Tag: 2011

  • Mark Hoban – 2011 Speech at the Markit Conference

    markhoban

    Below is the text of the speech by the Financial Secretary to the Treasury, Mark Hoban MP at the Markit Conference, The Grange City Hotel, London, held on 12th May 2011.

    Thank you. It’s a pleasure to be here this morning and to talk to you about the regulatory reform of markets.

    As the Minister responsible for financial services, I spend a huge amount of time on the vast array of European markets’ initiatives.

    London is Europe’s only global financial centre with- for example- 40% of the global OTC derivatives market.

    And so regulatory reform offers the UK both great opportunities and great challenges.

    In my discussions with industry, I know that you understand the need for reform.

    Want to see stronger and more resilient markets.

    And understand that we simply can’t afford another financial crisis.

    But I recognise also that fundamental reform is incredibly challenging.

    It requires thought.

    Evidence.

    Careful deliberation.

    Where most people can generally agree on the direction of travel, the final destination remains a point of contention.

    So today, I’d like to set out the UK’s priorities when it comes to the regulatory reform of markets;

    First of all, the need to create more resilient and more stable financial markets. To learn and put into practice lessons from the financial crisis;

    And secondly, to improve competition: to complete – and not fragment – the Single Market- and so promote, rather than stifle, growth.

    In order to achieve these aims, we need to focus on what really matters.

    Which is why, underpinning these aims, we continue to argue in Europe that every proposal – and every reform – needs to be backed up by clear and compelling evidence.

    With detailed consideration of the relative costs and benefits.

    Because it’s far more important to be doing things right, than to be seen to being doing a lot.

    So let me take these priorities in turn.

    Europe’s Financial Sector

    Starting first with the issue of stability.

    Now it goes without saying that the events of recent years have tested the underlying strength of the global financial sector.

    They’ve called into question the very nature of how financial markets operate.

    And across the world, people have been asking questions about the sustainability of different investments, institutions and financial products.

    With general consensus that reducing systemic risk and improving transparency is essential in improving stability.

    Derivatives

    Derivative trading is one of the many areas that have come under the spotlight.

    Indeed, derivatives continue to divide opinion.

    Some people would argue that derivatives were as much a part of the crisis as the sub-prime mortgage debacle, light-touch regulation, or low levels of liquidity and capital reserves.

    Others, including myself, would take the view that the problems concerning credit derivatives were more of a symptom of the crisis as opposed to an actual cause.

    Nevertheless, there is agreement that action can be taken to improve the infrastructure surrounding derivatives.

    If we look at EMIR, for example, the idea that central counterparties should be used to clear certain classes of derivatives is a welcome one.

    This, if implemented proportionately, will reduce the systemic risk presented by the derivatives market.

    But it’s important that this proposal is properly formulated and avoids creating unnecessary burdens.

    Not all derivatives deemed eligible for central clearing will necessarily be suitable for platform trading.

    We must look at the facts, rather than make broad assumptions.

    But equally, it is important that the scope of the regulation is sufficiently broad.

    When it comes to deciding which derivatives should be covered by EMIR, there are two different roads we could go down.

    The first would see all trades covered by this regulation, regardless of their venue of execution.

    The second would see only those derivatives executed outside of an exchange being subject to this legislation.

    All the arguments clearly favour the first approach

    Why?

    The first one being that the purpose of clearing derivatives is to reduce systemic risk – it’s not obvious to me why a derivative would need to be cleared if traded off-exchange, but not if traded on an exchange.

    And the second is market distortion- restricting the scope would create a rather sizeable regulatory loophole- which, if exploited, would lead to damaging asymmetry in the market.

    The arguments against a broad scope are hard to fathom, and seem to be about preventing competition in clearing – a subject I will come on to later.

    High frequency trading (HFT)

    Another stability issue where opinion is divided is high frequency trading.

    Concerns that HFT contributes to instability in markets- with the US Flash Crash often held up as an example- have prompted calls for action.

    But I feel that evidence is lacking- and that, for example, proposals around minimum order resting times and restrictive order to execution ratios in MiFID should be based on robust research.

    That’s why the Government has established a Foresight project looking at the Future of Computer Trading Financial Markets.

    This will examine the impact of technological developments in HFT to ensure that any regulatory intervention is both sustainable and effective.

    Competition

    Because, at a time when Europe has record financing needs, liquid markets are absolutely crucial.

    But they are also vulnerable.

    As I outlined at the beginning of my speech, any measures to improve stability must look at the wider impact- particularly the impact on competition and on the effective functioning of these markets.

    Market regulation in Europe needs to recognise that member states don’t work in isolation to each other- and Europe doesn’t work in isolation to the rest of the world.

    We should bear in mind that protectionist attempts to close down our borders or Balkanize markets by currency or geography will do huge damage to European growth.

    As will seeking to impose so-called ‘strict equivalence’ to detailed European standards before anyone can do business in the EU.

    Based on recent IMF data, last year, non-EU investors provided 27% of the total investment in EU cross-border securities.

    This means $5.2 trillion of all cross-border investment in the EU came from outside of the Union.

    It’s clear, therefore, that Fortress Europe is not the answer to strengthening our competitiveness.

    We face fierce competition from overseas… not just from traditional financial centres in the US… but increasingly from Asia.

    And at the same time, these emerging economies present us with huge opportunities to serve new and expanding markets.

    But if – in our goal of making markets stronger and more resilient – we get our regulation wrong, these are opportunities that will fall by the wayside.

    MiFID

    We can look to MiFID for an example of the competition benefits that regulation can achieve.

    Ten years ago, Europe was an underdog, relative to the strength of the US capital markets.

    Member States worked in relative financial isolation.

    Were hampered by high costs and low liquidity.

    And the Single Market had hardly got off the ground.

    But MIFID became instrumental in breaking down some of the barriers that were holding us back.

    Today, as a result of the competitive pressure of MIFID, Europe has exchanges that are capable of competing globally;

    Deutsche Boerse;

    the London Stock Exchange;

    Euronext-Liffe – just to name a few.

    Europe has become the destination of choice for many global companies seeking to access deep pools of capital.

    Competition has brought down trading costs, improved liquidity, and resulted in better protection for investors. In fact, I’ve read some estimates that suggest the single markets benefits of MIFID could have contributed as much as 0.8% to EU GDP.

    And if we get the MiFID Review right, we have the potential to build on this progress.

    But if we get it wrong we could set ourselves back a decade.

    So what is our impression of the MiFID review so far?

    Well, there are some clear positives to some of the measures on which the Commission has consulted : for example;

    the SME market proposals;

    the underlying theme of investor protection;

    and the potential to support G20 commitments on the regulation, functioning and transparency of markets.

    I also recognise that impressive progress has been made by the Commission in developing proposals for derivative markets.

    At the outset, I think it’s fair to say that they didn’t quite grasp all of the issues, but have worked hard to understand them through a genuinely consultative process.

    This should be commended.

    But the Commission have much more to do to convince me – and the industry- that they’ve genuinely grasped all the issues at stake.

    And any changes will have profound implications for tens of thousands of firms.

    We must learn from the AIFM Directive and other proposals which – in their original form – were fundamentally flawed and lacked an understanding of how our markets operate.

    So with MiFID, areas such as;

    the governance of trading platforms and venues;

    pre- and post-trade transparency requirements and;

    transaction or position reporting.

    we must implement proportionate regulation.

    A crucial part of this is understanding our markets. What works for regulation of equities – a homogenised trading instrument – should not be arbitrarily copied to bonds, sovereign debt, derivatives, or commodities markets.

    Also, within each asset class, the markets have their own dynamics and features, which only properly informed regulation will understand.

    Indeed, each commodity market is unique – where electricity trades in a different way to gold, metals, or agricultural commodities.

    If regulation fails to recognise this, firms will start to look elsewhere when it comes to matters of finance.

    And this will feed through to our companies, our businesses and our citizens.

    EMIR

    In EMIR, there are opportunities to promote competition market structure- competition which is healthy and should be encouraged.

    We all agree that CCPs must be made safe – that is why so much of EMIR is focussed on new robust prudential standards for CCPs

    But we must not allow new standards for CCPs, combined with a legal obligation to clear derivative products, to embed monopolies in clearing that will result in costs passing back to the wider economy.

    To prevent this, our view is that, while linked structures – so called vertical silos – can be effective, they must be subject to fair and open access requirements.

    Market participants should be offered a meaningful choice of using all or part of a vertical structure.

    Engagement

    In securing the aims that I have discussed today, engagement is absolutely crucial.

    The Commission should continue to work with all interested parties on markets legislation;

    engaging with businesses across Europe with expert groups on specific areas;

    allowing particular care over legal drafting, to prevent unintended consequences;

    and, again, ensuring that all impact assessments are of the highest quality.

    And I can assure you, the Government will be a positive and constructive partner in this process.

    But when it comes to finding the best solutions for Europe, we’re at our most effective when we work with you and engage openly on our priorities.

    Where we both share analysis to back-up our proposals.

    Which is why the industry has just as, important role to play as Government. EU regulation will have a direct impact on the business you transact.

    As we need more hard-headed analysis.

    To strengthen our argument.

    Make clear our concerns.

    And deliver outcomes to suit everybody’s needs.

    We’ll need your engagement.

    Your evidence.

    And your positive ideas for reform.

    So that any amendments to the current rules are;

    proportionate – not overbearing;

    grounded in fact – not political whim;

    and look to support stability, growth, and competitiveness.

    That is what we need to achieve.

    Thank you.

  • Nick Herbert – 2011 Speech on Police Effectiveness

    nickhertbert

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

    Introduction

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

    The challenges

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

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

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

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

    The Government’s reforms

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

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

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

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

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

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

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

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

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

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

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

    Reform and the people in policing

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

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

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

    Challenges and opportunities for police leadership

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

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

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

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

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

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

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

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

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

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

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

    The Winsor Review

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

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

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

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

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

    Criteria for police leadership reform

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

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

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

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

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

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

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

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

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

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

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

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

    Talking points

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

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

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

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

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

    A professional body for policing

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

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

    Conclusion

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

    – The continuing need to cut crime;

    – The need to cut costs;

    – The need to learn positively from recent events, and

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

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

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

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

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

  • Nick Herbert – 2011 Speech to IPPR

    nickhertbert

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

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

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

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

    Who runs the police?

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

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

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

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

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

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

    The need for stronger local accountability

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

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

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

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

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

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

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

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

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

    A Royal Commission?

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

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

    The police reform agenda

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

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

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

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

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

    Strict checks and balances

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

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

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

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

    A single accountable individual

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

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

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

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

    Operational independence

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

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

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

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

    Ensuring strategic policing

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

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

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

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

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

    Collaboration between forces

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

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

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

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

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

    Driving value for money

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

    Policing in the United States

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

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

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

    The Mayor of London

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

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

    The politicisation of policing

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

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

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

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

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

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

    The benefits of reform

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

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

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

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

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

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

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

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

    Finest service in the world

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

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

  • Nick Herbert – 2011 Speech on National Security

    nickhertbert

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

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

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

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

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

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

    National threats

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

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

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

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

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

    Threat from organised crime

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

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

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

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

    Current response

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

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

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

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

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

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

    New approach

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

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

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

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

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

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

    And we referred to the new focus on organised crime.

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

    So let me highlight a couple of points:

    Value for money

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Focus on organised crime

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

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

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

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

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

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

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

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

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

    National Crime Agency

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

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

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

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

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

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

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

    Conclusion

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

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

  • Nick Herbert – 2011 Speech on Police Funding

    nickhertbert

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

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

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

    Concerns

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

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

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

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

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

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

    Manageable reductions

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

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

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

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

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

    It is to:

    – improve frontline services

    – spend the minimum on other functions

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

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

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

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

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

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

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

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

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

    Delivering change

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

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

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

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

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

    Transparency

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

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

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

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

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

    Pay and other conditions of service

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

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

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

    IT, goods and services

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

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

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

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

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

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

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

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

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

    Collaboration

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

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

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

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

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

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

    Support and advice to forces

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

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

    Working with the private sector

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

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

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

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

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

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

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

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

    Conclusion

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

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

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

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

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

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

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

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

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

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

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

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

  • Lord Sassoon – 2011 Business Finance Taskforce Speech

    The below speech was made by Lord Sassoon in Sheffield on 15th March 2011, launching the Business Finance Taskforce regional event.

    As a Treasury Minister, I felt that I couldn’t possibly turn down the opportunity to speak at this afternoon’s event. More seriously I wanted to be here at the launch of what is a very significant initiative by the major British banks to reconnect with their SME business customers and to help British businesses obtain the finance they need – finance they need to grow their own businesses and to drive the growth of the economy.

    Much of the economic and political debate of the past three years has focused on the role of the banking sector in our society; the relationship that banks have with their customers; and how this feeds through to the rest of the economy.

    In the past few years this relationship has seen its fair share of ups and downs. And regrettably there seem to have been more downs than ups.

    Which is why this event – and similar ones being held up and down the UK – are so important.

    As today is all about how our largest banks are looking to reconnect with the rest of the economy.

    By this I mean providing the lending that viable businesses need to invest and expand.

    Supplying the capital to stimulate enterprise across the country.

    And ensuring that we a have financial sector that serves its customers, has their trust, as well as their best interests at heart.

    This is vital.

    Because if our financial sector doesn’t tick these boxes then we’ll have an economy that struggles to respond to today’s challenges; a country that doesn’t fulfil its potential; and a recovery that fails to gather momentum.

    It’s no exaggeration to say that private finance is the lifeblood of British business…

    …and that when our banking system is healthy, then so is our economy.

    But the current environment has thrown up particular challenges as banks have retrenched; weathered the financial storm; and looked to rebuild their balance sheets.

    I’m all too aware that SMEs in particular have been facing difficulties when on the hunt for affordable lending.

    So, as a Government, we’ve been working with the banks to try and get credit flowing again.

    Part of this is the recent Project Merlin announcement.

    Among other things, this agreement will ensure that, this year, the UK’s largest banks will make available up to £190 billion to creditworthy businesses… of which £76 billion has been earmarked specifically for small businesses.

    Which is an increase of almost 15 per cent on last year’s lending figures to small business.

    If demand exceeds this, the banks will lend more.

    I think we can all agree that this is an excellent starting point… but there’s still more that needs to be done…

    …and ultimately it will be the banks, not the Government, who will have to lead this work.

    Which is the focus of today’s event.

    I am not only pleased to see the financial sector is taking steps to restore business confidence, and renew the trust that’s been lost. But i also want to commend, not condemn, the BBA and the major banks for the intense effort they have put in over the past nine months in this task.

    Through the Business Finance Taskforce – made up of the British Banker’s Association and the UK’s six largest banks, the industry itself is taking forward a range of initiatives to help better serve its customers. And it has been working closely with Government to shape the Taskforce’s agenda.

    Collectively, these reforms – known as the ‘Better Business Finance’ package – will:

    improve the relationship that banks have with their businesses; ensure better access to finance; and provide better information to increase transparency. And it’s the first of these objectives that I want to concentrate on.

    There has been much debate surrounding whether what we’re currently seeing is either a supply or demand problem.

    Certainly, data continues to show that demand for credit from small businesses remains relatively weak, and this is set against a backdrop of lending levels that are on a downward trend.

    But from my conversations with business, I know it’s not that simple.

    A large part of demand is about confidence… and if businesses don’t have confidence in the banks then they’re unlikely to come asking for credit.

    That is why I see the task of rebuilding business-bank relationships as so important.

    Rightly or wrongly, businesses across Britain believe there’s been a decline in banking standards and a deliberate turning away from ‘relationship banking’ and personal service.

    Rightly or wrongly, many businesses also feel that when they do approach their local banks they’re not made to feel welcome – that they’re now considered too ‘high risk’ even when their businesses were never seen as risky before.

    Undoubtedly, following the crisis, things have changed.

    Banks are understandably more risk averse.

    But this perception may also be adding to the apparent suppressed demand for credit – maybe it’s not so much a lack of demand as discouraged demand that we’re seeing.

    I know that this message has been taken on board by the banks.

    It’s at the core of the various initiatives included as part of the ‘Better Business Finance’ project.

    It’s the focus of the new lending code and principles, which will set out the minimum standards that smaller enterprises can expect from banks… and gives details of the help and advice that banks are making available.

    And it has helped drive the new transparent appeals process, which will give businesses the chance to voice their concerns if they feel they’ve been unfairly refused credit.

    This appeals process will be independently reviewed to ensure that each bank has a fair and equitable process.

    I’m pleased to say that the banks will be launching the new Code and Principles, as well as the appeals process, next month.

    From May, they’ll also help coordinate a new national business mentoring network – using both mentors recruited from their own ranks and, in the first instance, mentors from the not-for-profit sector.

    The introduction of new, independent data on business finance supply and demand trends across the UK will also help to restore relationships. I look forward to seeing the first results from these new surveys in July and to tracking the story they tell thereafter.

    And our major banks have agreed to publish a regular independent survey of businesses’ experience when looking for access to finance.

    This will give a strong indication of how well the banks are doing in meeting the commitments they’ve made.

    Taken together, these various initiatives will make the decisions of financial institutions easier for everyone to understand, but also allow customers to hold their banks to account.

    That way, we all know where we stand.

    And we all know what we can expect.

    But what businesses really want is better access to the funds they need for day-to-day financing as well as investment and growth.

    Which is why the Government has welcomed the decision of the major UK banks to set up the Business Growth Fund.

    This will provide £2.5 billion in equity investment for established small businesses with growth potential over the next 10 years.

    And help equity financing again become more of a mainstream financing option.

    If a loan or an overdraft isn’t the most appropriate form of finance for a small business, then banks should say so.

    And help business find the type of finance that is right for them – whether this is an alternative banking product – like supply chain or invoice financing – or non-bank lending, including equity.

    That’s why today is so important.

    Because you can have the best policy in the world, but if no one knows it exists then it’ll never be a success.

    Which is why I want to tell you about the other website that is launched today: http://www.betterbusinessfinance.co.uk/. It is a website that may be even more important for the UK economy than the 2012 ticket website.

    So the work of the Business Finance Taskforce, and the ‘Better Business Finance’ initiatives, are important first steps in re-establishing confidence and trust in the financial sector.

    It’s this work that is helping the sector as a whole reconnect with the rest of the economy.

    And this can’t be overstated.

    As there’s no hiding from the fact that our banks bear some responsibility for what’s happened to the economy.

    But equally, they have an important role in getting us out of the mire.

    By providing the finance that’s essential for investment.

    The advice that helps businesses grow and succeed.

    And the confidence that underpins a flourishing economy.

    So I welcome the progress that the banks are making.

    I recognise that the Taskforce is taking is taking its job very seriously.

    And I’m happy to be part of this process.

    Where banks, businesses and the Government are working together to create a strong financial sector… one that serves the interests of its customers, has the confidence of investors, and helps deliver a strong and sustainable economy.

  • Alex Salmond – 2011 Speech on Scotland’s Future

    alexsalmond

    Below is the text of the speech made by Alex Salmond, the Scottish First Minister, on 22nd October 2011.

    Firstly Scotland has many friends internationally. People cheering us on and wanting us to do well.  That international reach is a great asset for this country.

    Secondly climate change is perhaps the greatest issue facing this planet. The responsibility of the Scottish Parliament for it is almost accidental. It wasn’t even on the agenda back in 1997 and therefore wasn’t specified as reserved in the Scotland Act. As a result it was devolved.

    So given that by international acclaim we have handled this mighty issue so well as a parliament, what possible argument could there be that the Scottish Parliament is not capable of discharging ALL of the issues facing the Scottish people.

    I also wanted to say a word about Scotland’s late national poet Eddie Morgan. A man whose modesty as an individual was matched by his brilliance as a poet. He didn’t wear his politics on  his sleeve but he has left this party a financial legacy which is transformational in its scope, and Angus Robertson will spell that out tomorrow..

    However his real legacy is to the world in his body of work.

    Eddie Morgan once told our Parliament:

    “We give you our deepest dearest wish to govern well, don’t say we have no mandate to be so bold.”

    Delegates by your applause let us salute our Makar Edwin Morgan.

    When I was cutting my teeth in politics in West Lothian the late Billy Wolfe once told me that the SNP stood for two things – independence for Scotland and home rule for Bo’ness!

    In reality the SNP does stand for two fundamental aims – and these are enshrined in our constitution – independence for Scotland and also the furtherance of all Scottish interests.

    These are our guiding lights and they are equally important because they reflect the reality that our politics are not just constitutional but also people based.

    I tried to reflect this on election night when these self same people, the community of the realm of Scotland presented to us the greatest ever mandate of the devolution era – an absolute majority in a PR system – a system specifically designed to prevent such a thing ever happening

    Mind you it was designed by the Labour Party so we should not be too surprised  that their cunning plan didn’t  work.

    “The best-laid schemes o’ mice an’ Lord George Robertson gang aft agley.”

    What I said on election night was that after almost 80 years we had lived up to the name of one of our founding parties – east, west , south and north.

    WE ARE NOW THE NATIONAL PARTY OF SCOTLAND

    It is a good phrase “the community of the realm”. It was developed in mediaeval Scotland to describe a concept of community identity which was beyond sectional interest.

    The best Scots term for it would be the common weal.

    It does not ignore the fact that sometimes as a Government we have to take sides within Scotland, as well as taking Scotland’s side.Particularly when times are tough we have to ask the rich to help the poor, the strong to help the weak, the powerful to help the powerless.

    But we do so in pursuit of the common weal, the community of the realm.

    We love Scotland but we don’t believe our country is perfect. We seek to make it better.

    We know that in building the new Scotland we must confront our demons from the past like sectarianism and our problems from the present like the abuse of alcohol.

    Some people say tackling these things is unpopular. But the election  told us that the people respect and understand that sometimes it takes guts to govern.

    But we shall always govern for that common weal..

    We govern – we have governed – wisely and will continue to do so.

    We have sheltered the community from the economic storms in so far as it is in our power to do so.

    Our people – our community – face a hugely difficult position – a squeeze between falling incomes and rising prices.

    To help family budgets we have frozen the council tax for FOUR years and will continue to freeze it through this coming parliament.

    Labour say we shouldn’t do this. Really!  And then we would have the same 60 per cent rises as when they were in power. A Council tax rise of £680  for a band D property.

    To help family budgets we have held down water rates.

    The Liberals say that we should privatise water. Really!  And then we would have been  as powerless to act on water bills as they are right now on energy bills.

    To help family budgets we have abolished prescription charges.

    The Tories say we shouldn’t  do this. Really! Tell that to the 600,000 Scots on incomes of only £16,000 who were forced to pay for their medicine.

    Every household bill which is under our influence, we have tried to control.

    Every household bill under UK influence is out of control.

    In Scotland we have a prices and incomes policy.

    In England the Tories control incomes – except of course in the boardroom- but not prices.

    None of these things- the freeze on the Council Tax, the ending of prescription charges, the stability of water bills, are easy.

    They are all difficult.

    BUT THE RECORD SHOWS THAT THE ONLY PARTY AND THE ONLY GOVERNMENT ATTEMPTING TO HOLD DOWN HOUSEHOLD BILLS IS THE SNP GOVERNMENT.

    The unionist parties have lost touch with the people.

    Labour and Tories are parties without a leader. The Liberals have a leader without a party.

    We govern well. They oppose badly.

    IN THE ELECTION THE PEOPLE DECIDED THAT LABOUR WERE NOT FIT FOR GOVERNMENT. RIGHT NOW THEY ARE NOT FIT FOR OPPOSITION.

    Governing well makes a real difference to real people.

    Back in 2007 we said we would put 1000 extra police on the streets and communities of Scotland. Labour said it couldn’t be done.

    But it has been done.

    And the result has been a 35 year low in recorded crime in Scotland. I’ll just repeat that.

    Recorded crime in Scotland is at its lowest since 1976 when Jimmy Carter was elected President of the United States and Jimmy Saville was presenting Top of The Pops.

    Earlier this week a poll showed that peoples FEAR of crime in Scotland was running at almost HALF of the level in the rest of the United Kingdom – 28 per cent against 48 per cent.

    Much of that success is down to the  extra police officers.

    We are the SNP. We believe in freedom.

    But the freedom of people from the fear of being mugged or robbed is a key objective of this Government and the 1000 extra police in the communities of Scotland is a substantial part of achieving that objective.

    LET THERE BE NO MISTAKE. OUR REFORM OF THE POLICE SERVICE IS ABOUT PROTECTING THE FRONT LINE SO THAT THE FRONT LINE CAN PROTECT THE PUBLIC.

    Right now our focus is on jobs and the economy.

    John Swinney and his team spend every waking minute seeking to encourage our own businesses to grow and to attract new companies to Scotland.

    We have the most competitive business tax regime in these islands.

    80,000 small businesses either pay no business rates or have a substantial discount.

    We know, as they do, that their success holds the key to job creation. We will continue to offer that crucial incentive throughout this Parliament.

    LET US BE CLEAR. THE SMALL BUSINESS BONUS STAYS IN SNP RUN SCOTLAND.

    In the last few months a procession of major international companies have chosen Scotland as the place to conduct their business.

    From Amazon, Mitsubishi, Doosan, Gamesa, Vion, Avaloq the message has been the same – Scotland has the people and the resources to allow them to conduct their international operations from a Scottish base.

    And what have the UK Government been concentrating on while we focus on jobs and investment?

    They have formed a Cabinet sub Committee to attack Scottish independence.

    Let’s get this right. Cameron, Clegg, Osborne and Alexander sit in a committee working out how to do down Scotland and they engage in this while the European Monetary system teeters on the brink of collapse, while the jobless total in England is at a 20 year high and inflation more than double its target.

    And these politicians wonder why they carry no confidence among the people of England never mind the people of Scotland.

    OUR MESSAGE TO THIS QUAD OF MINISTERS: STOP ATTACKING SCOTTISH ASPIRATIONS AND START SUPPORTING ECONOMIC RECOVERY.

    We need more capital investment not less, finance for companies and price and job security for the people.

    And what is their grand strategy to restore their flagging political fortunes?  To have more Ministerial day trips to Scotland.

    *CONFERENCE EVERY TORY MINISTER WHO COMES NORTH PUTS ANOTHER 1000 VOTES TOWARDS THE NATIONAL CAUSE.

    Of course these visits to Scotland are selective. Very selective.

    Last week the Prime Minister came to Scotland to hail the billions of investment in the new oil and gas fields off the western approaches.

    However there was no sign of a Prime Ministerial visit this week when his Government betrayed the future of Longannet.

    Over £13 billion from Scotland’s oil and gas in the course of this year but not even a tenth of that to secure the future of the clean coal industry in Scotland.

    Not even one tenth of one year of oil and gas revenues to secure a world lead in planet saving technology.

    MR CAMERON HOW LITTLE YOU UNDERSTAND SCOTLAND

    When he was making the BP announcement David Cameron claimed his geography teacher at Eton had told him that all the oil would be gone by the turn of the century.

    The Prime Minister’s memory is faulty. It wasn’t his geography teacher. It was successive Labour and Tory Governments.

    Like Margaret Thatcher’s Energy Minister who claimed oil was declining in 1980!

    Now the cat is well and truly out of the bag and we know that oil and gas will be extracted from the waters around Scotland for at least the next 40 years.

    Can I therefore put forward this simple proposition.

    After 40 years of oil and gas Westminster had coined in some £300 billion from Scottish water – around £60,000 for every man women and child in the country.

    The Tories’ own  Office of Budget Responsibility figures suggest another  £230 billion of oil revenues over the next 30 years – and that was before the latest announcements.

    LONDON HAS HAD ITS TURN OUT OF SCOTTISH OIL AND GAS.

    LET THE NEXT 40 YEARS BE FOR THE PEOPLE OF SCOTLAND.

    Scotland has the greatest array of energy resources in Europe. Oil, gas, hydro, wave, wind and tidal power and clean coal..

    On Thursday I went to Nigg to announce the redevelopment of that great fabrication site. Once again thousands of jobs can be developed there as marine engineering comes alive in the Highlands.

    Today I am announcing a further important development on our journey to lead the world in wave and tidal power.

    A new £18 million Fund to support marine energy commercialisation.

    This will support the deployment of the first commercial marine arrays and the scaling up of the devices currently on test in Scottish waters.

    And this is part of a £35 million investment over the next three years which will support testing, technology, infrastructure and deployment.

    TODAY SCOTLAND IS LEADING THE RACE TO DEVELOP OFFSHORE RENEWABLES.

    WITH THIS ANNOUNCEMENT, OUR NATION IS MOVING UP ANOTHER GEAR.

    THE MESSAGE IS CLEAR. IN MARINE ENERGY  SCOTLAND RULES THE WAVES.

    Conference, right now some two thirds of wave and tidal projects in Europe are in Scottish waters. That will soon be three-quarters. The announcement by Kawasaki Heavy Industries on Thursday of their intention to test in the Orkney Islands   underlines the international impact that Scotland is now making.

    And as we develop wave and tidal commercially in our waters then we will export that technology across the planet.

    Our objective in wave and tidal power is to have not just demonstration projects but hundreds of mega watts of electricity by 2020 -enough to power  half a million Scottish homes.

    The green re-industrialisation of the coastline of Scotland is central to our vision of the future.

    And the jobs impact will be felt from Machrihanish, to the Clyde, to Leith, to Methil to Dundee to Aberdeen and the North East ports to the Moray Firth, to Nigg and the Highlands, from Orkney waters to Arnish in the Western Isles.

    Onshore wind power has one serious drawback. And that is, only little of the fabrication is home based.

    Despite the fact that the first modern wind turbine was demonstrated in Marykirk Aberdeenshire  in 1887 the technology of the onshore industry was exported to Denmark and Germany more than a generation ago.

    However we can do something about our offshore renewable opportunity.

    Our objective is that Scotland will design, engineer, fabricate, install and maintain the great new machines which will dominate the energy provision of this coming century.

    THAT IS OUR VISION FOR SCOTLAND AND WE SHALL GET THERE.

    And in doing so we will create jobs and opportunity and hope for young people of Scotland.

    It is the inescapable responsibility of this Government and indeed of every adult Scot to help  tackle the scourge of youth unemployment.

    Employment among Scottish youngsters is almost five per cent higher than elsewhere in these islands. We have a near record of school leavers going on to positive destinations of a job, apprenticeship or full time education.

    However this is not enough. Youth unemployment is still far too high.

    So this is what we are doing and this is what we shall do.

    First apprenticeships. There will be 25,000 modern apprenticeships in Scotland – 60 per cent more than when we took office -not just this year but every year – and in Scotland remember every single youngster on a modern apprenticeship is in a job.

    Secondly every major contract or grant from Government will now have an apprenticeship or training plan attached to it. For example when Vion chose Broxburn as their centre of excellence for food production there were 50 modern apprenticeships among the new jobs.

    Thirdly every single youngster who is not in a job or full time education or an apprenticeship will be offered a training opportunity. That is every single 16-19 year old under Opportunities For All.

    Fourthly we shall ensure that university and college education remains free to Scottish students. We now have more world-class universities per head than any other nation on the face of this planet.

    AND THANKS TO THIS PARTY THAT OPPORTUNITY WILL REMAIN AVAILABLE TO YOUNG SCOTS ON THE BASIS OF THE ABILITY TO LEARN NOT THE ABILITY TO PAY.

    AND TODAY I AM ANNOUNCING A FURTHER MOVE. COMPANIES IN ENERGY SECTOR ARE REPORTING SKILL SHORTAGES. THEREFORE OVER THE NEXT FOUR YEARS WE ARE DELIVERING 2,000 MODERN APPRENTICESHIPS SPECIFICALLY FOR THE ENERGY INDUSTRIES.

    HOWEVER WE WILL ALSO NOW PROVIDE AN ADDITIONAL 1,000 FLEXIBLE TRAINING PLACES FOR ENERGY AND LOW CARBON.

    REAL OPPORTUNITIES FOR OUR YOUNGSTERS IN THE SECTORS WHICH WILL SHAPE THE INDUSTRIAL FUTURE OF OUR COUNTRY.

    We cannot wipe every tear from every cheek but we can try. And everything we do will reflect the common weal of Scotland.

    The best way to get people back into work is through capital investment. That is why John Swinney has diverted funds to sustain economic recovery.

    That is why we have created the Scottish Futures Trust to gain value for money. Major contracts sponsored by the Scottish Government are now delivered on time and on budget.

    And this gives me the opportunity to make a further announcement today.

    Two years ago we set out plans for a new school building programme in Scotland.

    Led by the Scottish Futures Trust, our investment was to deliver 55 new schools.

    Already 37 schools have been committed in the first two phases.

    Conference, the Scottish Futures Trust has levelled the playing field in public sector construction contracts. We have sunk the PFI and replaced it with value for money programmes.

    THAT ACTION HAS ALLOWED US TO DELIVER OVER 3O0 NEW OR REFURBISHED SCHOOLS IN THE LAST FOUR YEARS.

    AND THAT’S WHY TODAY I AM ABLE TO TELL YOU THAT THE NEXT PHASE OF OUR NEW SCHOOL BUILDING PROGRAMME WILL BE ABLE TO DELIVER 30 NEW SCHOOLS ACROSS OUR NATION.

    A DOZEN MORE THAN PREVIOUSLY PLANNED.

    PROVIDING A FURTHER 15,000 PUPILS WITH 21ST CENTURY LEARNING FACILITIES

    DELEGATES IN THE FACE OF WESTMINSTER CUTBACKS THE £2.5 BILLION NON PROFIT DISTRIBUTION PROGRAMME IS CRUCIAL TO ECONOMIC RECOVERY.

    NONE OF THAT WOULD HAVE BEEN POSSIBLE IF WE HAD ALLOWED THE PFI  RIP OFF TO CONTINUE.

    THAT IS WHAT GOOD GOVERNMENT IS ALL ABOUT.

    We face a winter in this energy rich country of ours where people will be frightened to turn on their heating.

    Fuel poverty amid energy plenty. What a miserable, disgraceful Wesminster legacy for our energy rich nation.

    Fuel poverty amid energy plenty. If there ever was an argument for taking control of our own resources then this must be it.

    The Prime Ministers fuel summit was little more than hot air. We don’t control the energy markets but we can and will do something to help.

    WE ALREADY HAVE THE BEST HEATING INITIATIVE IN THESE ISLANDS

    WE HAVE INVESTED ADDITIONAL FUNDS THIS YEAR TO MAKE WHAT IS GOOD, EVEN BETTER

    WE’VE EXPANDED OUR ENERGY ASSISTANCE PACKAGE TO INCLUDE THOUSANDS OF SCOTTISH CARERS.

    AND CONFERENCE, BY 2015 THE SCOTTISH GOVERNMENT WILL INCREASE OUR FUEL POVERTY AND ENERGY EFFICIENCY BUDGET BY ONE THIRD.

    BECAUSE OF THIS INVESTMENT I AM ABLE TO MAKE A FURTHER ANNOUNCEMENT.

    A FEW MOMENTS AGO YOU HEARD PREMIER RANN OF SOUTH AUSTRALIA  PRAISING OUR OFFER OF ENERGY EFFICIENCY MEASURES TO HALF A MILION SCOTTISH HOUSEHOLDS.

    I CAN NOW TELL YOU THAT BY APRIL OF NEXT YEAR THAT 500,000 WILL BECOME 700,000.

    ENSURING 200,000 MORE SCOTTISH FAMILIES GET THE HELP THEY NEED TO HEAT THEIR HOMES IN THIS ENERGY RICH COUNTRY.

    Delegates –

    On the way to Inverness I noticed an outdoor company called ‘naelimits’. No limits is a beautiful idea, and somehow it carries more punch in Scots.

    Nae limits to your ambition, your courage, your journey.

    Nae limits sums up the spirit of freedom which many of us take from our magnificent landscape, and which we wish for our society and politics.

    This same spirit was reflected in the words of  Charles Stewart Parnell:

    “No man has the right to fix the boundary of the march of a nation; no man has the right to say to his country, ‘Thus far shall thou go and no further’.”

    No politician, and certainly no London politician, will determine the future of the Scottish nation.

    Mr Cameron should hear this loud and clear.

    The people of Scotland – the sovereign people of Scotland – are now in the driving seat.

    Twenty years ago when Scotland faced a previous Tory Government a cross party group drew up a Claim of Right for Scotland. This is what it said.

    “We do hereby acknowledge the sovereign right of the Scottish people to determine the form of government best suited to their needs, and do hereby declare and pledge that in all our actions and deliberations their interests shall be paramount.”

    Twenty years ago we demonstrated for that right in front of an open topped bus in the Meadows in Edinburgh.

    But we had no Parliament then.

    But we have now, and next month I will ask Scotland’s Parliament to endorse anew Scotland’s Claim of Right.

    The point is a simple one.

    THE DAYS OF WESTMINSTER POLITICIANS TELLING SCOTLAND WHAT TO DO OR WHAT TO THINK ARE OVER. THE SCOTTISH PEOPLE WILL SET THE AGENDA FOR THE FUTURE.

    Robert Kennedy once said, ‘the future is not a gift, it is an achievement’.

    That is true for Scotland as for any nation. Our future will be what we make it.

    The Scotland Bill isn’t even enacted yet it lies in the past. Unloved, uninspiring, not even understood by its own proponents.

    The UK Government haven’t even gone through the motions of considering the views of the Scottish Government, the Scottish people, the last Scottish Parliament Committee, the current Scottish Parliament Committee -total negativity to even the most reasonable proposal to strengthen the Bill’s job creating  powers.

    THE RESPECT AGENDA LIES DEAD IN THEIR THROATS.

    This is Westminster’s agenda of disrespect – not of disrespect to the SNP but of fundamental disrespect for Scotland.

    The Tories and their Liberal frontmen have even taken to call themselves Scotland’s other Government. A Tory Scottish Government?

    If Murdo Fraser thought such a notion was conceivable then he would’t be trying to disband the Party!

    In contrast fiscal responsibility, financial freedom, real economic powers is a legitimate proposal. It could allow us to control our own resources, introduce competitive business tax, and fair personal taxation.

    All good, all necessary but not good enough.

    Delegates even with economic powers Trident nuclear missiles would still be on the River Clyde, we could still be forced to spill blood in illegal wars like Iraq, and Scotland would still be excluded from the Councils of Europe and the world.

    THESE THINGS ONLY INDEPENDENCE CAN BRING WHICH IS WHY THIS PARTY WILL CAMPAIGN FULL SQUARE FOR INDEPENDENCE IN THE COMING REFERENDUM

    We have the talent, resources and ingenuity . The only limitations are our imagination and our ambition. So give Scotland the tools, put the people of Scotland in charge and see our nation flourish as never before.

    Let us a build a nation that reflects the values of our people.

    With a social contract – and a social conscience – at the very heart of our success.

    The society, the country, that Scotland desires, that Scotland believes in – it is not a country or a future on offer from the Tory government down south.

    Even that one institution which really made Britain great – the National Health Service,  – is being dismantled in England.

    THE TORIES CALL IT A BIG SOCIETY

    I CALL IT NO SOCIETY AT ALL

    Remember the founding principles.

    We are committed to winning Independence for Scotland.

    And we are pledged to the furtherance of all Scottish interests.

    Both are in our DNA.

    It is who we are and what we are for.

    They are what makes us Scotland’s National Party.

    And it is more than a name – it is an attitude.

    Over these past three days, at this conference, I have seen that passion and belief in action.

    We are a party with a mission, because we know Scotland’s cause is great and we know Scotland’s need is great.

    Let us be strong.

    Let us have our own debate about our own  future on the timescale which was endorsed by the people in May.

    And let us decide it in a proper fashion.

    Our task is to work – to convince the people of this nation that we can do better.

    To work at building a society which is not simply better than today’s, but a beacon of justice and fairness to the world.

    All these things will come from hard work, from toil and from sweat.

    Look around you, look at where we stand.

    And tell me this was easy – it was not.

    This was eighty years of hard work.

    We stand where we do because of generations before us, because of party workers and campaigners who never saw this day.

    And we shall prevail – because we share a vision.

    A vision of a land without boundaries.

    Of a people unshackled from low ambition and poor chances.

    Of a society unlimited in its efforts to be fair and free.

    Of a Scotland unbound.

    Nae limits for Scotland.

  • Alex Salmond – 2011 Acceptance Speech to the Scottish Parliament

    alexsalmond

    Below is the text made by the Scottish First Minister, Alex Salmond, on 18th May 2011.

    When Donald Dewar addressed this parliament in 1999, he evoked Scotland’s diverse voices:

    The speak of the Mearns.

    The shout of the welder above the din of the Clyde shipyard.

    The battle cries of Bruce and Wallace.

    Now these voices of the past are joined in this chamber by the sound of 21st century Scotland.

    The lyrical Italian of Marco Biagi.

    The formal Urdu of Humza Yousaf.

    The sacred Arabic of Hanzala Malik.

    We are proud to have those languages spoken here alongside English, Gaelic, Scots and Doric.

    This land is their land, from the sparkling sands of the islands to the glittering granite of its cities.

    It belongs to all who choose to call it home.

    That includes new Scots who have escaped persecution or conflict in Africa or the Middle East.

    In means Scots whose forebears fled famine in Ireland and elsewhere.

    That is who belongs here but let us be clear also about what does not belong here.

    As the song tells us for Scotland to flourish then “Let us be rid of those bigots and fools. Who will not let Scotland, live and let live.”

    Our new Scotland is built on the old custom of hospitality.

    We offer a hand that is open to all, whether they hail from England, Ireland, Pakistan or Poland.

    Modern Scotland is also built on equality. We will not tolerate sectarianism as a parasite in our national game of football or anywhere else in this society.

    Scotland’s strength has always lain in its diversity. In the poem Scotland Small, Hugh MacDiarmid challenged those who would diminish us with stereotypes.

    Scotland small? he asked.

    Our multiform, our infinite Scotland, small?

    Only as a patch of hillside may be a cliche corner.

    To a fool who cries “Nothing but heather!

    The point is even the smallest patch of hillside contains enormous variation – of bluebells, blaeberries and mosses.

    “So to describe Scotland as nothing but heather is, said MacDiarmid.” Marvellously descriptive!

    “And totally incomplete!”

    To describe Scotland as small is similarly misleading.

    Scotland is not small.

    It is not small in imagination and it is not short in ambition.

    It is infinite in diversity and alive with possibility.

    Two weeks ago the voters of Scotland embraced that possibility.

    They like what their parliament has done within the devolved settlement negotiated by Donald Dewar.

    They like what the first, minority SNP government achieved.

    Now they want more.

    They want Scotland to have the economic levers to prosper in this century.

    They are excited by the opportunity to re-industrialise our country through marine renewable energy, offering skilled, satisfying work to our school leavers and graduates alike.

    But they also know we need the tools to do the job properly.

    This chamber understands that too.

    My message today is let us act as one and demand Scotland’s right. Let us build a better future for our young people by gaining the powers we need to speed recovery and create jobs.

    Let us wipe away past equivocation and ensure that the present Scotland Act is worthy of its name.

    There is actually a great deal on which we are agreed. The three economic changes I have already promoted to The Scotland Bill were chosen from our manifesto because they command support from other parties in this chamber.

    All sides of this parliament support the need for additional and immediate capital borrowing powers so we can invest in our infrastructure and grow our economy. I am very hopeful that this will be delivered.

    The Liberal Democrats, Greens and many in the Labour party agree that Crown Estate revenues should be repatriated to Scottish communities. We await Westminster’s reply.

    Our leading job creators back this Government’s call for control of corporation tax to be included in The Scotland Bill. The Secretary of State for Northern Ireland – a Conservative – supports the devolution of this tax – and the cross party committee of this last parliament agreed unanimously that if the principle was conceded in Northern Ireland then Scotland must have the same right.

    But these are not the only issues which carry support across this chamber. There are three more constitutional changes we might agree on.

    Why not give us control of our own excise duty. We have a mandate to implement a minimum price for alcohol. We intend to pursue that in this parliament come what may.

    However our Labour colleagues agree that it is correct to set a minimum price for alcohol, but they were concerned about where the revenues would go.

    Gaining control of excise would answer that question. It means we can tackle our country’s alcohol problem and invest any additional revenue in public services.

    So I ask Labour members to join with me in calling for control of alcohol taxes so that we together we can face down Scotland’s issue with booze.

    Another key aspect of our national life controlled by Westminster is broadcasting. All of Scotland is poorly served as a result.

    If we had some influence over this currently reserved area we could, for example, create a Scottish digital channel – something all the parties in this parliament supported as long ago as the 8 October 2008.

    We agree that such a platform would promote our artistic talent and hold up a mirror to the nation.

    How Scotland promotes itself to the world is important.

    How we talk to each other is also critical.

    These are exciting times for our country. We need more space for our cultural riches and for lively and intelligent discourse about the nation we are and the nation we aspire to be.

    Finally, many of us agree that, in this globalised era, Scotland needs more influence in the European Union and particularly in the Council of Ministers.

    At the moment that is in the gift of Westminster.

    Sometimes it is forthcoming, more often it is withheld.

    We in the Scottish National Party argue for full sovereignty – it will give us an equal, independent voice in the EU.

    However, short of that, the Scotland Bill could be changed to improve our position. When the first Scotland Act was debated in Westminster in 1998, there was a proposal, as I remember, from the Liberal Democrats, to include a mechanism to give Scotland more power to influence UK European policy. It was defeated then but why not revisit it now. Let Scotland have a guaranteed say in the forums where decisions are made that shape our industries and our laws.

    I have outlined six areas of potential common ground where there is agreement across the parliament to a greater or lesser extent: borrowing powers, corporation tax, the crown estate, excise duties, digital broadcasting and a stronger say in European policy.

    I think we should seize the moment and act together to bring these powers back home. Let this parliament move forward as one to make Scotland better.

    Norman MacCaig observed that when you swish your hand in a stream, the waters are muddied, but then they settle all the clearer.

    On May 5th the people of our country swished up the stream and now the way ahead is becoming clear.

    We see our nation emerge from the glaur of self-doubt and negativity.

    A change is coming, and the people are ready.

    They put ambition ahead of hesitation.

    The process is not about endings.

    It is about beginnings.

    Whatever changes take place in our constitution, we will remain close to our neighbours.

    We will continue to share a landmass, a language and a wealth of experience and history with the other peoples of these islands.

    My dearest wish is to see the countries of Scotland and England stand together as equals.

    There is a difference between partnership and subordination.

    The first encourages mutual respect. The second breeds resentment.

    So let me finish with the words of Andrew Fletcher of Saltoun, who addressed this parliament in 1706, before it was adjourned for three hundred years.

    He observed that: “All nations are dependent; the one upon the many.” This much we know.

    But he warned that if “the greater must always swallow the lesser,” we are all diminished.

    His fears were realised in 1707.

    But the age of empires is over. Now we determine our own future based on our own needs. We know our worth and should take pride in it.

    So let us heed the words of Saltoun and:

    “Go forward into the community of nations to lend our own, independent weight to the world.”

  • Peter Luff – 2011 Speech to the Royal Corps of Naval Constructors

    Below is the text of the speech made by the Minister for Defence Equipment, Support and Technology, Peter Luff, made at SS Great Britain in Bristol on Thursday 19th May 2011.

    Introduction

    Thank you Jonathan for that largely kind introduction, and for inviting me tonight to a totally memorable event.

    It is a genuine pleasure to be with you.

    Tonight is a celebration of the vital work of the Royal Corps of Naval Constructors.

    I’m acutely conscious that you are the experts and that my job is to provide some colour.

    Or, to paraphrase a former war-time Director of Naval Construction, Sir Stanley Vernon Goodall, in response to rather a dull draft from his assistant: you provide the facts, and I will impart the enthusiasm!

    And I am as enthusiastic about the quality of military and civil service advice.

    And the facts speak for themselves: credible and confident professional engineering leadership has been at the heart of major British naval projects since 1883.

    In large part, that has come from the Corps of civilian staff represented by the RCNC.

    In preparing for tonight, I had my attention drawn to a 1955 debate in the House of Commons on recruitment to the RCNC.

    Hansard records that the Civil Lord of the Admiralty, Mr. Simon Digby, accepted MPs’ concerns that more could be done to attract people to the Corps, but noted that only one person had resigned since 1951, “and that was to do the same job in Canada”!

    But although smaller in number today, the quality and dedication of RCNC members remains as high as ever.

    And so thank you for all that you do to support the Defence of this country, and the effectiveness and safety of those who fight on its behalf.

    Brunel / SS Great Britain

    Sadly, in the modern age, the truly noble work of the engineer is often confused with the vital craft of the mechanic.

    Now it’s in danger of becoming a cliché, but engineering must re-claim its position as an honoured profession in the eyes of the public.

    An architect may have designed Sydney Opera House, but it took an engineer to build it.

    And just look at the grand surroundings in which we find ourselves in here tonight. And my thanks to everyone involved in organising this event.

    Tonight, we celebrate the RCNC on the SS Great Britain – my thanks to everyone involved in giving us this rare treat. It was the first ocean liner to have an iron hull and a propeller, and it was designed of course by the great Isambard Kingdom Brunel.

    Brunel is my hero, and in my view the finest civil engineer of all time – and the personification of the Franco-British partnership! For those who don’t know, his father was French.

    Now he possessed that rare combination of creativity and innovation, technical brilliance and commercial flair.

    And so he changed the world.

    As Jeremy Clarkson put it when he nominated Brunel as the Greatest Briton: “Brunel put beauty into the beast of the industrial revolution, which made Britain great.”

    His boldness and determination to succeed often led him to actually ignore the risk to his own life.

    As another author put it, Brunel was “in love with the impossible.”

    It is Brunel whose name is forever linked with the Great Western Railway, connecting Bristol with London – a route on which so many in this room spend so much of their working lives.

    And, of course, it was Brunel who built Florence Nightingale’s hospitals and delivered them to the Crimea in record time – the outstanding UOR of the 19th century! And this ship as well served as a troop carrier in that war.

    It was Brunel, too, who invented an iceberg-warning device for his ships.

    And what ships they were.

    Without Brunel – literally and metaphorically – where would we be tonight?

    Equally, for all his many triumphs down the years, Brunel experienced failure too.

    His atmospheric railway was ultimately unsuccessful, and his infinitely superior broad gauge – the 100% solution – was defeated by the inferior narrow gauge – the 20% solution!

    But this evening our subject is ships.

    So I’d like to reflect on some lessons from naval construction history which continue to impact, both the Corps today and my role as a Defence Minister.

    Lessons From Naval Construction History

    Britain has a proud maritime history.

    The seas have been – and continue to be – central to our island nation’s influence, prosperity, and security.

    As Sir Walter Raleigh put it:

    “Whosoever commands the sea commands the trade; whosoever commands the trade of the world commands the riches of the world, and consequently the world itself.”

    Britain’s omnipotence has sadly long since passed.

    And yet as you rightly emphasise Jonathan, our wealth still relies on international trade with over 90% of that trade, by value and volume, being transported by sea.

    The Royal Navy has been at the centre of our national life for centuries. Today it has a unique role in promoting and protecting Britain and its interests – and yes, one of the old and original threat – piracy. The RN is central to our future national security and, to quote the SDSR, to delivering an adaptable posture with flexible forces.

    And this means that the proud maritime legacy of this country, and of which I am strong supporter, has a positive and resilient future under this Government.

    This also means that the Corps must continue to play its vital role.

    Because naval construction – and the seas our vessels sail on or under – test man’s skills as much as ever.

    Now, as some of you, I’m sure, know, the Corps itself was founded in the wake of the catastrophic loss of HMS Captain during its acceptance trials due to design faults.

    It was a time when the great struggle between the ‘wood floats, iron sinks’ traditionalists and the supporters of ironclad warships was at its height.

    It was a time when two hitherto fundamentals of naval warfare – sail power and broadside armament – were being challenged by steam and the turret ship.

    ‘Turn the gun, not the ship’ was the idea that drove a brilliant young, inventor, Captain Cowper Phipps Coles.

    And Coles generated a political, media, and public bandwagon in the face of Admiralty doubts about the Captain being top-heavy.

    In the event, the Captain sank along with 500 men, including Coles.

    The subsequent court-martial was a case of ‘I told you so’, aimed at presumptuous private designers who might in future seek to challenge the Navy’s monopoly in ship design.

    The project had gone ahead despite the advice of the Chief Constructor for the Admiralty, E J Reid, and it had been a failure in almost every respect – save one: Cole’s turrets would feature within 12 months on the newest ironclad – the mastless Devastation – was acknowledged by the Admiralty who paid royalties to Cole’s widow for use of his design.

    It was a time of public concern over safety; the efficiency of government’s acquisition processes; and a time of rapid organisational and technological change within the Royal Navy.

    Plus ça change.

    It’s one of the timeless paradoxes of engineering that success encourages engineers to enhance performance and reduce costs.

    Wanting to create more elegant, optimal designs, the engineer moves away from traditional standards sometimes – sometimes – unintentionally eroding safety margins.

    Not surprisingly, these innovations, exacerbated by overconfidence, can lead to failures.

    Failures in turn lead to increased attention to reliability and safety, pushing the pendulum in the other direction.

    Now, as you said Jonathan, today, our work takes place in the shadow of the tragic Nimrod crash in 2006, and the subsequent damning Haddon-Cave report.

    It’s entirely proper that safety is our overriding concern, but we must also be mindful of that pendulum.

    Our work also takes place in the context of transformation in Defence, including our approach to acquisition.

    Now the people at Abbey Wood have not received the praise and thanks they deserve, but they – including many of you here tonight – can among other things take great satisfaction from the numerous lives that have been saved by their work.

    Everything we do is based on the legitimacy given to us – or rather entrusted to us – by the British people.

    And they’re not listening when we tell them that we deliver the vast majority of our equipment and support projects to performance, time, and cost.

    They’re not listening when we say that over 80% are delivered to time, and nearly 90% to budget.

    They’re simply not buying our story when the commentators understandably focus their often grossly inaccurate reports on extremes and ‘the things that go wrong’.

    So, to win the confidence of the taxpayer, we must be frank about our shortcomings, forthright about our strengths, and fearless about the changes we need to make if we are to support current operations and build the Armed Forces of tomorrow.

    Historical Parallels With Acquisition Today

    That said, we should remember that many of the challenges we face are no different to those faced by our predecessors.

    Long Lead Items

    For example – and I think I’m indebted to Admiral Lister for this – there is nothing more established in naval construction than the principle of buying the long lead items in good time.

    I’m told the oak for HMS Victory was purchased 15 years before construction began.

    Off The Shelf

    Or the question of buying off the shelf or modifying off the shelf.

    It reminds me of the LST (Landing Ship Tank) Maracaibo Class during the Second World War.

    Churchill demanded ships that could land tanks – themselves not yet built – on beaches anywhere in the world.

    This was physically difficult because it would require an ocean-going ship of limited draught.

    And it was psychologically difficult because it was likely to demand writing off the ships after their first assault.

    The solution was the conversion of Maracaibo oilers, because of their shallow draught.

    In turn, this required ingenious new bow disembarking gear, as suggested by the Director of Naval Construction’s department.

    When launched in Sunderland in July 1941, it became the first ever landing ship designed for tanks – the ingenuity of an urgent operational requirement before we ever invented the UOR.

    The chief sacrifice was speed – only 10 knots against the 17 knots which specially designed later ships could sustain.

    But the value of an adapted off the shelf purchase was clear.

    Modular Construction

    And their modular construction, which Bob and I were discussing over dinner.

    Still in World War II, the first motor launches – “A” Type MLs – were built after the Fairmile organisation approached the Admiralty. They proposed pre-fabrication by saw-mills and furniture makers in London, and then sending the units to selected yacht builders for assembly.

    The scheme was so successful that the subsequent “B” Types were constructed in the same way – and we have learnt the lessons today with the carriers.

    80% Solutions – Nothing New

    And those B types show that the utility of an 80% solution over a perfect one is nothing new as a classic capability trade was made.

    The re-designed boat needed higher speed and was first designed with three engines.

    But a shortage of supply from America prompted a reduction to two engines and lower speeds.

    However it also meant a 50% increase in the number of boats built.

    Innovation

    And innovation has been a permanent feature of naval construction.

    Writing in 1966, in the introduction to the splendid “British Battleships 1860 to 1950” by Oscar Parkes, Earl Mountbatten of Burma said,

    “We are now in an interim age in which the aircraft carrier has already replaced the capital ship and the task force the line of battle. With the advent of the atomic age the guided missile launcher will replace the gun turret and the nuclear reactor the boiler furnace. Ships of the future will thus be different in shape as well as function; and the revolution thus represented will be just as fundamental as the change from sail driven wooden walls to steam driven iron-clads.”

    The Value Of Sailors

    Now, Mountbatten’s prophecy has not yet been entirely fulfilled, I’m sure he would have agreed that above all, there’s one lesson from history that we forget at our peril – the value of sailors.

    Parkes himself captures it well:

    “But when the wars were over and we came to size up the eternal value of things, it was not the ships but the men who had won.”

    Conclusion

    How true.

    But it’s not just those who do the fighting who should be counted among the men who had won.

    Without the high levels of professional, technical, and managerial competence of Corps members down the ages, the very survival of this country – and its prosperity – would almost certainly been put at too great a risk.

    It continues to this day as we build the Royal Navy of the 21st century.

    Yet I know that work of the Corps has all too often gone unheralded.

    So here, in this great monument to British maritime engineering and architecture, I’m proud to say thank you for all you do on behalf of the nation, and for the men and women of our Armed Forces.

    The toast is: “the Royal Corps of Naval Constructors”!

  • Richard Lochhead – 2011 Speech to SNP Party Conference

    Below is the text of the speech made by Richard Lochhead to the 2011 SNP Party conference in October 2011.

    Delegates,

    It is great to be back in my favourite Conference location.

    I only say that of course because it’s the closest to beautiful Moray, an area that I am hugely honoured to represent in Parliament.

    And oh boy! Parliament looks different today!

    Conference, when I have trouble sleeping, I used to count sheep

    I can assure you, we have a lot.

    But I have a new game since May – I count SNP constituencies!

    Though sometimes this has the wrong effect, and I have to ask my wife if I’m already dreaming.

    Our stunning success is of course perfectly real.

    And I see faces in this hall who have been fighting our cause for much longer than I.

    On your hard work, and that of others before you, we can now build something great.

    We are here, not because of individuals, but because we are a team and we have a positive vision for our nation’s future.

    Delegates, I was immensely proud of our election campaign.

    The other parties talked about what Scotland’s can’t do, about what our people can’t achieve.

    In contrast, we talked of a future rich in possibilities.

    And now Labour’s post-election debate is all about how to beat the SNP and return to office.

    They think the solution is to modernise their internal structures and regulations.

    CONFERENCE, PERHAPS THEY SHOULD START BY MODERNISING THEIR ATTITUDE TO SCOTLAND.

    Our debates at this Conference are, and always will be, not about our own future but about our nation’s future.

    CONFERENCE, THIS PARTY’S OBJECTIVE IS TO SERVE SCOTLAND, NOT TO BE SELF-SERVING.

    That’s why we won such a resounding mandate in May.

    Whether it was the streets of Glasgow or the crofting townships of the Western Isles, we fought for every acre, and earned every vote.

    And rural Scotland is now a sea of yellow.

    And we thank our rural communities for placing their trust in the SNP – and we will not let them down.

    In Government, we are continuing to build a better society and working for all of Scotland.

    Because that’s our vision.

    I cannot even begin to describe my pride and honour for being a member of the Referendum Cabinet.

    Not because of one day in our lives, sometime in the near future.

    But because of all the days that will follow, and the future we will bequeath our children

    Our nation is blessed with an abundance of natural resources and a talented people.

    And that combination can deliver a bright future for future generations.

    But to secure a better future, we need to act today.

    Yet, today, I can see a Parliament and Government in Scotland that takes decisions that are good for Scotland and has the support of the people.

    But I see a Parliament and a Government in London that is holding us back and has no popular mandate.

    And Conference, that has become clearer than ever before to communities here in the north of Scotland who want to protect our seas.

    Because the Tory Government is dismantling our maritime rescue services.

    And there are doing this with the backing of their Scottish henchmen – known in these parts as the Liberal Democrats!

    So now our emergency tugs are being removed from Scottish waters.

    It does not stop there – the same UK Government are also downgrading our coastguard.

    We are a maritime nation being governed by metropolitan penny-pinchers.

    The UK takes many billions from our oil resources but will not spare the few millions to make our seas safe.

    Conference, a Scottish Government would never undermine the services that protect life at sea and precious marine environment.

    Our emergency tugs should stay – our coastguard stations should be saved – our waters should remain safe!

    Responsibility for maritime safety should lie with the Scottish Parliament.

    Have the Lib Dems already forgotten about the heavy price they paid at the elections for betraying Scotland’s trust.

    And Conference, their betrayal on the Crown Estate is unforgivable.

    It has been an article of faith that the Liberal party in Scotland wished to put control of the Crown Estate in the hands of the people.

    That body belongs to a by-gone age and should now be made accountable to Scotland and our communities.

    So Michael Moore, stop doing the Tory Party’s dirty working north of the border –

    SUPPORT OUR CALL FOR THE SCOTLAND BILL TO GIVE CONTROL OVER THE CROWN ESTATE TO OUR PARLIAMENT.

    Conference, we face serious issues, which require serious politicians who can help us prepare for the big challenges of the 21 st century.

    You know yesterday I joined local MSP Dave Thomson is visiting the Scottish Ploughing Championships taking place in the Black Isle.

    Watching so many of our farmers using the skills passed down by their forefathers, which they in turn will teach their sons, reminded me of the vital role played by our food producers.

    Be they the men and women who plough, sow and harvest our land,

    Or who grow, or catch, the seafood for our plates.

    The growing world population brings billions more mouths to feed, at a time when climate change means there is less productive land available.

    But in Scotland, we are blessed with an abundance of natural resources that allows us to produce some of the world’s best food.

    So our challenge is to safeguard our natural resources but make the most of our advantages.

    And we need to support the industries that can help us to do that.

    I’ve just returned from EU talks in Luxembourg where negotiations got underway on Europe’s new farming policy.

    UK Ministers tell us we need them to deliver a good deal for Scotland.

    Yet, successive Tory and Labour UK Governments left Scotland stuck at the bottom of Europe’s league for rural development funding.

    And with the fourth lowest level of farming payments in the whole of the EU!

    Conference, that’s the real cost of letting London speak for Scotland.

    But now the EU is proposing to help countries that have received poor financial deals in the past close the gap in the future.

    Delegates, do you know that if Scotland were an independent member state that could mean over 1 billion pounds extra for our farmers over the course of the next few years?

    Now that’s what I call a substantial independence dividend for Scotland!

    THAT’S WHAT I CALL A GOOD REASON FOR SCOTLAND HAVING OUR OWN PLACE AT THE TOP TABLE IN EUROPE!

    And as the referendum approaches, our opponents tell us that we are better off being part of a large member state.

    WELL, WE SAY, WE’LL BE MUCH BETTER OFF BEING A MEMBER STATE IN OUR OWN RIGHT, PROMOTING SCOTLAND’S INTERESTS IN EUROPE ON THE GLOBAL STAGE,

    RATHER THAN BEING PART OF A LARGER MEMBER STATE THAT ACTS AGAINST SCOTLAND’S INTERESTS.

    When Scotland is a member state, we can negotiate in our own right, influence the agenda, pursue our priorities, and work with European colleagues to the big issues of the day.

    You know this is now my fifth year of attending EU meetings to represent Scotland.

    And I can tell you there is much warmth and affection for Scotland.

    Delegates, Europe will welcome with open arms an independent Scotland to the top table.

    BUT MICHAEL MOORE IS IN THE NEWS TODAY CLAIMING THAT INDEPENDENCE WOULD DIMINISH OUR PRESENCE ON THE GLOBAL STAGE.

    WHAT A JOKE!

    IN FOUR YEARS, OUR FIRST MINISTER ALEX SALMOND HAS DONE MORE TO ENHANCE SCOTLAND’S INTERNATIONAL PROFILE THAT THE COMBINED EFFORTS OF EVERY UK MINISTER IN THE LAST FOUR DECADES!

    And we need that international voice to represent our fishermen as well as our farmers.

    Our fishermen, who have been beaten up, but not unbowed, by the despised Common Fisheries Policy.

    A new fishing policy is at long last being renegotiated in the coming months.

    But despite having the bulk of the UK fishing fleet, we are not allowed to speak for these men and their families in Europe

    Let me tell you that last week I requested to speak at the Fisheries Council where the topics under discussion had far more relevance to Scotland than any other part of the UK.

    And guess what, once again, the UK Government said no!

    It’s a silly policy defended by a silly coalition that puts pettiness before principle.

    So, we say to David Cameron, enough of your rhetoric and empty promises, drop the paranoia, and give Scotland our rightful place in these vital negotiations that lie ahead. But we will continue to devote all our energies to persuade Europe to rip up the worst aspects of its fishing policy.

    A policy that:

    – has wrecked livelihoods and decimated communities

    – forces fishermen to discard valuable fish stocks in the name of conservation.

    – delivers micro-management in Brussels when we need local management in Scotland.

    CONFERENCE, WE WILL STRAIN EVERY SINEW TO RETURN FISHING POLICY TO SCOTLAND – WHERE IT BELONGS.

    Conference, our food producers need our support and we need them to put food on our tables.

    Scotland’s larder is in great demand at home and abroad and is outperforming the rest of the UK.

    Sales of our produce across these islands are up by a third since we took office.

    Food exports have exceeded £1bn for the first time, up by 50% since 2007.

    Scotch Whisky exports are rocketing and now sit at £3.5bn.

    That’s success supported by SNP policies.

    And to keep up the momentum, we not only protected our food and drink budget against a background of Westminster cuts, we more than doubled it to over £14m.

    Because we need to encourage success.

    There is not one model, but a thousand.

    Like stars in the sky, our land should be dotted with points of light.

    Places where individuals and communities have forged their own success.

    And we can build success on the natural resources our planet has gifted to Scotland.

    Our land, water, wind and waves.

    We need to safeguard them.

    That’s one reason why we need to tackle climate change.

    And can I say that I am delighted to work alongside Stewart Stevenson , our Minister for the Environment and Climate Change.

    We are already two thirds of the way to our 2020 target of reducing emissions by 42% and Stewart is the right man to drive forward our ambitious agenda.

    And one way we are doing this is through our successful Climate Challenge Fund which we are funding to the tune of over £31m in the next there years.

    345 communities have now received support.

    So empowering our communities to take control of their own destinies is what we want to achieve in Government.

    Conference, we have to consider how we will harness our resources for our children and grandchildren

    I am proud of the progress Holyrood has made – from the Land Reform Bill of 2001 to the boom in renewables in 2011

    But we are far from finished.

    We need to seize this day, this moment in history, and ensure we are masters of our fate.

    Not passer-bys as one of the richest environments in the world is exploited by others.

    So we are going to take steps to ensure that the people of Scotland enjoy the benefits of the wealth of natural resources on their own doorstep.

    At the heart of our rural development policy will be measures to help communities own more of these resources and benefit directly from their use.

    We want to build resilient and self-sufficient communities.

    And ensure our communities lead our efforts to tackle some of the big challenges that lie ahead:

    Energy, water, and food security, biodiversity and climate change.

    Land and water are more than just resources – if you have access to neither, you are denied your fundamental rights

    SO I LET ME ASSURE YOU TODAY THAT WE WILL OPEN THE NEXT CHAPTER IN LAND REFORM – THE UNFINISHED BUSINESS OF SCOTLAND.

    We will do what it takes to release land for communities for economic development.

    And that’s we took the decision to establish a New Land Fund to help communities take ownership of their own land.

    And we will do much more.

    Our people deserve to gain more from every turn of the turbine blade and the hum of the power cable and we will bring forward proposals to achieve that as well.

    CONFERENCE, NATURE HAS BEEN GOOD TO SCOTLAND BUT WE MUST SECURE THE BENEFITS FOR THE PEOPLE OF SCOTLAND.

    Delegates, we are building a new Scotland, fit for the future.

    Where Scotland is thriving.

    With a growing rural economy, people of all ages living and working in the countryside, creating low carbon businesses.

    There’ll be a boom in remote-working, taking advantage of new investment in broadband.

    Communities will be more self-sufficient, getting clear benefits from their local assets, whether land, people, skills or energy.

    A Scotland where we grow and eat more of our own food, where we breathe clean air, enjoy our spectacular environment, are surrounded by pristine, rich seas contributing to our good health and happiness.

    The message from this Conference is that independence makes economic sense, democratic sense and common sense.

    We have worked hard to get to where we are today but now we have to redouble our efforts in the run up to the referendum.

    Delegates, all of you, our Party and all our supporters today and those of the future:

    We are all history makers.

    Conference, let’s work to make our dreams reality.