening more quickly and with greater results than here in China.

    Today English language lessons are a requirement from age six in Chinese schools with 20 million more children a year starting lessons. In Beijing alone 200,000 people also take English lessons outside the school system. It is estimated that over 300 million Chinese people currently speak English. And in twenty years time the number of English speakers in China is likely to exceed the number of speakers of English as a first language in the all of the rest of the world.

    I believe this is a huge opportunity for Britain and I am today setting out proposals to make education one of Britain’s lead exports.
    UK education and training providers providing education abroad – facilitated by new technology and offshore campuses – could rise from the 200,000 students covered today to more than 800,000 by 2020…an increase of more than 300 per cent.

    And, if the sale of education products overseas including books, IT packages and broadcasting follows the overall trend in export growth it could be worth £10 billion by 2020.

    Our aim is to encourage UK education and training providers to work internationally in partnership with business

    We want to make the UK an international leader in the creative and supportive use of IT for education

    We want to promote the role of our universities as international hubs for learning and research

    And we want to promote further expansion in the number of international students at UK further and higher education institutions – both in Britain and in off-shore campuses abroad like those already being pioneered here in China by Nottingham University and Napier University.

    Education exported to Europe. Education exported to America. Education exported to Asia.

    And today I am setting out a five point plan to raise Britain’s earnings from exporting education, particularly in the Chinese market.

    First, our ambition is that every school college and university in England to be ‘twinned’ with a school college or university overseas within the next five years. This is made possible by the expansion the Department of Education is announcing of our global gateway – an international website providing a one-stop shop for schools – and from this year universities and colleges – seeking a twinning partner. 150 schools in Britain already have links with schools here in China – and I saw one such link-up in practice today.

    Second, we will expand English language teaching overseas and in particular expand the ‘in2english’ website run by the British Council, the BBC and China Central Radio and TV – set up to help people in China learn English – which is already attracting 60,000 unique visits per month.

    Third, we will help universities, colleges and business providers of educational products to win in the growing market in English education abroad. To make this happen, the brand Education UK website has a fully searchable database of 240,000 courses in the UK and offers students from across the world the opportunity to enquire about and apply for a course online.

    Fourth, our aim is to establish the UK as an international leader in the use of ICT for education. We will invest £2.5 million in the E-China scheme which enables English Higher Education institutions to work with their Chinese counterparts to develop joint e-learning programmes.

    Fifth, with global demand for international higher education student places forecast to grow from 2.1 million in 2003 to some 5.8 million in 2020, I can announce that we will make it possible for Chinese students to stay and work in our economy for a year after Higher Education. I have proposed a reciprocal arrangement for China so that British students can stay here in China for a year to work. We will also expand scholarship programmes such as the Chevening Programme and Overseas Research Students Award Scheme, which fund students from overseas to study in the UK.

    Stability. Open trade. Structural economic reform. But it is also essential for governments such as ours to do all we can to ensure opportunity, prosperity and the chance of a good life is available not just to some of our citizens but to all of our citizens.
    And our desire for a globalisation that works for everyone in all parts of the world means we must all take into account the inequalities that globalisation brings and the needs of all developing countries.

    There are those who define the next stage of globalisation as an inevitable growth in insecurity and inequality.

    This depends on the decisions we make.

    I believe that with the right decisions globalisation can address inequality, tackle economic discrimination and root out unacceptable unfairnesses. Properly managed globalisation has the potential to make the world a safer place, breaking down boundaries and uniting people. And I believe that in the long run that prosperity like peace is indivisible — and that to be sustained it has to be shared.

    So we must address the problems that arise when a rapid opening up of the global economy brings in its wake extremes of inequality both between and within countries.

    And we must ensure that developing countries can participate in the global economy with both a level playing field and on terms that address the needs of their most vulnerable

    When Premier Wen visited the UK last year, the UK and China committed to work together to help developing countries in addressing poverty and other development-related problems so as to better manage challenges posed by globalisation.

    We welcome China’s support for the UK’s proposal for an International Finance Facility which would leverage up development aid commitments on the international capital markets to raise an additional $50 billion dollars a year to enable us to tackle global poverty and meet the 2015 Millennium Development Goals for education, health, gender equality and reductions in deprivation.

    And today I can tell you that China and the UK have agreed to work towards a joint statement by the Spring Meetings setting out the objectives and priorities we have on international development and achieving the Millennium Development Goals, including progress on innovative financing mechanisms such as the International Finance Facility.

    So I propose greater cooperation on economic stability, the opening up of trade, on structural economic reform and on a new deal for the poorest of the world.

    Just last month your Finance Minister spoke at a conference I chaired in London. He spoke of enterprise and of global trade. We both shared strong and positive ideas. And it is strengthening cooperation between Britain and China that can enable Britain to make the most of its advantages.

    That is why I have committed Britain to make all the changes necessary to become more enterprising, flexible, creative, adaptable, skilled and educated a nation than ever before.

    If we get it right the benefits are huge.

    Britain and China have much in common. Together we can show that globalisation can deliver real tangible benefits.

    Benefits that make us stronger.

    Benefits that bring us closer.

    A shared long term economic purpose.

    My message is of optimism and opportunity. We should not fear globalisation. We must embrace it. But we must all make the necessary changes to make globalisation work for us.

    Thank you.

  • Gordon Brown – 2005 Speech at Opening of Wolverhampton Learning Quarter

    Gordon Brown – 2005 Speech at Opening of Wolverhampton Learning Quarter

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Wolverhampton on 28 February 2005.

    I am delighted to be here today to open a major path breaking initiative in education which will be viewed with interest from around the whole of the United Kingdom.

    The Wolverhampton Learning Quarter is a pioneering development for education in our country.

    Adult education and further education brought together – creating a one stop learning centre for all men and women in Wolverhampton that is already raising the numbers of adults training and acquiring skills.

    And I can confirm that it is our ambition that nationally we follow the lead you in Wolverhampton are today giving the country.

    The higher ambition for the Britain of the future is

    that every young person has training throughout their teenage years;
    that every adult without skills has the guarantee of training for basic qualifications in work; and
    that – modelled on this initiative here in Wolverhampton – every town and city has its one stop learning centre.

    Here in Wolverhampton you have recognised that for Britain to have the future skills that we need, all agencies must come together and all skills must be catered for.

    You are showing that Wolverhampton works best when Wolverhampton works together.

    And – building on the excellent work already being done by Wolverhampton College and the Adult Education Service – the new Learning Quarter is

    helping nearly 500 students with specialist vocational training to prepare for service sector jobs;
    making available courses from health to hairdressing, tourism to textiles, beauty to baking;
    providing genuine lifelong learning – for people of all ages and from all walks of life; and
    playing a key role in the regeneration of the city.

    And we can already see the success you are having. Since the Learning Quarter started taking in students, there has been a 50 per cent growth in learners at the college.

    The next challenge for Britain – and for every advanced industrial nation – is to meet and master the next stage of global economic change, and the rise of China, India and Asia as manufacturing and industrial powers.

    And the central issue of the Budget and our programme for the next five years – indeed the central issue of the coming decade – will be how Britain and the British people can be best prepared, equipped and ready to meet today’s global economic and educational challenges, and how to build the best long term future for the British economy and for Britain’s hard working families.

    A few days ago in China, my eyes were opened to the dramatic challenge that Britain faces from emerging economies.

    We cannot ignore or succumb to the challenge from China and Asia – but must seize it.

    China and India are not only producing an ever higher share of the world’s manufactured goods from electronic goods to clothes, they are is also upgrading their skills at an astonishing pace – producing between them 4 million trained graduates every year.

    120,000 of India and China’s new graduates are computer science graduates, compared to just 18,000 in Britain.
    And in China alone there are nearly 300,000 new science and engineering graduates each year, compared to 100,000 in Britain.

    So seizing the China challenge means that we in Britain simply cannot afford to waste the potential of any young person or discard the talents of any adult.

    And we must help men and women make the transition from low skilled to higher skilled work.

    This requires a transformation in the way we think: using not some of the talents of some of the people but all of the skills of all of the people.

    And making education for the majority no longer a one-off pass-fail event between the ages of 5 and 16 but making it lifelong, permanent and recurrent: making it about encouraging adults in any course and at any age they want to study.

    Compared to 1997 1.2 million more adults a year now participate in learning; 750,000 people are now benefiting from basic skills training; around 250,000 young people are participating in apprenticeships today compared with 87,500 in 1997.

    And since 1997 long term youth unemployment – once 350,000 in the mid eighties – has been reduced to 6,000, an average of less than 10 per constituency.

    But I can tell you our aim is not to congratulate ourselves on what we have achieved but to consider what we now can achieve.

    We are determined to continue to take the tough decisions necessary – in our schools, colleges, and workplaces – to ensure that more people to achieve their full potential and play their full part in their communities.

    That is why – alongside the new deal for jobs, we want a new deal for skills.

    That is why we will, in the next Parliament, offer every adult without skills, in or out of work, not only a skills check up, but also free training provision to achieve Level Two qualifications.

    It is why we also plan for the first time a national employer training programme – with – in every area of the country and in small and medium as well as large businesses –

    employers recognising their responsibilities to offer time off;
    employees recognising their responsibilities to take up the opportunities; and
    government recognising our responsibility to fund the training.

    And it is why, building on reforms already undertaken, and following the Tomlinson review, we are putting in place high quality options for vocational education throughout the secondary curriculum.

    And we know that we must do more.

    So our Government wants teachers to be encouraged to use their teaching skills in all areas of Britain.

    And we want, modelled on experience in the United States, to look at the case for a “Teach for Britain” programme with new incentives for teachers to teach in all the high unemployment areas of Britain.

    We want a one stop centre for adult learning in every community.

    And we also want to push up quality and standards in further education, with new incentives for institutions to improve the standards of lecturers.

    And this is essential because 80 per cent of the 2015 workforce has already left school and is today in the world of work and we must offer the chance to upgrade skills to every adult already in the workforce.

    And I can tell you today that our promise to the British people is that for the first time in Britain not just some but every teenager after the age of 16 will have the right to education, training or work.

    And in the next Parliament

    no teenager should ever again be unemployed;
    for the first time in Britain every adult will have the guarantee of training for work; and
    no adult will ever again be denied the chance of basic skills for work.
    Our consistent continued fiscal discipline – yesterday, today and tomorrow – is not only the real key to meeting our fiscal rules but also to entrenching the economic stability that is the foundation of prosperity.

    It is also right that mothers and fathers can balance work and family life. That is why we have extended opportunities for maternity benefit and maternity leave, made it easier for employees to have flexible working arrangements and improved the quality and quantity of affordable and available child care.

    And Patricia Hewitt and Ruth Kelly are today announcing new proposals to ensure greater flexibility in the workplace to allow mothers and fathers to balance the needs of their family with the demands of working life.

    Here in Wolverhampton the Learning Quarter will play an essential frontline role in delivering better skills for people.

    So it is a great honour to be here today to declare your new building open and to wish you the very best in all your work and study in the future.

  • Francis Maude – 2005 Speech on Social Reform and the Conservative Party

    Francis Maude – 2005 Speech on Social Reform and the Conservative Party

    The speech made by Francis Maude on 28 November 2005.

    Eight years ago Tony Blair understood something rather important. He understood that people want Britain to have a government committed to a strong and competitive economy, to first class public services, and to a cohesive society where no one is left behind or left on their own. There was indeed such a hunger, and he persuaded them that his would be such a government. Now people feel let down, and there is now widespread disillusion with politics.

    The task facing the Conservative Party under its new leader is to show that we are a credible and appealing alternative Government that both wants and is capable of delivering the objectives set out by Tony Blair, and which his Government has failed to deliver, largely because Gordon Brown has blocked the way. The means we propose to deliver these objectives must be authentically Conservative measures, based on well-tried principles, but applied to contemporary Britain.

    I want to talk tonight about the second objective. The first is pretty obvious really. There is today a more competitive global economy than ever. The statistics are well known to the point of triteness: China’s insatiable appetite for half the world’s steel, cement and cranes; the opening up of China’s heartland when ocean-going ships can trade a thousand miles up the Yangtze in a few years’ time, with an almost infinite source of cheap labour; the one million engineering graduates being produced every year in India. We all have our favourite lists.

    The simple fact is that Britain’s competitive position is deteriorating. The World Economic Forum and other league tables of competitiveness are not some kind of random guesswork. They reflect real factors and real considerations. Gordon Brown seems to have had a disarmingly naive view that if Labour accepted the outlines of the Thatcher/Major economic reforms and gave the Bank of England independence, then Britain’s economic future was assured. An optimal state of economic efficiency would have been attained and additional tax and regulatory burdens could be painlessly absorbed.

    But just as there is no successful business today that believes that optimal efficiency is ever achieved, that steady-state management is ever an option, we should not delude ourselves that anything other than continuous economic reform can give Britain a serious economic future. Britain needs constant supply side reform to ensure that we are able to compete. It is no good simply assuming that because Britain is currently more competitive than much of the EU therefore its position is forever secure. The competitive gap against our EU partners is closing, and against the rest of the world is widening.

    This is not the time or place nor am I the person to set out detailed policy prescriptions. But the questions to be addressed are clear. What is the right tax framework to attract investment to Britain? What needs to be done to ensure that the Labour market is as flexible as it can be? How do we constrain the apparently ineluctable flow of new regulation so that the regulatory burden on business is no worse than proportionate to the risks being protected against? What needs to be done to ensure that the level of research and development is high and sustainable and that new products, services and processes are exploited commercially in Britain rather than elsewhere? There are many other questions, and Britain needs good answers if we are to flourish.

    I turn now to public services. First class public services are essential for so many different reasons. We want excellent health care because we don’t want to be sick or in pain, and we want to live longer. We want good education because it leads to a more fulfilled and rewarding life. But these things are important also because poor health care and inadequate education mean an economy that is held back.

    It is not seriously disputed now that the way we provide state-funded healthcare and education in Britain is seriously flawed. Monopolistic, egalitarian, paternalistic in the worst sense, it urgently needs reform. There is no single silver bullet answer. The MacDonald’s approach of uniform franchises stamped out across the country according to some Whitehall-designed template belongs to yesteryear. Its origins were in the egalitarianism that was an inviolable dogma for so long. This egalitarianism dictated that for some to have access to a better education or better healthcare than others was unfair and wrong.

    So there must be a uniform National Health Service lest local differences benefit some communities and patients more than others. There must be only comprehensive schools lest excellent grammar schools increase the disadvantage suffered by the less able. It was better to remove the advantages enjoyed by some rather than create better opportunities for the rest.

    As we now know, this thesis was deeply flawed. It was never possible to have uniformly good standards of healthcare or educational attainment across the country. There are at least as great disparities today as before egalitarianism caught hold. Thirty years ago two thirds of Oxbridge entrants were from state schools. Today it is just over one-half.

    So what is the direction of reform now needed to give this first world country first world healthcare and education? What about this for starters?

    “We need to explore the usefulness of choice and contestability [competition] to extend opportunity and equalise life chances…We must develop an acceptance of more market-oriented incentives with a modern, reinvigorated ethos of public service. We should be far more radical about the role of the state as regulator rather than provider, opening up healthcare for example to a mixed economy under the NHS umbrella, and adopting radical approaches to self-health. We should also stimulate new entrants to the schools market, and be willing to experiment with new forms of co-payment in the public sector.”

    Or this:

    “…it is only by truly transferring power to the public through choice, through personalising services, through enhanced accountability, that we can create the drivers for continuous improvement in all our services.”

    Or this:

    “In both the NHS and in education, there will in one sense be a market. The patient and the parent will have much greater choice.”

    Yes, you guessed it. Not some ideologically driven worshipper at the shrine of Friedrich Hayek, some geeky devotee of market theory. But that most pragmatic of party leaders, and the most electorally successful in recent years: Tony Blair. These excerpts come from speeches made in the last three years. Just look at the ideas he promotes here. The creation of markets within publicly-funded healthcare and education. Co-payment, the polite word for charging for public services. The treatment of patients and parents as red-blooded consumers, with full-on choice made available to them. Allowing private, even for-profit, providers to compete with the conventional public sector providers to create real choice for these consumers.

    I do understand why it’s so difficult for many Conservatives to support Mr Blair when he makes this kind of speech. After all when the last Conservative Government was introducing reforms along these lines, Mr Blair’s Labour opposition opposed them root and branch. They deployed every trick of rhetoric and deception to persuade people that these were measures born of extremist dogma, intended to enrich fat cats, and without any regard to the interests of the weakest in society. Then his Government when in office reversed many of the measures, such as GP fund-holding and grant-maintained schools, just when they were beginning to yield real benefits for patients and pupils.

    Because Mr Blair’s Labour Party in opposition, from the most cynical and opportunist motives, behaved in this manner, it is indeed tempting for us to play the same game: tit for tat. It is precisely that kind of game-playing approach that has engendered in the public such a dangerous degree of cynicism about and disengagement from politics. We must eschew it.

    We have not always done so. When the Blair Government introduced legislation to create foundation hospitals we opposed it. Not because we were against the idea; we had ourselves introduced something similar when Ken Clarke was Health Secretary fifteen years previously. The Blair scheme was compromised and flawed, for sure, but the idea that hospitals should be given a much greater degree of independence and autonomy was one we all strongly supported. Our justification for opposing the legislation was that it didn’t go far enough. It was better that there should be no bread than half a loaf. Another reason for opposing these reforms was that they might not work and therefore we shouldn’t be associated with them.

    Both these are bad reasons, and it did us harm. Harm because it looked opportunistic and self-serving. Harm because it lacked authenticity. People rightly felt that these were measures in a direction that a Conservative Government could easily have introduced itself, so how could it be authentic for the Conservatives to be opposing them? The result of course is people saying of us: “We don’t know what you stand for.”

    The second example has to be the introduction of top-up fees for higher education. Again the Blair Government’s approach was compromised and flawed. There was an absurdly interventionist regulator created to do what it was already in universities’ interest to do: to find and attract the brightest of students whatever their background and social circumstances. The scheme was so adulterated that the additional financial benefit to British universities to enable them to compete worldwide will be minimal. There was an arbitrary target for the number of school-leavers who should go into higher education.

    Nonetheless the core elements of the scheme were ones with which most Conservatives would feel comfortable. It introduced a price mechanism, albeit very truncated in effect. It will encourage students to look carefully at what value they expect to get out of a degree. Stripped of the regulator, it could make universities much more independent of the state, dispersing power to create independent institutions in a way Conservatives over the decades would approve. It fosters personal responsibility in students. It extends co-payment.

    In short it felt like the sort of direction that Conservatives could plausibly have wanted to travel, embodying values that Conservatives tend to proclaim as their own. Many Conservatives were deeply unhappy to be whipped to vote against the Bill. And again much of the public simply felt confused about what the Conservatives were up to. We were saying we were for the smaller state and for bigger citizens. Yet here was a measure that although flawed was demonstrably a smaller state measure, which enhanced personal responsibility and thus seemed to create bigger citizens, yet the Conservatives were against it. No wonder people scratched their heads trying to figure out what we stood for.

    Now Tony Blair is planning measures to introduce greater consumer choice, more plural provision, and greater institutional autonomy in schools and in the NHS. The proposals have been criticised, rightly, for being pale and timid reforms that conspicuously fall below the level of the rhetoric I quoted earlier. There will be a debate whether the Conservative Party should support the legislation in principle, assuming it does actually take reform in the broad direction we favour. There will be a particular concern that our support might be the deciding factor whether the reforms go through at all, given the high levels of dogmatic opposition in Tony Blair’s own Labour ranks. That Labour opposition will be stirred up covertly by Labour’s own institutional roadblock, the Chancellor, Gordon Brown.

    So what should be the Conservative stance? Combine with the Labour left to shore up Gordon Brown, or combine with genuine reformers of whatever party to promote reform? Should we be tactical or strategic? Should we, regardless of our own narrow partisan interests, engage in building a long term alliance across the party divide in favour of serious public service reform?

    For we should be in no doubt that people are hungry for realism and hungry for change. Poll after poll shows that people no longer believe that the problems of poor healthcare and education can be solved simply by throwing more money at them. They are willing to be persuaded that even quite radical reforms are needed. But they are deeply suspicious of the motives behind the grand schemes of politicians. They impute the worst of motives to any schemes of reform. They are inclined to see them as flowing from dogma and ideology, or designed to benefit the few rather than the many, or aimed at enriching sinister business interests.

    Neither should we underestimate the difficulty of persuading people that radical reform is needed. There is no automatic view that choice is an obvious good. We know what people tend to say: “we don’t want choice; we just want the schools, hospitals etc to be better”. It is not immediately obvious to most people that encouraging more diverse providers into the system, voluntary organisations, not-for-profits, even commercial providers, will improve things for service users. We who agree with Tony Blair’s arguments that I quoted earlier know that choice, diversity and pluralism work. But convincing the public that the uncertainty and disruption that certainly flows from such change is worth while is a very tough call, let alone persuading them of the merits of the sort of co-payment that Tony Blair has argued for. These are the hard yards of political debate.

    It is unlikely to be achieved by one party working alone. And it doesn’t need to be. There are Labour MPs, admittedly of the dreaded Blairite persuasion, such as Alan Milburn and Stephen Byers, who share the analysis and are willing to argue publicly for it. There is a growing number of LibDem MPs, including the brightest among them, the “Orange Bookers”, who know that this is where the future lies. And the simple truth is that the most important thing for this country, after delivering strong economic growth, is to create public services that are worthy of its citizens. This is a central contribution to delivering social justice for them all.

    We must work together in a broad alliance with whoever shares the broad diagnosis and prescriptions to win a broader consensus with the public. If we can do that we will be ready to serve in Government. More than that, we will be worthy of it.

  • David Cameron – 2005 Article on Conservative Election Fortunes

    David Cameron – 2005 Article on Conservative Election Fortunes

    The article written by David Cameron for the Guardian and republished by the Conservative Party on 14 March 2005.

    With 51 days to go before May 5, this election campaign is going to be a long one.

    The consensus among commentators so far is that the Tories are having a good war and Labour a bad one. Tony Blair and his cabinet have come across as defensive, negative and even petulant. Peter Hain’s extraordinary branding of Michael Howard as “an attack mongrel” is just the latest example. We’ve had anti-semitic posters, misuse of the Freedom of Information Act, and claims about Conservative policy that are so absurd the press doesn’t bother to report them.

    The media seem to have found the mixture of Alan Milburn’s machismo and Alastair Campbell’s comeback a complete turn-off.

    Blair’s behaviour over the terrorism bill was inexplicable. There was never a realistic prospect of painting the Tories as “soft” on terror, so why bother trying? He left the impression of being arrogant while losing control of events. At the same time, Blair fatally undermined the reputation of his home secretary. Every time Charles Clarke shuffled to his feet to read out a new list of half-concessions, a little more of his authority drained away. While the last home secretary occasionally resembled a megalomaniac, the current one looks like a muppet.

    Conversely, the Tories have set the agenda with positive and clear messages about cutting council tax for pensioners, cleanliness in hospitals, discipline in schools and bringing order to Britain’s immigration and asylum system.

    To date New Labour has always been seen as the ultimate campaigning machine and the Tories as flat-footed. So why the turnaround?

    First, our approach and our policies are clearly based on practical responses to people’s needs, rather than some ideological blueprint. We’ve sought to deliver quality public services, safeguard personal prosperity and family security and provide safer communities.

    And while all our answers are rooted in Conservative values, they are far from being predictable. On public services we believe that major reforms are needed, but we also accept that quality costs money, which is why we are committed to matching Labour’s spending plans of £34bn more for health and £15bn more for education. As a result, Labour jibes about “Tory cuts” to schools and hospitals ring completely hollow.

    In terms of personal prosperity and family security, we have explained how we will reduce taxes in our first budget, but we have also set out plans to uprate the basic state pension in line with earnings rather than prices. We know that without doing this it will be impossible to restore the savings culture and end the spread of means testing. Labour is left as one of the only participants in the debate about pensions who is outside the growing consensus that a strong basic state pension should be at the heart of the system.

    When it comes to delivering safer communities, we have pledged tougher penalties and more police on the streets, but we have also made a huge commitment to expanding drug rehabilitation, pledging an extra 25,000 places. People increasingly recognise these commitments as practical, commonsense responses to the most pressing problems this country faces.

    Second, the Conservative party is holding a sensible conversation with the British people. Blair’s version of this was the ludicrous “broken crockery” speech, which left most people reaching for the sick bag. The Tories are clearly addressing the things people want dealt with – cleaner hospitals, school discipline, more police – but we also know that they want reassurance about what a Conservative government would be like.

    In Brighton at the weekend Michael Howard explained that the Conservatives were now the only party that could guarantee leaving control over interest rates to the Bank of England, as both the other major parties would prefer interest rates to be set by the European central bank. His speech also made absolutely clear our commitment to the National Health Service and that it should remain available and free to all. The NHS has expanded massively since its foundation in 1947. For 35 of the subsequent 58 years, Conservative governments have been in power, building hospitals, training doctors and nurses and funding new treatments. So in many ways it shouldn’t be necessary to give assurances that continued NHS expansion will be secure under a Conservative government, but we know Labour will continue to make unfounded and desperate attacks and we want people to know the truth.

    Third, there is a coherent theme linking Conservative policies together. Giving parents the power to choose the right school for their children. Allowing patients to choose where they are treated. Cutting taxes to let families spend more of their own money as they choose. Extending the right-to-buy to housing association tenants. All of these things are about driving down power and responsibility to individuals and families.

    We are the only party committed to bringing powers back from Brussels to Westminster. Likewise we are the only party committed to abolishing the unwanted regional assemblies and returning their powers to local government. Our plans to scrap police authorities and let people elect their own police commissioners represent a truly radical expansion of “people power”. There are two types of devolution. Giving more power to people – and devolving power in government to the lowest possible level. The Conservatives are now the only party in favour of both of them.

    No one knows for sure what is going to happen in this election. Bad campaigns can translate into good results, and vice versa. But it is increasingly clear that it is wide open.

    To me, the architecture of the election has always been fairly clear. A large swath of the British people feel that New Labour has taken their money, wasted it and failed to tell the truth about things that really matter. These people – and there are literally millions of them – are looking for an alternative that is practical, credible and mainstream. They want an alternative that shares their values, focuses on the issues they care about and has costed plans for getting things done.

    Under Michael Howard, that is precisely what the Conservative party has set out to do. And in the next 51 days we have to prove that we have done it.