Tag: 2012

  • Iain Duncan Smith – 2012 Speech on Ending Gang Violence

    Ian  Duncan Smith
    Iain Duncan Smith

    Below is the text of a speech made by the Work and Pensions Secretary, Iain Duncan Smith, at the Institute of Education in London on 27th November 2012.

    Introduction

    It is a pleasure to be here today – at a conference which I am pleased has ranged far wider than just the Government perspective on ending gang and youth violence.

    From grassroots charities… to community leaders… and innovative police initiatives…

    …  it has long been clear to me that making a real difference to gang-impacted areas requires an expertise that lies beyond Whitehall.

    At the Centre for Social Justice, an organisation I set up in 2004, our report ‘Dying to Belong’ showed how far successive government interventions had failed – allowing gangs to become entrenched in some of our most disadvantaged neighbourhoods.

    The riots

    Even before the recession, with poor social mobility and income inequality the worst for a generation…

    … benefit dependency, dysfunctional families, debt, crime, and drugs became the norm for whole communities.

    Whilst there was some awareness of these high and rising levels of social breakdown, the majority of people remained unaware of the true nature of life on our poorest estates.

    Occasionally a terrible incident would make it onto the front pages…

    … but because they were small in number, people could turn away from the reality.

    Even politicians considered gangs a second order issue.

    Yet by failing to deal with it, we were storing up trouble further down the line.

    In August 2011, the inner city came to call – and the violence we saw on our streets provided a moment of clarity for all of us.

    The riots were a wake-up call, revealing all too vividly the deeper problems that we as a society had chosen to ignore.

    A cause and a symptom

    In the aftermath, the Prime Minister rightly called for a report into Britain’s street gangs.

    The riots showed that in many inner city areas, gangs dominate – in London, at least one in five of those convicted was known to be part of a gang.

    Even where they are small in number, gangs can have a disproportionately negative impact on their local area – bringing with them crime, drug abuse and pulling others around them into their destructive cycle.

    But gangs are not just a cause of social breakdown – they are also an important symptom.

    The majority of rioters were under 24.

    Most of these young people had poor academic records.

    Nine out of ten were known to the police and a third had been in prison.

    70% of those arrested came from the 30% most deprived areas.

    So whilst we must be tough on the instigators of violence, we cannot simply arrest our way out of the problem.

    Making a real difference to Britain’s gang culture requires us to tackle the problem at its source…

    … addressing the educational and social failures, which all too often mean children from broken homes and the back of the classroom falling into the clutches of gangs.

    A new approach

    This principle underpinned the Government’s Ending Gang and Youth Violence Report, published in November last year – which established a new cross-Government approach.

    Focussed on the 29 local areas facing the most challenging situations…

    … the report made clear that alongside intensive police action and enforcement to end violence and bring perpetrators to justice…

    … we must match this with an offer of support to exit gang life, and an equally intensive prevention strategy.

    The key here is early intervention: as well as offering a way out, it is vital to do all we can to stop people from joining gangs in the first place.

    Putting the structures in place

    A year after embarking on this new strategy, it is right that we consider our progress.

    That is why today, the Government is publishing a paper outlining what has been achieved in the last 12 months.

    To start, what this shows is that although we’re not completely there yet…

    …. we are making progress in putting the right structures in place to end gang and youth violence.

    A multi-agency approach

    Importantly, instead of a disconnected, siloed approach…

    … with different Departments and agencies all focussing on their own narrow brief, but no one seeing the whole picture…

    … we are now pushing ahead with a co-ordinated, multi-agency approach.

    This is led by a frontline team delivering peer support to each gang-impacted area – drawing together the expertise of around 70 independent advisers, from health and education, to employment and welfare, safeguarding and community engagement.

    Using a standard definition, the Association of Chief Police Officers has now mapped gangs across the country.

    And with my Department driving improvements in data and knowledge sharing, different organisations are now working together to better identify and address gang-related issues.

    There is still more to do to strengthen local partnerships – and the recently elected police and crime commissioners will need to play a central role…

    … joining up with community leaders and voluntary organisations to develop effective local solutions.

    To do this, they will need a robust evidence base – and over the next year, we will be doing more to develop and share best practice around what works.

    Forging a positive future

    What we already know is that the greatest gains stand to be made when policies are focussed on preventing gang and youth violence, rather than waiting to pick up the pieces.

    Take the fact that boys assessed by medical practitioners at the age of 3 as being ‘at risk’ had two and a half times as many criminal convictions by age 21, as those deemed not to be at risk.

    So whether it be investing £30 million in relationship support, ensuring children have stable families and positive role models in their early years…

    … funding over 360,000 apprentices last year alone and raising the participation age, to keep pupils engaged in structured education and off the streets…

    … across Government we are working hard to close off the pathways that lead young people to gang life in the first place.

    To take just one example, consider the impact of our £30 million Innovation Fund – which has now backed 10 social impact bonds…

    … supporting around 17,000 of our most vulnerable young people over a 3 year period.

    With a remit that extends to those aged 14 and 15, the Fund enables providers to intervene even earlier in a young person’s life…

    … and in the second tranche of projects launched last month, two are specifically focused on supporting those at risk of involvement in gangs…

    … including both a prevention programme focused on reducing knife crime, and workshops which expose the reality of prison and the impact it has on young people’s prospects.

    These are cutting edge solutions – but by giving providers the opportunity to develop a proof of concept, proven programmes can be rolled out locally or nationally.

    Overall, current projects are expected to improve the educational and employment outcomes for up to 28,000 young people – helping them forge a positive future, away from the negative influences of gang membership.

    Full and sustainable rehabilitation

    This last point is crucial.

    All our interventions must translate into meaningful outcomes – transforming the lives of people most in need and entrenched in disadvantage.

    As I have said, early intervention is one side of the coin, improving the life chances of would-be gang members.

    The other is rehabilitation – prioritising full and sustainable recovery and providing a second chance for those whose lives do go off track.

    The rioters who were convicted received an average sentence of just under 17 months – almost exactly the length of time that has now passed since the riots themselves.

    As individuals are released from prison, the One Year On report outlines the crucial steps we have taken to rehabilitate ex-offenders into the community – rather than letting them fall back into a life of gangs and crime.

    Evidence shows that being in employment is vital, reducing the risk of re-offending by between a third and a half.

    That is why in collaboration with the Ministry of Justice, my Department is setting offenders on a journey back to work before they leave prison.

    Claims for Jobseeker’s Allowance, which has a requirement to actively seek work at its heart, can now start to be processed prior to release…

    … and we have introduced a new provision in the Work Programme so that prison leavers can receive tailored support to get them work-ready, find a job and remain there for a sustained period – from the first day they are out.

    What’s more, through piloting a new approach to joint commissioning in 2 areas across England and Wales, we are paying providers for the results they achieve both in terms of employment outcomes and reducing re-offending.

    In all this, because we are paying by results, we will only pay for what works – ensuing that every pound spent is a pound that leads to life change.

    Get someone free of violence… out of gang life… and into work…

    …and you help them find a foothold in society again – and stay there.

    Long-term commitment

    This is just a snapshot of some of the work now underway to tackle gangs and youth violence.

    One year on, I believe we are on the right path.

    Now we must consolidate that progress, working collaboratively across and beyond Government to achieve more.

    For whilst this summer saw a welcome contrast to that of 2011…

    … the scenes of Jubilee street parties and Olympic celebrations should not eclipse the continuing severity and complexity of the problem we still face.

    A lasting legacy will not be achieved through a knee-jerk response to the riots.

    Rather, if we are to transform the lives of our most disadvantaged young people, it will require a long-term commitment.

    Conclusion

    As well as progress to date, the One Year On report outlines our next steps –signalling that further action is needed to drive support on the ground and momentum across Government.

    It is my mission to keep gang and youth violence at the top of the Coalition’s agenda, over the next year and beyond.

    Today we reiterate our commitment to end gang and youth violence.

    We owe it to young people in communities across the country not to let our gaze drop…

    … or let them fall back into forgotten shadows…

    … but to deliver on that promise and break the destructive cycle of gang life that can ruin so many lives.

  • Jeremy Hunt – 2012 Speech to the King’s Fund

    jeremyhunt

    Below is the text of the speech made by the Secretary of State for Health, Jeremy Hunt, to the King’s Fund on 28th November 2012.

    Our health and social care system faces many challenges and we rightly have lively political debates about all aspects of health policy.

    But sometimes problems are so deep-seated that when they surface no one really believes they can be solved. Or even worse, we stop noticing these problems because they have become so much part of the fabric.

    And then you have to defeat the defeatism as well as dealing with the issue itself.

    1. The normalisation of cruelty

    Today I want to talk about one such problem, perhaps the biggest problem of all facing the NHS.

    The crisis in standards of care that exist in parts of the health and social care system.

    Just look at what has come to light in the last few years:

    • Patients left to lie in their own excrement in Stafford Hospital, with members of the public taking soiled sheets home to wash because they didn’t believe the hospital would do it.

    • The man with dementia who was supposed to be monitored every 15 minutes who managed to leave a Pontypool hospital and drown;

    • The residents kicked, punched, humiliated, dragged by their hair, forced through cold showers at Winterbourne View.

    • The elderly woman with dementia repeatedly punched and slapped at Ash Court care home.

    • The cancer patient at St George’s, Tooting, who lost a third of his body fluid, desperately ringing the police for help, because staff didn’t listen or check his medical records.

    Isolated incidents? Well, sadly not. But as well as the depressing regularity of these stories, the most worrying thing is the fact that in certain institutions this kind of care seems to have  become “normal.”

    In places that should be devoted to patients, where compassion should be uppermost, we find its very opposite: a coldness, resentment, indifference, even contempt.

    Go deeper, and look at the worst cases – like Mid-Staffs and Winterbourne View – then there is something even darker. A kind of normalisation of cruelty, where the unacceptable is legitimised and the callous becomes mundane.

    There’s a simple test every layer of the health and social care system should be applying. And that is to ask: is this the care I would wish for myself, or for a loved-one?

    Care as you would wish to be cared for. In Winterbourne, in mid-Staffs, in Pontypool, Tooting, Ash Court, this principle was utterly and horribly abandoned.

    2. Betrayal of the majority

    It’s really important to stress that this is not the picture in most of the NHS or social care system. But the outstanding care that you see in so many institutions – even those under severe financial pressure  – shows why we must face these cases with anger, and not with resignation.

    Because they betray the outstanding men and woman who have given their lives to the NHS and caring professions – and who make this job for me the biggest privilege of my life.

    People like the nurse I met at St Thomas’ who was looking after a terminally-ill patient who had lost touch with his family 20 years earlier. This nurse looked the family up on Google and arranged to fly the patient back to Ireland so he could spend his last two weeks reunited with them.

    The Care Home Manager at Rathmore House in Swiss Cottage, caring for people with advanced dementia.  The manager who lives every day just to try to get a smile out of patients with advanced dementia even though, she says, they won’t remember the next day.

    The GP who works 15 hour days trying to work out care plans to stop her frail elderly patients being unnecessarily admitted to A & E.

    So many people represent NHS values at their finest. In every fibre of their body, they care as they’d wish to be cared for. And they are the ones most let down when we fail to tackle poor care head on.

    3. Why good care matters

    Nor should we make a false dichotomy between good treatment and good care. The King’s Fund, generously hosting us today,  has always championed a rigorous evidence-based approach to healthcare issues. They know good care directly supports good outcomes.

    Veena Raleigh’s work for the Kings Fund this month showed the link between good care and good outcomes across GP practices, what she described as a “strong association” between patient satisfaction and clinical performance on the Quality and Outcomes Framework.

    Consistent with this, a Lancet study in 2001 concluded that doctors who adopt a warm, friendly, and reassuring manner are more effective than those who don’t.

    And the Commission on Improving Dignity in Care has shown that when elderly people are not treated with compassion and respect this can affect their recovery, even if the clinical treatment itself is excellent.

    The argument is clear: good care means healthier patients and stronger balance sheets – yet too often the message isn’t hitting home.

    4. Stronger accountability from managers

    So what are the solutions?

    Let’s start at the top. We urgently need to strengthen corporate and managerial accountability for the care provided.

    Yet too often managers have seen their priority as financial or clinical outputs. Incentives in the system have driven people to focus on quantitative input measures rather than the basic human right to be looked after with dignity and respect.

    Most managers get this – indeed their passion for the highest standards of care is why they have chosen to become managers in the NHS or care sector. But too many do not. Buried in spreadsheets, they become blind to the realities of what’s happening day-on-day inside their organisations.

    It’s this whole culture of ticking the box, but missing the point which is what we have to put right.

    And we have to be much clearer about the consequences that will follow if leaders fail to lead, and fail to drive high quality care throughout the organisation.

    Just as a manager wouldn’t expect to keep their job if they lost control of finances, why should they if they lose control of care?

    The same is true for owners and Boards of companies. Accountability must stretch to the top. And when we publish our response to Winterbourne View we will set out in detail how we intend to achieve this.

    5. Greater transparency

    Secondly, we need to know much more quickly where the problems are.

    Next year we will roll out the “friends and family” test across the NHS. For the first time hospital users will be asked if they would recommend the care they received to a friend or close member of their family. NHS staff will also continue to be asked anonymously whether they would recommend their organisation to their own families.

    This is the closest measure we can get to “care as you would wish to be cared for”. And we will publish the results.

    So that’s a very important first step. But we need to do much more.

    As an MP I know how well each school in my constituency is doing thanks to independent and thorough Ofsted inspections. But I do not know the same about hospitals and care homes.

    Given the scale of the problems we’re uncovering, it’s now clear we need to have a proper independent ratings system.  It is not acceptable to deprive the public of the vital information they need, or remove the pressure for constant, relentless improvement in standards.

    I am not advocating a return to the old ‘star ratings’ but the principle that there should be an easy to understand, independent and expert assessment of how well somewhere is doing relative to its peers must be right.

    So this week I have asked for an independent study to be done as to how this might be achieved in a way that does not increase  bureaucracy.

    I want to see a system that will provide – like Ofsted does for schools – clear, simple results that patients and the public can understand;

    That will be – like Ofsted – an engine for improvement, driving organisations to excel rather than just cover the basics;

    A system that gives greater certainty that poor care gets spotted and addressed before standards collapse.

    When I receive the results of that study, I will consider it carefully alongside the Mid Staffs report from Robert Francis. I will then announce to Parliament how we intend to resolve this issue.

    6. Better training

    The final and equally important side to all of this is staff development. The King’s Fund and many others have shown that staff who feel engaged and valued in an open and supportive working environment deliver better care and support for patients.

    And yet in these highly charged, busy, stressful environments, too many are left ‘not waving but drowning’, cut adrift from the help they need to do their jobs well.

    And again the consequences can be profound. One well-respected study from 2006 found that hospitals with better supported staff provided better care and had lower mortality rates.

    An incredibly powerful finding, which shows that a lack of staff support, ultimately impacts on patients’ survival chances.

    Staff in healthy organisational cultures, given the space to process the difficult emotions that caring throws up, will provide better, safer care.

    So what is in train to support them?

    New standards for senior managers issued by the Council for Healthcare Regulatory Excellence – echoing the need for respect, compassion and care for patients at the heart of leadership and governance.

    A leadership qualities framework for adult social care published by my department which will do a similar job for care organisations

    Next week, we have the launch of the new Vision for Nurses, midwives and care staff following the £40m in leadership development programmes for nurses, midwives and registered care home managers announced by the Prime Minister in October.

    Next month – the establishment of the Professional Standards Authority to make sure the professional regulators do their jobs and protect the public effectively; and the beginning of a new era of medical revalidation, making our systems the best in the world for supporting doctors and ensuring standards;

    And then early next year – the first ever national set of standards and a code of conduct of conduct for health and social care support workers are published.

    All of this is underpinned by:

    an NHS Mandate explicitly saying quality of care should get the same attention as quality of treatment, and emphasising the pledges to staff in the NHS Constitution

    And a new organisation – Health Education England – entirely focused on the education, training and development of the health workforce.

    7. Addressing the challenges

    So a lot is happening. Of course there will be those looking at this and saying “Can we really do it?”; “Is it realistic to expect organisations to invest more in people and in the quality of care at a time when money is so tight?”

    There are indeed financial pressures in a period of rising demand and flat budgets.  But as the CQC said last week, most Trusts and care homes deliver excellent care despite a tough financial environment. So there is absolutely no excuse for those that do not.

    But it is also wrong to equate better care with more money. More accurate would be to say what today’s Kings Fund report states plainly: it is bad care that costs more – including the £1.4 billion spent on unnecessary emergency admissions.

    What about staffing levels and in particular the reduction in nursing numbers?

    As people stay in hospital for shorter periods, and indeed 80% of hospital appointments now do not involve an overnight stay, patterns of care change.

    But if quality of care is really to be as important as quality of treatment we should be clear that changes to workforce numbers must not compromise the care provided.

    8. Conclusion: widening the circle of compassion

    In surveying the broad sweep of the universe, Einstein once spoke of people shedding their individual perspectives and ‘widening the circle of compassion’ if humanity was to progress.

    In the health and social care universe, which can be every bit as unpredictable and complex as the world around it, the same message rings true.

    In its sixty-fifth year, pitted against its biggest ever challenges, we need an NHS that is always searching, always improving, always striving to do more for patients.

    We take for granted improvements in medicine, in surgery, indeed in life expectancy. But none of this is real progress unless we are also treating our citizens with the dignity and respect they deserve.

    Widening the circle of compassion. Denormalising the unacceptable in those rarer cases. And living the principle of care as you would wish to be cared for everywhere.

    The founding ideals of the NHS expect no less.

  • Jeremy Hunt – 2012 Speech to NCAS

    jeremyhunt

    Below is the text of a speech made by the Secretary of State for Health, Jeremy Hunt, to NCAS on 25th October 2012.

    Thank you Sarah [Pickup, President of ADASS].

    The importance of local authorities

    I think it’s appropriate that the very first speech I give as Health Secretary – the first beyond the confines of the Conservative Party conference – is not to an audience of doctors or nurses, but to local authorities.

    The word I have heard more often than perhaps any other in my first month is “integration.” Our National Health Service is an extraordinary organisation of which we are all deeply proud.  But by itself, it’s not enough.

    And given the challenges of an ageing population, our single most important partner is without question local authorities. The success or failure of health and care very simply rests on the success or failure of my relationship with you – and in particular the progress we make together towards building a sustainable system.

    Dilnot

    So before I go any further, let me talk about funding.

    How we pay for social care – both as a government and as individuals – is one of the big questions of our generation.

    The current system is entirely inadequate.

    It’s not sufficient, it’s not sustainable and it can be deeply painful for many, many people.

    Forcing them to sell the home they have lived in, had children in, made so many memories in.  It’s one of the worst things about being old in this country.

    So I am so proud that next year’s Care and Support Bill will introduce deferred payments meaning that no one is forced to sell their home in their lifetime to pay for care.

    A historic change.  But we need to go further in three areas in particular.

    Firstly the Dilnot cap, which we strongly support and are committed to introducing as soon as we are financially able. We need to build a society where it is as normal to make provision for your social care as it is for your pension – and until we do so we will never have a truly sustainable system.

    Secondly by working with you to help you deal with the huge pressures created by the cuts in your budgets that have come at a time of rising demand. The support for adult social care budgets that has come through the Department of Health – over £7 billion in this spending review period – is a mark of our commitment. But I recognise that for many councils significant efficiency savings will be needed on top of that.

    So we need to do something else, a third vital step. Which is to forge innovative partnerships between local councils and local NHS services that build more sustainable services to keep people healthy and in their own homes for longer. The new structures of the Health and Social Care Act, with clinically-led CCGs, local authority responsibility for public health and health and well-being boards, will provide the catalyst to make that happen – and it will have my enthusiastic support.

    20th century health

    When we look back over the last hundred years or so, this country has made incredible progress in health.

    From the start of the 20th century to the early years of the 21st, life expectancy has basically doubled.

    The causes are many.

    One, certainly, is our NHS.  But it is far from the only one.

    Better housing, clean water and sanitation, better working conditions, food quality standards, even road safety – all had a huge impact.

    And you have played a key role in every one of them.

    But there are more gains to be had, through:

    •    Better, more appropriate housing,

    •    By health and wellbeing becoming an integral part of planning, of transport and of education,

    •    By being better at reaching the poorest, the most vulnerable and the hardest to reach in our communities.

    Integration

    Now, the last couple of years have inevitably been dominated by a debate on structures.

    But structures are only a means to an end.  What really matters is better health and care outcomes.

    And for that we need a culture of cooperation across health and social care, with a person’s individual needs at its heart.

    The old structures simply haven’t worked well enough.

    •    GP practices not talking to hospitals.

    •    Hospitals not talking to each other.

    •    And the divide between the NHS and local authorities sometimes beggaring belief.

    This lack of openness, of communication, of trust… means that too many people simply fall between the cracks.

    All too often those with the loudest voices and the sharpest elbows – or at least those who have parents or children who have them – get the best treatment.

    Of course, we can point to examples of excellent, integrated care.

    Like Blackburn with Darwen Borough Council, which, with the local NHS, now provides free leisure facilities for everybody – that’s right, for everybody.

    The result?  The number of people doing the recommended amount of exercise has gone up by almost half [up 46% from 16.3% to 23.8%].

    And in Liverpool, where by bringing NHS staff together with social workers in integrated care teams, they have been able to cut unplanned hospital admissions and length of stay in hospital by a quarter.

    Good things happen when the NHS and councils come together.

    But where this happens, it happens despite the system, not because of it.

    You can’t design care around, say, a child with cystic fibrosis or a woman with breast cancer –her chemo- and radiotherapy, her drugs, her nursing visits, her social care, her mental health – if there is no meaningful contact between her GP, her consultant team, her local authority and her social care provider.

    That’s the great opportunity presented by Health and Wellbeing Boards and by Healthwatch, both of which go live in April.

    Bringing people together to improve the health of their community and the quality of care within it.

    Looking at the needs of local communities and working out how to meet those needs.

    Figuring out how to work together – councils, NHS, providers and the public.

    But also making sure that Health and Wellbeing Boards do not become ‘just another committee’.

    The work has already begun.  And I want to thank all of you who are involved making this happen.

    NHS number

    And while I’m on the subject of integration, can I give a plug for the NHS number? We have long spoken about using people’s NHS number to join up their records across health and social care. So I have a challenge for you.  If your council is not using the NHS number, please find out what needs to happen for it to be adopted.  It will be at the heart of the data exchange necessary for effective integration to be a reality

    Priorities

    As Health Secretary, I have been very clear about my four key priorities.

    •    Giving Britain some of the best survival rates in Europe for the big killer diseases: cancer, stroke, heart, liver and respiratory disease.

    •    Building a health and care system where quality of care is as important as quality of treatment.

    •    Dramatically improving the care for people living with long-term conditions like diabetes, asthma or arthritis – who currently account for more than half of GP appointments and nearly ¾ of hospital admissions.

    •    And transforming our care for people dementia so we become one of the best countries in Europe to grow old.

    Let me talk about the last one.

    A million people will have dementia by 2020. It already affects one in three over 65s.

    But shockingly our system diagnoses less than half the people who have it, even when access to good drugs can help stave off the condition for several years.

    There are some great examples of excellent dementia care.

    Like Manchester City Council’s Shore Green Extra Care Housing Scheme.  There, they use technology and modern building design to reduce the impact of people’s dementia and memory loss.

    Or the Meri Yaadain project in Bradford, raising awareness of dementia among the South Asian community.

    Or Hampshire County Council working with businesses and others alongside the Alzheimer’s Society and Andover Mind to help them become more dementia friendly.

    Dementia Compact

    Earlier this year, we launched a Dementia Care and Support Compact.  An agreement – a commitment – by social care providers to deliver first rate care and support for people with dementia and their families.

    In March, when we launched, 10 organisations joined up.  Today, we have 42, covering some eighteen hundred services across the country.

    If you’re from a provider that cares for those with dementia – and if you haven’t yet heeded the call – please consider signing up.

    That’s not an order.  It’s a heart felt request.  Because by making dementia care a priority, you will doing perhaps the single biggest thing that can transform the care of older people for whom you are responsible.

    Just as I am asking the NHS to do, I ask all of you all to look at how you operate, at how you behave.  To be inspired by new ideas and to ask yourselves what more you could do.  And then to make that change happen.

    Scandal of poor care

    Because the need for change is urgent.

    The best dementia care in England is exemplary.  But the worst is nothing short of scandalous.

    We’ve all seen the reports – of people with dementia being criminally abused by their care-workers or drugged-up with a chemical cosh just so a care-assistant can get a good night’s sleep.

    These may be extreme, isolated events but they do highlight a culture where those with dementia are not getting the dignity and respect they deserve.

    The Prime Minister’s Challenge on Dementia sets out an ambitious plan to build a dementia-friendly society.

    Yes, to invest in research and better treatment.  But more than that.

    •    to end the stigma of dementia.

    •    for people to feel comfortable talking to their GP if they think they have symptoms.

    •    for people to feel in control of their condition.

    •    for people with dementia to lead as near a normal life for as long as they can.

    •    for those who care for them to feel supported and confident.

    •    In short, for our communities to become dementia-friendly.

    If we are to succeed, local authorities must take the lead.

    And we will make sure we will give you every possible support.

    Dementia friendly environments

    So today I can announce that we are making £50 million available to support you and your NHS colleagues to create dementia friendly environments.

    Carers tell us time and again that when it comes to hospitals, care homes, or other settings, it’s often small things – whether clear signage, light and airy rooms or good handrails – that make a big difference.  Whilst you could say that this is not a huge sum of money relative to the scale of the challenge, if it helps make some of the small things better it will be transformational.

    Conclusion

    Finally let me mention the one missing ingredient that will make the difference between success and failure.

    Because it isn’t just about money or structures.

    Most important of all is leadership.

    Dementia friendly communities, better public health outcomes, deep and meaningful integration of NHS and social care services – none of this can happen without leadership.

    Your leadership.

    You are the ones who will make Health and Wellbeing Boards hot-beds of new ideas.

    You are the ones who will work with your colleagues in the NHS to drive change.

    You are the ones who will lead the charge on public health.

    You are the ones who will ensure that people can lead a full and independent life, supported and cared for with humanity, dignity and respect.

    You will make the difference.

    I will play my part.  But real success will come from inspired local leadership. And I want to support you every step of the way.

    Thank you.

  • Chris Huhne – 2012 Speech to the Royal Society

    chrishuhne

    Below is the speech made by the then Energy Secretary, Chris Huhne, to the Royal Society on 1st January 2012.

    Thank you. I’m delighted to be here today.

    It’s a great honour to address the world’s foremost scientific institution.

    John Dalton, Ernest Rutherford, James Chadwick.

    Without these distinguished Fellows of the Royal Society, the secrets of nuclear energy would have remained hidden for longer.

    So today’s subject is fitting. And I want to thank everyone involved with producing the Society’s report on fuel cycle stewardship.

    One of the clearest lessons from the history of nuclear energy is that government, industry and science work best when they work together.

    A scientific adviser must speak truth to democratic power without fear. In my view, it makes sense if democratic power then listens.

    It is in that spirit that I want to take an open and honest look at the history of nuclear power in Britain.

    If we are to retain public support for nuclear as a key part of our future energy mix, as I believe we should, then we have to show that we have learned the lessons from our past mistakes.

    And some of those mistakes were not small. Nuclear policy is a runner to be the most expensive failure of post-war British policy-making, and I am aware that this is a crowded and highly-contested field.

    We currently have around 6,900 cubic metres of high-level nuclear waste. That’s about enough to fill three Olympic swimming pools. We have enough intermediate-level waste to fill a supertanker, and a lot more low-level waste.

    We manage the world’s largest plutonium stocks – more than a hundred tonnes – and they will need guarding for as long as it takes us to convert it and build long-term deep storage. And if we don’t, we will have to guard it for tens of thousands of years.

    Half of my department’s budget goes in cleaning up this mess, and it will rise to two thirds next year. That is £2 billion a year, year in and year out, that we are continuing to pay for electricity that was consumed in the fifties, sixties and seventies on a false prospectus.

    Yet the total nuclear liabilities that the Nuclear Decommissioning Authority now deal with are estimated to be £49 billion, and I cannot be confident that the figure will not rise again as we discover yet more problems.

    Just look at the history of rose-tinted spectacles: the provisions for nuclear decommissioning costs in total were £2 million in 1970. £472 million in 1980. £9.5 billion in 1990. £22.5 billion in 2000. And now £53.7 billion.

    It seems to me essential reassurance to tax-payers and energy consumers that I and my successors can honestly say “This will never happen again”.

    Despite this history, I believe that nuclear electricity can and should play a part in our energy future provided that new nuclear is built without public subsidy. And it is precisely because of that post-dated bill from past nuclear mistakes that I reiterate with exceptional feeling “without public subsidy”.

    The reason is the same as so many other environmentally-minded people now give. Nuclear energy has risks, but we face the greater risk of accelerating climate change if we do not embark on another generation of nuclear power. Time is running out. Nuclear can be a vital and affordable means of providing low carbon electricity.

    In tough times, I am acutely aware of the stresses and strains on household budgets, and I want British electricity consumers to have the best possible deal.

    Of the three large scale low carbon technologies, the costs estimated by Arup are as follows. Offshore wind is assessed at £130 per megawatt hour, gas with carbon capture at £95 per megawatt hour, and nuclear at £66 per megawatt hour. These figures take account of waste and decommissioning costs, so nuclear should still be the cheapest low carbon source of electricity.

    And costs matter when a quarter of our power plants will close by the end of the decade.

    By 2023, all but one of our current fleet of reactors are scheduled to close, taking with them nearly 18 per cent of our electricity supply. We have to find 20 gigawatts of generating capacity and £110 billion of investment in the electricity market. That replacement cycle is double the normal level of energy investment.

    Gas is an option, even for the long term, with carbon capture and storage. But fossil fuel price volatility has increased, and world gas prices have risen by a 29 per cent in a year. It is surely not in our national interest to rely even more heavily than necessary on fossil fuels from volatile parts of the world.

    Renewables are a family of technologies which will last forever, with less environmental impact. They should be a growing part of our supply, as they are in other countries. But thanks to decades of under-investment by previous governments, the technologies are still relatively young. Uncertainties on some really promising technologies like wave and tidal stream are still considerable, and costs remain high.

    Nuclear too has uncertainties, as the cancellation of new programmes in Japan and Italy and the phase out of existing reactors in Germany all show.

    Our examination of the lessons of Fukushima from Dr Mike Weightman is reassuring about our regulatory regime and about safety, but the economics of new nuclear are still untested. The industry still has to prove that it can build these enormous investments on time and to budget.

    For all these reasons, our approach is to bring forward a broad portfolio of low carbon technologies: renewables, carbon capture and nuclear. It is the only sensible way to handle risk, as we all know when we run our own pension funds.

    However attractive one share may look today, it is rash to put all your money into just one stock. Governments should not bet the farm.

    The past

    So with my eyes open, and with a nervous look at the past, I say that we need nuclear to be a part of our energy mix in the future.

    But it is essential to learn from that past. As George J. Stigler said, history is a good teacher but there are inattentive pupils.

    So today, I want to look at Britain’s nuclear past to draw out those lessons.

    In many ways, Britain is the birthplace of nuclear energy. Like many first-time parents, we tried everything and we did so with enthusiasm.

    The world’s first commercial nuclear power station, Calder Hall in Cumbria, closed in 2003. It was opened by Her Majesty the Queen nearly half a century earlier.

    Life was very different in 1956, when Calder Hall was switched on.

    Rationing had only just ended. There were no motorways. Sputnik was but a sketch on a drawing board. Lasers and cash machines were still years away.

    The industry was in its formative years. Our attitudes to risk were different. The environment was not yet a subject of public concern.

    When Calder Hall opened, a Health Minister rejected calls for a government campaign against smoking. Seat belts were optional extras on a few imported cars.

    And our attitudes to spending were different, too. Britain was still effectively on a wartime footing: and when it came to strategic national decisions, the relationship between government, parliament and the people was still conducted on wartime terms. Secrecy. We know best. Don’t tell those who don’t need to know.

    Following the great smog in London, and the Suez crisis, an independent nuclear programme was held to be important for the nation’s security and prosperity.

    This was the setting in which Britain’s nuclear policy was designed. It was a different time. And decisions taken in the 1950s directly affected the liabilities that we are paying for today.

    Of course, we have been granted the gift of hindsight, and the benefit of reflection.

    As we give the green light to the next generation of nuclear power stations, we must use those precious insights. So let me turn to the lessons we have learned.

    First lesson, simple and clear objectives matter. In the early days, we could not decide between guns and butter.

    Nuclear technology was given the task of delivering two national priorities – energy for the masses, and plutonium for the military – without proper economic or democratic scrutiny. The reactor used at Calder Hall was chosen firstly for plutonium production; electricity generation was a side effect.

    Born out of military requirements but serving civilian needs, the new industry was torn in two directions. Confused objectives led to confused design decisions – and a high legacy cost.

    In the United States, by contrast, there was a competition for the most efficient and safe reactor design to produce electricity. A simple objective with a cost-effective result. The pressurised water reactor.

    The second lesson is avoid conflicts of interest.

    For the first two decades of nuclear energy, the UK Atomic Energy Authority was responsible for both promoting and researching nuclear energy.

    The Government’s official adviser on nuclear policy was an organisation solely devoted to nuclear energy. Gardeners like gardening, researchers want more research, and the UKAEA wanted more nuclear energy using their own designs.

    That meant advice to Ministers was not always impartial. Designs were chosen and delivered without proper oversight. There was no sceptical, commercial eye for either operating or decommissioning costs.

    The third lesson is keep it simple. Such is the extraordinary inventiveness of the British scientific community – to which I pay fulsome tribute here – that all eleven Magnox power stations were built to different specifications. Even their fuel elements were different sizes.

    From an energy policy point of view, we needed several good workaday Marks and Spencer suits. Instead, every reactor was bespoke from Savile Row.

    The second fleet of advanced gas-cooled reactors were built to a design that almost no-one else used. They did not deliver on budget or on time.

    The fourth lesson is that we forgot about our children. About their future.

    The regulatory systems were simply not geared toward long-term protection. In the early days, we didn’t plan for decommissioning or managing radioactive waste. Short-term political or financial decisions were taken, with long-term consequences.

    In other countries, a levy on nuclear power went into special funds to deal with decommissioning. Both France and the United States handled the problems much better than us.

    In the UK, the money was more free-range than ring-fenced. It was tipped into new projects, in the belief that it would be clawed back from asset sales. Too often, we played double or nothing with public cash.

    Which brings me to the fifth issue: we took our eye off the money. The nuclear industry was like a expense account dinner: everybody ordering the most expensive items on the menu, because someone else was paying the bill.

    In the early days of nuclear power, cost-effectiveness was not an issue. Decommissioning estimates were often approximate and greatly understated. We bought in to technological promise without exercising due diligence. When the arguments for technology changed, as they did for reprocessing, we did not subject them to proper scrutiny.

    Only in the late 1980s did reform bring about the end of a centrally directed energy policy. When nuclear power was held up to the cold hard light of the market, it proved to be uneconomic.

    Hidden subsidies and uncertainty over liabilities do not make for an attractive investment environment. Attempted privatisation of existing nuclear plants failed, partly because the true costs of cleaning up were becoming slowly apparent.

    And when waste started piling up, we effectively crossed our fingers and hoped that it would all go away. We did not act decisively, while our spent fuel and waste stocks grew.

    The future

    Never again. Never again. This government is determined not to pay for the present by mortgaging the future. We are determined to do the right thing for the long term.

    On governance, regulation and financing, we must show that we have learned the lessons of the past. We will make provision for future costs now, and pay down our decommissioning debt.

    We will tackle our nuclear legacy. The work on ponds and silos at Sellafield is proceeding as fast as the space and engineering allows: despite our financial situation, there is no financial constraint on dealing with urgent tasks.

    Thanks to the foresight of Patricia Hewitt, the Nuclear Decommissioning Authority is managing radioactive waste at 19 sites across the UK. And my Department has just finished consulting on the long-term management of our plutonium stockpiles, and will publish the results shortly.

    Looking to the future, we will prevent a new legacy from building up.

    Operators of new nuclear power stations must have secure financing arrangements in place to meet the full costs of decommissioning, and their full share of waste management and disposal costs.

    They must submit their plans for approval by the Secretary of State, who will receive advice on the financing from an independent Assurance Board. No more Robert Maxwell style plundering of the public piggybank.

    Nor will we fall into the trap of secretly choosing reactor designs. Open competition for the best is our watchword, letting industry and investors assure value for money.

    Competition will make the utilities drive a hard bargain with suppliers. No more cost-plus monopolists who just pass on any increase regardless of the effect on consumers.

    Regulators are currently carrying out a Generic Design Assessment of new nuclear reactor designs.

    A generic assessment means the safety, security and environmental aspects of new reactor designs can be assessed once before applications are made for a whole series of sites. Unlike the old days, when every planning inquiry started from scratch as if another reactor had never been built.

    The National Policy Statements on energy also establish that energy infrastructure is needed, so that too does not have to detain a planning application. The Nuclear policy statement identified eight sites which are suitable for new nuclear power stations by the end of 2025.

    We will also ensure regulation of the industry is transparent, accountable, proportional and consistent. The industry has acquired a terrible reputation for secrecy, fed by unfortunate incidents like the falsification of MOX data. No more unnecessary secrecy. No more cloak and dagger nonsense. The competent need have no fear of openness, and in my experience the new nuclear industry know that this is the only way to win public trust.

    That is why we created the Office for Nuclear Regulation, which is intended to become a new independent statutory body.

    It brings together civil nuclear and radioactive transport safety and security regulation in one place. It will house internationally recognised expertise, and will respond quickly and flexibly to current and future regulatory challenges.

    And finally, we will continue to encourage investment, research and development – and to help build the skills base needed to support nuclear technology here in Britain. On current plans, total investment in new nuclear will reach some £50 billion.

    Each of the reactors planned for the next fleet will deliver investment equivalent to that for the 2012 Olympics. Each plant could create 5,000 construction jobs at peak, and employ a thousand people in operation.

    And by the way, there is even some consolation in our unhappy nuclear history. We are developing some world-beating businesses – with expertise in cleaning up old messes.

    Conclusion

    Nuclear power can play an important future role in our energy security provided there is no public subsidy. We have done everything we can to make sure it is safe, regulated, secure and affordable. Now our partners in the private sector must rise to the challenge and deliver it.

    Yes, that means investing. And it means committing to a culture of openness and public trust. Because although we must keep the lights on and the skies clear, there is a higher responsibility here, too.

    The decisions made in the early days rubbed against the grain of democracy. They left long-term impacts and heaped costs on future generations.

    The decisions we make about energy today will also leave a legacy. Our challenge is to make ensure it is a positive one. No more post-dated bills.

    Let me end like this. Sir Winston Churchill, who was half American, once said that the Americans can always be counted upon to do the right thing, when they have exhausted all the other possibilities.

    I approach a new generation of nuclear energy in the same spirit. On nuclear policy, we have exhausted the possibilities. We have made pretty much every mistake human ingenuity could devise. And boy, are we British inventive.

    We will now do the right thing.

  • Gerald Howarth – 2012 Speech on Greener Defence

    Below is the text of the speech made by Gerald Howarth at the Nordic Defence Industry Seminar in Copenhagen on 2nd May 2012.

    Good morning. And thank you Kristian, (Danish MOD Deputy Permanent Secretary for International Policy) for that kind introduction.

    It’s a great honour to be asked to address NORDEFCO.

    Effective defence calls for effective collaboration.

    This group is a good model for us all when it comes to practical hands on commitment and delivery.

    You are also very much on the front foot when it comes to pursuing a new and radical approach to achieving a Smarter and Greener Defence.

    I’ll be talking a little later about these two issues which, focusing as they do on the crucial issue of resources, are essentially both sides of the same coin.

    I hope I speak on behalf of the others when I say it is a particular privilege that you have also invited to this seminar colleagues from the wider Northern Group..

    A group which encompasses the Baltic nations, Germany, Poland, the Netherlands. And of course the UK.

    I think it’s fair to say that previous British Governments have not placed the same value on building relations with our fellow Northern European nations as we do.

    As Minister with the lead for defence diplomacy, I’m very clear that the nations of Northern Europe comprise a group of countries bound together with a shared history and shared values.

    In NORDEFCO you have, of course, recognised that for many years. It’s just the rest of us who have taken a little longer to wake up to the issue. Perhaps we in Britain took too long to recover from the Vikings, the only people successfully to have invaded the UK in 1,000 years!

    I’d like to take this opportunity to pay tribute to Norway, and the work they are doing around the clock to guard NATO’s North Eastern flank.

    While in Norway earlier this year at the invitation of the Norwegian MOD State Secretary, Roger Ingebrigtsen, I had the privilege personally to take the controls of a the P3 Orion and fly over the Polar ice cap. It gave me a very real appreciation of the sheer scale indeed, loneliness, of this challenge.

    This is an area which is going to become increasingly important, as the Northern Sea Route – which almost halves the transit time between Europe and the Far East – is likely to be open for several months of the year within the next 10 years. Within that time the retreat of the ice will mean the opening of energy supplies and passage of shipping which is potentially game changing.

    Norway’s work in safeguarding these routes is of vital strategic importance to us all – and it’s important we begin to think ahead about the challenges presented by climate change.

    The Northern Group provides such an opportunity to bring us together to discuss issues of relevance to our mutual security, without reference to any particular institutional framework.

    It’s very obvious to me that we as neighbours should work together to secure our own region, to keep our trade routes open, and together face threats as they arise.

    Coming here to Copenhagen is – for me – therefore very much a neighbourhood visit. And a wonderful opportunity to get together with like-minded friends and partners.

    Like minded friends and partners who, in common with the UK, are outward facing, aware that defence is also an international business, and with whom we have served on operations across the world stage in recent years.

    On last year’s Operation Unified Protector over Libya, for example.

    Denmark’s decision to maintain a stunningly high level of sorties (double the coalition average) throughout August proved critical to bringing an end to Qadhafi’s tyrannical regime. We much appreciated Danish Defence Minister Gitte Bech’s willingness to extend Danish operations.

    Likewise, the invaluable contribution of the Royal Norwegian Air Force, which flew more sorties than at any time since the Second World War.

    I was privileged – on my visit there in January – to have the opportunity to meet some of the commanders and pilots who spearheaded Norway’s contribution.

    An operation which also saw Sweden step forward to help enforce the No Fly Zone over Libya with eight of its Gripen aircraft and a C-130.

    This was the first time in over 60 years that Sweden – a non-NATO nation – had conducted an out-of-area operation with an offensive air capability.

    Indeed, there were times when the Swedish Air Force was providing something in the region of 40 per cent of the entire coalition air picture; an extraordinary contribution.

    Members of the Northern Group are also heavily engaged in counter piracy operations off the coast of Somalia.

    I know that Denmark’s counter piracy effort involves providing a naval contribution for six months of every year, plus an MPA contribution for up to two months of every year.

    And of course in Afghanistan where UK Forces have fought – and are fighting – alongside forces from Denmark, Sweden, Norway, Finland, Estonia, Lithuania, Latvia, Poland, Germany and the Netherlands.

    And many have very sadly lost their lives: a tragic total of 594 across all twelve Northern Group countries, of which the UK has suffered 410 losses.

    And I want to say something very briefly here about the contribution of Denmark and Estonia, who have been closely involved with us in Helmand Province.

    Both countries have borne a particularly high proportion of casualties in the light of the number of forces deployed.

    I have now been to Afghanistan 6 times, and had the privilege of meeting the Danish and Estonian military on a number of occasions when visiting our troops in Helmand. I am always impressed by their professionalism and commitment.

    Afghanistan has taught us all a lot about collaboration and the concept of everyone maximising each other’s strengths and capabilities.

    And on that note, I’d like to take this opportunity to say how much we are looking forward to working with Denmark in developing the Afghan National Army Officers Academy.

    This will be a crucial contribution to Afghanistan’s future security, and we are delighted to be working on it with our close comrades from Helmand Province.

    I know that NORDEFCO members are adamant that this is an initiative which isn’t about new military or political alliances.

    What NORDEFCO is about is sharing resources, driving down costs and enhancing interoperability. Doing more with less.

    You are a pragmatic and proactive group already leading the way on Smart Defence – or to use the EU term, ‘pooling and sharing’.

    Some here today are members of NATO, but not the EU. And vice versa.

    What matters to me is that all countries wanting to contribute to collective defence and security are able to do so without constraint by institutions.

    As an example, the UK has developed – and will shortly see enter service – a major enhancement to our air-to-air refuelling capability. This will give Europe a significant enhancement in an area which has a critical shortfall.

    Now, we didn’t wait for the EU or for NATO to tell us to develop that.

    We don’t plan to wait for either of these organisations to find us potential partners with whom to share the spare capacity we anticipate having when the system is fully in service.

    In fact under David Cameron’s government the UK has been actively driving forward bilateral and small group cooperation.

    We believe it offers a practical way in which the international community can respond to the strategic and financial challenges of the twenty-first century.

    Since the publication of our Strategic Defence and Security Review in October 2010, we have signed no fewer than three Defence Treaties and 27 Memoranda of Understanding, including with Norway. And more of these bilateral agreements are under negotiation.

    We are also working hard to ‘bottle’ the superb collaboration shared by the UK, Denmark and Estonia in Helmand Province.

    Particularly when it comes to sustaining the logistics relationships which have proved so fundamental to our success together in Afghanistan.

    Next month my own Policy Director will chair a meeting of Northern Group MOD Policy Directors to consider the Group’s role in delivering further Smart Defence and Pooling and Sharing.

    And next year we look forward to working with Latvia and Lithuania and others on the UK-led EU Battlegroup.

    Whilst we recognise that the EU has a complementary role to play in supporting NATO, I want to take this opportunity to emphasise that as far as the UK is concerned, NATO will remain the cornerstone of our security.

    And that’s because the Alliance continues to be a community prepared to back principles with military fire-power, as we saw last year in its implementation of the United Nations Security Council Resolution on Libya.

    The reality is that when it became clear that sustained multi-lateral action was required, NATO was the only realistic co-ordinating structure prepared for – and with the mechanisms to deliver – joint and combined operations.

    However the Alliance does need to be revitalised.

    Libya was very successful, but as Robert Gates said just before he stepped down as US Defence Secretary last year: ‘NATO’s serious capability gaps and other institutional shortcomings were laid bare by the Libya operation’.

    The fact is that we all need to think – and act – Smarter.

    Smart Defence isn’t a random concept with a catchy title.

    Nor is it a shiny new strategy to be launched with a couple of Press Releases, posted on a website and quickly forgotten about.

    And it must certainly not become an excuse for individual countries to reduce national defence expenditure, which in many cases are already too low.

    Smart Defence needs to become the basis on which we collectively shape our defence capabilities in the future.

    And that’s why we are actively supporting NATO’s Smart Defence initiative, which will be an important focus of this month’s Chicago Summit.

    Embedding Smart Defence in the Alliance requires it to be clearly tied into the NATO Defence Planning Process.

    And we also need common standards. Because the reality is that multinational military operations still suffer from poor interoperability.

    It’s also – and I think all of us here today are very aware of this – about driving forward cultural changes.

    As the NATO Secretary-General observed to NATO Chiefs of Defence earlier this year, Smart Defence is essentially about changing mindsets.

    About getting nations to think in a more collegiate way, and take an objective approach about capabilities which many of us are more used to thinking of as sovereign.

    However, we need to understand the challenges faced by nations such as the UK, who cannot risk relying on an unreliable partner to provide a key capability.

    Smarter defence is actually about future proofing.

    Working together to make sure our resources go further.

    In the UK, we are currently going through a process of transformation, getting our budget back under control and putting the management of Defence on a sustainable footing.

    There also remains far too much inefficiency in both NATO and the EU. Too many headquarters, for example – and too many staff.

    None of us here can afford it – and we must address it.

    And of course one very important way of boosting our efficiency and being Smart, which is relevant to this conference, is to adopt a new approach to the way defence uses energy.

    It is a fact that the military have been – and will for the foreseeable future – be dependent upon energy for battle wining capability.

    Energy is a critical enabler – but, we need to make sure that it does not constrain us.

    Our experience in recent operations has highlighted this as a potential vulnerability. And just to put this into context – according to US military figures – a soldier in World War 2 used one gallon of fuel per day. Today the average American soldier on operations takes up 22 gallons every day.

    And take for example Afghanistan, where most of the fuel we use has to be imported and forms the bulk of the long logistics tail from Karachi.

    Those convoys have to be protected – and we have taken casualties in doing so.

    In tandem, not only is the global price of diesel going up, but the cost of bringing it into theatre can be ten times the original price.

    And these convoys are vulnerable to disruption, such as the closure of international borders.

    All of which impacts on our military effectiveness.

    We need to find ways of reducing the amount of energy we use, and you will shortly be hearing more about the UK approach from Admiral Neil Morisetti, the UK Climate and Energy Security Envoy.

    But I’d just like to mention a couple of examples of work the UK has been taking forward in this area:

    We have funded Qinetiq’s development of the Zephyr – an amazing solar powered high altitude long endurance UAV which has successfully completed a world-beating three and a half day flight. This is a tremendously exciting capability with a huge amount of potential. We also have a plastic bottle recycling plant in Camp Bastion.

    And we’ve also been looking at a range of energy management techniques to be deployed in forward operating bases – particularly in a harsh environment like Afghanistan. You’ll be hearing more about this MOD project – known as PowerFOB – over the course of the seminar.

    In all cases this has been achieved by working closely with our industrial partners.

    The military will always require a hard edged war fighting capability -and for the foreseeable future that means using fossil fuels.

    But, through energy efficiency and by opting – where appropriate – for alternative sources of energy, we can sustain operational effectiveness and address the wider issues of climate change, and the risks that poses to global stability.

    In other words, you can be smart and green.

    These are challenges we will – and must – face together.

    And they call for effective collaboration and strong partnerships. I know this is something this group can – and will – deliver.

    Thank you.

  • Mark Hoban – 2012 Speech on Youth Unemployment

    markhoban

    Below is the text of the speech made by Mark Hoban, the then Minister for Employment, in London on 19th September 2012.

    I would like to begin by thanking Channel 4 for asking me to open this debate today.

    Although I am reasonably new to the post of Minister for Employment, that does not mean I am not acutely aware of the problems some young people experience when looking for that first job.

    Let me be plain. For any young person who is able to work to be out of a job is a tragedy.

    It is a tragedy for the individual, who finds themselves unable to get on in life…

    It is a tragedy for their family, who have to motivate and support them…

    And it is a tragedy for the country, which is missing out on a huge amount of untapped talent.

    And I know that our young people are talented. The vast majority of young people are hard working…

    …They are ambitious…

    …And, above all, they have great potential.

    You will be asking in your first session today if we are heading towards a lost generation of unemployed young people.

    Let me say categorically: no, we are not.

    As a government we are working tirelessly to make sure this does not happen. Indeed most 18-24 year olds leave JSA quickly. Around 60% of new claims last less than 3 months and 80% less than 6 months.

    But it is true that the number of young people currently out of work is too high, and we are being honest about the scale of the challenge we face.

    Previous governments have conveniently hidden the true scale of youth unemployment. They moved young people off JSA, called it something different, then put them back on again.

    They were still unemployed, but it made the figures look better. They weren’t so much ‘lost’ – they were purposefully hidden.

    We do not do this.

    But getting the figures right is no substitute for sorting out the problem. So I am going to spend a few minutes telling you what we are doing.

    For any young person looking for a job, often the biggest stumbling block is a lack of experience.

    Sometimes it’s that they have a lack of understanding of what the world of work is really like. But more often it’s that a young person simply hasn’t had the chance to prove themselves. You need to be able to show an employer what you are capable of.

    That is why, as part of the Government’s one billion pound Youth Contract, we are creating a quarter of a million extra work experience places over the next three years.

    This gives 18-24 year olds the chance to do up to eight weeks of work experience while keeping their benefits. This provides a vital opportunity for young people to get their first foot on the career ladder.

    But, of course, giving young people work experience is only one side of the coin. It will only be worth doing if we can help turn that experience into a real job.

    And that is exactly what we are doing.

    From January 2011 to May this year there have been nearly 65,000 young people starting a work experience placement. And our assessments show that nearly half of people who go on work experience are off benefits 21 weeks later. This is good for them and good for the country.

    Let me give you one example of how we are helping people find jobs – much of the amazing work carried out during the Olympics was done by the army of volunteers, many of whom were young people looking to gain experience to help them find work.

    Their enthusiasm, their work ethic, and their commitment was, I think you’ll all agree, second to none. Any sane employer should snap them up in an instant. Which why we are holding an event in Stratford today where 2,000 of those involved in the Olympics will meet employers with vacancies to offer now.

    This will be the first in a series of such events. Events which are specifically targeted at those who were Games Makers or worked at Olympic venues. We want to help the people who helped to make the Olympic and Paralympic Games such a success, by moving them into long-term employment.

    What a great lasting legacy that would be.

    Whilst we will work with you to get you in work, we also need to work with business to make sure the jobs are there.

    As our Olympics event shows, only by engaging with businesses can you create the jobs people need. Companies such as Whitbread, Debenhams, Ocado and Stagecoach will all be at the park this week, along with a number of smaller local businesses, all there to give people jobs.

    So working with business is, in my view, vital. As a Government we need to show employers that taking on young people will be good for their business.

    Indeed, later on today I will be with the CBI for the launch of the CIPD’s business case for investing in young people, which does just that. It will highlight the business imperatives that make young people such a vital component in an employers’ workforce.

    We need to show employers that through things like our work experience and apprenticeship schemes we are creating a generation which is eager. A generation which is skilled. And a generation which is better prepared for the world of work.

    And because we know times are tough for businesses, we want to make it easier to employ and train young people.

    That is why, through our Youth Contract, the Government is offering up to 20,000 new Apprenticeship Grants to encourage new employers to take on young apprentices.

    And that is why we are offering 160,000 cash payments of up to £2, 275 for employers to recruit young people from the Work Programme, or from Jobcentre Plus in 20 youth unemployment ‘hotspot’ areas.

    So in opening today’s debate, I would like to conclude by saying to young people across the country that ensuring you are given every chance to get a job is my number one priority.

    I don’t underestimate the challenges we face in an uncertain economy, but only by making sure you have the training, work experience and opportunities you need will we ensure our future.

    And I would like to finish by appealing to businesses across the country:

    Whether you are big or small, multinational or a local start-up: make use of the schemes we have in place. Work with us to help give a young person a chance.

    Give them a chance to get their foot on the ladder…

    …give them a chance to help your business grow…

    …give them a chance to prove to you what they can do.

  • Michael Heseltine – 2012 Speech on Economic Growth

    Below is the text of a speech made by Lord (Michael) Heseltine on economic growth. The speech was made at Birmingham City Hall on 31st October 2012.

    Times of great crisis evoke memories of a time when this nation stood alone. “Don’t you know there is a war on?” prodded inactivity into life. Women flocked to the factories. Land girls heavy lifted on the farms. A generation of volunteers that had never worked before reinforced the social services. Certainly we were all in it together. I remember it well. They say old men forget. None of us who lived through that time will ever forget. The sacrifice and suffering; the carnage. Ultimately, the victory.

    That is why I hesitate to compare the crisis of then with where we stand today. There is another essential difference. Then the enemy was at the gate – a clear and immediate threat. A world of black and white. A focus sharper than crystal; a future ice cold.

    Today’s crisis is very different. The long term competitiveness on which our wealth depends is slipping away. To secure it we need a national commitment, discipline, every individual straining every sinew. Not for a day, a week or a year, but on and on as ever more nations enhance their skills, marshal their strengths, motivate their people to grasp a larger share of the world’s wealth.

    Failure has none of the trauma of occupation, of foreign tyranny, of freedom lost. Failure is measured in drift, in mediocrity, in under-performing public services and under-invested businesses. In infrastructure out of date, a nation with its head hung down, in the shadow of world events. A nation reconciled to genteel discomfort, envious of what once was, hopeless of what might have been. If we accept such a posture, the enemy would not only be at the gate, the enemy would already be within. The enemy named complacency, indifference, underused resource, waste of misapplied energy. No-one will advocate that. No electorate will vote for it.

    But the question that matters is the degree to which all of us, Government, companies, institutions, people themselves, will work differently to avoid it. If we are all in this together we all need to behave and perform as though we recognise it and intend to do something about it.

    It is easy in modern Britain to point to examples of excellence:

    We have world beating companies in manufacturing and the services

    We have academic excellence led by four of the world’s six best universities

    We have a civil service free of corruption

    We have a language, a history, an environment, spoken, respected and envied in every corner of the globe

    So, we should take great pride. But a harsh world will judge us by wider standards. By the standards of our average. By the slowest ships in the convoy. By whether everything we do is good enough. The examples of excellence give grounds to show what we can do, what we can achieve. They are not, however, typical of national performance. They need to be seen as standards to achieve, not grounds for complacency.

    I chose to make this speech in Birmingham. And no building could be more appropriate. It stands as a monument to the wealth and political power generated by the city’s entrepreneurial leaders in the eighteenth and nineteenth centuries. In those days, it was frequently filled with local people who gathered to debate the great political issues of their time. Their voices resonated across the country. The leaders they produced – of whom Joseph Chamberlain is the best known – became leaders of the nation.

    But those days are a now a distant memory. The great entrepreneurs who built Britain’s great cities and who drove our country to the forefront of the industrial revolution were powerful and ruthless men. The cities they built were in time overwhelmed by the exponential growth of the industrial workforce they attracted, and by the terrible urban living conditions that resulted. Those conditions were intolerable, and the democratic process rightly demanded change. The cities themselves could not fund this, so the national government intervened.

    Central funding ceded power to London. Local government focused increasingly on social provision. Councillors drawn increasingly from the public sector. The power of Whitehall grew. Ministers and civil servants concentrated on specific and individual functions – housing, transport, education, environment. Slowly but remorselessly the entrepreneurs that created the cities on the basis of local strengths were replaced by the functional monopolies of Whitehall.

    However, desirable the change it reduced the emphasis on growth. Whitehall increasingly ceased to trust local leadership – and so more and more powers were drawn into Whitehall or its national quangos. National initiatives were rolled out across the country irrespective of local conditions.

    I can only ever remember a Cabinet discussion that focused on place once – and that was after the Liverpool riots of 1981. My experience in Liverpool after the riots – working with the local community and their leaders to address the root causes of their problems – showed me that there is a better way.

    When local partners work together, that local initiative is more powerful than anything London can produce. Sir Terry Leahy and I helped to devise a vision for the future growth a year or so ago of that great community. The response was immediate. The local people knew what needed to be done.

    So, we need to reinvigorate that local leadership across our country, including greater devolution in London itself. And Whitehall’s ambition should be to do less but do it better.

    Of course we don’t need to change. We could carry on as we are. I believe that would be unacceptable. I do not detect an appetite in this country for so unambitious a future. And certainly the government itself is not prepared to stand by whilst other nations overtake us. That is why we need to compete in a rapidly changing world where the competition is intensifying year by year.

    We cannot hope to do that unless every part of this country is able to contribute fully to our national effort. We need to make the most of every opportunity for wealth-creation and growth. Let’s be frank – to say that is the easy bit. The government has had to tackle the worst economic crisis of modern times. The government has a radical agenda to reform education. It has an ambitious programme to get people off benefits.

    There is no greater sign of the government’s confidence and strength than its willingness to encourage me to produce a report which the opportunists will use as a basis of criticism. I am no critic of this government. I am so enthused by what they have achieved to be secure in my confidence of what more they can do.

    My report urges the government to build on what it is already doing, to speed up the process and to leave no stone unturned in pursuit of growth.

    How then can we get there? There is no new money and no quick fix. We need a new partnership between the private and public sectors, between local communities and central government, the better use of public money and consequently the levering of private investment.

    Such a statement may not sound new. It would, I think, have evoked widespread support over many years and under different governments. There have been initiatives and experiments. But what there has not been is a comprehensive long term implementation strategy to turn the thought into practice. That is why I so strongly welcome both what the government has done and, even more importantly, what it says it intends to do.

    So, what has it done?

    City Deals – Greg Clark, the Minister for Cities, has demonstrated what localism can look like and how it can work

    Business Rates Retention – Eric Pickles’s proposals will allow councils, for the first time, to keep a proportion of business rates in their area, giving them greater control of their own funding

    Nick Clegg’s Regional Growth Fund is unleashing local creativity and bringing private sector jobs to parts of the country that need it most

    Patrick McLoughlin is giving local areas a greater say in the major transport schemes that their communities depend on.

    In addition, it has created a framework of Local Enterprise Partnerships to reflect the strengths of both the public and private sector in a context that reflects the local economy, local identity and local pride. There are now 39 LEPs covering England. So, this country has a framework that replicates the strengths of the city states in all our competing economies. It is no longer a case of waiting for London. The army; it now has its fighting divisions. The immediate challenge is to bring them up to strength and to give them the tools to do the job.

    This is already government policy. 20 of the 39 LEPs are now involved or will be involved in City Deals. As the Deputy Prime Minister’s speech on Monday of this week clearly indicates this has the potential of a dynamic national policy. I agree with him. There is no case that these new ideas apply to only a part of the framework the government itself has created. There is no case to argue that part of the country should be helped to surge forward whilst the other half is held back.

    So much for my analysis. Let me turn to some of my proposals and expand on them.

    Making it happen

    I think we need a National Growth Council, chaired by the Prime Minister, should be established, comprised of secretaries of state and outside experts in the model of the National Security Council.

    The government should set out a comprehensive national growth strategy, defining its view of its own role and the limits of that role, together with those of others in local authorities, public bodies and the private sector in the pursuit of wealth.

    As well as a clear strategy, the government needs the means by which it can deliver it. Far too often Ministers pull the levers, only to find they are connected with elastic. And so initiatives come and go. And a collective cynicism gathers as to the limits of what a government can actually achieve. It breaks inertia.

    But this government is making positive moves.

    It has recruited Paul Deighton fresh from his brilliant achievements in delivering the olympics to manage its infrastructure agenda

    It has pulled the cities work into the Treasury, under the continued leadership of Greg Clark

    The Treasury has sponsorship of the financial services industry.

    The vehicle for implementation thus already exists. The new National Growth Council, would have oversight of the Growth Strategy, and would be responsible for approving the plans of individual departments. Underneath that a shadow Growth Council, under the leadership of the Commercial Secretary to the Treasury, which would bring together Permanent Secretaries of the Whitehall departments.

    Departments

    Each department would be expected to set out its contribution to the growth strategy, including how it will work with the wealth creating sectors it sponsors.

    Many departments do not see that they have a role to play in the growth agenda. A central vision for wealth creation can only be properly achieved when all departments single-mindedly pursue it. Growth can not be led out of the Treasury or the Business Department alone. It requires Whitehall as a whole to sign up.

    It is easy to see how this applies to some departments:

    The improvements in our railways and our airports self-evidently Transport

    The investment in thousands of new homes, DCLG

    The procurement of billions of pounds worth of military equipment at Defence.

    But the link to growth is less obvious elsewhere.

    It’s welfare policies that get people back to work

    The education of our young people, ensuring they have the basic skills to survive in the workplace

    The challenges of keeping an ageing population healthy and independent.

    Non-executive Directors

    Just as local places need private sector input into decisions, to ensure they are consistent with growth, so too does central Government.

    The Non-Executive director network, led by Lord Browne is a strength to be built upon. My plans formalise their role in many ways:

    Non-executive directors should be given an enhanced role within departments

    In addition there should be a NED presence on the National Growth Council

    They should have a strengthened role in the development of departmental business plans, ensuring growth commitments within them go far enough

    They should be able to advise Secretaries of State in the appointment of permanent secretaries

    Crucial to the ability of NEDs to fulfil this expanded role will be two key changes:

    First, and most simply, they need a secretariat to support them in their duties

    Second, they need access to a proper Management Information System.

    Such a system would not only be of use to NEDs as they scrutinise the business of departments, but would be critical to secretaries of state and their permanent secretaries in the running of their departments. All major companies collect and use management and finance data. That ought to be obvious. How can one know what is happening without such a wealth of information at one’s fingertips? A comprehensive management information system will allow departments to see what they do well, what they could do better with more resource, and what they could stop doing.

    Sectoral activity

    All sectors should be offered a formal relationship with government through the most appropriate department. The automobile and aerospace relationships that exist in BIS are good examples. This together with the sponsorship role of UKTI should be extended across departments.

    Our major companies can play a key role in raising the performance of business across Britain. Many of them already do so – nurturing and investing in their supply chains, providing advice, skills and even finance. We need to ask that more of them follow the example of the best.

    The business community is like a rain forest – many smaller companies depend on the canopy that big firms provide. Rolls Royce supports almost 3,000 UK-based suppliers. Jaguar Land Rover; nearly 2,000. Take away the canopy and the infrastructure is exposed to unsustainable threat. It would be a mistake to expect government to focus solely on the start-ups and small firms, even though they provide much of the dynamism and innovation of our economy.

    Government should continue to work with our large and medium-sized companies as well if it is to strengthen our wealth-creating capacity effectively. This requires a deep understanding of business and the capability for a professional dialogue and partnership with business. The civil service culture needs to embrace an experience of the private sector. In this way we can ensure that we have a world-beating public sector which can play its full part in realising our national potential.

    Our cities

    Local Enterprise Partnerships should be given the resource to develop local economic plans. I propose £250,000 for each of them for two years. They should then be invited to use these plans to bid competitively for part of a national single pot of public money, available to them from 2015. The single pot should consist of those parts of current departmental allocations that could support growth. The pot could amount to over £49bn over four years, plus other sources such as European funds. Government needs to set a framework for this competition, a framework in which it sets out its principles and priorities.

    A new government might have different priorities. That is the expression of democratic choice. But change has a price. Investment is long-term. Investors are increasingly internationally mobile. To the extent that a message of consistency and continuity is possible, the more certain is the investment climate.

    We should be able to agree on the need for growth. To seek growth without the enthusiastic partnership of the private sector is a mirage. Different governments may have different priorities for the new wealth, but we must first work together to create it.

    Central government needs to bring together the funding it applies to individual initiatives supporting growth – spending on skills, on local transport infrastructure, on housing and regeneration – and turn them into a single fund which can be put to work with local contributions to support the growth strategies of local communities.

    But government can not simply hand out the money and walk away. Democratic accountability would not allow it. We are talking about a new concept of partnership. As part of that, I believe local government will increasingly need to create simpler structures which are more efficient and easier to deal with. Scotland and Wales moved to a structure of unitary counties decades ago. Many English counties have adopted a unitary structure. Nothing should prevent others from following. In the great cities I welcome the development of conurbation authorities and would welcome the prospect that they should elect a mayor to lead them.

    Local wealth creators

    The Government and the private sector should work together to create a strong, locally based business support infrastructure. Central to this would be a determination to help chambers of commerce attract larger local membership.

    What can government do to help? There are many things government can do which underpin the national economy – setting taxation policy, regulating markets, investing in infrastructure, skills and the research base. It needs to do each of those things excellently and professionally.

    But government cannot advise business on how to grow. For that we need a world class business support infrastructure that is private-sector led, that is accessible in every community, and has deep reach into the business community.

    That is what all our competitors have. I have set out the comparisons in detail in my report:

    The Paris chamber of commerce has 400,000 members. The London chambers have 9,500

    When a German company goes to India, it finds a chamber with 110 staff and 6,000 members

    When a British company goes to India, there is no chamber.

    If we are going to compete in the world’s markets, we need to fill that void. Our chambers of commerce can do it, but we should all help them rise to the game. That means – central government, local government, and – above all – local business. I realise that my proposals to enhance the status and capability of our chambers are controversial. If we intend to galvanise our cities and their communities I see no better way.

    As an annex to my report I publish our findings of the support other competing economies have in place to support their companies.

    I accept the vital role local authorities can play in wealth creation but I believe that they are stronger with private sector partners. The private sector is divided between competing organisations and, added together all of them represent only a fraction of the million or so companies that might benefit from the enhanced services other countries provide and upon whom our export targets depend.

    Government has set up quangos to undertake activities and provide services that could more effectively be private sector and locally led. Let us be frank. Some will say the chambers are not strong enough. My reply is that we should help them – not force them – to acquire that strength not undermine their localism with an ever widening quango world.

    Trade associations

    They can play an important role. But there are over 3,000 of them. There is a need to up their standards. That means rationalisation.

    Deregulation

    Regulation should be carried out in such as way as to have growth at its heart. This means a restructuring of the regulatory regime in this country in order that the economic consequences of regulation are properly thought through. The report includes a number of other proposals.

    Planning

    Our planning system should be injected with the needed urgency to speed up the decision making process. This could include a new power for the planning inspectorate to call in applications after six months. I do not seek to change the nature of those decisions. Rather I seek to inject a degree of urgency into the process.

    Procurement

    There is one particular opportunity which government should grasp to help our companies to compete effectively across the world. Government procurement can be improved by bringing in specialists, and paying them at a rate that is compatible with the private sector.

    Government places £238 billion of contracts with external bodies every year. In 2010, two thirds of those contracts were running over time or over budget or both. That is a national scandal. Not just because of the waste of our hard-earned national wealth. Much worse is the way that culture saps the competitiveness of British business. No company which relies on surviving in that sloppy environment will find it easy to win contracts abroad.

    The Government has started work to drive professionalism into its procurement functions.

    Conclusion

    My report makes 89 recommendations. Some will see them as criticisms and exploit them as such. That is exactly the wrong approach. To invite criticism is a sign of strength. To accept it is a demonstration of confidence.

    We are all too close to the economic crisis. There is opportunity on a grand scale. Is this glass of water before me half full or half empty? It is an attitude of mind. To me it is half full:

    Huge infrastructure demands and hungry institutional funds – link them

    Excellence in industry, commerce and academia – extend it

    England’s cities pulsing with energy – unleash it.

    Every one of us needs to rise to the challenge. There is no more insistent or compelling motive for human kind than the instinct to provide for and protect our children. To feed them, house them, educate them, and give them a start in life with the hope that they will be able to do better than we have done ourselves.

    So let our reaction to this report be judged by the legacy we bequeath to our children and grandchildren. We should earn their appreciation for the legacy they will inherit by the commitment we made.

  • Lord Sassoon – 2012 Speech to the Middle East Association

    Below is the text of a speech made by Lord Sassoon, the Commercial Secretary to the Treasury, on Thursday 25th October 2012. The speech was given at the Mansion House in London to the Middle East Association.

    Lord Mayor Locum Tenens, Your Excellency, ladies and gentlemen.

    Thank you for your warm and generous welcome and my thanks especially to Matthew Smith and the Middle East Association for organising today’s lunch.

    It is of course, Sir Robert [Finch], wonderful to be in the Mansion House and in this great Egyptian Hall.

    But even if this room is not strictly genuine, being more Roman than Egyptian, the hospitality certainly is. And I do think that the way that Lord Mayors so generously welcome business and other groups into this, their home is as close as it gets in the UK to a traditional Arab majlis.

    I am sorry that Liz Symons, Chairman of the Arab British Chamber of Commerce, is not here today but I am reminded of the time last year when we were both at one of the legendary majlis lunches of Sheikh Nahyan bin Mubarak al Nahyan in Abu Dhabi.

    It is great that these traditions of combining business and hospitality are alive both in the City of London and the Middle East.

    Now today is a day some of us have been focused on for a while – and not just for this lunch. It is encouraging to see the first estimate of third quarter GDP showing growth of one per cent.

    But this is only one quarter and the UK still faces very considerable challenges to get growth to where it should be.

    There is still a long way to go, but these figures show we are on the right track. This is another sign that the economy is healing.

    And there are other positive signs – particularly on the jobs front. There are now more people in work in the UK than ever before. Testament to the flexibility of the UK labour market.

    But also a reflection of strong export growth.  With non-EU exports up by over nine per cent in 2011.

    And that takes us to the heart of the challenge for the UK in the Middle East.

    With a GDP in excess of $1.2 trillion, the Gulf alone constitutes the UK’s 7th largest export market, larger than India, Russia and Mexico combined.

    But, for all our historic ties with the Middle East, exports last year to the Gulf rose not by nine per cent but by a paltry four per cent.

    By contrast, China and Korea’s exports to the Gulf are increasing by more than 30 per cent.

    So we have to do much more.

    As Treasury Ministers, we recognise that it is by building strong relationships with our partners in the Gulf that we will achieve more together.

    And to that end, we launched the Government’s Gulf initiative in Summer 2010 to reinvigorate the UK’s engagement with the Gulf states.

    There have been more than 80 British Ministerial visits to the region in the last year and 50 senior Gulf visits to the UK.

    More and more British investors are building enduring relationships with the Middle East to support our mutual prosperity. And the Government is supporting this wherever we can.

    And there have been notable successes in the past year. For example:

    • Ultra Electronic winning a £200 million contract to upgrade Oman’s airports;
    • Carillion’s involvement in the re-development of Doha to the tune of £300 million; and
    • In May Saudi Arabia agreed a £1.5bn deal with BAE Systems for Hawk aircraft, in addition to their partnership on Typhoon.

    But I hope to see many more British companies helping to realise the visions governments have for infrastructure across the Middle East.

    UK business is already the largest foreign investor in Egypt, with cumulative investments of £10bn including across oil, gas and telecoms.

    And Saudi Arabia alone has $400bn to spend on infrastructure by the end of 2013, with only 18 per cent of this spent so far.

    There may not always be a UK leads contractor bidding for a project – but when it comes to designing, engineering, managing and financing the smallest or largest projects, we have to get the world to understand that the depth and breadth of UK-based expertise is ahead of what any other country can offer.

    And we must have our SMEs as hungry and organised as German SMEs, if we are to meet our export targets.

    From what I see, UKTI are doing an excellent job.

    But we need all of you beating a path to my door and to Stephen Green’s door to tell us what more you need from us, from UKTI and from the Chambers to support you efforts – particularly for those of you who are SMEs.

    Meanwhile, the City of London remains the most international financial centre in the world.  And the City remains the largest Islamic Finance centre outside the Islamic world, with $19bn of sharia complaint assets.

    This has contributed to Gulf Sovereign Wealth Funds’ investment into the UK.

    Whether it is the US$2.4 billion ijara financing for the redevelopment of Chelsea Barracks or the Islamic financial products supporting the construction of The Shard, the City has shown how it can facilitate Sovereign Wealth Fund investment.

    I have made it a personal priority to maintain close relationships with the Gulf Sovereign Wealth Funds. The UK has benefitted hugely from their support over many years and we will continue to welcome them here.

    I hosted ADIA, the KIA and the QIA at the Global Investment Conference at the start of the Olympic Games. And I again welcomed ADIA to London in September for a roundtable on the UK Economy, to present in detail the UK’s plans to deliver growth and stability.

    And, as Sir Robert mentioned, we are looking forward to the Amir of Kuwait’s State visit at the end of November to celebrate the 60th anniversary of the KIO’s London office.

    Finally, The UK will chair the Deauville Partnership in 2013 – the international initiative through which the G8 and Gulf are helping support political and economic transitions taking shape in wake of the Arab Spring.

    The focus of our Presidency will be on promoting open economies and inclusive growth – including supporting economic stabilisation and reform, and increased trade and capital market development to enable private sector growth in Egypt, Morocco, Jordan, Tunisia, Libya and Yemen.

    And the UK Government are working closely with the European Bank of Reconstruction and Development to host an Investment Conference in London next year which will bring together investors, business, and officials from across the G8 and Middle East to help deliver against these commitments to the region.

    So my message today is clear.  The UK and the Gulf are successfully looking beyond the recent global crisis and working together for a more prosperous future.

    The Amir of Qatar has said that he “cannot remember the relationship being in a better state.” That is a sentiment I hear widely echoed. We now have to turn that sentiment into more business wins.

    I have mentioned only a few of the very many opportunities for us to support each other’s endeavours.

    Government will be unrelenting in support of your efforts.  I will be making two more trips to the Middle East before the end of the year in support of British business. I will be lucky, though, if I am invited to a majlis as splendid as this one, whether in a genuine or a fake Egyptian Room.

    Thank you.

  • Mark Lowcock – 2012 Speech on The Future of International Development

    Below is the text of a speech made on the 16th October 2012 by the senior civil servant, Mark Lowcock, who works at the British Council in New Delhi.

    Mahatma Gandhi once said: “the future depends on what you do today.”

    So in looking at the future of international development, I want to start by looking at where we are today.

    I turned 50 this year. My 16 year old son asked me which 50 years in human history I thought to be the best in terms of the quality of human lives. I said, why, the last 50 years of course.

    Then I thought for a bit and said no, actually, it is the next 50 years that are going to be the best. Which made him feel a lot better but also led me to thinking about the pace of development in the last 5 decades, and how different our lives now are from those of earlier generations. There is no getting away from the fact that there has never been a luckier, healthier or more prosperous cohort than us.

    Human beings have been on the planet for roughly 150,000 years. Until very recently, almost everyone’s human experience was concentrated solely in obtaining enough food, heat and light simply to sustain an existence.

    100 years ago, there was only one country – it was Sweden actually – that had achieved an infant mortality rate below 10%. 175 countries have now brought their infant mortality rates below 10%, and 130 below 5%.

    In the last 50 years, global life expectancy on average has risen from 47 years to 67 years.

    The 3G smartphones on sale for less than 5000 rupees in Nairobi today enable a Kenyan to access more information than was in any library in the world 20 years ago – and to do so 24/7.

    I enjoyed reading this summer a book by Mark Tully – (I believe one of the more successful UK exports to India!). It was called India: The Road Ahead or Non–Stop India, as it is called here. It brought home to me just how far India has travelled in my lifetime.

    Mark Tully presents a range of compelling stories from all across this diverse country – not just illustrating the well-known economic miracle, but also the pace of change on social issues such as caste. The numbers speak for themselves.

    India has progressed from a literacy rate of 28% in late 1961 to 74% in 2011

    India’s share of global GDP has doubled – from 2.5% in 1980 to 5.5% in 2010

    India has increased life expectancy from 26 to 72 years in 60 years: 1950 to 2010

    India has raised the rate of growth from below 1% in the 1940s to around 3% in the early 70’s to over 6% in 2010’s.

    And India has reduced poverty – from nearly 90% living in absolute poverty in 1940s to 51% in 1977-78 to just over 30% at present.

    The Millennium Development Goals (MDGs)

    And both here in India and across the rest of the world changes have been happening faster than seemed possible even 20 years ago. In the mid-1990s in the Overseas Development Administration, I was periodically tasked with writing briefing papers for John Vereker, then the Permanent Secretary, for meetings he attended with his counterparts in the OECD on the state of global development. These meetings ultimately led to the agreement of the International Development Targets. The IDTs then became one of the key building blocks for the Millennium Development Goals.

    When they were first proposed in the 1990s, the MDGs were widely thought too ambitious and aspirational to be taken seriously. The pundits thought that halving the proportion of people living under a dollar a day, sending every child to school, reducing under-5 mortality by two thirds and maternal mortality by three quarters, all by 2015, was pie in the sky.

    As we now know, the sceptics have been confounded. The halving poverty target was achieved 5 years early. And not just because of progress in China or other parts of Asia. Even in Africa, by 2008 most people in Africa, for the first time since measurement began, were judged to be living above the extreme poverty line. The clean water target was also met 5 years early. Access to basic education has improved dramatically. Infant mortality has plummeted.

    So when my Prime Minister said in New York last month that the international community should aim to abolish extreme poverty within this generation, our generation, these were not just aspirational words. Abolishing extreme poverty within our lifetimes is absolutely within our grasp.

    Future challenges

    I’m not saying this will be easy. The figures speak for themselves:

    2.5 billion people still lack access to improved sanitation facilities

    1.2 billion people still live in extreme poverty

    Every fourth child under 5 is underweight

    Over a quarter of a million women still die in pregnancy and childbirth each year from completely avoidable causes.

    Globally, we in the OECD at least, face the most difficult financial and economic outlook since the 1930s. We have lost momentum, sadly, in dealing with climate change and environmental challenges. We need to get that momentum back. We have seen major changes in many parts of Middle East and North Africa. We need to make sure those changes lead to real improvements in people’s lives. And we continue to face extensive challenges in preventing and dealing with the aftermath of conflicts.

    Beyond 2015

    So I am not saying that all the problems are solved. That is why I feel so passionately that the process that has now started in the United Nations to work out a new set of global development goals should have the same level of aspiration and ambition. The MDGs have provided a powerful focus for shared international action for the last 15 years. But after 2015 we will need a new framework, building on and taking forward the MDGs.

    The UN has set up a very thorough consultative process to help shape this framework. The different UN agencies will lead consultations on different themes. There are country-based consultations in 50 countries with a leading role for civil society. And the Secretary General has established a High Level Panel co-chaired by the British Prime Minister, the Indonesian President and the Liberian President.

    The panel has some of the top thinkers of our time – including Abhijit Banerjee – a very distinguished Indian economist who is very familiar to this audience. This panel had its first meeting in New York in September; its second meeting will be in London next month. And its task is to report back to the UN General Assembly next year.

    Britain doesn’t yet have a fixed position on what these new goals should be. We want to hear what other countries have to say. We have listened to those who say that the formation of the Millennium Development Goals was driven too much by the Global North – with not enough input from the Global South.

    But British Ministers have articulated some ideas as a contribution to the debate. At the end of the first panel meeting last month, David Cameron said five things:

    The objective of the new framework should be the ending of global absolute poverty.

    We should not get rid of the Millennium Development Goals. We should urge countries to complete and achieve the MDGs

    We must look at the causes of poverty, not just the symptoms of poverty

    We should consult the poorest in the world and ask what it is that they want

    We must be bold and ambitious. If we write a complicated report we won’t be held to account for the conclusions that we reach. We want something simple and straight forward, with time-bound targets that everyone can understand, that can unite the world and that the politicians of the world and the leaders of the world can be held to account over.

    The third of those points I’d like to dwell on – about looking at the causes not just the symptoms. Some people say that the current Millennium Development Goals framework – with its strong focus on access of poor people to basic services – has not focused enough on the underlying causes of poverty, the underlying enablers of progress.

    For some people that means a need to pursue the human development agenda in greater depth – to look at education quality as well as access. For others it means focusing more on environmental sustainability, resource scarcity and climate issues. We agree with all that.

    But when our own Government talks about the underlying enablers of development, they also increasingly talk about the importance of open economies and open societies, what David Cameron sometimes refers to as the “golden thread of development”.

    The idea of open economies goes a lot wider than free trade. It includes the idea that citizens should be free to provide for their livelihoods; to access goods and services, as well as infrastructure connecting them to markets; to trade their skills and capital and pursue investment opportunities; and to contribute to a thriving private sector.

    That economic governance should be transparent, credible, and stable – and include effective taxation as well as appropriate regulation.

    That the costs of doing business should be reduced and the risks of investing minimised, including through legal protection of property rights and contract enforcement. There is strong evidence behind the idea that open economies support progress – not least the impact in India that Nandan Nilekani talked about of the economic liberalisation here in the 1990s. The idea that open societies are good for development is perhaps less frequently articulated – but it is easy to believe when visiting the capital of the world’s largest democracy.

    The idea is about societies where all people have the same rights and responsibilities, regardless of their gender or their identity.

    Where they are free to exercise choice, to express their voice, to challenge, and to secure change in how they are governed.

    Where there is stability and absence of war, where people feel safe and have access to justice.

    Where states have capable institutions, deliver responsive public services, are accountable to the public and tackle corruption and manage resources effectively.

    And where the rule of law is respected, transparency promoted and an independent media protected.

    While some of this may be controversial in some quarters, one thing which is very clear from the last decade is that the countries getting left behind in the pace of progress are those enmeshed in conflict or suffering from chronically poor governance. Organisations like my own see an increasing proportion of our resources and efforts spent in such countries. The new post-2015 framework has to reflect the reality of that in some way.

    Ideas and visionaries

    The history of human progress is built upon ideas. From the time that the first human (my guess is that it was a woman) had the idea of rubbing flints together to light a fire – development has been driven forward by ideas and innovation.

    Nandan Nilekani of course is someone who personifies the big idea. As he says in his book – it is ideas that lead economic and social policy, rather than the other way round.

    As one of the visionaries behind India’s IT revolution – he has of course demonstrated this in practice. One of the books I read this summer was a pacy page-turner called One Night in a Call Centre by Chetan Bhagat. Ah – I can see that many of you have read it too. As I was musing about the idea of young Indians just outside Delhi would be sorting out refrigerator problems for Americans in the Mid-West – it struck me that this was the stuff of science fiction when Nandan, Sam and I were all little boys!

    Most of these magnificent ideas come from private individuals in the private sector. Another of the most inspirational books I have read this year (I must be giving the impression that all I do is read books – I don’t – or at least not as much as I’d like to!) was called Infinite Vision – about an idea that one man in South India had.

    I am sure most of you are familiar with Dr Govindappa Venkataswamy, or Dr. V as he is called. He defied all business logic when he founded a small clinic with a big aim of curing blindness. Today the Aravind Hospital is the largest single provider of eye-care anywhere in the world. Every day it sees 1,200 patients and the doctors perform over 200 operations. It has grown into a network of eye hospitals that has seen 32 million patients over 36 years and performed more than 4 million eye surgeries, most of them ultra-subsidised or absolutely free. For about 50 Rupees (about one US Dollar), a patient can get three eye tests in three months. The business still defies logic – and yet it is going strong and amazingly self-reliant.

    In my quarter century of work working on international development, I have come across other such inspirational stories – of big ideas that started small and have improved the lives of some of the poorest people in the world.

    Mo Ibrahim – who has helped a whole generation of Africans leapfrog into the mobile age – joining them up and also expanding access to banking and finance in a way that the formal banking system never could.

    Mohammad Yunus – who demonstrated that the poor are as credit-worthy as anybody else.

    And India’s very own Verghese Kurien – who died a few weeks ago – who used the cooperatives model to engineer India’s White Revolution – taking India from being a milk-deficient nation to the largest milk producer in the world.

    These people are the heroes – the architects of the new age of global development.

    The new architecture of development

    And that new global age brings with it a new global order. An order which no longer follows the tired old rules of the rich and the poor; the donor and the recipient; the first world and the third. It is a world in which countries like India, China and Brazil are reasserting their presence at the forefront of global progress.

    One of the snippets I picked up from Nandan’s book was that at one time India and China accounted for over half the global GDP. As Jim O’Neill – who came up with the term BRICS – observed recently: “In 2011, China’s nominal $GDP rose by 1.3 trillion, equivalent to creating an economy the size of Greece every 11½ weeks and an economy the size of Spain in not much more than a year. The BRIC countries collectively contributed around $2.2 trillion, not too far off the equivalent of another Italy.”

    To conclude then, I would like to offer a few reflections about what this changing world means for development organisations like mine:

    First we need to clarify that business we are in.

    I see three major business lines:

    First, a focus on faster progress on the MDGs in those Low-Income fragile and conflict-affected states in which none of the MDGs have yet been met. There is a few dozen countries for which this is true.

    Second, tackling global public bads: finally eradicating polio, tackling pandemics, and dealing with problems created by ungoverned spaces – terrorism, organised crime and the like. All countries in the world suffer the effects of these “bads” and official development assistance and organisations like DFID can help deal with them.

    And third, more tentatively, there is the issue of what we can do as development agencies to help tackle poverty in Middle Income Countries.

    Second, we need to do in agencies like mine is to change our offer.

    And improve it. 20 years ago, aid was a key element in the external financing and public expenditure plans of many countries. Thankfully, that is less and less so now. Trade flows, remittances, and foreign direct investment have all over the last decade grown much faster than aid. So have domestic tax revenues in virtually every country. The role of donors now is not so much to fill financing gaps across the developing world:

    We need to focus on the toughest problems (like the continuing challenge of child nutrition).

    We need to concentrate on promoting science, technology, innovation and ideas and building the evidence on whether they work.

    We need to help build the skills, capabilities, and institutions which help countries succeed.

    Third, in improving our offer, we need to keep our eyes firmly on the big development challenges.

    Just to pick two – we must retain our focus on girls & women – and increase our focus on climate change.

    I am sure you know that last week (October 11th) was the first International Day of the Girl. DFID has staked a lot (reputation, money, and also hope) in the belief that the benefits of investing in girls and women are transformational – for their own lives and for their families, communities, societies and countries. India also has a vision – as seen in the raft of new and innovative investments to get girls into secondary school, and the impressive development impacts now becoming apparent from India’s reservations for women in local government.

    Climate change. I know that there is a suspicion that the UK and Europe want countries like India to constrain their growth to tackle climate change.

    That is entirely wrong. Yes, tackling climate change is important, but so is India’s growth and development.

    Not only will India’s growth continue to underpin impressive reductions in poverty, it is also a driver of global prosperity.

    The issue is not constraining growth but how we accelerate growth, in a greener and cleaner way.

    Fourth, we need to sustain and increase aid volumes.

    Official aid globally has increased from $60 billion a year a decade ago to $120 billion now. Which is part of the reason, incidentally, why development progress has accelerated over the last 10 years. But aid budgets in some countries are under pressure. In Britain, the Coalition Government has decided that despite the global downturn we will press ahead with plans to spend 0.7% of our national income on development. And next year we will reach this longstanding UN target, the first G8 country to do so.

    Fifth, we need to focus more rigorously on the results we are delivering and the costs we are incurring in doing so – to make sure that we are spending aid to maximum effect. When I talk about results, I mean not just the longer term policy and system changes we aim to promote, but the hard facts of what immediate outputs we are buying through our aid programmes. We in DFID published our annual report last month, which set out the contribution we made in 2011/12:

    We distributed 12 million bed nets to protect people against malaria

    Gave 12 million people access to financial services so they can work their way out of poverty

    Vaccinated over 12 million children against preventable diseases

    Supported 5.3 million children to go to primary school – more than the total number of children in the UK primary school system

    Reached 6 million people with emergency food assistance

    Improved hygiene conditions for 7 million people.

    It’s absolutely right that we should tell our taxpayers in this specific way what their aid is buying.

    And sixth, we need to become more transparent and accountable

    to our stakeholders – both the taxpayers who pay our bills, and the clients for whose benefit we work. Publishing our results is a key part of this.

    But so is using all the resources of modern technology to ensure that people can check what we plan to do, whether it offers value for money, whether we achieve it, and whether what we are doing to put things back on course when they go wrong. It is the right thing to do.

    “Publish What You Fund”– an international NGO – has just published its annual international aid transparency rankings – and I am happy to report that DFID is at the top of the 72 organisations covered in rankings.

    My theme this evening has been the future of international development. I started by quoting Mahatma Gandhi saying how we build the future by what we do today. Let me end by quoting another great Indian – Mother Teresa – with a similar insight: “Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.”

  • Ivan Lewis – 2012 Speech to Labour Party Conference

    Below is the text of the speech made by Ivan Lewis, the Shadow International Development Secretary, to the 2012 Labour Party conference on 1st October 2012.

    Conference, I want to begin by thanking my wonderful team:

    Sir Tony Cunningham, Rushanara Ali and Ian Mearns, all of whom do an excellent job.

    But I know they will forgive me if I single out someone special. Someone who has never wavered in the fight for global equality and human rights.

    One of the leaders of a new generation of women who changed the face of our party.

    Conference, Glenys Kinnock may be leaving the frontbench but I have no doubt she will continue to be the strongest voice for those who are vulnerable and voiceless everywhere in the world.

    Glenys, on their behalf we thank you and salute you.

    Conference, it’s been quite a year. During the past twelve months I have had the pleasure of shadowing Jeremy Hunt, Andrew Mitchell and now Justine Greening.

    So I can tell you as a pleb with a ringside seat: these Tories may think they were born to rule, but as the British people now know, they aren’t fit to govern.

    I want to use my speech today to challenge the relentless attacks on development spending which are now coming from “the right.”

    But also to demonstrate if other countries match our commitment to aid and sign up to radical global change we could eradicate poverty by 2030 and reduce aid dependency.

    Conference, is it any wonder that the British people, so generous in their giving to good causes are conflicted when they think of the challenges facing the squeezed middle and public service cuts.

    We need to have the confidence to make the case and win the argument.

    We should absolutely clear in our response to those who argue for cuts to the aid budget.

    Why should the poorest in the world pay the price for the irresponsible, greedy behaviour of the top bankers?

    And a right-wing ideology which continues to advocate light-touch regulation and celebrate casino capitalism.

    First and foremost, our contribution to fighting poverty and tragedy is a moral imperative.

    But security, trade and migration also mean it is in Britain’s national interest.

    In an interdependent world to be a patriot is to be an internationalist. Not just for one fantastic Olympic Games, but always.

    Conference, it turns my stomach when I hear multi-millionaire Lord Ashcroft demanding that support for the world’s poorest should be slashed.

    The nasty party is back. It’s the same old Tories.

    Does this mean that the aid budget should be immune from the very real challenges we face in these difficult times?

    Of course not.

    That’s why we won’t be able to reverse the Government’s decision to cut the projected aid budget by 1.7 billion pounds.

    Although it should be understood that this is due to a reduction in Gross National Income, which in part is due to the failure of Tory economic policy.

    But it’s also why the Government should put right its broken promise to enshrine the link between 0.7 and GNI in law.

    This would ensure future changes to the budget, irrespective of whichever party is in power, would be permanently related to the economic state of the nation.

    And Conference, the critics would have you believe aid doesn’t work.

    It isn’t true.

    In one year under Labour, the Department for International Development helped train over 100,000 teachers, delivered almost 7 million bed-nets, provided 12-and-a-half million people with better sanitation and helped build or repair 4,500 km of road.

    UK aid saves lives and gives people the chance of a better future.

    We will support the Government if they honour our commitment to meet the 0.7 target by next year.

    But David Cameron is unable to provide leadership on development because the Tories advocate more of the same when what we need is radical change.

    The Tories believe in trickle down economics. We believe in the inextricable link between economic prosperity and social justice.

    The Tories view aid as charity. For us, development is the pursuit of social justice and human rights. Public-bad private-good drives their funding decisions.

    Delivery capacity, value for money, innovation and accountability will be our criteria.

    They are isolated in Europe. We need to have influence over an EU development budget which accounts for 20 per cent of UK spend.

    Conference, as Ed Miliband has said, we believe now is the time for big global economic and social change.

    Growth which is sustainable, companies that are both profitable and responsible, meaningful agreements on fair trade and climate change, universal access to free healthcare, compulsory education and social protection.

    Global human rights with no exemptions for our allies. Women’s rights at the heart of conflict resolution.

    Decent work, decent labour standards for workers everywhere.

    And Conference, no more hiding places for the tax dodgers who steal from the poorest people and poorest countries in the world.

    And yes Conference, if these changes were to be made we believe poverty could be eradicated and aid dependency reduced by 2030.

    Replacing paternalism with dynamic partnerships between north and south, developed and middle income countries.

    Conference, a different vision, different values.

    Tony Blair and Gordon Brown didn’t provide leadership on the MDGs, debt and 0.7 to detoxify our brand.

    They did so because it is who we are. Social justice and human rights are the very reason for our existence.

    They are why we are Labour. For this movement now and through history, social justice has no borders, only new frontiers to be conquered.

    That is why today I am delighted to announce the party which created Sure Start in Britain will also be the party which champions the case for prioritising early years development across the world.

    I have asked Tessa Jowell, the founder and first Minister for Sure Start and architect of our great Olympic success, to lead a global campaign to ensure an integrated approach to the early childhood years is at the heart of the new post-2015 global development framework.

    I am delighted that Sarah Brown, Global Patron of the White Ribbon Alliance who has achieved such amazing progress on maternal health, has agreed to support Tessa in her new role.

    If all the evidence demonstrates investment in the earliest years makes the most difference to our children’s lives, the same evidence must surely apply to the health, education and parenting of the poorest children in the world.

    Conference, as staunch defenders of development we must also be reformers.

    Like any Government Department DfID is not immune from waste or poor decisions.

    Also, the more we focus our resources in conflict-ridden and fragile states the greater the risks we are taking.

    We should be honest about that.

    My value for money test will be what difference is our spending making to the poorest and whether it is contributing to an end to aid dependency long-term.

    And the development community, including our world leading NGOs, should be as passionate about how we spend the hard earned money of donors and taxpayers as they have been in campaigning for 0.7.

    Even the most radical development agenda in the world will be seriously undermined by inadequate progress in the fight against corruption.

    To coin a phrase, it’s time to get tough on corruption and the causes of corruption.

    I am determined that from day one of the next Labour Government we will have an effective new anti-corruption plan for the UK and a strategy for building a new anti-corruption coalition around the world.

    I am delighted that Hadeel Ibrahim of the Mo Ibrahim Foundation, renowned globally for shining a light on governance issues in Africa, has agreed to undertake a review on our behalf and to identify tangible action which will lead to real change.

    I am particularly keen UK diaspora communities have an input.

    The next Labour Government will be champions of development but also warriors for value for money and against corruption.

    Conference, I want to end by dedicating this speech to the women I met in Chad earlier this year.

    I felt a mixture of horror and admiration as I watched them beating anthills to extract the tiniest bits of grain to feed their family.

    They pleaded with me to make sure they would have enough food to give their kids one proper meal a day as yet another food crisis hit.

    They don’t get left from right, the different editorial positions of the Guardian and Daily Mail.

    They just want to be able to feed their kids.

    You and I joined this movement to change the world not explain the world as it is.

    So conference, for us, social justice will always have no borders, only new frontiers.

    Thank you.