Tag: 2007

  • David Cameron – 2007 Speech at Conservative Councillors Association

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    Below is the text of the speech made by David Cameron, the then Leader of the Opposition, to the Conservative Councillors Association Conference held in Leeds on 23 February 2007.

    We meet here in Leeds with the Conservative Party in better shape than it’s been in for almost 20 years. We have a sustained lead in the polls.

    We have a united shadow cabinet and Parliamentary party.

    And of course, we are the largest party in local government.

    I want to thank you for that – for the hard work you do.

    You are showing the British people that Conservatives are the right party for government – and you deserve a lot of the credit for our success.

    I know that councillors sometimes feel ignored by the national party.
    Well, it’s not true.

    Every Thursday night I get woken up by a text message in the early hours of the morning. It tells me the results of the local government by-elections.

    Those elections are crucial barometers of the nation’s political mood. And as you know, the indicators are pretty good.

    In local elections where all three parties stand, we’re regularly winning twice the number of seats that Labour are getting.

    But we still need far better communication inside our party.

    We need to be one party – not separate little parties of MPs, MEPs, peers and councillors. One party.

    I’m doing what I can. I’ve invited council leaders to the 1922 committee. I have encouraged the shadow cabinet to link up with the LGA.

    And I would like to discuss with the Conservative Councillors Association the idea of a proper system of consultation between us, along the lines of the central-local partnership that the LGA has with the government.

    This would bring Parliamentary frontbenchers together with the leading players in local government, giving us access to your expertise and allowing us to boast of our local achievements on the national stage.

    But we all know more needs to be done.

    And it needs to be done on your side too.

    You can’t always expect the national party to come to you – you’ve got to come to us.

    If there’s some great new initiative you’ve introduced, tell us about it.

    If there’s something we’ve said or done that’s made life more difficult, pick up the phone. If we’re missing opportunities – tell us.

    Labour

    Of course, part of our success has been Labour’s failure.

    Ten years after they said Britain had 24 hours to save the NHS, we’re seeing hospitals closing and jobs cut.

    Ten years after they said they’d be tough on crime and tough on the causes of crime, gun crime’s doubled.

    Ten years after ‘education, education, education’, British children are among the worst educated in the developed world.

    Blair is limping on to an ingracious end.

    The Deputy leadership candidates are all running against his record.

    Cabinet ministers are joining picket lines in protest at Government policy.

    And the Police are knocking on the door of Downing Street.

    Who ever thought it would end like this?

    In 1997 the country felt a great wave of hope and optimism when Labour swept into power.

    That will be nothing compared to the national sigh of relief when they are finally swept out again.

    Conservative councillors

    But it’s not enough for Labour to fail. We have to show that we can succeed.

    And you have a massive part to play in that vital process.

    Across Britain, Conservatives hold power in local councils.

    You demonstrate Conservative government – your values, your achievements, represent our party in action.

    So my point is this: you, Conservative councillors, can show to voters that it is our party which has the ideas and the capability to make a real difference.

    Here in Leeds it was the Conservative Council which has regenerated 33 local parks.

    In Bradford, our councillors have opened five new children’s homes.

    Elsewhere round the country it’s Tory councils leading the way – not least on the issue of the moment, youth crime.

    The free fitness clubs set up in Taunton to give local kids something to do after school.

    The Youth Passport which Westminster council have introduced to give young people discounts on local activities.

    The Scratch project in Leicestershire which teaches basic skills to kids who struggle in school.

    Hammersmith and Fulham’s innovative new policy of paying for 24 hour policing.

    All these schemes which really do tackle crime and its causes.

    I want to be able to point to any Conservative-run council in the country and see excellence in practice.

    I want to see our councillors leading the nation in ensuring there are enough low-cost homes for young families.

    I want to see people voting Tory because of our local record on recycling or energy saving.

    I want to see our councils helping parents of children with special needs – and giving them the choice between special schools and mainstream schools.

    Quality of Life

    I want to explain the what and the how.

    What we want to do in Government, and how we plan to do it.
    And I can tell you that local government – empowered, invigorated, set free – is absolutely central to our vision and our plan.

    My starting point is this. For far too long, we Conservatives have emphasised the economic rather than the social.

    Don’t get me wrong – we must always be the party of sound money, of low taxation, of enterprise and wealth creation.

    But that does not mean pursuing those things without reference to the social, cultural, moral factors which give us meaning in our lives.

    Ultimately the quality of life matters more than the quantity of money.

    So let me say loudly and proudly and clearly: we are the party which respects the Quality of Life. We believe there is more to life than money.

    Most of all, perhaps, quality of life means a healthy natural environment and a healthy social environment.

    We are the stewards of the natural world. We are obliged to pass on the planet to our children in a healthy state.

    We know money can help here – a poor world is not a healthy one. But we also know that the thoughtless pursuit of wealth can damage our environment.

    The same goes for the social environment – the ecology we inhabit as individuals and families.

    Again, there is a dilemma: more wealth can preserve and enrich the social environment – but the relentless pursuit of wealth can damage it.

    I do not have some grand blueprint for how to resolve these dilemmas. But I do have confidence they can be resolved.

    Because it is at the local level that we find the various settlements that enable us to preserve our wealth without damaging our environmental and social wellbeing.

    Every family has to find its own balance between wealth and wellbeing.

    But no family – except the super-rich – can find this balance alone: external factors, like employers and childcare and travel options, all play their part. And that is where the community comes in.

    Labour never really get the quality of life agenda.

    They treat individuals as units of account, not as human beings who find meaning in family relationships and in communal and professional life.

    But it’s not just that we have a distinctive vision of what government should try and achieve, we have a distinct approach for how it should be achieved.

    So when some people say there is no real difference between the parties anymore, they are talking rubbish.

    There couldn’t be a starker difference: Labour believe in top-down state control, Conservatives believe in bottom-up social responsibility. They trust the state. We trust society.

    Social responsibility has various forms.

    The personal responsibility we owe to our families and our neighbours.

    The corporate responsibility of businesses and employers.

    And the civic responsibility of local institutions, not least the council.

    Dismantling Labour’s command state

    But all this means changing the way we work.

    I know opposition leaders have stood in front of their councillors before, and promised to devolve power and lead a new revolution in local government.

    I know you must be pretty fed up of hearing it. I know you’re not going to believe me unless I make it completely clear what I intend to do.

    The revolution I want to lead has three parts.

    First, we need to dismantle Labour’s centralised command state.

    Second, we need to grant further powers to local government.

    And third, we need to go beyond local government. We need to drive power down to community groups and citizens themselves.

    First, then, we have to dismantle.

    The Standards Board regime has become a vast bureaucracy for vexatious complaints from petty-minded councillors who just want to score political points.

    It has damaged the reputation and standing of local government – and so we will abolish it.

    If we believe in local democracy and are going to trust local councillors, how can we allow the crazy rules on pre-determination that prevent councillors and council candidates from speaking out on controversial issues which they may later have to vote on?

    It’s a denial of democracy – and so we’ll stop it.

    Regional assemblies do not represent a devolution of power, as Labour claim, but a centralisation – they suck their powers up from local councils, not down from Whitehall.

    So they must go.

    Next are the complex funding strings that tie councils to central government.

    There’s the web of ring fencing and specific grants – and the drip feed of small funds that are introduced one minute and withdrawn the next.

    The next Conservative government will move towards a simple block grant method of distributing money from the centre to local councils.

    This will be a vital step in delivering real local decision making and real local democracy.

    Best Value and the Comprehensive Performance Assessment have become by words for bureaucratic box ticking and unnecessary interference.

    They mean that 80 per cent of council performance measurements are measuring whether the council has met central targets, rather than whether they’re meeting local priorities.

    And changing the name of the CPA to the CAA isn’t enough. All this needs to go.

    Empowering local government.

    But I don’t want to stop there.

    We can do more than simply reduce central government interference in local government.

    I want to give councils the opportunity to take the initiative themselves, and develop new ways of working which reflect the needs and wishes of local people.

    One of the great traditions of our party is the principle of permissive legislation. In the 19th century Benjamin Disraeli passed laws which permitted local government to clear slums and regenerate our towns and cities.

    I want to do something similar in our own day.

    Last year the Conservative Party published a private member’s bill called the Sustainable Communities Bill.

    This is a truly radical piece of legislation. At the moment, a majority of taxpayer’s money which is spent locally, is not spent by local councils.

    In Kent, for instance, the taxpayer spends around £10 billion a year. Kent County Council controls only a tenth of that.

    The Sustainable Communities Bill will allow a local council to find out how much money central government spends in its area, and to present a plan for taking direct control of that money itself.

    Everything except genuine national priorities should be a local responsibility.

    Beyond local government

    But we need to go beyond merely devolving to local government.

    I want to make a point which I believe is crucial to the future of our country.

    I do not believe that the only civic institutions are statutory ones. There is such a thing as society – it’s just not the same thing as the state.

    We are not just the party of local government. We are the party of local communities – led by local government, but not confined to it.

    A community includes the church and the sports club, the charity and the local business.

    It includes all the private associations that people form for public purposes – to clean up the streets, or look after the elderly, or give teenagers something to do.

    It is these associations which, alongside local government, will repair the torn social fabric of our town and cities.

    No single law or regulation from Whitehall or the town hall can have any effect unless it is part of a broader set of private decisions, taken by people themselves.

    So we should be less arrogant about what we can do as politicians, and more ambitious about what we can do together as parents, professionals, neighbours and citizens.

    All those who want to centralise are wrong. We need to get power as close as possible to the people. Yes, that means more responsibilities and freedoms for local government.

    But it should also mean more opportunities for communities themselves, acting independently of the statutory sector, to make a difference on their own.

    Ultimately it’s only by empowering people, with real freedom and real responsibility, that community life will improve in our most rundown neighbourhoods.

    This is not a threat to local government, but a stimulus to it – it’s the way to engage more people in the business of local civic life.

    Conclusion

    I know that we are heading in the right direction because you are winning council seats across the country.

    And I want you to take heart from the national party too. So go out and fight for more council seats on 3 May.

    Fight on the values of a reinvigorated Conservative Party.

    Fight on the achievements of Conservative councils.

    And fight on the promise of greener, more family-friendly, more local politics under the Conservatives.

    If we combine the traditional values of the Conservative party of good common and good value for money, with our new emphasis on quality of life and local decision making, we – that means you – will be unbeatable.

  • David Cameron – 2007 Speech at Base 33

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    Below is the text of the speech made by David Cameron, the then Leader of the Opposition, to Base 33 in Witney, on 16 February 2007.

    Sometimes a piece of research is published which goes straight to the heart of the national debate – it holds up a mirror to the whole of society and makes us see ourselves as we really are.
    That happened this week. On Wednesday, Unicef published a report entitled “An overview of child well-being in rich countries”. It brings together comparative research on the material, educational and emotional state of childhood in 21 developed nations.

    Britain comes bottom of the list.

    Of course we can argue about methodology and the timing of statistics, but to do so is to miss the big point. This report shows that our society is deep trouble.

    I am an optimistic person. I love this country. It’s a great place to live, a great time to be alive, and I am enormously positive about the future. But sometimes I simply want to despair – and this is one of those moments.

    Ten years after the current Government was elected on the promise to end child poverty and make education its number one priority, Britain comes 18th out of 21 rich countries on material wellbeing, and 19th out of 21 on educational wellbeing. According to the report, British children are among the poorest and least educated in the developed world.

    But that is not the worst of it. We come at the very bottom – 21st out of 21 – on three other measures which, to me, are even more important.

    First, we come bottom on ‘subjective wellbeing’ – how children themselves rate their lives. Put another way, we have the unhappiest children in the developed world.

    Second, we come bottom on ‘behaviours and risks’. That means, for example, that British children have the highest rates of underage drinking and teenage pregnancy. Our children face some of the greatest risks in the developed world.

    And third – for me, the saddest finding of all, and the main cause of all the others – we come bottom on the measure of ‘family and peer relationships’. Which is to say, we have the loneliest children in the developed world.

    Only the United States has more children living in one-parent families. No other country has a smaller proportion of children – barely 40 per cent – who say their peers (that is, other children) are ‘kind and helpful’.

    These are pretty dreadful findings. To those of us who are parents, our children are quite simply the most important thing in our lives. So what are we to make of the fact that, as a national family, we are treating our children in this way?

    Because I do not accept for a moment that these terrible statistics are the ‘fault’ of children themselves. Above all, the problems we see – the risky behaviour, the loneliness and depression – are principally a response to a lack of adult leadership, a lack of the love and support that is their moral entitlement.

    I’ll tell you what’s going wrong in our society. We have too many children behaving like adults. And too many adults behaving like children.

    Quality of life

    I believe that the Unicef report should represent a turning point in the history of our country. Not a ‘wake-up call’ – we’re already awake: you only have to walk down a street in the afternoon after the schools close to know there’s a problem with some British children. No – this is a call to action: a moment of truth in which we must decide if we have the will to do what is necessary to save our society.

    I want to set out today three areas where I believe we must take urgent steps to restore child wellbeing. The first concerns political priorities in general.

    Much of the debate since the Unicef report was published has concentrated on the first measure – material wellbeing. And I agree it is a disgrace for the fourth richest country in the world to have so many children growing up in poverty. I agree that ending child poverty is central to improving child wellbeing.

    But I do not think that poverty is the only factor. There is more to life than money – and in the case of children that’s especially true. A small child doesn’t know there is such a thing as wealth or poverty. But he or she does know that there are such things as love and stability and support – even if she knows them only by their absence, in the hurt and loneliness that comes from neglect.

    I passionately believe that the quality of life matters just as much as the quantity of money. This is not a belief that guides our current Government. Ask Gordon Brown what matters most, in pretty much any area of life, and he’ll say: “resources”. And of course resources are important. But more important – as every parent knows – is relationships… time… and commitment.

    Family relationships matter more than anything else in Britain. So I want to move beyond the breast-beating and the anguish that the Unicef report has stirred up in all of us, and explain one straightforward principle which will guide my policy-making.
    The first test of any policy is: does it help families?

    So, for instance, if it comes to a collision between our wealth as a nation and the wellbeing of families – I choose families.
    I don’t make this choice lightly. I know that a dynamic economy is essential to create the wealth we need, not least in order to eradicate poverty. Competitiveness, which includes a flexible labour market, is one of the central components of a fair society. But we must not put the cart before the horse. If our working habits are damaging our families, we need to change our working habits.

    Every working parent knows you can’t have it all. There is a natural conflict between hours worked, money earned, and the time you spend at home. I believe that businesses have an overriding corporate responsibility to help lessen this conflict, and make it easier for parents to find the proper balance for their lives.

    By the same token, I recognise the right of adults to conduct their own relationships in their own way. I am not the sort of politician who preaches morality to grown men and women. But I do know that if we are to rebuild our broken society we have to get the foundation right. And the foundation of society is – or should be – the care of children by the man and the woman who brought them into the world.

    So this leads to important conclusions – both for the free-market right and for the liberal left.

    Let us have no more grandstanding about the exclusive importance of competitiveness in business. Nothing matters more than children.
    And let us have no more complaints that supporting marriage means bashing single mothers. It doesn’t. Of course single mothers need support – they do the hardest job in the world. But I want to see more couples stay together, and we know that the best way to ensure this is to support marriage. Not because it matters how adult men and women conduct their relationships. But because it matters how children are brought up. Nothing matters more than children.

    Responsibility

    So that is my first priority – a focus on the quality of life, especially family life. The second priority is this: a culture of personal responsibility.

    Conservatives have sometimes been shy of talking about their vision of the good society. A good society is one in which everyone takes his or her own responsibility – as parents, as professionals, as businesspeople, as neighbours. The good society is the responsible society.

    I need to emphasise a crucial point at the outset. There is a role for government here – there are actual policies that need to be implemented. But the real responsibility for improving children’s wellbeing lies with society – with all of us.

    In the last two weeks, five people have been murdered in South London – three of them teenagers. On the face of it, this is a law and order issue. But surely no-one imagines that we can stop crimes like this simply with better policing or better gun control. The problem lies within families and communities – and so does the solution.

    On the radio yesterday morning two local residents were interviewed about the spate of killings in their area. And I think their remarks illustrate a vital difference in the way that we should approach the problem of teenage crime.

    One said, “the children don’t seem to have anything to do. They just roam the street.” When she was asked who she blamed for that, she said “the Government, really. They’re closing down all the community centres.”

    Now I like to agree when people blame the Government for things that go wrong. And, more seriously, I also agree that there is a problem with the lack of community facilities in our big cities. But surely, on this occasion, that local resident was looking at this problem in the wrong way.

    The fact is that young people have more leisure opportunities than ever before in our history. What they don’t have is the sense of responsibility which is imparted to them at a young age.

    The second woman had a better explanation for the crime and violence in her area. She said, quite simply, “It’s the way they were brought up. If they were brought up that way, they’ll be that way”.
    She’s right. Children learn their morals, no less than their manners, from their parents. And that means both parents – including fathers.

    We urgently need to reform the law, and the rules around child maintenance, to compel men to stand by their families. I do not pretend that parental responsibility comes easily. The fact is that bringing up children is a very difficult job – far harder than anything we do in our professional lives. And it is something we cannot do alone. The nuclear family is not enough. I know this – my wife and I could never manage without the help of our wider family.

    So I believe we need a national effort to support parents. This means grandparents and uncles and aunts rallying round. It means not limiting support for childcare simply to registered childminders. It means tailoring the welfare system so it helps parents stay together, rather than setting up perverse incentives which make a couple better off if they live apart.

    And it means shaping institutions – businesses and public services – to be more child-friendly. I was in Sweden earlier this week. I was hugely impressed with the culture there, which focuses on children as the most important thing in Swedish society. I went to a childcare centre – you know, there were more dads than mums there. I might like to think I’m a hands-on father – but by Swedish standards, I’m right at the back of the class.

    Personal responsibility has an important corollary. If people are to take their responsibilities seriously, they need to be respected for it. And this brings me to an old-fashioned word you don’t often hear these days: authority.

    Authority is the culture of persuasion that operates in a family or a community with settled rules and understandings. It is the system of natural boundaries – what Burke called ‘moral chains upon our appetites’. Acquiring these chains, sounding out these boundaries, is an essential part of the business of growing up.

    The state has a role to play, of course. I believe the police should have authority as well as power – that they should be able to command respect, not simply threaten force. That means setting the police free from the target culture which makes them into box-ticking bureaucrats rather than empowered agents of the community.

    But authority goes far beyond the state. It begins with parents. It includes teachers and, indeed, any responsible adult in the community. We urgently need to encourage a culture of intervention. In a healthy society, children are the responsibility not just of their parents, but of the whole community.

    I’m not talking about taking on a gang of dangerous thugs. I’m talking about treating children and teenagers with respect – with the expectation that, if they are spoken to as reasonable people, they will respond as reasonable people.

    This requires a collective, conscious decision on the part of all of us. I am a great believer in the small things we can do to make the world a better place – like taking your litter home with you or turning the lights off when you leave the house. But if there is one small action I think we should all undertake to do more often, it is to engage directly in the lives of the young people we see around us.

    Common sense

    And finally, the third area for action is this: straightforward common sense. Ultimately, we didn’t need the Unicef report – pages of statistical analysis – to tell us there is a problem with the emotional wellbeing of Britain’s children. And we don’t need a comparable doorstopper of a book, filled with hundreds of minute policy proposals, to address the problem.

    We all know what has gone wrong – and we all know what is needed to put it right. But this does mean some clear-sighted, and hard-headed, changes to the way the law and our public institutions work.
    We need common sense in schools. It is madness for the authority of teachers and heads to be second-guessed by outside evaluators when they want to impose simple discipline in their own classrooms. It is madness for a teacher to fear that if he restrains a child who is violently bullying another child, he will end up in court on charges of abuse. It is madness for schools to have to cancel outdoor trips because their insurance policies won’t cover them in case of mishap.

    Indeed, it is grimly instructive that the only measure in the Unicef report where Britain does not come at or near the bottom – where we come a respectable 12th out of 21 – is (you guessed it) health and safety. Our children might be the loneliest, worst behaved, unhappiest children in the developed world – but at least they are protected from sprains and bruises.

    One of my priorities for government might seem rather remote from the issue of child wellbeing and the happiness of families. I want to replace the European Human Rights Act with a British Bill of Rights. But this is not some obscure constitutional alteration. It goes to the heart of how we live, and how we relate to each other.

    Rather than stridently asserting their rights as free individuals, I want young people to recognise that we’re all in this together. That our freedoms come with responsibilities attached – indeed, that our freedoms are only preserved by our collective commitment to self-restraint and duty. That’s why I set up the Young Adult Trust and why I want to see a national community programme for all 16 years olds that stresses their responsibilities as adult citizens. I am not waiting for a general election – Pilot schemes are running in Croydon this week.

    So those are the things that will guide me in government. You can see the consequences. Backing for marriage in the tax system. Child-care policies that take account of the extended family. A blitz on top-down control and the health and safety culture. And this pioneering programme to engage all young people.

    But this is not about announcing a batch of policies. Much more important, I’m explaining how I will make judgements. I will make judgments based on my belief in the quality of life, in responsibility, and in common sense.

    These are not eye-catching initiatives, headline-grabbing policies designed to suit the next day’s news, rather than the next generation’s lives. They require serious, long-term determination to revive a culture of social responsibility in our country.

    And I hope they illustrate something of what the Conservative Party under my leadership stands for. When we were last in government, in another political era, we stood for economic revival. We now stand for social revival. We used to stand for the individual. Now we stand for the family, for the neighbourhood – in a word, for society.

    We can turn our society around. But only if we do it together. It’s about social responsibility. So don’t just ask what politicians can do about it. Ask yourself, what can you do about it. That is the way to heal our nation.

  • David Cameron – 2007 Speech on Public Services

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    Below is the text of the speech made by David Cameron, the then Leader of the Opposition, on 26 January 2007.

    A few months ago Britain was told that the Conservative Party was taking its lead from a certain Guardian columnist. I’m very pleased that the Guardian is also prepared to listen to the Conservative Party.

    The public services are at the heart of my vision for Britain. In recent years the Conservative Party has acquired a reputation for indifference to the public services. This was quite wrong – especially given the origin of the public services.

    It was a Conservative, Rab Butler, who introduced free secondary education for all in 1944.  And in the same year it was a Conservative health minister, named Henry Willink, who published a White Paper called “A National Health Service”, outlining a plan for universal, comprehensive healthcare, free at the point of need.

    Lest anyone imagine I don’t admire Winston Churchill’s social policy, let me quite him from the 1945 election: “Our policy is to create a national health service to ensure that everybody in the country, irrespective of means, age, sex, or occupation, shall have equal opportunities to benefit from the best and most up-to-date medical services available.”

    In fact the NHS is a truly non-party institution. It was inspired by a Liberal – William Beveridge – planned by a Conservative – Henry Willink – and introduced by a Labour minister, Nye Bevan.

    Of course the three parties, then and now, have disagreements about how the NHS should be organised.  But we all share an absolute belief in its aims and values. It is one of the institutions – like the monarchy or the BBC – which binds us together as a nation. And the same goes for all our great public services.

    The shape of the public services

    The idea at the heart of the modern Conservative approach is social responsibility. And public services are one of the clearest expressions of what that means. Social responsibility is based on a conviction that we’re all in this together. That government doesn’t have all the answers, and that society is not the same thing as the state. Social responsibility gives us a clear direction in shaping the policy agenda that will address the big challenges Britain faces.

    We need to advance civic responsibility, transferring power and control to people and institutions at the local level. We need to encourage and incentivise greater corporate responsibility, to help tackle issues from climate change to obesity.

    We must promote personal responsibility, recognising that our freedoms come with duties attached, and that we have collective obligations as well as individual rights.

    And perhaps most importantly in respect of public services, we must enhance professional responsibility, trusting in the commitment and expertise of you and all your many thousands of colleagues working in our great public services.

    Public services, open to everyone in the community, governed by rules held in common – these are the institutional manifestations of social responsibility.

    But today I want to question whether the shape of our public services is the right one for this purpose.

    To do this I have to go back to the beginning. We often date the origins of our public services to the end of the second world war sixty years ago.

    In fact, our public services are, in their inspiration, much older than that. I believe that the ideas which went into the design of our public services are now fully a century out of date.

    Let me explain. Ideas take time to germinate. It is often the intellectual theories of an earlier age that influence the practical decisions taken in the present. And so it was that our modern health, housing and education systems were designed, in the middle of the twentieth century, by men and women who were under the intellectual influence of the generation who came before them.

    Britain’s public services owe their origins to the era from Bismarck to Henry Ford. It was Bismarck who, in Germany in the late 19th century, first used the power of the state to create mass welfare services, controlled from the centre. And it was Henry Ford who first mechanised production on a mass scale, using assembly lines to create higher volumes of output.

    The middle years of the 20th century, when our public services were designed, were dominated by the Bismarckian idea of the role of the state, and the Fordist idea of how production should work. Rather than the mutual and self-help traditions of an earlier generation, a new intellectual climate took hold which stressed centralisation, standardisation and scale. Some would argue that these ideas were right for their day but they are wrong for our day.
    Let me start with health.

    Health

    Michael Foot, in his biography of Nye Bevan, explained how Bevan was inspired by the great steps forward in public health made in the 19th century, especially slum clearance and sanitation.

    These were the achievement of government – and Bevan applied that lesson to the design of the new health service. The NHS as it emerged was built on Fordist lines. The conscious or unconscious inspiration behind many of our modern hospitals is an assembly-line, dedicated to producing the highest volume of ‘units’ – that is, patients treated – in the shortest possible time.

    Now I think this was the right model for 1946. In those days ‘healthcare’ usually meant serious, infrequent medical interventions, often surgery. And the factory model is still helpful today in the case of routine treatments such as hips and cataracts. But in general the very meaning of healthcare is different. So the model of delivery needs to change.

    These days healthcare doesn’t always mean one or two visits to hospital in an individual’s life – it often means constant care, often self-managed.

    There are 17 million people in Britain with long-term conditions. For them healthcare is not a passive event, but an active process, depending on personal factors such as relationships with doctors and family as much as medical factors.

    Not just the hospital consultant, but also the GP, the practice nurse, the pharmacist, the care worker… these are the professionals who deliver healthcare.

    In spite of government talk about the importance of primary care and local treatment many see their local health service being dismembered,

    Community hospitals are being closed to make way for new, regional, super-hospitals. I think this runs directly counter to what modern healthcare means, and what people themselves want.

    Prisons

    The same Fordist assumption dominates another of the great public services – the prison system.

    Perhaps ‘public service’ is the wrong word here – we don’t exactly want comprehensive, universal access to prisons. Our prisons are responsible for people and they operate under designs and rules laid down by government.

    Those designs and rules have their intellectual origins in the 19th century. In fact our modern prisons take their very architecture from the Victorian era. Prison design has hardly changed in over 150 years – large buildings on a radial or block model, designed to keep prisoners in physical isolation.

    Again, this was an enlightened and progressive step for the time, and a major improvement on the terrible conditions of pre-Victorian prisons. But today the effect is that 80 per cent of prison manpower is dedicated to security, and only 20 per cent to education, training, drugs treatment or rehabilitation.

    I think that’s the wrong ratio and it reflects an out-of-date understanding of criminality and human motivation. Of course we need to maintain the highest standards of security – that, after all, must always be the top priority of the prison service. And yet I believe that we and maintain security and improve the rehabilitative work that prisons do.

    Instead of institutions designed to keep offenders in isolation and idleness, we need prisons where criminals undertake a full day’s work, education or training.

    Over the last decade, re-offending rates have increased substantially. The current government has shown a failure of planning because they did not build the prison places required. There has been a failure of policy, because re-offending rates have gone up. And there has been a failure of political will because even when they knew there was a problem, nothing was done about it.

    Education

    Then there is education. Again, we take our idea of education from the era of Bismarck and Ford. Our modern secondary school system began with Rab Butler’s Education Act in 1944. This sought to preserve the independence and variety that already existed in education, while arranging for universal access.

    The real change came with Dick Crossman’s comprehensive schools in the 1960s. Universal education is one of the great achievements of modern times. And yet I do not believe that universal education has to mean standardised education. Comprehensive education should not mean all children, of all aptitudes and interests, being taught together in the same classes, studying the same subjects at the same pace.

    Real education involves a recognition of difference among people. Schools should help each child work towards his or her best self – not force every child into the same mould. There is a wealth of evidence and new thinking pointing the way to a better system of educating children. A system based on the individual aptitudes of individual children, yet which recognises the crucial role of sociability and shared endeavour.

    This is why I am committed to an extension of setting and streaming within schools. A more plural understanding of how education works requires a more plural education system itself – one which welcomes a diversity of schools.

    I recently visited a Muslim girls’ school called Feversham College in Bradford. When I first walked in I was rather taken aback by the sight of rows of girls dressed in jilbabs. But those girls were confident, articulate… in a word, well-educated. The experience confirmed the vital importance of schools having a clear ethos – and I see no problem with that ethos being a religious one.

    I am pleased that, after years of preaching the need for standardised education, Labour has come to realise this. That is why I was proud to support the Education Bill that went through Parliament last year.

    We need to go much further, but Labour have made a start.

    Housing

    Next, a word about housing. This was another of Nye Bevan’s responsibilities after the war. And he made great efforts to ensure ‘dignity’ – that key Bevanite word – for the families who would live in the new housing.

    But the demand of the day was volume. That meant standardisation of design and cheap construction. Partly because of his wish for high quality homes, Bevan never built enough of them. Harold Macmillan, by contrast, built 300,000 homes a year – but it was not possible to ensure that each house was comfortable and beautiful, let alone different from its neighbours.

    The principle of mass production and standardisation really took off in the 1960s and 70s, with the results we are all familiar with.

    Architects under the influence of Corbusier, the Henry Ford of architecture, built blocks which resembled not so much factories, as warehouses for the efficient storage of human beings.

    Surely everyone now recognises the need for better housing design – and in many communities across the country, we are seeing real progress.

    And yet we are in danger of reverting to the Macmillanite model: not high-rises, but rabbit hutches – ugly mass produced boxes.

    There is an urgent need for more affordable homes. The Government-funded scheme for low-cost home ownership has helped only 40,000 people to buy a stake in their homes in the past seven years, while the estimated demand is for 60,000 households per year.

    We need to stimulate real innovation in design and the growth of low-cost housing which is nevertheless beautiful to look at and comfortable to live in.

    This requires a great liberalisation of the planning rules and building regulations.

    Professionals

    So that is how our public services are designed and built. The emphasis on volume. The large centres of production, achieving standardisation and economies of scale. The user comes to the producer, and the producer is in charge. All in all, a sense on the part of the individual that public services are something that happens to you, not with you, let alone – God forbid – by you.

    Part of that is the way that the different public services seem to exist in parallel worlds. Because of the focus on large units of production, they tend to operate in silos. The other day I had a meeting with a constituent of mine with very impaired mobility. He always needs someone to help him get out of bed and move around. He explained how if his wife is delayed away from home and he needs to move, he has no option but to call an ambulance, at enormous cost to the taxpayer and at real risk to people in life-threatening situations.

    This is crazy – all he needs is a care worker on call who can come out in an emergency. But social care and health are funded separately and organised separately, and one does emergency call-outs and the other doesn’t.

    He has no power to organise his own emergency cover – he has to take what the public services offer and make the most of it.

    Now, you often hear that public services suffer ‘producer capture’ – that they work according to the convenience of the producers, not the users they actually exist for.

    And in a sense – as my constituent’s story reminds us – that’s true. And yet it is a sad irony that a system which disempowers the user, also seems to disempower the front-line professional as well.

    It is a tragedy that public service professionals are among the least satisfied people in the labour force.

    And why is this? Because the attempt to create standardised units of production reduces producers to assembly-line workers.

    Their vocation is stifled by the demands of a job that rates conformity over innovation. No wonder so many young professionals leave the public services each year.

    The New Jerusalem

    So I hope I have demonstrated that the design of our public services is out of date. They too often reduce the individual user to the status of a unit, and they disempower the professionals whose vocation is all that makes public services work.

    Now I want to briefly sketch the outline of an alternative design.
    This alternative is – if I may borrow from the socialist phrase-book – the New Jerusalem: the liberal-conservative ideal.

    It involves a diversity of independent, locally accountable institutions, providing public services according to their own ideas of what works and their own experience of what their users want.

    It involves a government which acts as a regulator of services, not a monopoly provider – monitoring service standards on behalf of the public, but not always delivering them.

    As George Osborne has said, it involves a Treasury which acts as a department for value for money, rather than trying to run every department and public agency from the centre.

    It involves, most of all, individuals and families who are empowered with choice. Pluralism on the supply side is matched with freedom on the demand side. The public become, not the passive recipients of state services, but the active agents of their own life.

    They are trusted to make the right choices for themselves and their families. They become doers, not the done-for.

    Responsible, engaged, informed – in a word, adult. And out of this messy creativity, this multitude of personal choices, comes what we all – left, right and non-aligned – want for our country.

    Great public services for all. Decent local schools, which everyone, rich and poor, Muslim and Christian, wants to send their children too.

    Housing which leads the world in beauty, in environmentalism, in comfort. Prisons which work, not just at keeping criminals off the streets, but at returning them to the streets reformed and healthy and employable. Local hospitals which are the envy of the world – but not the envy of the neighbouring town, because all hospitals in Britain reach the highest standards.

    And this is the great paradox – out of freedom, comes equality. Those who oppose diversity argue that it will lead to inequalities. Yet surely we must accept that the attempt to eliminate inequality by central planning has failed. True equality is not the formal and oppressive standardisation of Fordism, but the natural balancing-out that comes from diversity.

    The road to the New Jerusalem

    So much for the theory. The most important point I want to make today is this. For some on the right there is nothing easier, or more enjoyable, than describing our New Jerusalem – this paradise of pluralism and freedom and choice.

    Indeed, many of my critics on the right earn a living doing just that – describing paradise, and expressing astonishment that I can’t see it too.

    Well of course I can – but I aspire to lead the country, not just write about it. And that means I have to take the country as it comes. We cannot always reach our goal as the crow flies. We have to walk to Jerusalem, along a difficult and winding road. We need a clear direction and a relentless focus on the destination – but we have to adapt to realities on the ground.

    It will take a long time and it will be difficult – but that is the only way to get there safely. In 1867, after he had secured the passage of the Reform Bill enfranchising working class voters for the first time, Benjamin Disraeli said this:

    “In a progressive country, change is constant; and the great question is, not whether you should resist change which is inevitable, but whether that change should be carried out in deference to the manners, the customs, the laws and the traditions of the people, or in deference to abstract principles and arbitrary and general doctrines.”

    That is the spirit in which I approach the reform of the public services. I take inspiration from an earlier phase of reform – the changes to trade union law in the 1980s. Big bang reform was a failure. One-step-at-a-time trade union reform was a great success. Ferdinand Mount has called this the “long runway approach to political change”, and the alternative “vertical take off followed by crash landing”.

    He talks of “the virtues of slow politics. Like slow food, it tastes better.” So yes to change – urgent change in some cases, change to address serious problems. But change in a way that works – and lasts. And change that is in deference to the manners and customs of the people who work in the public services and the people who use them.

    Because it is people who matter most. This is not political flannel – it is a vital principle of management and reform. Even if the design and the structures of an organisation are imperfect – and I think they often are in the case of our public services – they often work nonetheless, because the people who inhabit those structures make them work. And if we suddenly shifted to a perfect design, a perfect structure, but didn’t bring the people with us – the new system would work less well than the old one.

    That is why I believe there is so much unhappiness in the public services at the moment, and why Mr Blair and Mr Brown are finding that their reforms aren’t working.

    It is not enough for reforms to be right in principle – they have to work with the grain of the professionals.

    Accepting the legacy

    So let me finish by setting out some simple ideas for the sort of change we want to pursue. Overall, we will avoid making the great mistake of Tony Blair and Gordon Brown.

    They came to office with great enthusiasm for the public services – but little idea of what to do with them.

    The first two terms were wasted in first abolishing, then partially reinstating, the reforms the previous Government had introduced.

    We will not tear up the legacy we receive from Labour. In each of the public services I have mentioned, there are reforms Mr Blair and Mr Brown have introduced that we would want to keep and improve.

    In healthcare, we will keep Foundation Hospitals, and move over time to a position in which all hospitals have their freedoms.

    We will keep independent delivery of some NHS healthcare, and Payment by Results, and extend these reforms in a way that enhances the professional responsibility of the NHS workforce.

    We are committed to independence for the NHS, to take politicians out of day-to-day management; and we will improve the way objectives are set.

    We will remove the top-down targets that distort clinical judgments and focus on health outcomes, not medical processes.

    In education, we will keep City Academies and trust schools, and take these reforms further. We want to look at current VAT regulations which discourage City Academies from opening their facilities to the community.

    We believe schools should be allowed to insist that parents sign Home School contracts which reflect the ethos of the school.

    And we will further reform the supply side, so that a greater range of school places are available to parents.

    In housing, we will keep the Decent Homes Initiative and maintain the emphasis on more affordable homes.

    We will go further, changing the planning rules to allow for more affordable homes and more innovation in design.

    We want to see an extension of the right to buy which saw so many families become homeowners in the 1980s.

    And in penal policy, we will keep the purchaser-provider split that has been introduced under NOMS.

    I also think that the Government is right to try to bring the prisons and probation services much closer, and introduce end-to-end management of each offender by a single caseworker. We want to build on these reforms to put rehabilitation at the heart of penal policy.

    System entrepreneurs

    So the challenge for us is not to design some grand new structures for the public services – but to make what we’ve got, work properly; and to put in place the systems which will eventually lead to the natural evolution of structures.

    To use a medical metaphor: just as modern healthcare is less about major surgery and more about health management, so our reforms should be.

    I don’t want to carve up the public services, as if they were laid out unconscious on an operating table.

    I want to introduce antibodies into their bloodstream, antibodies which by natural and organic processes find their target and do their work.

    It’s often the case in large organisations that there is a number of choke-points, places where relationships don’t work properly.

    In the prison service there is often a choke point between prison education departments and the officers responsible for security.

    In healthcare, the consultants often need to communicate more with the nurses, and the GPs need to work more closely with the pharmacists.

    Parents and teachers often seem to have an adversarial relationship in education. And so on.

    I want us to introduce agents into the system to solve these choke-points. I have spoken before about system entrepreneurs – people expert at devising system solutions to organisational and social problems.

    There are many system entrepreneurs in the public sector and civil service already – but I believe we need to widen the pool of talent we can draw on.

    I would like to see public agencies inviting professionals from other disciplines in to help remove the choke points that stop them working effectively.

    Let me give you an example. Earlier this week I visited the Christchurch Family Medical Centre in Bristol. The site includes an NHS surgery and a pharmacy. Now I am convinced that we could see far more co-operation – and co-location – between GP clinics and pharmacies. It is estimated that around half of all GP visits are unnecessary – and the problems in primary and community care often lead to unnecessary hospital visits too.

    Patients with diabetes or asthma should never have to go near a hospital – they could be treated jointly by their GP and a pharmacist.

    As I saw in Bristol, there are already excellent experiments in GP-pharmacy co-operation, and the Government has said it will support such initiatives.

    But it’s not happening on anything like the scale it needs to. There is clearly a system failure – or failures – preventing this. It is as likely to be a cultural problem as a structural one, and the result of a whole set of local circumstances rather than a single national policy.I do not believe we need a huge Whitehall-led reorganisation to make this simple and necessary change take place.

    GPs and pharmacists rarely have the time, or the skills, to sort out system failures themselves. We need to send systems entrepreneurs in, at the local level and in Whitehall, to identify what’s going wrong and put it right.

    This is not about imposing a new blueprint, re-engineering the structures on the drawing board. It is about recognising where the problems are and allowing professionals the opportunity and the incentive to resolve them.

    Community care

    And here’s another idea – an even bigger one. As I have been saying, healthcare is increasingly delivered in primary and residential settings and even in the home.

    It is increasingly ‘owned’ by patients themselves. But there are two major challenges to local care. One is the threat to community hospitals, which ministers tell us are often under-occupied and over-expensive.

    148 community hospitals have closed or downgraded or are threatened with closure. The other is the shortage of affordable places in care homes – since 1997 700,000 people have had to sell their homes to pay for care.So the answer to the problem – over-capacity in community hospitals and under-capacity in care homes – seems straightforward.

    Unite them. Break down the barriers between healthcare and social care at the local level, by combining a community hospital and a care home in one organisation.

    Now, there are practical difficulties here – not least the divide in funding arrangements between NHS and social services.

    And there are structural changes that would need to happen, either immediately or in the future, to facilitate such a reform on a large scale – not least allowing community hospitals to move out of PCT ownership and become charitable trusts or foundation trusts, with proper freedom and local ownership.

    But even in the current system, change is possible.
    I know this combined hospital-cum-care home can work because I got the idea from a real example – in Chipping Norton in my constituency.

    This shows the potential for innovation and change that already exists in the public sector.

    Individual budgets

    There are further measures we can introduce to break down the divide between health and social care. The constituent I mentioned earlier, who finds himself caught between the two services, is perfectly capable of organising his own care.

    He just needs control over the money that is currently spent on his behalf. We have started moving towards this arrangement with the system of direct payments. But I believe we need to go further. We need to simplify Direct Payments by combining an individual’s entitlements to community healthcare and social care into a single budget. That way patients can commission their care from the providers of their choice, on the terms that suit them. These reforms – combining care homes and community hospitals, combining healthcare and social care entitlements – are big ideas.But I believe they can work because they reflect the need that is apparent on the ground, and because they represent the principle of local institutions catering to empowered citizens.

    There are many ideas like this, floating around and waiting for action. We need to free up the supply side in education – why is it so hard for a school to grow, or for a new school to open? What are the technical changes that we need to introduce to stimulate greater diversity in education?

    We need to get probation officers working in prisons, getting to know their clients before they are released. Why isn’t this a widespread practice?

    What cultural or organisational changes are necessary – in national legislation and in local practice?

    We need to involve residents in the maintenance and development of housing estates – why are we still so impressed when this actually happens?

    What are the right mechanisms for encouraging this? Many of these ideas will require major, structural reform – but not immediately, and never in a way which upsets working practices and relationships that work.

    I’d like to see as much ad hoc, local innovation as possible – and I’d like Whitehall and local government actively to sponsor it by assisting with systems enterprise.

    That way, when we do move towards a more liberalised structure, the necessary attitudes and working practices have already taken root.

    I do not pretend there are no tensions to resolve in our thinking about public service reform. There are – not least the essential tension between greater localism and professional autonomy on one hand, and the need to ensure higher standards through national policy on the other.

    One way through is to recognise that with more responsibility and freedom, must come more accountability – accountability not to government but to the users of the service.

    And so we need a new contract with the professionals.
    Government will strip out targets and top-down control – if you put in place proper professional standards.

    We should give front line staff more discretion – but have higher expectations of them too. So as we move forward in our policy review, developing the detailed solutions to the many complex challenges of public service improvement, I hope you can see clearly where the modern Conservative Party is coming from.

    We do not want to arrive in government as Labour did, with good intentions but no clear strategy and no considered reform plan.

    We do not want to waste time, energy, resources and – vitally – the goodwill of those who work in public services, with reforms that go first in one direction and then another.Our guiding principles are clear, based on our belief in social responsibility. In place of manic reform at a pace that does more harm than good, a more patient approach that avoids lurching from one direction to another.

    In place of centralisation, a real commitment to local decision-making. In place of top-down instruction, empowerment of bottom-up innovation. In place of targets that measure processes, a focus on objectives that measure outcomes. Above all, trust in the professionalism of those who devote their lives to serving the public. We will give you the responsibility you deserve, so you can give the people of this country the public services they deserve.

  • David Cameron – 2007 Speech on Farming and the Countryside

    davidcameronold

    Below is the text of the speech made by David Cameron, the then Leader of the Opposition, on 3 January 2007 at the Oxford Farming Conference.

    I’m delighted to be with you today for three reasons.

    First, because the Oxford Farming Conference is a key event for everyone with an interest in British agriculture.

    Not only has it been going for more than sixty years but it also attracts an impressive range of speakers and delegates.

    The second reason is because the future of farming matters for the future of Britain.

    What more vital industry could there be than providing our food?

    And as the British countryside is one of our most precious national assets, what more important role is there than acting as its custodians and guardians?

    And let me make clear straight away that I want to see a living, working countryside, not a museum.

    It cannot be said too often that the fact that our countryside is one of our most precious national assets is not in spite of farming but because of farming.

    I live on the edge of the Cotswolds where both the landscape and the architecture reflect centuries of successful agriculture.

    Farming continues to be one of our hardest working industries and no one who cares about the future of this country can afford to ignore the countryside.

    My third reason is personal.

    I was brought up in the countryside.

    I live much of my life in it.

    I represent a large rural constituency.

    And I want farmers and all those interested in the countryside to know that I care passionately about its future and success.

    The pessimists are wrong

    When it comes to the future of farming we have to defeat the arguments of two groups of pessimists. I’ll call them the protectionists and the metropolitans.

    The protectionists rightly accept that agriculture matters but they have little faith in the ability of farmers to innovate and to compete on any sort of level playing field.

    For them, the only solution is to pull up the drawbridge, inject massive subsidies and adopt the mentality of the siege economy.

    The metropolitans wouldn’t subsidise agriculture.

    They would progressively get rid of it.

    For them, farming represents a sort of bygone era…

    They don’t see the intimate connection between the beauty of the rural landscape and the practical needs of the rural economy.

    Nor do they understand the importance of food security.

    Metropolitans see the housing shortage on the one hand and the decline of farming on the other – and simply believe that the only answer is to ensure that farmers grow nothing but a crop called concrete.

    I’m caricaturing both groups, but that is, by and large, what we are up against.

    And I think that both groups are wrong.

    I think that if we take the right approach, the British countryside can have a productive – and profitable – future.

    Reasons for optimism

    No one can deny that we’ve come through an exceptionally difficult period for farming.

    A sustained period of low commodity prices and rising costs.

    BSE and Foot & Mouth.

    And a government that hasn’t been as understanding or as helpful as farmers deserve.

    Crucially the Government has been guilty of rank inefficiency.

    The saga of the Rural Payments Agency and late payments was a complete disgrace.

    In any other walk of life the person ultimately in charge would have to take responsibility.

    In politics, in this country, under this government, they get made foreign secretary.

    Nevertheless, in spite of this backdrop – difficult economics, market shocks and poor politics – I believe that there are now a number of reasons for real optimism about the future.

    The first reason should give a measure of comfort to our farmers who can sometimes feel marginalised by society.

    In this dangerous world, where we talk about the importance of energy security, we cannot afford to dismiss the importance of food security.

    No one is suggesting that we operate a war economy, but a country like Britain that is blessed with so much fertile land would be foolish not to have the capacity to produce a significant percentage of its food.

    Farming is about food production and, in an increasingly unsettled and dangerous world, this fact alone should ensure a proper recognition of the importance of agriculture.

    The second reason for optimism is the growing concern for the environment.

    Now I know that when some farmers hear politicians talk about the environment, they think of costs and regulations.

    Frankly, given the history of issues like cross compliance, I’m not surprised.

    But look at the opportunities.

    Everyone now understands the importance of combating climate change.

    Farmers have a huge role to play in this and other environmental challenges. The new products and new markets are genuinely exciting.

    I saw many of them at this year’s Royal Show.

    Wool for home insulation.

    Willow coppicing providing fuel for local boilers.

    Hemp turned into breeze blocks.

    There’s also significant scope to grow energy crops to make bio-diesel and bio-ethanol and produce biomass for heat and power.

    Fuel crops have the potential to help meet our environmental objectives, help provide energy security and help provide our farmers with a new source of income.

    That’s a pretty impressive treble.

    We shouldn’t get carried away.

    So far it’s been tough to make profits in these markets.

    And, as sceptics point out, not every farmer can go down this path and, even if they did, we wouldn’t solve all our environmental or security problems.

    But these are new markets.

    And they are an important part of the future.

    And a Conservative Government would do all that it could to remove the obstacles to their development, including looking at the incentives provided by the tax system.

    The third reason for optimism relates to what consumers want from their food.

    Again, some farmers might scoff at the rise of the ethical consumer.

    But, in my view, that would be entirely the wrong reaction. Potentially, this development in our culture, which will grow and grow, is a massive positive for British farming.

    I’m not talking about the obsessive fringe that views every purchase as a masochistic morality test.

    And, of course, cost will always be a serious factor in the minds of most people who buy food – and rightly so – but it isn’t the only consideration.

    I’m convinced that the long term interest of British farming is best served by British consumers demanding quality British produce.

    A vital part of facilitating this shift in priorities is ensuring that this country has far more rigorous and transparent food labelling.

    Today British consumers can find it difficult to back British farmers, because of inadequate labelling.

    Food can be imported to Britain, processed here, and subsequently labelled in a way that suggests it’s genuinely British.

    That is completely wrong.

    I cannot overstate the importance of enabling informed consumer choice.

    Effective marketing can only be achieved if labelling is accurate and clear.

    Britain is experiencing a rise in so-called food patriotism.

    Many people want to eat British wherever possible.

    They’re not just supporting British farmers out of a sense of solidarity or a desire to limit carbon emissions.

    They also realise that food that has been preserved and flown or driven long distances often tastes second rate.

    I know that this may raise issues with the European Union.

    But the role of a Government that cares about British farming is not to sit on its hands and say “there’s nothing we can do”, but instead to test these rules and if necessary challenge and change them.

    In any case, we will take a leaf out of the book of other EU members who have stood up more effectively for their local producers.

    The same principle of active consumerism is driving the increasing popularity of locally sourced produce.

    In the 21st century people are interested in general well being.

    The food that they eat and feed to their families is part of that.

    Farmers Weekly has been running an excellent campaign – “Local Food is Miles Better”…

    …and organisations like the Slow Food movement are gaining new adherents.

    New businesses are springing up to meet the demand.

    For example, in Bedfordshire, Buy-Local.net is putting local producers and shoppers together and creating a market based on consumer demand.

    In Suffolk, where Caroline Cranbrook has so effectively raised the flag of local production, there is an increasingly effective network of farmers and growers selling to an enthusiastic public. The week-enders are taking their local produce to London instead of bringing stuff up from the supermarket!

    Shoppers like to know exactly where their food has come from, even down to the name of the farm.

    That’s why traceability matters.

    The fact that many supermarkets are now emphasising this show that the leaders in retailing have understood just how important it is.

    Another issue of great concern to British consumers is animal welfare.
    Our standards of animal husbandry are among the highest in the world.

    This can bring problems.

    I’ll say something about that later.

    But, thanks to the ethical consumer revolution, it can also bring benefits.

    The more that British shoppers learn about the difference in the quality of life of a pig produced here compared to almost anywhere else in the world the better for British farmers.

    It’s not just the treatment of animals that troubles consumers.

    People are increasingly uneasy about some of the pesticides and antibiotics used in agriculture – especially abroad.

    That’s why we’re witnessing the growth in the organic market.

    Again, I don’t want to overstate the case but there are clearly opportunities.

    There’s a flour mill in my constituency that has gone organic.

    It has to import wheat from abroad because there isn’t enough organic wheat being grown in Britain.

    The organic baby food market has grown exponentially.

    Why? Because it has been driven by consumer demand.

    The growth of active and ethical consumers is a huge opportunity for Britain’s farmers.

    It is a classic example of shared responsibility.

    The Government has its responsibility to ensure a proper labelling system.

    All of us as consumers have our responsibility to try and buy quality produce from British producers, including local producers.

    But farmers must play their part by rising to this challenge. The demand for quality local British produce is there. It is up to farmers to seize the opportunity it represents.

    The economics of farming

    I’ve set out several reasons for optimism but I’m not kidding myself.

    Farming is a business and the raw economics are still daunting. For example, an arable farm of 1,000 acres and just one man working it can struggle to make money. Without farm payments, the situation would be even worse.

    The dairy industry has been through incredible difficulties.

    Government cannot wave a magic wand and change the economics of this or any other industry.

    But Government is a big player and its actions can make a big difference.

    Does it understanding the needs of farming and make good policy?

    Does it work to keep costs and regulations down?

    Does it understand the impact of all its decisions – on planning and on transport for example – on the whole rural economy?

    Does it properly consider the role of the public sector as a procurer of food?

    The answer to all of these questions is currently “no”.

    I am determined that a Conservative government will be different – and will make a difference for farming and the countryside.

    First, policy making.

    The record recently is pretty poor.

    I have mentioned the RPA.

    I could have mentioned endless delays on badgers and TB … chaos on mapping for the right to roam … endless uncertainty about dealing with carcass removal …

    Farmers’ organisations tell me that there seems to be a great deal of consultation going on but they wonder whether anyone actually listens to what is being said.

    We are preparing for Government by putting in place a strong team of shadow ministers. Peter Ainsworth has great experience of both the farming and the environmental portfolios.

    And Jim Paice probably knows more about agriculture than any other member of the House of Commons.

    We are also carrying out a detailed policy review that is open, engaged with all of the industry and transparent.

    Government needs to recognise that the landscape of rural Britain is a priceless national resource and that farmers have a central role in maintaining it.

    Sometimes, ministers give the impression that farmers are unwelcome intruders on the land rather than the custodians of it.

    It’s important that organisations like Natural England work with those who manage the land.

    The next task of government is to stop over-regulating.

    Farms are small businesses and, in recent years, we’ve see farmers burdened with more and more rules and regulations, many of them flying in the face of common sense.

    For example, we need a whole new approach to enforcement and inspection.

    Government should be concerned with outcomes rather than process.

    There is no reason why inspections have to be carried out by the regulator.

    Issues such as cross compliance, multiple inspections, the ban on on-site burial and integrated pollution control will all have to be looked at again.

    We can learn a good deal from other countries in the EU, who would not think of burdening their farmers with the bureaucracy you have to endure.

    On planning too, Government policy needs to reflect the needs of rural Britain.

    Let me give a couple of examples.

    The planning system should make it easier to set up and run farmers markets, and farm shops.

    Policy makers and planners should look at opening up the market for affordable homes.

    Why is it that the only organisations allowed to provide low cost rented homes are registered social landlords?

    In some areas government activity can have an immediate and positive impact on British farming.

    We need a revolution in food procurement.

    The Government spends £1.8bn each year on food for the public sector.

    That gives it a lot of clout in the marketplace.

    Ministers launched the Public Sector Food Procurement Initiative in 2003 to encourage public bodies to procure locally source food.

    But there’s a problem.

    The Government has no way of measuring its progress towards achieving this.

    Therefore, it has no idea if its procurement policies are ignoring British produce and contributing to climate change.

    The Government should be doing everything it can within EU rules to source food for schools, hospitals and other public institutions locally.

    After all, does anyone imagine that the French Army doesn’t take every opportunity to make sure its soldiers are fed on French food?

    At the very minimum, we should move towards a situation where publicly procured food meets the Little Red Tractor standard, as the Conservatives proposed a year ago.

    Whilst it does not guarantee a British source at least the food would be produced to British standards.

    I want to say something about supermarkets.

    I’m a convinced free marketeer.

    That means I am in favour of markets that work.

    When a market has imperfections that mean it does not work, there is a case for intervention to make sure it does.

    Take the relationship between the big supermarkets and farmers.

    It’s not exactly a relationship of equals. The supermarkets have been in the habit of using their market power to squeeze the margins of those they buy from.

    Let’s be honest: in the past there have been some real horror stories.

    Retrospective discounting…

    Making producers pay for promotions…

    …and, according to the NFU, even instances of suppliers being required to supply labour to stack shelves.

    There is evidence that the supermarkets are addressing some of these concerns but there is no room for complacency.

    To me this issue is quite clear. These sorts of practices are completely unacceptable. The competition authorities are there for a purpose. They have the authority and the powers they need. They should feel empowered to act.

    We will be watching to make sure that they do.

    We also need to address the unfairness of asymmetrical regulations.

    Our government often imposes far more onerous standards on British agriculture than exist elsewhere in the European Union.

    This can have perverse consequences.

    Instead of driving standards up we sometimes end up driving farmers out of business.

    Take the example of the British pig industry.

    As I said earlier, we are rightly proud of our tradition of animal welfare.

    But, by introducing higher standards first, Parliament placed our farmers at a disadvantage.

    The irony is that our absolutist approach has had the net effect of lowering the overall standards for pig welfare in the EU.

    I have one the largest egg hatcheries in Britain in my constituency and I’m worried that something very similar could happen to poultry in 2012 when new regulations come in.

    Our aim should be to take our EU partners with us wherever possible but, failing that, to be pragmatic.

    We cannot act to ban imports when other EU countries operate lower standards but we could act, with our EU partners, when it comes to welfare standards in the rest of the world.

    We are committed to free trade agreements but we are also committed to high animal welfare standards.

    Some people might say that this represents a restraint of trade.

    I disagree.

    Just as we insist that every Japanese car imported into the UK meets strict emission standards so we should insist that animal products meet decent welfare standards.

    It’s impossible to talk about the EU without mentioning the Common Agricultural Policy.

    We need to rededicate ourselves to further reform of the CAP.

    We shouldn’t ignore what’s already been achieved but the process must continue. It’s not a threat – it’s an opportunity and we simply can’t afford to be held back by the forces of reaction and inertia.

    Frankly since the mid term review we don’t have a “Common” policy.

    Whilst support for English farming is rightly fully decoupled from production, most countries in Europe still have some production linked support.

    That has to stop, as do ludicrous subsidies on tobacco.

    We also need to start to shift the costs of CAP onto the countries that spend the most by phasing in co-financing.

    Finally we need to ensure it is sustainable in WTO terms by phasing out export subsidies and by shifting funding from pillar one into pillar two.

    So there is much that government can do and a Conservative government will do it.

    When it comes to the agricultural sector, building better businesses isn’t just about government action

    It’s about bringing about a fundamental change in the way we approach farming.

    In the 1940s and 50s, farming became commoditised in order to feed the mass market.

    That model has remained in place ever since.

    It’s time for a paradigm shift.

    Instead of volume, we need to build value.

    Specialist produce and high quality brands.

    This isn’t the muesli-eating fringe.

    This is the future.

    Look at our competitors.

    France never really lost that approach.

    While we were obliterating our local food heritage – often by heavy handed government diktat – countries like France and Italy were preserving theirs.

    People elsewhere in Europe are far more likely to treasure – and eat – food that is produced in their home region.

    Britain needs a revolution in our thinking to recover that habit.

    We have consumers who value high quality, locally produced food.

    Some producers are already meeting that demand but there is far more opportunity for farmers to build relationships with consumers by producing what they want.

    And we need a government that will assist that process.

    We’re all in this together and, if everyone plays his and her part, then British farming can look forward a secure and prosperous future.

  • Jim Murphy – 2007 Speech to the Work Foundation

    jimmurphy

    Below is the text of the speech made by Jim Murphy, the then Minister for Employment and Welfare Reform, to the Work Foundation on 21st February 2007.

    We have made progress – but we need to go further.

    This is a common phrase that myself and many of my colleagues in Government often use – but what does this actually mean? It can’t just be more of the same. “To go further” means that we have to look for new ways of doing things to achieve the goals to which we aspire; some of which we have yet to achieve.

    In 1997, we developed solutions to the problems of the day. The New Deal, the National Minimum Wage, transforming our laws on race, disability, age and sexuality as well as the record investment in public services, were all radical in their time. But now these policies have been accepted by most as part of a progressive political settlement.

    We need to maintain our ambition, and be as radical now as we were back then. Solutions tailored to today’s problems will not be successful if they are bound by yesterday’s policies.

    The key challenge for welfare now, it is to deliver for those people who face the most deep-rooted barriers to work.

    Why? Because we cannot write any one off. Not just because of a sense of social injustice. Not just because children should have the right to grow up free of poverty. But also, because if we do, the economy as a whole will suffer – and every single member of our society will see the consequences.

    Achieving this goal of a right to work for all, in the context of ever more rapid global and demographic change, will mean reaching out to those furthest from the labour market, the most disadvantaged and excluded in our society. It will mean extending the boundaries of welfare further than ever before.

    This seminar, as you know, is part of a series of seminars which are contributing to the Pathways to the future process – announced by the Prime Minister and Chancellor in the Autumn.

    We are at a crucial stage in the evolution of the welfare state. The reforms over the last decade have changed the focus for the vast majority of our customers – from that of passive dependency to active engagement with the state. Throughout this, either implicitly or explicitly, the contract between the citizen and state has evolved.

    And if you look at progress over the last decade, the where the contract has been expanded the furthest, and the more explicit the contract has been, the more success we have had.

    Take Jobseekers’ Allowance alongside the New Deal. A written contract outlining what is expected of the customer, and what they can expect in return. Results are clear. Youth unemployment has been virtually eradicated.

    Take the proposed Employment and Support Allowance – again, an agreed set of objectives, with rights and responsibilities embedded at the heart of the benefit design. Based on the Pathways to work model which has been the most successful programme for people with health conditions and disabilities across the world.

    These are founded on a something for something premise. Government to provide more support; customers to have a duty to take up that support. This contract has revolutionised the way in which the state and the citizen interact – and it has been crucial for the success of our welfare to work policies so far.

    Therefore, to achieve the challenges that we are faced with over the next decade, I believe we have to widen and extend the contract further than we ever have before.

    The contract we are talking about here is a complex one. A citizen is at times, a customer of the welfare state; but is always a taxpayer. And the state is, at times, the direct service provider; but is always the guarantor of its citizens’ rights.

    It is across this diverse network of relationships that the contract must deliver. And to deliver for the next decade, I think there are three key elements that will be need to underpin to its evolution and construction over the years to come.

    Firstly – Given that our aspiration is to extend the right of work to all; the assumption of a person’s ability to engage with the labour market should be the default position when determining a person’s interaction with the welfare state. But the pre-requisite to this, has to be that the Government fulfils its responsibilities of promoting and protecting the right to work for all.

    The passage of the Welfare Reform Bill shows how far we have come in acheiving the right balance. The proposals introduce additional responsibilities to a group of people who it would not have been conceivable to place conditionality on a decade ago. Yet because we have committed to providing extra support, the overwhelming majority of stakeholders have welcomed this.

    We would not be successful had this support not been guaranteed. We know that increased responsibilities on a citizen can only be embedded in a system if they have increased rights. We are committed to our part of the bargain – our side of the contract.

    Given that is the case, I believe the primacy of the belief that all have the potential to work, should be at the heart of the citizen’s side of the contract. To not, I feel, is an insult to our customers, and a get-out clause for the state.

    Secondly – even if the state takes a step back from delivery; it does not take a step back from responsibility.

    As I have said, the key challenge for welfare is to reach the hardest to help. Our success will hinge on our ability to understand the specific barriers these groups face; and our capacity to tailor support to the individual in the community. The state cannot do this alone. The skills of local providers will be increasingly more important.

    So where the state is removed from direct service provision, it must take on the role of arbiter and monitor of the contract. The market can not, should not and will not be left unchecked. Whilst we must harness the potential of the market, we must also be strong in holding providers to account on behalf of our customers.

    This is about much more than the nuts and bolts of how provision is delivered. It is about ensuring that provision, no matter what its derivation, is underpinned by our values and our priorities.

    And thirdly – the citizen as a taxpayer must never be neglected.

    We must maintain the right to provide progressive public services.

    And to do this, we must take it upon ourselves to promote a sense of progressive self-interest.

    We need to reinvigorate the sense of social contract – that what happens to our neighbours, matters to us.

    Over the last decade, benefit expenditure on Jobseekers Allowance, incapacity benefits and lone parents has fallen by around five billion in real terms. But this is not simply an economic argument. Progressive self interest is about making the wider connection between personal aspiration and the continuing right of the State to enable collective solutions that meet those aspirations. It is also about re-energising the consent for Labour’s values and policies.

    But even those who are already won over on this argument need to be convinced that our way of doing things is the right way of doing things. To do this, we have to ensure efficient and effective service provision.

    In this, we must be bold. If there are providers out there who can deliver a service better than the state, we should not shy away. Just because it is the Government’s role to ensure there is service provision for all; it does not necessarily follow that it is also Government’s role to deliver that service. Rather it is the Government’s responsibility to ensure that the provision that people have is the best service they can get.

    I believe our success in tacking the challenges created by demographic change and globalisation rests not just on technological improvements or scientific advancement. It rests on people. Individuals, able to fulfil their potential – crucial for them, and critical for the country.

    It is only through developing a better relationship between citizen and the state that we can meet our goals. And improving that relationship means developing and enhancing that relationship on all sides – for customers, the state and taxpayers.

    We sometimes talk about rights and responsibilities as if it is a balancing act which we need to perform in order to maintain an equilibrium.

    But the ultimate responsibility of the state is to promote and protect its citizen’s rights. This includes the right to work.

    The ultimate responsibility of the citizen is to utilise and capitalise on that right.

    The contract is key. If we can get the balance right, if we can all honour the deal that we make, we will all reap the reward.

  • Jim Murphy – 2007 Speech on Welfare Reform

    jimmurphy

    Below is the text of the speech made by Jim Murphy, the then Minister for Employment and Welfare Reform, to the Work Foundation on 12th February 2007.

    One of the key challenges that Government faces, is to keep up with the pace of change – in society; in technology; and in the economy.

    Nowhere is meeting that challenge more important than within welfare. For the Welfare State has the potential both to mitigate some of the difficulties that change brings, and to exploit many of the opportunities change provides.

    And as the world around us changes, so do aspirations and expectations. It is our job in Government, to not only match, but anticipate those aspirations and expectations – and to exceed those where ever we can.

    Tony Crosland, a Cabinet Minister under Wilson and Callaghan, encapsulated perfectly why this is a never-ending task. He said, back in 1975, “What one generation sees as a luxury, the next sees as a necessity.” The timeline from luxury to necessity is now not a generation but a decade. A decade ago – a mobile phone was the preserve of the prosperous. Now, 96% of 15-24 year olds have one.

    So, what do I see as our major challenge for the next decade? It is to use today’s trends, to predict the world of tomorrow. And crucially, to act now on what we know to ensure that the welfare state is fully equipped to meet the aspirations of all in the years to come.

    To do this, we must take a step back to explore what lies ahead for us over the next ten years. The Pathways to the Future process which the Prime Minister and Chancellor announced in the autumn, is central to this. As part of this process, we have asked David Freud to lead a wide-ranging review of our welfare to work strategy. This seminar is the second of a series that I hope will contribute to this, to generate new thinking, and to make us really focus on the long-term view.

    In looking ahead to the future decade, I think it’s helpful to look back at the last. This is both to learn from our successes, recognise where we have further to go, and what we must do to complete the job we set out to do.

    There has been great progress in the last decade. As the research paper published today highlights, there are 2.5 million more jobs today than there were ten years ago, and employment is up in every region and country of the UK – with the biggest increases in the neighbourhoods and cities which started in the worst position. The employment rate for the most disadvantaged groups has risen faster than for anyone else – 300,000 more lone parents, 900,000 more disabled people, 1 million more people from ethnic minorities and 1.5 million more people aged over 50 are in work than a decade ago.

    There are many reasons behind this. Economic prosperity is certainly one. Embracing globalisation, rather than insulating ourselves from it, is another key aspect. But also, the reforms to the welfare system have been crucial. For years the concept of ‘welfare’ was emblematic of collective pessimism. Now it is being turned around into something which can foster hope, aspiration, and truly transform people’s lives.

    But despite this there is much further to go to reach our stated aim of an 80% employment rate. There are still pockets of deprivation which have not been reached, and despite our reforms, a core group of people at the bottom of the ladder still find it incredibly difficult to break free from the generational cycle of poverty.

    To tackle these remaining issues, we must not see them in isolation. We have to look at them in the context of the wider challenges ahead.

    So, looking forward to the next decade, we must look at those as yet unachieved policy ambitions. We must understand the direction that the world around us is taking. And we must use this to shape a welfare state which will break down the remaining bastions of inequality.

    The only certainty is that no-one can know everything that will happen to us over the next decade. We can see that, by looking at where we thought we would be ten years ago.

    So, what did people think would happen to the labour market in 1997?

    Ten years ago, many people thought that the North-South divide would persist, perhaps even get worse – and that London would lead the way in employment. Yet Scotland now has employment rates higher than the national average, and employment problems are concentrated in cities – particularly London.

    In 1997, many believed that temporary jobs would grow exponentially, and that the majority of us would work for low wages. But 10 years on, the UK has one of the lowest proportions of temporary work in the world, whilst average earnings have grown every year by around 2% in real terms.

    And ten years ago, the biggest group of foreign workers were – and it was thought by some were always to be – Irish. But now, there are many more French and German people in the UK than Irish. And a decade ago, the majority of Poles living here were those who came after the Second World War.

    So we know that we must be careful as to what assumptions we make about the future.

    However, despite this, there are some things which we do know. There are certain trends which, if they continue as they have been, will mean we are to see significant changes over the next decade.

    In 1950, there were ten people working for every pensioner; today there just under four. In ten years time, on current trends this will reduce to three, and by 2050 there will be just two.

    By 2017, China and India will have nearly doubled their share of the world’s income and their economies are likely to be bigger than the UK, French and German economies combined.

    And over the next decade, ethnic minorities will account for half the increase in the working age population. Indeed, in London over the next 20 years, ethnic minorities could account for around three quarters of the growth in the potential workforce.

    These few statistics I think show us that we can expect a labour market in 2017 which looks completely different to that of today. And we need to act now, to ensure that the welfare state is equipped to deal with the changes that the next decade will bring.

    For the rest of my time left, I will just focus on one area where we need to adapt if we are to prosper- that of skills.

    As the Leitch report has highlighted, this is an area which we face serious challenges on already. Historically, the UK has faced a skills deficit for a significant period of time, but despite recent improvements we still lag behind major of our major competitors in the OECD. That is why the Government is currently considering how to best achieve the ambitions that Leitch set out in his report.

    Just looking at those with very low skills levels, if we look at where the shortages are, we see a clear pattern. Over three quarters of people with no qualifications fall into at least one of the groups which are specifically targeted in our department’s Public Service Agreement targets – disabled people, lone parents, people over 50 and those from an ethnic minority.

    Given that the correlation with skills deficits and my department’s customer groups is so striking, we have a duty to act to target the resources we have in improving the basic skills of the most disadvantaged.

    The welfare reforms currently going through parliament address this agenda for disabled people, through providing opportunities through Pathways support. John Hutton just a few weeks ago raised a discussion about how lone parents can get better access to the labour market. And the Welfare Reform Green paper outlined the further measures we are taking to boost support for older workers.

    However, the employment rate for one group is still unacceptably low – that of ethnic minorities.

    We cannot tolerate a labour market where by, despite progress, a young British Asian woman starting out in work today, will have to wait until her retirement before she sees people of ethnic minorities have the same employment rate as their contemporaries.

    We cannot tolerate a society where well over half of Pakistani and Bangladeshi children in Great Britain live in poverty.

    And we cannot tolerate a labour market where people of ethnic minorities on average earn a third less than their counterparts across Great Britain as a whole.

    This is a social injustice in our society which is not only bad for individuals, families and their communities, but is a barrier against social cohesion and is bad for Britain. On top of that, as ethnic minorities grow to constitute a much greater proportion in the working age population in the decade to come, it is absolutely critical that everyone is able to access the labour market and can prosper within it.

    Of course the causes of this disadvantage are complex, but fifteen per cent of unemployed ethnic minorities themselves cite language difficulties as a barrier to work. Potentially, that’s 40,000 people being denied the opportunity to work because they do not have the language skills to get a job.

    At the moment, Jobcentre Plus spends around four and a half million pounds per year on translation services. Of course, we there will always be a need for interpretation provision; but surely, wherever possible, we should also focus on language skills to get people into work?

    We must utilise the resources we have to redress the balance: to put the emphasis not just on translating language to claim a benefit; but to teaching language to get a job. Not just for the sake of employment rates; but for the benefit of the individual, their community and society as a whole.

    There has been a new prioritisation of learners for whom lack of language skills is a barrier to getting a job or to improving life chances. Free English provision is and will continue to be available to those in receipt of Jobseekers Allowance and other income related benefits, targeting support for our most disadvantaged client groups.

    We already have a new programme in development that will offer places for 15,000 places for customers to undertake basic skills and employability training – including language skills – with the Learning and Skills Council. In addition, we have committed £14 million for training allowance provision for our customers who take up those courses.

    Currently, not nearly enough of this provision is being taken up, and we must put it to better use. We need to raise our game in matching those with poor language skills to the training they need in order not just to work, but to progress in work and gain sustainable employment.

    As a first step in this, I have asked Jobcentre Plus to put a much greater emphasis on helping people to address their language barriers. From April this year, in England, there will be new guidance on making sure we help people with very poor language skills start to tackle the problem, as part of the Jobseekers Agreement. We will also discuss these plans with the devolved administrations.

    Our customers might, for example, look for local English language classes or other opportunities to practise English language skills. Where-ever possible, we would like them to participate in a work focused language course, where they exist. People will be able and expected to look for work while they undertake any training, and importantly, in many cases there will also be the provision to carry on with the training course after they have got a job.

    We also need to take a longer-term look at the services provided through the welfare state, community initiatives and adult learning provision to see how language difficulties can be more effectively addressed. That is why I have asked the National Employment Panel to identify knowledge and good practice on tackling language barriers in the labour market, and to look at the related challenges which lie ahead for the UK on this issue for the next 20 years. This will include looking at analysis from the National Research and Development Centre and the National Institute for Adult Continuing Education, alongside looking at best international experience.

    This is but one way forward in which we need to better manage the challenges ahead for the next decade. This isn’t about a change of direction. It’s about continuing along our journey.

    It was a journey which began with the creation of the Labour Party. After all the Labour movement was founded on a right to work and an aspiration for full employment.

    But the concept of full employment for Beveridge, was that of able bodied men. For us, this aspiration of full employment in a global economy means much more than that. We are committed to a more ambitious approach. Opportunities for all – lone parents, people with disabilities and health conditions, older workers, and ethnic minorities all able to fulfil their right to work.

    In the past, too many people have been written off in the labour market. Our challenge for the next decade is to put right that historic wrong.

  • Jack Straw – 2007 Speech to Labour Party Conference

    jackstraw

    Below is the text of the speech made by the then Justice Secretary, Jack Straw, to the 2007 Labour Party conference.

    Conference, justice is the starting point of everything we stand for; central to our aims and values.

    So I am very proud to be leading the new Ministry of Justice.

    Delivering my programme depends on an excellent ministerial team: Michael Wills, David Hanson, Maria Eagle, Bridget Prentice and Philip Hunt.

    On working with the law officers, Patricia Scotland and Vera Baird; with Ed Balls and Bev Hughes on youth justice; and above all with Jacqui Smith, Labour’s first, indeed, the very first, woman home secretary.

    I’d like here to pay tribute to the assured and thoughtful way Jacqui has taken on one of the most difficult jobs in government.

    If the post of home secretary is a venerable one, mine as lord chancellor is positively ancient.

    The office dates back to the Dark Ages. Some say it’s still stuck there.

    Well, you can tell how modern it is from the dress I’ll have to wear on state occasions – embroidered gown, frock coat, breeches, buckled shoes, silk tights.

    But comrades, you should know that in a key step on the forward march to socialism, I’m dispensing with the wig.

    Conference, the first duty of the state is to protect the public and to deliver a just society, and the first duty of the citizen in a democracy is to respect their neighbour and obey the law.

    At the heart of our rule of law are our courts.

    The British judiciary are among the very best in the world, unrivalled for their integrity, their professionalism, and their readiness to embrace change.

    Britain is fast becoming the legal centre of the world not by accident, but by merit.

    Last year the legal services sector generated 2% of our GDP.

    For criminal justice, there have been major reforms over the last 10 years – better to balance the system towards victims, witnesses, and law-abiding citizens, to face the criminal with the fact that there’s only one person responsible for their criminal behaviour – themselves.

    Crime is down by a third since 1997 after doubling under the Conservatives.

    The chance of being a victim of crime is lower than 25 years ago.

    But that is cold comfort for those who have suffered from crime.

    Too often in the past, the voice of the victim, especially of the bereaved, was not properly heard in court.

    But following the recent piloting of the Victims’ Advocate Scheme, from Monday, crown prosecutors across England and Wales will be speaking up for the victims in homicide and death-by-driving cases, and we will be looking to extend this.

    And so that local communities can be more involved in their courts, my department is preparing to publish regular performance information on the courts.

    When people are convicted we have to ensure they are properly punished.

    We have provided an additional 20,000 prison places – twice the rate of the Conservatives – and plans are in hand for a further 9,500.

    We are working doubly hard to stop prisoners re-offending, to get them off drugs and into skills and a job – to stay out of trouble.

    I pay tribute to our prison officers and probation officers who have this task.

    Conference, enforcing the law, securing justice, is not just a matter for “them” – courts, prisons, probation service, police; but for all of us.

    How each of us reacts if we encounter a burglar or a street robber has to be a matter of individual discretion – and there’s a critical line between responsibility and recklessness.

    I know from personal experience that you have all of a millisecond to make the judgement about whether to intervene.

    In such a situation, the law on self-defence works much better than most people think, but not as well as it could or should.

    The justice system must not only stand up, but be seen to be standing up for people if they do the right thing as good citizens.

    So I intend urgently to review the balance of the law to ensure that those who seek to protect themselves, their loved ones, their homes and other citizens, know that the law really is on their side – that we back those who do their duty.

    It is from our mutual obligations that the rights we have must flow.

    That was well understood by those who inspired and drafted the European Convention on Human Rights. They were British lawyers -senior Conservatives, as it happens.

    That was also well understood by the first MPs who called for the European Convention to be brought into British law. Again, they were senior Conservatives.

    The Convention, the Human Rights Act, set out values which are British above all.

    Their language echoes down the corridors of our history, as far back as the Magna Carta – the right to life, the right to a fair trial, the right to marry, the right to free speech.

    Only today’s Conservatives, in their political confusion and intellectual meltdown, would contemplate abandoning these rights. We will not do so.

    Instead, we are developing and consulting on a British Bill of Rights and Responsibilities, which will build on the Human Rights Act and which would bring out more clearly the responsibilities we owe to each other – above all to observe the law and to respect the rights of others.

    This British bill and the consultation with it is part of the major programme of constitutional change which Gordon Brown announced in his first key statement to Parliament as prime minister.

    This programme is about what it means to be British.

    Most other countries have, through the traumas of revolution, occupation, colonisation have had to argue what it means to be a citizen.

    We have escaped these traumas, but we’ve escaped the argument too, so that we have only an instinct but not an articulation of what it means to be British.

    So as part of this work we will be launching a great public debate on a British Statement of Values. There’s one other thing which we are determined to do.

    To end the “royal prerogative” as the main source of government powers – that ghostly, rattling presence from the divine rights of kings, which should have no place in a modern democracy.

    So power over the civil service, power over treaties, and power over war and peace will be based not on Henry VIII’s or Charles I’s idea of power, but on Parliament’s and the people’s.

    Conference, this programme of constitutional change is not an abstract, academic exercise – it’s got a direct practical purpose, of value to everyone in this land.

    As Jacqui will be spelling out, we are determined to take immediate action to fight crime and disorder, to make our communities safe.

    But we also know that the communities with the lowest crime are most likely to be the ones with the most active citizens.

    Citizens who are inspired by a sense of belonging, shared values, and duty to others; by a sense of justice.

    And it is justice, great and small, that I am determined to deliver.

  • John Hutton – 2007 Speech on Public Sector Reform

    johnhutton

    Below is the text of the speech made by John Hutton, the then Secretary of State for Work and Pensions, to the CBI Public Services Forum on 16th May 2007.

    Can I first of all thank the CBI for inviting me to come and talk with you this morning.

    I very much welcome the commitment of the CBI to engage in the debate about public service reform.  For many years business organisations in the UK were not always fully involved in the debate about how we improve the quality of our public services.  That has now changed.  Businesses use and fund public services.  Education, transport and health systems make a critical difference to the competitiveness of the UK economy. And increasingly you are part of the solution – partnering with the public sector in the delivery of those services.  The creation of the CBI’s Public Services Strategy Board and this Public Services Forum reflects the tremendous growth of this new industry and a commitment on behalf of business in engaging fully in that debate. We welcome this involvement and participation.

    This is probably the right time for us to reflect on what we have learnt from a decade in office – what has worked and what hasn’t worked – and for us to debate where the focus of public service reform needs to shift to meet the challenges of the coming decade.

    There is no doubt in my mind that a continuing commitment to reforming our public services will be central to the Government’s agenda.  The reason for this is obvious.  Globalisation and demographic change necessitate an appropriate response from our public services so that we can help individuals and families realise the opportunities of the new world economy.  Without such a response, our society and our economy would be impoverished – the life chances of millions diminished.

    I know there are some on the political margins who hope the coming political transition inside the Labour Party will open a window of opportunity to reverse our approach.  They will be disappointed.  The core of our reform programme – significant and sustained investment, choice, personalisation and empowerment for users, devolution to the front line, an open minded approach to who provides – is being built into the DNA of our public service infrastructure.

    There is little doubt that this Government’s progress on public service reform can be described as a journey.  It is tempting for all of us when we look back to try and retrofit a neat story about our public service reforms.  In reality, whether in the public or private sector, you have to learn on the job. And themes do emerge over time.

    There are four that stand out.

    First, that investment in our public services – in people, technology, infrastructure – has been a necessary pre-condition for reform.  But on its own it is insufficient.  Many in my party wanted to believe that we would deliver service improvement simply by building more schools and hospitals and recruiting more staff.  Ten years on we recognise the incredible benefits that that investment has brought – I see it all the time in my own constituency and across the country – but we also recognise its limits. Money can not solve all of the problems we face.

    Second, timelines are frustratingly long.  If ministers decide that something fundamental needs to change in the system today, in reality it often takes several years before the effects of that change start to flow through.  Then more time before it has widespread impact.  And for that reason alone, we should perhaps have started more of our reforms from Day 1.

    Third, that part of the political and intellectual journey we have been on, is to realise that the development of social markets hold the key to reform.  This has been perhaps the most controversial and difficult of our reforms.  Opening up monopoly state provision to private and voluntary sector providers.  In the early days we believed that structural change was a distraction from raising educational standards or healthcare.  Eventually we came to understand that structural change and incentives also have an important role to play in raising standards; that you simply could not have one without the other.

    And finally, it is clear that there are limits to central intervention, planning, targets, audit and inspection.  Self-sustaining reform – a built-in mechanism to drive continuous quality improvement – can only be achieved if individual users of public services become the drivers of performance in the system and local staff and institutions are empowered to respond to and help deliver those preferences.

    And it is on this last point – about how we create a wider ownership for reform that I want to focus my remarks today.

    It has become a familiar critique that despite substantial investment, recruitment of hundreds of thousands more staff and above average wage increases, that those who have to deliver public services feel insufficient ownership or responsibility for the reforms being implemented.

    So, one of our most difficult tasks in this next phase of reform is how to share power, responsibility and accountability with staff and institutions to create a new momentum behind these reforms, one that is less reliant on central direction but balanced by new accountabilities to customers and an intolerance of failure.

    You know only too well from the way you manage your own businesses, that there is ultimately a limit to how much you can achieve through imposing targets and practice on staff.  If those that work within your organisations do not believe in what you are saying and feel disconnected from the process of change, then change – real and sustained – simply won’t happen.

    Forging a new relationship with staff will be important.  5.5 million people are now employed in the public sector.  They are a conduit for informing and shaping the national public debate about our public services.

    There are those that think the root of this problem lies with too much top down central control and the imposition of targets that distort customer priorities.

    There are those that think we have placed too much emphasis on structural change and reorganisation for its own sake.

    There are those that think the so-called marketisation of our public services has eroded a public service ethos.

    There are those that think the cause lies with our tone, our communication strategy or ‘narrative’.  If only we explained more clearly what we were trying to do, then ‘they would get it’.

    And there are those that think it will always be like this and that we just need to accept that they will never be ‘on our side’.  Change disrupts comfortable patterns and established ways of doing things.

    As ever, there’s no simple answer.  No straightforward solution.  I’m sure that there is more we need to do to engage effectively with staff.  Communicate where we are going and why.

    But for me, what this challenge really reflects is a more fundamental question. ‘Who owns the responsibility for reform in our public services today?’

    I don’t just mean the day to day implementation of today’s priorities but tomorrow’s innovation in patient care, welfare or teaching standards?

    Because we believed strongly in the case for change, we drove it hard from the centre.  We ‘owned’ the challenge of change.  Both the problem and the answer.  We came to believe that policy makers and politicians in Westminster and Whitehall were meant to be the brain for every creative impulse across the system.  It delivered improvements and continues to do so.  But it comes with a price.  A stream of initiatives, targets and legislation in which staff often feel passive recipients; in which they have little influence or control.

    But analyse any of the UK’s best performing companies and you will find few that are able to maintain high customer service standards, innovation and efficiency without creating that shared sense of ownership deep within the organisation that can ensure continued success.

    So, if our challenge is to create a shared sense of ownership amongst both staff and customers for the future of public service reform, how we create it is equally critical.

    And I am clear that it won’t be achieved by slowing down the pace of reform.  It won’t be achieved just through engaging more effectively with staff or communicating our message.

    It will only be achieved through sharing the responsibility and accountability for change.  For as long as reform is seen simply as a dialogue between the national media and politicians, we will continue to detach local institutions and the people who work within them from owning the change that should be made.

    That shared sense of ownership can only come if we at the centre are clearer about our national priorities and frame them increasingly in ways that reflect the outcomes that we want to achieve.

    If we want to move to a system based on a shared sense of ownership then we will need to empower not only the customer but also the staff to bring about the changes they feel are necessary to respond to customer needs.

    The mistake we must avoid is sharing power and responsibility without accountability.  That will never work.  Government can only step back if there’s a strong, responsive framework of accountability for individuals and organisations that fall short.

    When we nationalised public services in the post-war era, it was based on a deal with public service professionals that said, ‘we will nationalise this service but we will give you the freedom to get on and manage’.  But there was a flaw. No one took responsibility for service failure. We had come to expect that public services would never be as good as those that could be paid for by people who could afford to opt out.

    In 1997 many people within the public sector believed that we would go back to that post-war settlement – except this time with increased investment.

    We did of course significantly increase investment.  But we also broke with the post-war past by creating new forms of accountability.  We set national targets and oversaw their delivery through one of the most expansive audit and inspection regimes in the world.  However necessary this shift, it prioritised accountability to the centre.  It underplayed the role of the consumer in shaping public services.  Or the importance of public preferences and choices in driving performance.  As such it meant the ‘ownership’ for change was ‘grabbed’ by the centre and left there.  And as the pace of reform intensified and more fundamental change advanced, the dynamic between employees and the political leadership of the country felt critical at best and passive at worst.

    So if we share ownership for change, we must base a new settlement of accountability through two routes; firstly to match devolution of power with the use of payment by results funding systems; but secondly and crucially through enhancing, wherever possible and appropriate, the use of competition that allows the customer to influence public services through the choices they make.

    If we can get this right, then public service reform will become more self-sustaining; driven not by central Government, but increasingly designed and championed by those operating within the public sector. Performance should no longer need to be managed through an overly engineered web of targets, audit and inspection.  Instead, accountability driven first hand by customers.

    At the DWP our City Strategy seeks to capture these principles – offering local consortia of providers new funding and flexibilities in return for outcome-based payments. And David Freud’s report on our welfare system earlier this year, argued for a more effective market in welfare provision, rewarding providers proportionate to the value to the taxpayer of getting an individual into work and helping them to stay there.

    With such an approach must come a re-balancing of welfare expenditure towards those who are most in need. A payment by results system – as we have tested out in the Employment Zones – could create incentives to develop programmes across the full spectrum of clients and avoid cherry-picking of the easiest clients to help by paying more to help those furthest from the labour market and facing the greatest barriers to work.   And critically, the centre will be able to step back as the system imbeds itself.

    The same is increasingly true for education and health. At the heart of the public service reform programme in the NHS is the development of a more transparent payment by results system that incentivises output based performance. While in education we are developing and piloting models of “Contextual Value Added” – measuring the results of pupils against what might be expected based on previous attainment and factors relating to their background.

    The potential power of such information is not just that it strengthens accountability and performance management – but when combined with greater contestability and choice, it can give the user of public services a strong mechanism to shape these services through the choices they make.

    We need to put an end to the essentially passive relationship that has all too often characterised the nature of the interaction between the user of public services and the State that provides them.

    A relationship that can be particularly damaging for those who need good quality public services the most – where poor outcomes can all too readily become accepted as all that can reasonably be expected.

    Exercising choice over a provider or programme can be a powerful way of restoring a real sense of personal responsibility in the individual – enabling them to shape the service outcomes that they themselves want. Of course there are limits to choice – and we must always understand this. But that must not become an excuse for failing to extend the opportunity of choice to those most in need of our public services.

    At its most simple, the ability to make an informed choice is still about getting the very basics of a service culture right within the public sector; choice about which channels to use to access services or booking a next-day appointment with a GP online. At its most complex, choice is about a deliberative process of engagement with a school about a child’s education.

    Afterall, public services are there to give people a choice. The choice of a good education, good health and the chance to succeed in life – especially for people who could never afford to buy these services themselves.

    Critically, over the past decade we have also learnt about the intrinsic benefits of managed competition as a way of strengthening accountability and shifting the ownership of change.  It is that process of competition and how we structure it that creates the dynamic for change – not necessarily whether competing services are delivered by the public, private or voluntary sectors.

    I have always believed that strong public services are the best provider of opportunity that any society can have.

    But ultimately our values can only be maintained in the decades ahead if we are prepared to continue radical reform. If we are serious about transforming people’s lives by making our public services accountable to the people they serve.

    And if, in doing so, we hope to make the best possible use of the energy, expertise and commitment of public service professionals, then we must be prepared to see through the fundamental change we have begun.

  • John Hutton – 2007 Speech to NAPF Conference

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    Below is the text of the speech made by John Hutton, the then Secretary of State for Work and Pensions, to the NAPF conference on 24th May 2007.

    I’m grateful to Joanne and the NAPF for the opportunity to join you again at your annual conference – what is without doubt, the leading forum for occupational pension provision in Britain.

    A year ago today, we published our White Paper on Pension Reform. It set out a new structure for the long-term future of the UK Pensions system based on the proposals of the Turner Commission.

    At its heart a simpler, fairer and more generous state pension paid for by a higher State Pension Age; and a new system of personal accounts that will help more people to build these savings by extending the benefits of an occupational pension to those without good company schemes.

    These proposals have laid the foundation for a consensus around a lasting pensions settlement that would meet the challenges set out so vividly by the Pensions Commission – rapid demographic change; chronic under-saving and the historical legacy of an overly complex system that delivers unfair outcomes with excessive means-testing. We need to sustain this consensus because this will be in the long term interests of our society and our economy.

    Thanks to the leadership of the NAPF – along with many others – I believe the broad consensus around the main elements of our reforms is stronger than ever.

    The Pensions Bill currently before Parliament is fixing the main elements of these reforms in legislation. The restoration of the earnings link will mean that by 2050 the Basic State Pension will be worth twice as much in real terms as it is today. And there are signs of political consensus too – with no votes against the Bill at its Third Reading in the Commons last month.

    Thanks to the work of the new Pensions Regulator, most companies facing pension fund deficits now have, or are putting in place, comprehensive and affordable programmes to make good these shortfalls. Just last weekend, research from Aon consulting found that the UK’s largest pensions schemes are back in the black for the first time in more than five years.

    And a range of surveys highlighted in this year’s NAPF Conference Magazine even suggest some signs of optimism and confidence returning. In March, the ACA found that while half of firms had reviewed their schemes in the last year, less than a fifth planned a review in the coming year; and Towers Perrin found that around half of employers surveyed saw their occupational pension schemes as having significant recruitment and retention benefits.

    But my argument today is not that we have solved every problem connected with our pensions system. This is far from true. Real challenges remain.

    Public confidence will not be restored overnight. Many employers are still finding that there is too much red tape in running good schemes. Overall participation in occupational schemes has been falling since the late 1960s.

    My argument today is that if we get the next stage of reforms right – in particular around auto-enrolment and personal accounts – then we can embed a new savings culture in Britain – not one that competes with existing occupational pension provision – but actually builds on it, expanding its coverage and making occupational pensions the centrepiece of retirement saving in Britain for all.

    Achieving this will depend on three things.

    Firstly, the effectiveness of the new system of personal accounts in targeting this key group of moderate to low earners who do not have access to a good quality occupational pension.

    Secondly, ensuring that personal accounts complement rather than compete with existing occupational schemes – and that we take steps to strengthen this existing provision; not weaken it.

    And thirdly, the quality of information and guidance on which people can make savings decisions with greater confidence about how much they need to save to achieve the income in retirement they want.

    I’d like to say a few words about each.

    Firstly, personal accounts.

    Last December we published our White Paper on Personal Accounts. It began a consultation on a number of important issues – and we will be responding formally to this consultation next month – along with our response to the report from the Work and Pensions Select Committee.

    But what I can say today is we are determined to ensure that the accounts are designed as a no-frills occupational pension. Research shows that simplicity is a crucial design feature in reaching our target group of under-savers. Aside from keeping costs down, we know that too many options can be confusing – and the majority do not want to be taking decisions over the investment or administration of their savings.

    We’re also clear that accounts must be independent of Government. That is why we are creating the Personal Accounts Delivery Authority to commission the infrastructure to deliver the scheme from the private sector. The delivery of the scheme will be a huge undertaking – one of the biggest challenges our pensions system has faced for many years.

    Personal accounts will be the biggest step forward for workers seeking to build up a pension since National Insurance was introduced in the 1940s. But if we are to make them a success for the millions of people who currently aren’t saving for a pension, we must put in place measures to ensure they have the interests of future members at their heart.

    It is protecting the interests of members that underpins our decision to establish the scheme as a trust-based occupational pension. As such they will face the very same level of regulation as all other trust-based occupational schemes.

    A Board of Trustees will take ultimate responsibility for setting the strategic direction for the scheme from the collection of contributions to the investment of assets and payment of benefits. This will include deciding on the choice of funds and the strategy for the investment of the default fund; the appointment and management of external fund managers and ensuring that contributions are invested in the best interest of members.

    This will be important in ensuring that personal accounts deliver for our target group. As we emphasised in our Personal Accounts White Paper, it is essential to the success of the scheme that members’ needs remain at the core of operational decision-making. Trustees are legally obliged to handle the scheme’s assets in the best interests of the beneficiaries. They must have a good level of knowledge and understanding of the law relating to pensions and trusts – the principles of funding and the investment of assets of occupational schemes.

    We want the trustees to be highly-qualified experts in their field in order to make the best decisions possible for the millions of members and to retain the confidence of the public.

    We know from the National Pensions Debate and from the examples of the consultation procedures of the National Institute for Clinical Excellence and the BBC Trust, just how important it is to involve members in the key decisions that will affect them. That’s why I’m keen for the Personal Accounts Delivery Authority to draw up an ambitious approach to deliberative consultation around the implementation of personal accounts and automatic enrolment.

    We are making the system of Personal Accounts an occupational pension; because occupational pensions are the gold standard in pension provision. That’s why, in building personal accounts, we’re modelling the new scheme on what you do – as leaders in the field.

    We want to follow the best practice of other occupational schemes in ensuring an appropriate degree of member representation whilst being mindful of the costs and practicalities of a scheme on the scale of personal accounts, with multiple employers and millions of members.

    In taking this forward, our plan is to create a members’ panel along similar lines to the Thrift Savings Plan in the USA.

    The Panel could nominate a proportion of the trustees and would be consulted by trustees on key decisions, providing them with access to the views of members, and a stronger sense of collective ownership.

    Given the scale of personal accounts, I believe such an approach could be absolutely critical to the success of the scheme and to increasing confidence across the whole pensions industry.

    Secondly, we need to go further in supporting existing occupational schemes.

    We have always been clear that personal accounts are designed to complement, not compete with, existing occupational schemes. And the NAPF has played a pivotal role in helping us to ensure that this will be the case.

    As a simple defined contribution scheme, with a limited amount of choice and a basic structure, personal accounts will not compete with existing high-quality occupational provision. And neither should they.

    We’ve been clear that there will be no transfers into or out of personal accounts. There will be a simple self-certified scheme exemption test based around clear principles not heavy-handed regulation. And I can confirm today, that a similar approach will also apply to hybrid schemes. Rather than a complex series of specific tests, employers will be able to use their discretion to apply just one of the three simple high-level tests or an appropriate combination.

    And, of course, there’s the annual contribution limit. I think it’s important to be clear that while the NAPF and others in the financial services and pensions industry have always felt that a cap of £5000 was simply too high, many others, especially those that are consumer-based, would prefer not to set a limit at all – concerned about placing a cap on people’s aspirations for their retirement and the need for flexibility for the consumer, so individuals can deposit inheritance sums or other windfalls.

    This is a very difficult balance to strike and we are still looking carefully at how we can best meet these varying objectives. But I do not under-estimate the importance of getting this right and it will be an important part of our response to the consultation next month.

    Strengthening existing provision is not just about ensuring that personal accounts remain focused on their target group. We must also revitalise the whole occupational pensions sector with reforms that will help all schemes.

    From 2012, employers will automatically enrol their employees into personal accounts or into their own existing occupational pension scheme, as long at it meets the specified minimum standards. This simple but radical step will affect around 10 million employees in Britain, and will be vital in overcoming the barriers that prevent many people from making the decision to save. Around 1 million employees will be auto-enrolled into existing schemes as a result of our reforms.

    Again we will look to support those good employers who offer higher contributions or benefits in meeting the costs of extending their scheme by permitting a short waiting period. And by allowing employers the flexibility to re-auto-enrol employees at set points in a way that suits their business, rather than on an individual basis.

    I believe the NAPF’s own Quality Mark is also an important development in supporting existing schemes and valuable too in helping employers to communicate the benefits of good quality schemes. I know there are a number of issues that are still being worked through, in particular around the clarity of exactly what the mark would indicate but I’m keen to re-emphasise my support for the principle of the industry developing such a scheme.

    Government does, however, need to be careful not to become part of the Governance chain and confer legal or technical status on it. Not least because the mark must never become a benchmark for future regulation such as raising the personal accounts minimums.

    For our own part as Government, the Deregulatory Review represents a real opportunity to simplify the regulatory framework for all occupational schemes – to make running schemes easier; to lighten regulation and reduce bureaucracy. I’m serious about having a real debate here. There is nothing more frustrating for those of you engaged in running good quality schemes than feeling as if the system is working against you. But equally, our duty to protect the saver is also crucial.

    As with the National Pensions Debate, people have to come to this debate prepared to achieve a consensus; and to compromise. But be clear about one thing. Now is the chance to make a real difference on this agenda. There is a genuine opportunity here for real change.

    Thirdly and finally, information and guidance.

    Embedding a new pensions savings culture will depend critically on being able to offer people the right information and guidance.

    But the challenge is wider still. Because people don’t just want pensions advice, they want to talk about their money in general. That’s why the Generic Advice Review being led by Otto Thoresen is so important.

    In developing Personal Accounts, we need to consider carefully the relationship between any generic advice service and the Personal Accounts board; and the appropriate protocols on which to base generic advice. Further, to consider who would monitor the advice provided and how any generic advice service could get the balance right between communicating the uncertainties inherent in pension saving and the simplicity that most people want in practice.

    These are real challenges. But your PensionsForce project report today shows the appetite of savers for good quality information and advice. Funded by my Department’s Pensions Education Fund, since last September we’ve seen 1000 employees in over 70 meetings for employers of all sizes. This can be particularly important for women and many in small and medium sized companies who can tend to be bypassed by the traditional adviser community – as well as, of course, for workers who already have access to a workplace pension and employer contribution but who do not take full advantage of it.

    And therein lies the ultimate challenge of embedding a new pensions savings culture in Britain. Enabling each and every individual to take control of their retirement planning; to make informed choices over their retirement provision and to save for that retirement with confidence.

    The last year has seen tremendous progress in building a consensus on a new foundation for long-term savings. I am clear that in taking decisions on the next stage of legislation, we must now go further in not only maintaining our commitment to consensus – but actually deepening that consensus around the details of the Personal Accounts system. The coming year could be the most important of all in getting this right.

    After 80 years at the heart of occupational pensions in Britain, I know I can count on the NAPF to work with us in rising to the challenge. And with it we can not only secure – but actually revitalise the workplace pension as the foundation for retirement savings for generations to come.

  • John Hutton – 2007 Speech on Skills, Employability and Immigration

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    Below is the text of the speech made by John Hutton, the then Work and Pensions Secretary, on 14th June 2007.

    Earlier today we launched the new Employer Skills Pledge. A public and voluntary commitment made by 150 leading employers to train all their staff to at least level 2 in the workplace. Recommended by Lord Leitch in his report last December, the pledge – backed by Government and including all central Government departments – will guarantee employers access to a skills broker through Train to Gain and embed a new partnership with business for improving skills in the workplace.

    It will pave the way for the full Government Response to Lord Leitch’s report later this Summer – and mark the beginning of a radical step-up in the investment made in the skills of the British workforce.

    If we are to reach our goals of a record 80% employment rate and the eradication of child poverty in Britain, it simply can not be done without taking action to raise the skills base of an economy where today there are 4.6 million people without qualifications and a further 1.5 million with qualifications below level 2; and where Leitch predicted that the demand for low skills is likely to continue falling with some 850,000 fewer low skilled jobs by 2020.

    But in an increasingly globalised labour market, we can not conduct the debate about skills in a vacuum; we have to consider it also in the context of the dramatic changes in demography and in the global economy of which we are a part.

    To consider the implications for our skills base of an ageing society – where in the UK today there are now more people over State Pension Age than children. And the question of how we develop a managed approach to migration – that will allow us to reap the benefits from the skills which migrants can bring, but which also helps more of our own people compete successfully for the growing number of jobs in the British economy.

    Certainly our country is changing. New figures from the Office for National Statistics last week showed that foreign-born mothers accounted for 1 in 5 babies born in England and Wales last year, helping to put the birth rate at its highest for 26 years.

    The debate around migration is often polarised and stark. The prospect of migration can provoke uncertainty and sometimes fear. People want security – and rightly so.

    But deep down they know, too, that our future as a successful economy will depend on our ability to work through these changes, not turn away from them. We must be an open not a closed society. The same is true for our economy.

    At a point when the integration of our communities has perhaps never been more important, it is absolutely right that we recognise the significance of the changes in our society.

    But we also need to keep these changes in perspective. To be rational and clear in our assessment of the challenges facing both our society and our economy; and above all to find a way forward that promotes our values; that asks how we can best support every single Briton – regardless of background or origin – to make the greatest possible contribution to our society.

    In doing this we first need to overcome a number of popular myths and misconceptions about migration. I think there are four that stand out.

    First we need to be clear that migration is not a new phenomenon. As Europe boomed in the post-war era, so major European countries looked to migrants to satisfy unquenchable labour demand – first within what were to become EU countries, then in former colonies.

    While immigration slowed in the 1970s and 1980s, it has subsequently increased dramatically – from half a million in 1998 to over 1.5 million a year in each of the three years up to 2005.

    So migration is a long-standing global phenomenon. And Britain is no particular magnet for migrants. Between 1990 and 2005, the USA gained 15 million migrants. By contrast Spain and Germany each gained 4 million; the UK just 1.6 million.

    Secondly, we should acknowledge that migration is actually a two-way process. Today an estimated 5.5 million UK nationals are taking advantage of the opportunities to live and work abroad – with the largest groups in Australia, Spain, USA, Canada and Ireland.

    Thirdly, that Britain is not being populated by large numbers of migrating families. Rather this current wave of migration into Britain is markedly different from anything we have seen before. Unlike the migration to America at the beginning of the 20th Century, or to the UK in the middle of the 20th Century, this early 21st century migration is in essence transient – in that it is often characterised by people coming to work in the UK for short periods before they return home.

    Since 2004, around 450,000 people have come from A8 accession countries to work in the UK. But rather than bringing their families to settle, as many as half of those economic migrants did not stay. They came to work and save money for themselves and their families.

    Fourth and perhaps most significant of all is the myth that this temporary economic opportunism is a threat to British jobs. As the TUC acknowledged at their conference last year:

    “If migrant workers are treated fairly and paid a decent wage, they represent no threat to the livelihoods of people who are already living and working in the UK.”

    The economic benefits of migration are clear. Recent migration has had a positive impact on our economy – accounting for up to a fifth of economic growth between 2001 and 2005. With independent research showing that migrants are contributing more than their share of taxes, migrant workers are in fact making a net contribution to the exchequer. And the Bank of England concluded that overseas workers have played a significant role in boosting the pool of available labour and helping to ease labour shortages.

    The Government’s decision to introduce a new points-based system is a radical and progressive approach to manage the flow of migrants coming to the UK. A case-by-case system to attract the brightest and best from across the world while being robust against attempted abuse.

    This is absolutely the right decision for our economy. Together with the new Migration Advisory Committee – which will advise on skills and labour market shortages – we will help to ensure that migrants continue to fill the gaps in the labour market – increasing investment, innovation and entrepreneurship in the UK.

    But we also know that migration brings real challenges too. First and foremost, we have to know who is coming and going in Britain. Managed migration has to mean exactly that. Next week the Government will be publishing its strategy to build stronger international alliances to manage migration. It will focus on strengthening our borders, ensuring and enforcing compliance with our immigration laws and facilitating quicker and easier legal migration for those we seek to attract.

    Migration also creates new pressures on local services, on local schools, on hospitals and housing. Challenges for active labour market policies and welfare systems. For communities experiencing immigration for the first time.

    As today’s report from the independent Commission for Integration and Cohesion highlights, we must go further in helping these communities to adapt to such change and in promoting and supporting local solutions to improving the integration of migrants within strong, resilient and cohesive local communities.

    We can not make decisions on managing migration in isolation from these social factors.

    Two years ago, when we made the decision on the 8 European Accession countries, business leaders were calling for us to open the labour market.

    At the end of last year, when considering the question for Bulgaria and Romania, the economic imperative was not as strong while it was ever more important that we ensured our local authorities and public services could continue to manage the existing A8 migration. It is critical that we continue to balance these factors as we continue to make decisions on the best way to manage migration.

    We know that many migrants are today working in what are traditionally seen as “hard to fill” – but predominantly low-skilled jobs. The question is – why are many of these jobs so hard to fill?

    With 4.5 million people still on out-of-work benefits in the UK, the right response is not to get defensive; to retreat – or talk of pulling up the drawbridge on migrants. But rather to ask how we can raise our game in helping UK citizens to compete in today’s labour market?

    We’ve made tremendous progress in helping people into work over the past decade. Yesterday’s labour market statistics marked ten years of progress – with a reduction in the claimant count of three quarters of a million and employment up by over 2.5 million; the best performance in the G8.

    Helping individuals to acquire the skills, confidence and ambition to progress up the career ladder has to be a core ambition of a dynamic welfare system. The old “Labour Exchange” of the past – where labour seeking work met employers anxious to hire – must now become the skills exchange of the future.

    Achieving this will mean finding a new place for skills at the heart of a renewed welfare contract for the 21st Century. A new approach to skills, based on a simpler, clearer and more coherent system of delivery – that meets the needs of both businesses and individuals.

    The new Commission for Employment and Skills – led by Sir Michael Rake – will be at the forefront of this new approach. A demand-led skills system that will ensure that the skills employees develop are economically valuable – not just to get into work – but also, critically, to support sustained employment and progression through the workplace.

    I want Jobcentre Plus to play a crucial new role in helping to ensure the maximum possible employer engagement at local level. That is why we will be establishing a series of Local Employment Partnerships whereby people claiming long-term benefits will receive job trials and mentoring from sponsoring employers – and at the end of the programme will be guaranteed a job interview.

    Our ambition is for this to go sector-wide. And in a world where the premium on high skills is only set to increase, this must not be simply about helping people into low-skilled jobs.

    It must also then be about the way that employers are helped to access and deliver the support that will enable employees to progress to middle and higher levels within their organisations.

    Our welfare to work system must therefore raise its game. Training British workers for British jobs will be crucial not just for our future economic prosperity but also for our ambition of a fair society.

    The growth in world trade presents all of our economies with huge opportunities, if we are prepared to take them. But to do so will mean we have to invest in all our people – in their skills and talents.

    One part of this must be an earlier and more focused assessment of the skills needs of those out of work. The need to get action on early skills assessments is highlighted by the evidence on basic language training. A study of over 500 learners and 40 teachers carried out by the National Research and Development Centre found that the longer someone lives in the UK before taking ESOL courses, the slower their progress in learning the language.

    And at the Centre for Employment, Language Training and Integration in Copenhagen, language training as part of Denmark’s Adult Vocational Training Programme combines modules of basic language training in the morning with vocational training in the afternoon. So in addition to a foundation of basic language skills, trainees also learn the sector specific vocabulary that will enable them to develop their trade.

    With language skills so crucial to the integration of our society – and with a persistent ethnic minority employment rate gap of 14% – such interaction between skills and employment support could play a crucial role in helping us to build a fairer and more inclusive society, with employment opportunity for all and prosperity for Britain in a world of global opportunity.

    To achieve our goal, we must stay true to our shared values – of solidarity and social justice – of security but liberty – with tolerance, understanding and respect of others. To embed the social partnership that says we are not merely individuals fighting in isolation from each other, but members of a community who depend on each other; who benefit from each other’s help; who recognise their obligations to each other.

    There is no greater challenge facing us today. But equally, I believe, no greater prize within our grasp.