Tag: 2013

  • William Hague – 2013 Speech at the British Chambers of Commerce AGM

    williamhague

    Below is the text of the speech made by the Foreign Secretary, William Hague, at the AGM of the British Chambers of Commerce. The speech was held at Central Hall, in Westminster, London, on 14th March 2013.

    It is a great pleasure to be here this morning. I am very grateful to the British Chambers of Commerce for all you do to promote UK business overseas, and for your excellent relationship with the Foreign and Commonwealth Office.

    Your campaign theme this year is ‘business is good for Britain’. And our Government could not agree more strongly. Business is not only good for Britain, it is part of what makes our country great.

    And when British companies succeed, Britain prospers. And it will be the enterprise, the ingenuity and the innovation of companies like yours here today that help to power our country out of difficult economic times.

    Now as a Government we are exerting every sinew at home and abroad to create the conditions for that success.

    And first and foremost this means, as you know, having the political courage to tackle our country’s problems head-on. That’s the only way to lay the foundations for real growth, not a mirage of growth.

    That mirage was the idea that growth can be built on consumption fuelled by debt and on government spending built on debt, and together with problems in our financial sector it dragged our country to the brink.

    Sustainable growth will only come from our country expanding its trade with the world, and being a magnet for inward investment from across the globe.

    Because as the Prime Minister says, we are in a global race for jobs and for wealth.

    We have to make extra efforts to maintain our prosperity, our standards of living, and sources of jobs for the next generation, and that is the Coalition Government’s defining purpose.

    The Foreign and Commonwealth is central to this effort. Foreign policy is not something separate to our domestic economic strategy; it is the other side of the same coin:

    At home, we have to strengthen the ability of UK business to compete by dealing with debts to safeguard low interest rates, rebalance our economy, cut business taxes and burdensome regulation, reform education so we turn out the brightest graduates and school leavers, reform welfare so it pays to work, and implement a modern industrial strategy to get behind the high growth industries of the future. We have to do all of that at home.

    But overseas, we have to equip business to take full advantage of these reforms by connecting them and the British people with the fastest-growing parts of the world: opening new Embassies, striking new relationships beyond our traditional alliances, seeking ambitious Free Trade Agreements that unlock billions of pounds of new commerce. We have to fight protectionism, we have to press for international regulation that is fair and evenly applied, and we have to tackle immense threats to our competitiveness such as those stemming from cyberspace. In all these areas our diplomats and staff are working as hard to support the British economy, they work as hard to do that as they do to defend Britain’s security in a turbulent world.

    Getting both things right – our strategy at home and our promotion of Britain overseas – is our national challenge. It is hard, there are no shortcuts. But it’s absolutely necessary.

    Today I want to emphasise five areas where this government is equipping and strengthening Britain to succeed in the 21st century: building stability, increasing UK competitiveness, boosting trade and investment, fighting for a global market that is fair and open, and investing in international security, including for business.

    First, ensuring stability is a necessary precondition to growth and competing in the global race. That stability comes from international confidence in our country’s ability to pay its way in the world.

    We can’t shy away from the scale of the debt problem facing Britain. The unsustainable build up of debt over the last decade meant that total household, corporate and public sector debt had reached five times the size of the entire economy – the biggest increase in recent times of any major economy in the world.

    When this Government came into office, Britain was forecast to have the largest budget deficit of any major economy and the highest outside the circumstances of war.

    That is why dealing with the deficit is an absolute priority, and in just two years, why we have brought down our deficit by a quarter.

    Of course, the scale of the global economic challenges that we face means that the task is more difficult than we thought. But the Moody’s downgrade was a stark reminder that we have to stay the course. By dealing decisively with our debt problem, we will increase overseas confidence in the UK economy and attract greater foreign investment to our shores.

    Second, we need to make Britain fit to thrive in a far more competitive international marketplace. To take just one example, Brazil, Russia, India and China now account for 20 per cent of world economic output. That figure has doubled in ten years, and is still rising.

    That is why we have cut small business taxes to encourage future entrepreneurs and support existing companies by reducing the burden of taxation. And so instead of sticking with the plan we inherited to put the small profits rate up to 22 per cent, we have cut it to 20 per cent.

    We’ve cut the main rate of corporation tax from 28 per cent to 24 per cent, and it is set to fall further to 21 per cent in 2014 – the lowest rate of any major western economy.

    We’ve reformed the planning system to favour growth and jobs, not delay and objection.

    We’ve increased annual investment in infrastructure, through year on year increases since the June 10 budget to £33 billion pounds, so it is now higher than the Labour plans we inherited.

    We have put a billion pounds into a Business Bank for small and mid-sized businesses.

    And as Foreign Secretary I see repeatedly in meetings with business communities abroad just how important they are to perceptions of this country as a place to start a business and to invest.

    That increased competitiveness is shown in the result of the recent KPMG survey, where in just two years the UK has gone from near the bottom to one of the most competitive corporate tax systems in the world; as well as the World Economic Forum competitiveness rankings, where we are up from 12th to 8th since 2010.

    Third, we need to convert this increased competitiveness into actual results by increasing our exports and overseas trade and taking advantage of immense opportunities in new markets.

    Of the $20 trillion of growth that the IMF forecasts in the world economy over the next five years, almost $13 trillion will be in emerging markets. And while long term forecasts are often wrong, as we all know, in a generation, China’s middle class is on course to be over three times the size of Western Europe’s, and by 2030, on current trends Central and Latin America’s middle class will be as big as North America’s.

    There are huge opportunities for British companies to produce the high-tech and luxury goods that these new consumers want to buy. And it’s the job of this Government to help companies do just that.

    One of my first acts as Foreign Secretary was to simplify dramatically the Foreign Office’s list of objectives. Before it had more than the people who worked at the Foreign Office could remember. We now have just three: protecting our security, supporting British nationals overseas and promoting our economy.

    By 2015 we will have opened up to 20 new Embassies, consulates and trade offices, and deployed 300 extra staff in more than 20 countries, particularly in Asia, Latin America and parts of Africa, so that Britain is linked up to the world’s fastest growing economies.

    And here in London and in all our 250 posts overseas we are focussed relentlessly on supporting jobs and growth alongside all our other responsibilities. I inherited a situation where commercial work was not part of some Embassies’ objectives. Now all Embassies support this work, except in those countries where there are sanctions that prevents such activity.

    We have increased training in economics and commercial diplomacy for Foreign Office staff, and are using programme fund investments to build stronger ties with government and societies in emerging markets, so that we strengthen our influence where it really counts.

    And we are taking a much more coherent and determined strategic approach to Ministerial visits to help expand Britain’s market share. And 22 visits to China and 21 to India in the last twelve months. The Prime Minister led an enormous trade delegation during his recent visit to India.

    This changing culture in the Foreign Office is helping to achieve results for British companies. Our engagement with Brazil on the back-to-back London and Rio Olympics, and their hosting of the 2014 FIFA World Cup, has already helped UK companies to win Olympics and World Cup contracts worth over £100 million; and successful lobbying from Foreign Office Ministers and officials led to Russia lifting – and I was celebrating this yesterday with the Russian Foreign Minister – a 17-year ban on imports of British beef, lamb and mutton.

    Our goods exports to the major emerging economies have also doubled since 2009 and, for the first time since the UK joined the Common Market in the 1970s, we now export more goods to countries outside the European Union than to countries inside it. Our bilateral trade with China is set to double to US$100bn by 2015, and is growing faster than our EU competitors, at 40 per cent a year over the past 2 years.

    So, we are moving in the right direction on these things, but we have a great deal more to do.

    We still lag behind European competitors in the market share of exports to emerging markets. In 2010, for example, Germany had 5 per cent of the Chinese market share compared to our 1 per cent, while for Brazil Germany had 7 per cent and the UK 2 per cent.

    And to close this gap, in the last Budget speech the Chancellor announced the launch of a new £1.5 billion export finance facility to support the purchase of British exports, as well as a 25 per cent increase in funding for UK Trade and Investment.

    British SMEs are currently less likely to export than their European competitors. Our ambition is to see as many as 100,000 more exporters by the year 2020.

    But we know that this will not happen unless SMEs have greater support from government, as well as from business organisations. That is why Lord Green is leading a new Chambers Initiative to increase that support significantly in 20 high growth and emerging markets. A stronger domestic network of business support organisations, matched by an effective overseas network working closely with our Embassies, will offer UK business a genuinely attractive mechanism for increasing export led growth in our economy.

    Fourth, we need to work constantly to ensure an open international environment that supports increased and more transparent trade. This starts in Europe, where we are working hard in the EU to complete the single market, address the crisis in competiveness, and conclude ambitious Free Trade Agreements with the US, Japan, Canada and India that will bring billions of pounds and millions of jobs potentially into the European economy.

    The Single Market is the core of the EU, but when it remains incomplete in services, energy and digital – the very sectors that are the engines of a modern economy – it is only half the success it could be. So we are pressing for completion of that, as well as urging the EU as a whole to address excessive and unnecessary regulation that holds back innovation.

    A comprehensive trade agreement between the EU and the US could boost the European economy by more than £75bn, which is more than any of the other trade deals currently underway. The EU and US account for about half of world GDP, and one third of global trade flows already. We are determined to use our Presidency of the G8 this year and our voice in the EU to secure an ambitious deal that will help break down the remaining trade barriers and bring benefits for businesses on both sides of the Atlantic, as well as boosting growth around the world.

    And our diplomatic network will continue to fight other barriers to trade such as corruption, disregard for intellectual property rights, and creeping protectionism, all of which threaten investment. We have to promote a rules-based system so that our companies can compete in foreign markets on an equal basis, and not with one arm tied behind their backs.

    That is why we are also using our G8 presidency to fight for freer trade, fairer taxes and greater transparency. We want the G8 to accelerate progress on fighting the evasion and aggressive avoidance of taxes that deprives governments of the revenue they need to provide public services, to ensure the rule of law, and stimulate investment and private sector growth. We also want the G8 to agree to ambitious new transparency standards for business, so that all companies play by the same rules.

    Fifth and finally, we are investing in international security to help combat threats to security which undermine trade and commerce, including terrorism, piracy and conflict. To take just one important example, only two years ago Somalia appeared locked in a downward spiral of violence and lawlessness, but last year we brought fifty countries together to secure new action on piracy and persuade that country’s political leaders to make progress on the ground. As a result, the number of ship hijackings off the coast of Somalia has halved in the last year, and a second Somalia Conference will be held later this year so that we can ensure that progress continues. Our diplomatic efforts to support a politically open and economically prospering Middle East and North Africa, to head off threats to security – particularly business security – in cyberspace, and to combat terrorism from Asia to the Sahel, all underpin a more secure environment for business and trade.

    So we are tackling our problems at home and using foreign policy to seek out new economic opportunity for our country.

    We have all the attributes for success as a nation. The openness, the inventiveness and the daring that is hardwired into us in Britain helps to explain why we are still the sixth largest economy in the world when we only make up 1 per cent of its population.

    And as Lord Green often reminds the Government, we export cheese to France, sushi to Japan, caviar to Russia, sand to Saudi Arabia and potato chips to America. Now this requires enormous ingenuity on behalf of British businesses involved.

    It will be talented and hardworking British people and companies who propel our country towards a prosperous future, and our government – as you can gather from what I have briefly described – will give them every support and assistance. We welcome your ideas: challenge us, criticise us and tell us how we can do more.

  • William Hague – 2013 Speech on Countering Terrorism Overseas

    williamhague

    Below is a text of a speech made by the Foreign Secretary, William Hague, on 14th February 2013 at the Royal United Services Institute.

    On January 16th a terrorist group linked to Al Qaeda in the Islamic Maghreb attacked a gas production facility in the Algerian desert.

    Thirty-nine hostages from nine countries died, including six British nationals. It was the largest and most complex attack affecting UK citizens since the 7/7 bombings.

    It naturally raises questions about the threat posed by Al Qaeda and its affiliates, and how we work with others to reduce that threat.

    The United Kingdom has a long experience of confronting terrorism, and we have some of the finest Intelligence Agencies and police forces in the world. They stop terrorists from entering our borders, they detect and stop terrorist attack plans, and prevent potential recruits from being radicalised. Thanks to their efforts there have been no successful attacks on our mainland since 2005.

    But unless our foreign policy addresses the circumstances in which terrorism thrives overseas, we will always fight a rearguard action against it.

    We will never give up for a moment of course our right to defend ourselves, including through military force if needed. But there is rarely, if ever, a purely military solution to terrorism.

    And we are in a long, generational effort to deny terrorist groups the space to operate, to help vulnerable countries develop their law enforcement capabilities, to address the injustice and conflict which terrorists exploit, and to combat their ideology.

    We must never forget that those who suffer the most are the citizens of countries blighted by terrorism and extremism: the women and children killed by Al Shabaab suicide bombings in Somalia; the girls who cannot go to school in Pakistan, because of Pakistani Taliban intimidation; or the communities devastated by Al Qaeda attacks in Iraq.

    Muslim communities are bearing the brunt of terrorism worldwide, at the hands of people who espouse a distorted and violent extremist interpretation of a great and peaceful religion.

    There can never be any justification for terrorism. The indiscriminate targeting of civilians is contemptible in any shape or form and our resolve to defeat it must never weaken or falter even for a day.

    But in standing up for freedom, human rights and the rule of law ourselves, we must never use methods that undermine these things.

    As a democracy we must hold ourselves to the highest standards. This includes being absolutely clear that torture and mistreatment are repugnant, unacceptable and counter-productive.

    Our bottom line is always that we are determined to uphold the law. Any allegation of UK complicity in the sorts of practices I’ve just mentioned must be investigated fully.

    So to tackle terrorism we need to combine creative work from our Intelligence Agencies and police with intelligent diplomacy. We have to help build stability and the rule of law in other countries, living up to our values at all times. And we need to make common cause with peoples and governments that reject this violence. This combination of intelligence, diplomacy, development and partnership with other nations is the only way to defeat terrorism over the long term. We must be resolved, decisive and principled.

    Twelve years after 9/11 the greatest source of the terrorist threat to the United Kingdom remains Al Qaeda and its ideology. But the nature of the threat has changed, in three principal ways:

    First, it is geographically more diverse. We face a determined ‘Al Qaeda core’ in Pakistan and Afghanistan’s border region, and multiple groups inspired by Al Qaeda in the world’s most fragile regions.

    Al Qaeda in Pakistan is diminished and under severe pressure. Nonetheless, it is still capable of devising sophisticated attacks. As in other parts of the world, it exploits the presence of those Westerners drawn to the region for extremist purposes, and it abuses diaspora links, including to the UK, which are in other ways such an asset to our country. At the same time Al Qaeda affiliates in Yemen, Somalia and other parts of Africa are capable of mounting dangerous attacks. Al Qaeda in the Arabian Peninsula has attempted multiple attacks on aircraft that would have caused mass casualties if they had been successful, such as the attempted printer cartridge bomb.

    Second, the threat is more fragmented. Al Qaeda does not control a franchise of groups all operating to the same agenda, however much they would like us to think this. We should not make the mistake of overstating their support or coherence. Al Shabaab in Somalia for example ranges from those who object to the presence of African troops and aspire to establish an Islamist state, to others seeking ‘a greater Somalia’ in the region, to foreign fighters who regard Somalia as a platform for global terror. However, this fragmentation of the threat means that each group has to be tackled separately and across a far wider area, making for a more complex effort and difficult choices about the prioritisation of resources.

    Third, terrorism today is based even more closely on the exploitation of local and regional issues. Terrorists are constantly searching out new areas where they have the greatest freedom to plan external attacks. They take advantage of unresolved conflicts to infiltrate local communities who otherwise would be likely to reject them. In this way, like a virus, the threat spreads where local defences are weakest.

    For example, since its emergence as an Al Qaeda affiliate in the middle of the last decade, Al Qaeda in the Islamic Maghreb has exploited a sense of exclusion amongst the Tuareg people across the region. From northern Mali they plan and conduct terrorist operations, kidnapping foreigners for ransoms to fund their activities. Before the intervention of France we faced the prospect of the Malian state being destroyed by terrorists.

    The Arab Spring revolutions were a grievous blow, of course, to extremist ideology. The idea that that change can be accomplished by the people of a country demanding political and economic freedom contains the seeds of Al Qaeda’s irrelevance.

    Creating the building blocks of stable democracy – the rule of law and the independence of the judiciary, constitutions that respect the rights of women and minorities, security forces that can maintain order without repression, and economic development – all takes a long time.

    The assassination of an opposition leader in Tunisia and the attacks on the US consulate in Benghazi demonstrate the security challenges in Arab Spring countries. And that is why we are providing the new Libyan government with advice and technical assistance on police and defence reform, public security, and building justice systems that protect human rights.

    We should not lose faith in the people of the region. Any suggestion that the repression of the past would somehow be better for the region is wrong. The worst outcome of all would be a lapse back into authoritarianism or conflict. There is no substitute for painstaking work to build a new political order, so we are also devoting £110 million through our Arab Partnership Initiative to civil society and economic reform in the region.

    But in the short term extremists and terrorists will take every opportunity to try to hijack these revolutions. Syria is the most acute case of all.

    The vast majority of people opposing the Assad regime are Syrians, fighting for the future of their country. But Syria is now the number one destination for jihadists anywhere in the world today. This includes a number of individuals connected with the United Kingdom and other European countries. They may not pose a threat to us when they first go to Syria, but if they survive some may return ideologically hardened and with experience of weapons and explosives. The longer the conflict continues, the greater this danger will become, a point that should not be lost on policy makers in Russia and elsewhere. More innocent lives will be lost, extremists will be emboldened, sectarianism will increase and the risk of the use of Chemical or Biological Weapons will grow.

    A negotiated agreement leading to a new government formed of the opposition and elements of the regime, on the basis of mutual consent, is the best way to chart a way out of Syria’s divisions. We want Russia and China to join us in achieving this transition, backed by the United Nations Security Council.

    But there is a serious risk that the violence will worsen and we must keep open options to help save lives in Syria and to assist opposition groups that are opposed to extremism. So we are working with other European countries now to amend EU sanctions so that the possibility of additional assistance is not closed off.

    We also believe the EU must also take robust action in response to the terrorist attack on a bus carrying Israeli tourists in Bulgaria last year. The Bulgarian investigation has indicated that Hizballah’s military wing was responsible. The European Union must demonstrate that no organisation can carry out terrorism on European soil without consequences.

    And as we work to eliminate safe havens for terrorists further afield, we must be clear that no state should allow terrorist groups to operate from its territory and that terrorism as a tool of foreign policy is always unacceptable.

    If we know that the threat we face from terrorism is likely to come from a wider range of fragile countries; that plots against the United Kingdom are frequently prepared overseas; and that we cannot disrupt such plots without working with nations where the risk originates, then a long term, coordinated international approach is the only way we can defeat terrorism.

    The Government’s counter-terrorism strategy, CONTEST, combines a full range of international and domestic responses, ranging from the overt to the covert, from security to development, through to working with our communities at home.

    We have maintained and where necessary increased police, intelligence and other counter terrorist capabilities.

    We are ensuring that we have the powers in place to detect, investigate disrupt and prosecute terrorist activity through legislative changes, and we have made significant improvements at our borders to reduce threats to their security and to civilian aircraft.

    We are also making continuous improvements to improve the complex, coordinated response needed from our police, agencies and emergency services if acts of terror do take place, learning lessons from attacks such those in Mumbai in 2008, in Norway in 2011 and in Toulouse in 2012.

    In the 12 months leading up to July last year, more than 220 people were arrested in the UK for terrorism-related offences, so the threat from home grown terrorism remains challenging. So we also work to prevent people from becoming terrorists or supporting terrorism. This includes resisting the efforts of those who actively seek to stoke tensions with Muslims in Britain. The Government and all communities need to continue to work together so that we can reject messages of division, hate and extremism, wherever they originate.

    But a large part of our effort to counter terrorism is now overseas where terrorists train and plan for attacks against the UK or our interests abroad. We cannot do this without working with other countries.

    First of all, we must address the conditions in which terrorism thrives, whether it is restarting the Middle East Peace Process or intensifying our conflict prevention work to help fragile countries become more stable and secure.

    Helping Somalia is a major priority for our government. Two years ago Al Shabaab controlled large parts of the country, piracy was booming and the threat from terrorism was growing. Today, a coordinated effort by the international community has seen African and Somali troops drive Al Shabaab out of its strongholds; the creation of a new and legitimate government; and the reduction of piracy to its lowest levels since 2008. In May, there will be a second conference here in London to plan support to rebuild Somalia’s armed forces, police, coastguard, justice system and public finances.

    We must never assume that what works in one country will work exactly in another. But the key features of what is working in Somalia are helping a new legitimate government, African troops bringing peace and security, with the international community giving constant diplomatic, financial and humanitarian support.

    This should be the model that we follow elsewhere in Africa wherever we can, including in Mali, where a full and inclusive democratic process, including talks with non-violent groups in the north and support for Malians to rebuild their livelihoods, is urgently needed. As a country we give generous humanitarian assistance to countries affected by conflict, including £13 million in Mali, £55 million in Yemen and £80 million in Somalia, in the current financial year.

    We must also strengthen the ability of states to counter terrorism, while protecting human rights, as called for by the UN. This is extremely difficult and challenging work, since the threat from terrorism is greatest in the countries where the rule of law and human rights are weakest.

    And that is why today I wish to set out a clear direction the Government will follow over the coming years.

    When we detect a terrorist plot originating in a third country, we want to be in a position to share information to stop that planning, and do it in a way that leads to the arrest, investigation and prosecution of the individuals concerned in accordance with our own legal obligations, and with their human rights respected at every stage.

    This gives rise to extremely difficult ethical and political decisions, such as whether to pass on information which might save lives and disrupt an imminent attack, but which could also create a risk of someone being mistreated if detained.

    Our Secret Intelligence Service has the lead responsibility for sharing intelligence with foreign partners on terrorist threats. Requests to share intelligence in these difficult and finely-balanced circumstances come to me.

    Where there are serious risks, it is right that it is the Foreign Secretary who takes the ultimate responsibility for these decisions, just as it is right that our Parliament and ultimately the Courts hold government to account.

    In many cases, we are able to obtain credible assurances from our foreign partners on issues such as detainee treatment and legal processes that give us the safeguards we need, and the confidence that we can share information in this way. Where this is not the case, we face a stark choice. We could disengage, or we can choose to cooperate with them in a carefully controlled way while developing a more comprehensive approach to human rights adherence. This approach brings risk, but I am clear that the risks of the first option, of stepping back are greater still, placing our citizens at greater risk of terrorist attack.

    The need to cooperate with other countries is growing for all the reasons I have described. So I am convinced that we need to have a coherent approach that is sustainable for the long term, that upholds our laws and has safeguards, and that works to strengthen the ability of other countries to observe human rights and meet their own obligations. How we go about this will have to vary from country to country depending on the scale and nature of the challenge. But we will seek justice and human rights partnerships with countries where there is both a threat to the United Kingdom’s security, and weaknesses in the law enforcement, human rights and criminal justice architecture of these countries.

    These are not one-off initiatives or stand-alone agreements, but rather – as the name suggests – a systematic process of working with the authorities in question to identify shortcomings in capability, and to address these through the provision of British assistance and expertise, over many months or years.

    The sorts of measures we will take include:

    – Building up the counter-terrorism capacity of overseas security services to improve compliance with the law and human rights and to make them more effective;

    – Working with local investigators to improve the ability to build cases based on evidence rather than on confessions;

    – Supporting prosecutors and judges to ensure that they are capable of processing terrorism cases through the court systems, effectively, fairly and in line with the rule of law;

    – And working to improve and where appropriate monitor conditions in detention facilities so that convicted terrorists can be held securely and their treatment meets with international standards.

    We are already doing many of these things. In Somalia for example, we are already working with the UN Office on Drugs and Crime to construct prisons to hold convicted pirates in facilities that meet international standards.

    What I am making clear today is that given the changing nature of the threat I have described, and given our determination to uphold human rights and the law, we will be doing more of this and developing more of these partnerships.

    But crucially we are creating a strong and systematic framework for this work, with strong safeguards, with five safeguards:

    First, we will only engage in such efforts where there is serious and potentially long-running threat to the UK or our interests abroad, such as that flowing from terrorist networks in South Asia, Yemen, and parts of North and West Africa.

    Second, all our counter-terrorism capacity building work will be carefully considered in line with our Overseas Security and Justice Assistance Guidance in order to assess and to mitigate human rights risks, and specifically designed to improve human rights standards and strengthen the rule of law in that country.

    Third, it will not be carried out in isolation, but will be part of UK and international diplomatic and development efforts in that country.

    Fourth, the intelligence dimension will be subject to the same robust scrutiny and oversight that exists in other areas of Intelligence activity and always be in accordance with the law.

    Fifth, every aspect of this work requires Ministerial oversight and approval. If I or another responsible Minister see any credible evidence that our support is being misused we will take immediate action. Any work that would involve breaking our legal obligations simply would not go ahead.

    So this is a framework of accountability and human rights to ensure that our counter-terrorism work supports justice and the rule of law as well as our security, with the goal of creating the long term conditions for better observance of human rights in countries that have a poor record and where the threat from terrorism is strong.

    We believe that the British people can have confidence in this framework; that it puts UK capacity building overseas onto a surer footing; and that it will give greater confidence that UK and international law and our democratic values are upheld. Even with these safeguards in place, there may be some people who say that this approach is wrong.

    But we cannot keep our country safe if we are not cooperating at all with countries that don’t fully live up to our standards. Only a minority of countries in the world do that. We have to work with other countries. Justice and human rights partnerships will be a powerful framework for doing so.

    Without such partnerships our ability to tackle threats before they reach the United Kingdom would be severely limited. And there are good arguments that by introducing important legal and human rights concepts and professional ways of tackling terrorism, and by insisting on the highest standards ourselves, we can encourage better human rights observance in those countries.

    Achieving security, justice and advances in human rights together will not always be straightforward and despite our best efforts we may not always succeed. But it will always be our aim.

    This is consistent with one of our first acts as a Government on this issue, which was to issue Consolidated Guidance to Intelligence Officers and Service Personnel on the Detention and Interviewing of Detainees Overseas, to ensure their actions uphold our domestic law and our international obligations. Additionally the Prime Minister also asked the Intelligence Services Commissioner to oversee compliance with the Guidance.

    We are also taking steps to strengthen Parliamentary scrutiny and oversight of the agencies through the Justice and Security Bill currently being considered by Parliament. This also aims to ensure, where strictly necessary, that judges in civil cases relating to matters of national security will be able to consider all relevant material, including sensitive material, to ensure that justice is done while upholding national security. The objective is not to hide away the actions of the most secret parts of the State, but precisely the opposite: to strengthen their accountability and public confidence in them as they go about their difficult, dangerous and necessarily secret work.

    Few if any countries have a stronger system of clear guidance, Ministerial decision-making, and strength of legal considerations in the area of counter-terrorism than we do. We are a world leader in upholding the highest possible standards.

    But we are also a country that needs to be able to keep people safe and that is threatened by many who would do great harm to our citizens. Therefore we also intend to be foremost in the world in how we develop partnerships that are effective in protecting our security while upholding human rights. Far from being contradictory, these two concepts go together.

    In tackling terrorism overseas we must approach the world as it is, rather than as we would like it to be. But that does not mean that we should not try to shape it and improve it and, when necessary, find means of working with others in ways that are consistent with our values: the very values which terrorism is intent on destroying.

    So this is our government’s approach to tackling terrorism overseas:

    Governments, agencies, police and prosecutors working together in a coherent, long term manner to address immediate threats from terrorism and the causes of terrorism;

    Combating terrorism while upholding our values, within a framework of strong democratic accountability, seeking greater respect for human rights in other countries;

    And using foreign and development policy to build stability in fragile countries.

    This is how we enable the greater global cooperation that is essential to eliminating the risk from international terrorism over time, and support a safe, secure and prosperous future for our country.

  • 2013 Government Statement on Libya

    Below is the text of the speech made on behalf of the UK to the Security Council on 14th November 2013.

    Mr President,

    Let me thank the Prosecutor for her report and briefing on the situation in Libya.

    The United Kingdom has been concerned by the ongoing difficulty in Libya’s internal political situation since the Prosecutor delivered her last report. These challenges are, to some extent, to be expected after four decades of misrule. Security and justice sector reform is, however, more critical now than ever before if Libya is to rebuild its state institutions and return to stability in the aftermath of the revolution. We, along with our international partners, remain committed to working with Libya to provide it with the support it needs to meet the serious challenges it faces.

    Mr President,

    We welcome ongoing efforts to investigate, and bring to justice, all those who are guilty of war crimes and crimes against humanity since 15 February 2011. We particularly welcome the signing of the memorandum of understanding between the Office of the Prosecutor and the Government of Libya on burden-sharing in further investigations and prosecutions and hope swift progress can be made on its implementation.

    The United Kingdom welcomed Libya’s positive response to the recommendations made in the UN report on torture and deaths in detention in Libya. We echo the Office of the Prosecutor’s call upon the Libyan Government to fully implement its April 2013 law criminalising torture, enforced disappearances and discrimination. We also share their concerns about Libya’s slow progress on processing detainees. We echo calls for Libya to work closely with the UN and ICRC to help independently confirm the screening and processing of detainees, releasing those against whom there is little or no evidence and submitting the remainder to trial. In doing so, we believe that this will help to establish confidence in the Libyan justice system.

    We fully support the ongoing investigations in relation to gender crimes and in relation to the situation of internally displaced persons, including Tawerghans. These efforts continue to play an important part in challenging impunity and ensuring accountability for those who bear the greatest responsibility for the most serious crimes. We urge the Libyan Government to resolve this situation as quickly as possible.

    Mr President,

    The United Kingdom is grateful for the update from the Prosecutor on the cases of Saif al-Islam Qadhafi and Abdullah Al-Senussi. We note in particular the recent decision of the Pre-trial chamber of the ICC that the Al-Senussi case is to proceed in Libya.

    The UK supports the right of Libya to hold national trials for crimes committed within its jurisdiction; any action must be taken in line with the decisions of the ICC. Detention must be in accordance with international law, including access to legal advisers, and trials must be consistent with Libya’s international human rights obligations. We encourage Libya’s full cooperation with the Court on the Saif al-Islam Qadhafi and the Abdullah Al-Senussi cases. Mr President, The United Kingdom continues to be a friend of Libya and a supporter of the ICC. We look forward to future cooperation between Libya and the Court as Libya works to return to stability in the aftermath of revolution.

    Thank you, Mr President.

  • Michael Gove – 2013 Speech on the Civil Rights Struggle of Our Time

    michaelgove

    Below is the text of the speech made by Michael Gove, the Education Secretary, to the Mayor of London’s Education conference on 22nd November 2013.

    Today marks the fiftieth anniversary of John F Kennedy’s assassination – and the death of a president who promised so much for the people of America.

    It also – of course – marks the fiftieth anniversary of Lyndon B Johnson’s assumption of presidential office. LBJ’s initials do not inspire the affection in our memories that JFK’s do. But whatever else he did – and did not – do President Johnson achieved something both wonderful and powerful in office – he passed the civil rights legislation which at last allowed African-Americans the opportunity to take their place alongside white Americans as equal citizens of their republic.

    When we look at America’s story the crimes of slavery, the horrors of Jim Crow, the ugliness of segregation are all – mercifully – in the past.

    But even now – 50 years after Kennedy died, 50 years after Martin Luther King’s I have a dream speech, 150 years after Lincoln declared in the Gettysburg address that all men are created equal, there is still terrible inequality in America.

    Black children face a tougher fight than others to get up and get on – they are less likely to succeed, more likely to fall on hard times.

    As President Obama has pointed out – the struggle for civil rights goes on. And the arena in which that fight is fiercest is education. Because black children are less likely to graduate from high school, less likely to go to college and less likely to graduate from college than their peers, their futures are blighted and their horizons are narrower. That is why Barack Obama has said that school reform is the civil rights struggle of our time.

    That is why he has championed reforms which create more charter schools, like our academies here, which demand minimum standards for every child, like our national curriculum tests here and which reward great teachers more generously, as our pay and conditions reforms do here.

    He has been joined in that fight by African-American political leaders like Cory Booker – the newly-elected senator from New Jersey who was mayor of Newark – and Deval Patrick the highly successful 2-term governor of Massachusetts. Other Democrat leaders in cities with large African-American populations – like Rahm Emanuel – have prosecuted the struggle with rare political courage. And Republican leaders who take their heritage as Lincoln’s heirs seriously are in the fight too – which is why Jeb Bush secured so much support across all ethnic communities in Florida and why Governor Chris Christie won by a landslide in New Jersey.

    I’m lucky enough to have met many of these politicians – and I admire their commitment to social justice.

    The challenge for Britain

    Just as I admire the commitment of politicians – across party lines – in our country who are dedicated to advancing opportunity through education. Whether it’s David Laws or Andrew Adonis, Tony Blair or Boris Johnson.

    Because we need to fight more energetically for social justice in this country just as they’re doing in America.

    We too have anniversaries that should spur us to new action.

    Sixty-five years ago, the Empire Windrush landed at Tilbury, Queen Elizabeth I’s old stomping ground – carrying to these shores the first West Indian immigrants, hoping to start a new life.

    Sixty-five years on – we have to ask – have we fulfilled our promise to those new Britons?

    Twenty years ago, Stephen Lawrence was brutally murdered on a London street by a gang of racist thugs – one of the darkest episodes in the history of race relations in this country.

    Twenty years on – we have to ask – have we created a truly colour-blind society in which every single child in this country, no matter what their background, no matter what their ethnicity, is given an equal opportunity to succeed?

    I don’t believe we have – yet.

    But I do believe we are getting there – making progress – and making progress because this government is committed heart and soul to the civil rights battle of our time – the fight to give every child a great school.

    For too long, there have been shocking, stubborn gaps in attainment between children from black and minority ethnic backgrounds and their peers.

    These things are never simple, either to observe, or to fix.

    But even as we can identify many different factors at work, one huge reality remains. The gaps in achievement between BME children and their peers have been far too large for far too long.

    At key stage 1, black children show the lowest proportion of pupils achieving the expected level in reading, writing, maths and science.

    At key stage 2, a smaller proportion of black pupils than of any other ethnicity achieve the level we expect to see in English and maths – a full 3 percentage points below the national average. In fact, there is a staggering gap of 14 percentage points between black pupils and the top-performing ethnic groups in terms of how many children achieve a level 4 or above in maths.

    At age 16, almost 3 in 5 pupils in the country as a whole achieved 5 or more A* to C grade GCSEs or equivalent including English and mathematics last year. But only around half of all black pupils managed to do so.

    At age 18, fewer black pupils than the national average achieve 2 or more A levels or equivalent qualifications.

    And although 8% of all pupils studying at this level in 2009 to 2010 went on to a Russell Group university, the equivalent figure for black pupils was only 5%.

    Of course, the challenges faced by BME children are all the greater when they come from materially deprived backgrounds.

    We already know that children from disadvantaged backgrounds fall further behind as they move through school.

    But the problem is particularly acute for black Caribbean boys. Boys from a black Caribbean background who are eligible for free school meals have been among those suffering from the worst academic performance.

    Of course, there is no single change we can make that will instantly transform the education of disadvantaged or minority ethnic children.

    That is why this government is determined to radically reform the whole school system.

    We are determined do everything we can to make sure that every child, from every background, is given an equal opportunity to succeed.

    Over the last 3 years, this has been our top priority.

    By giving schools independence and autonomy so that heads and teachers are free to support and challenge all pupils, including ethnic minority pupils, to achieve their full potential.

    By embedding higher standards, and higher aspirations, in a new national curriculum and new accountability measures.

    By raising the quality of teaching and raising the bar for new entrants to the teaching profession.

    And by finally rejecting the soft bigotry of low expectations which has governed education for too long – by refusing to accept that children from poorer homes can’t be expected to do just as well, to achieve just as highly, as their wealthier peers.

    School reform extending opportunities

    One of the first education reforms we put in place was the Academies Act – which gave many more schools the chance to enjoy greater freedoms.

    When this government came to power, there were just 203 academies. They’re schools with all the freedoms of independent schools – but in the state sector – free to all. They’re free to innovate in every area, to recruit and reward the best staff, and to tailor their curriculum, school day and year to suit pupils and parents.

    In the last 3 years on, the number of open academies has grown from 203 to 3,444 – with many, many more in the pipeline.

    These new schools are already teaching more than 2 million pupils.

    And a crucial – and often-overlooked – fact is that academies are specifically benefitting those BME pupils who most need new educational opportunities.

    Many academies have far higher levels of BME pupils than the rest of the state sector, both at primary and secondary.

    Almost 40% of pupils in primary sponsored academies come from minority ethnic backgrounds, compared to just 28.5% in all state-funded primaries; and 30.0% of pupils in secondary sponsored academies from minority ethnic backgrounds (compared to 24.2% in all state-funded secondary).

    In some schools, the numbers are even higher.

    Like Harris Girls’ Academy in East Dulwich – a school in a disadvantaged area where the proportion of students known to be eligible for free school meals is more than twice the national average; almost half of students speak English as an additional language; and around 85% are classified as coming from minority-ethnic groups, mostly black Caribbean or black African.

    Yet at its last Ofsted inspection, the academy scored outstanding in all categories – and the value added scores show that students make more progress at Harris Girls’ Academy East Dulwich than at 99% of other state schools in England.

    In fact, across all 27 Harris academies – set up by Lord Harris of Peckham, a Streatham boy who is determined to transform London education for the better – 44% of last year’s GCSE cohort came from black or minority ethnic backgrounds (double the figures in 2012 across the country as a whole – just 22%) and 31% just from black backgrounds (almost 10 percentage points higher than the equivalent figure for London in 2012 and fully 6 times as many as across the country as a whole in that year – where the proportion is just 5%).

    ARK academies – another of this country’s leading chains – have similarly high BME levels.

    In recent years the results of sponsored academies like these have gone up faster than other state-funded schools.

    Their performance has continued to improve this year, in fact the longer they are open the better on average that they do.

    And BME pupils in sponsored academies outperform pupils from similar backgrounds in comparable local authority maintained schools.

    Last year, for example, the proportion of mixed race pupils achieving 5 or more good GCSEs or equivalent (including English and mathematics) rose by just 1.3 percentage points nationally; but by 5.7 percentage points in sponsored academies.

    Earlier I mentioned Harris Girls’ Academy in East Dulwich, where around 85% of pupils are classified as coming from minority-ethnic groups. But this year, figures provided by the school show that 67% of all pupils got 5 good GCSEs including English and maths, 7 percentage points above the national average of 60%.

    And across all ARK academies, the school’s own figures show that 58% of black children achieved at least 5 GCSEs at A* to C including English and maths – above the national average for all black children.

    So the numbers are clear. Sponsored academies have higher proportions of black children than other state schools – and black pupils’ results are improving faster in those academies than in comparable LA maintained schools.

    That’s why the academies programme is a major step forward for racial equality in this country.

    It’s bringing high standards and high expectations – the sort of education traditionally available only to the privileged – to those children who have historically been left behind.

    And in free schools…

    Our free schools programme is another powerful route to greater opportunity for more disadvantaged children.

    Free schools are entirely new schools, set up by dedicated and passionate teachers, parents, local communities and charitable organisations in communities often poorly served for generations.

    In the last 3 years, 174 free schools have opened and over 100 more are in the pipeline.

    What’s more, almost half (44%) of all those free schools open so far are located in the 30% most deprived communities in this country.

    These new schools are bringing choice to parents who can’t afford to pay a premium for a house in a prized catchment area.

    And they are offering higher standards – free schools are outperforming the rest of the maintained sector. Three-quarters of the first cohort (those open in September 2011) were rated good or outstanding by Ofsted under its tougher new inspection framework. Just 64% of maintained schools inspected under the same inspection regime achieved that.

    And free schools achieved that level of success starting from scratch – indeed over the same period only 50% of new local authority schools were rated good or outstanding.

    But most important of all, just like academies, free schools are catering disproportionately to BME pupils, with higher proportions of BME pupils than the national average – and, often, higher than the average for their local area.

    Overall, 40% of pupils in all mainstream free schools for which we have figures come from minority ethnic backgrounds – compared to a national average in mainstream state schools of 26%.

    And the proportion of BME pupils is often disproportionately high in free schools, even compared to other neighbouring schools.

    In Krishna-Avanti Primary School in Leicester, the proportion of minority ethnic pupils is more than 33 percentage points higher than in the local authority as a whole; in Rainbow Primary School in Bradford, the proportion of minority ethnic pupils is more than forty-one percentage points higher than in the local authority as a whole.

    And there are examples here in London too.

    At the Greenwich Free School, where all children study politics, philosophy and economics and ICT has been replaced with computer programming, 53% of children are from minority ethnic backgrounds.

    At Peter Hyman’s School 21 in Newham, where science classes start in Reception and extra curriculum time is devoted to ensuring all pupils leave with exceptional English language skills, 71% of children are from minority ethnic backgrounds.

    Nine in 10 pupils at the Aldborough E-ACT Free School in Redbridge and the Woodpecker Hall Primary Academy in Enfield are from a minority ethnic background – higher than in both respective local authorities.

    Using a rigorous curriculum

    What all these successful schools demonstrate is the importance of high expectations – specifically the vital importance of a rigorous and demanding academic curriculum for every child.

    Children of every ethnicity and every socio-economic group – not just those in the most expensive schools, or in the most wealthy communities – have an absolute right to be introduced to the best that has been thought and written.

    Every child should be able to enjoy the type of knowledge-rich, subject-specific curriculum which gives them the best possible preparation for university, apprenticeships, employment, and adult life.

    That means physics, chemistry and biology not play-based learning, project-work and an anti-knowledge ideology.

    Every child should have the chance to read great literature – from Charles Dickens to Derek Walcott – appreciate great music – from Ludwig van Beethoven to Jelly Roll Morton – and enjoy great art – from Poussin to Basquiat.

    Because these great creative figures help us understand the human condition – they appeal to the emotions and the sensibilities we all share as one human race – and they are the legacy our civilisation has bequeathed to us all.

    And every child should have the chance to acquire the proper rigorous qualifications that our best employers and academics value.

    Far from such an insistence being oppressive and reactionary it is liberating and progressive.

    But don’t just take it from me – listen to Diane Abbott, the Labour MP for Hackney North and Stoke Newington and one of this country’s most active and most respected BME campaigners, has said:

    An emphasis on rigorous education and on obtaining core academic subjects is not, as is sometimes argued, contrary to the interests of working class children, and of black and minority ethnic children.

    On the contrary, precisely if someone is the first in their family to stay on past school-leaving age, precisely if someone’s family doesn’t have social capital, and precisely if someone does not have parents who can put in a word for them in a difficult job market, they need the assurance of rigorous qualifications and, if at all possible, core academic qualifications.

    I couldn’t have put it better myself – giving every child the chance to enjoy a traditional academic education is the most powerful lever for greater social mobility and racial equality we have.

    And monitored by tighter accountability

    We want to make sure that as many pupils as possible benefit from new opportunities.

    Which is why in our reform of the way we hold schools accountable for results, we’re focusing particularly on the attainment of pupils who’ve been overlooked for too long.

    Schools will be expected to close the gap in attainment between children from the most disadvantaged backgrounds and their peers.

    We’ve introduced a new secondary accountability system which will no longer concentrate just on the proportion getting 5 GCSEs at A* to C – a flawed approach which perversely incentivised schools and teachers to narrow their focus to just a few subjects and just a few pupils on the C/D borderline.

    From 2016, every school will be judged on the progress students make in a combination of 8 subjects (3 from the EBacc, maths and English and 3 other). This will mean that schools in poor areas, which achieve great results for their pupils, get particular credit. It will recognise achievement across all grades, not just between a C and a D – incentivising schools to focus on high-flyers and low-attainers alike. And it will encourage schools to offer (and pupils to study) a broad, balanced range of subjects, including the academic core which is the best possible preparation for employment and further study.

    That academic core is the subjects contained in the English Baccalaureate, or EBacc – our new measure looking at how many young people study at least 5 of the essential academic subjects: English and maths, the sciences, foreign languages, history and geography.

    Figures from 2012 show that black children were less likely to achieve or enter for the EBacc.

    In the country as a whole, 23% of children were entered for the EBacc – but just 18% of black pupils. Sixteen per cent of young people in the country achieved it; just 11% of black children.

    But across the whole system, the EBacc has seen the number of children studying those subjects starting to rise.

    These increases will help drive up the number of black pupils studying these subjects, in turn – meaning that more BME children leave school with the subjects most prized by employers and universities.

    And in London – under the leadership of the mayor – those schools which have the very best record in raising standards for disadvantaged and BME children have been recognised and charged with supporting others to improve. The Mayor’s Gold Club of outstanding schools is a rare – and welcome – example of principled leaders in local government not just accepting the higher standards we have been setting in Whitehall but raising the bar even higher. The beneficiaries of this ambition are the poorest and most disadvantaged children of London – especially those from BME backgrounds.

    Driving forward racial equality

    Since this government came to power we have seen the achievements of black and minority ethnic children improve.

    At primary school, the proportion of black children achieving level 4 in maths has risen from 75% in 2010 to 80% in 2012 – narrowing the gap with all children.

    And at secondary, the proportion of black children achieving 5 A* to C including English and maths has risen from 49% in 2010 to 55% in 2012 – narrowing the gap with all children from 6 percentage points down to 4.

    We have seen more schools than ever before – with more freedoms than ever before – transform the lives of more BME children than ever before – by giving them the sort of opportunities which were once restricted to a privileged few.

    But there is more – much more – still to do.

    That is why it is so welcome that the Mayor of London is not just driving up standards for BME children through the Gold Club – but also helping us to establish new free schools in areas of deprivation and disadvantage.

    That is why it is so welcome that more great educators from within the BME community – Lindsay Johns who works with Leaders of Tomorrow – Dr Tony Sewell of Generating Genius, Devon Hanson of Walworth Academy, and Katharine Birbalsingh who is setting up the new Michaela Community School in Brent – have been given the opportunity to help more young people thanks to our reforms.

    And that is why we must not allow the pace of our reform programme to slacken.

    Why we must not succumb to what Martin Luther King called the tranquilising drug of gradualism.

    Because we have it in our power – in this generation – to fulfil the dream of equality which has inspired so many of the great heroes whose memories we cherish this week.

  • Michael Gove – 2013 Speech on Labour and the Trade Unions

    michaelgove

    Below is the text of the speech made by the Education Secretary, Michael Gove, on 27th August 2013.

    Earlier this month, in the very quietest days of summer, if you listened very carefully you could hear a very distinctive sound – the gentle but unmistakable thump of the cat being let out of the bag.

    It happened on August the eleventh in an article written by the former trade union staffer and Labour party worker Dan Hodges. Dan had been asking around to see what was foremost on Labour minds. What were the party’s priorities.

    Was it the economy, given the case for Labour’s policy of more borrowing and more debt has been utterly demolished as recovery takes hold? Nope.

    Was it welfare reform, given how hard Labour need to think again having opposed every single one of our changes to fix the tax and benefit system so that it rewards hard work? No sirree.

    Education, maybe, given how tortured the party’s position is on free schools, how incoherent it is on exams and the curriculum, how confused on vocational education and how hopeless on helping poorer students? No, ‘fraid not.

    Was it health then, or immigration, or crime, or childcare, or Europe or defence or the future of the Union? No, not exactly.

    Labour’s principal preoccupation, according to a source within Team Miliband was – in two words – “the unions”.

    And I think I know why.

    Because Ed Miliband – in his weakness and lack of leadership – has set in train a process which will give the unions more power over his party, more power over its people, more power over its policies, more power to shape its propaganda, more power to shift its campaigning – more power to hurt hard-working people.

    And Ed Miliband also knows that the only way to even begin to mitigate that growth in union muscle is to tax hard-working people more to pay for his speechwriters, his spin doctors, his conferences, his party political broadcasts, his party political literature, his regional organisers, his constituency organisers, his national policy fora, his regional policy roadshows, his plane fares and his train tickets, his entourage and all its expenses.

    I’m speaking out today because I believe there is an honoured place for trade unions, a vital place for a healthy opposition and a growing appetite for political reform.

    But at the moment unions are in the wrong place, the Labour party is in the wrong place and we’re being offered the wrong sort of reform.

    I speak as someone who was a union member, who took industrial action on principle and who was sacked for going on strike.

    The principles behind our strike were honourable – the aim was to secure appropriate union recognition in the workplace.

    But the decision to go on strike was a mistake and better men and women than me lost their livelihoods and sacrificed the careers they loved. The decision to push for strike action was a decision of our union’s national leadership – which saw us as footsoldiers in its bigger battle. And – as footsoldiers often do – we paid the price.

    Well led, unions can provide employees with effective representation, advice on workplace issues, legal protection and other services.

    Poorly-led, union leaders use their members to fight ideological battles – often driven by the unrepresentative passions and ideologies of those who clamber onto the union’s executive.

    As I know all too well in the field of education, teachers unions vary from the well-led and professional – like the NAHT and ATL – to others which almost automatically oppose every reform which will raise standards and help children.

    At the moment the two biggest teachers’ unions are engaged in industrial action – working to rule, regional strikes and a proposed national one-day strike which makes life more difficult for hard-working parents, force them to pay more for childcare, disrupt children’s earning and make the job of every head more difficult.

    They impose these costs on others because they object to changes which will lead to good teachers being paid more and all teachers being given the help they need to improve, with the worst teachers being moved on. They are putting the interests of some of their members above the needs of all children.

    And just as some of the unions in education have swung hard to the left, so the big union beasts – Unison, the GMB and Unite have also embraced hard left proposals. Policies like unlimited welfare handouts to people who can work but refuse to work and billions and billions of more debt-funded spending.

    But of course the overwhelming majority of union members don’t endorse this agenda – indeed barely half of them even vote Labour.

    When unions use their muscle to advance an agenda which is so out of touch with their members’ interests, and with mainstream Britain, they are in the wrong place.

    And Labour are in the wrong place when they allow that union agenda to drive their activities.

    Tony Blair once argued that the Labour Party should not be the political arm of the trade union movement but the political movement of the British nation as a whole. That’s what One Nation politics means.

    But, sadly, Labour are now sinking back into their pre-Blair position of living in the unions’ shadow.

    The reason why the trade unions have become an issue again in British politics is because Ed Miliband owes his position as Labour leader to them.

    Every previous Labour leader could be confident that their legitimacy in post was underpinned by the confidence of a majority of their colleagues and – subsequently – the votes of a majority of members. Ed Miliband does not have that legitimacy, confidence, or support. That is key to his weakness. He was put in place by organisations with an agenda because they believed he would be the most pliant personality available.

    And the reason why the trades unions have now become a toxic issue for Ed Miliband is his failure to appreciate that – with him in place – radical left-wing union leaders now believe the Labour party can be theirs again – and they are taking it back – seat by seat, policy by policy, before his impotent gaze.

    The attempt by left-wing union bosses to take control of the Labour party has been open – blatant – indeed long before the focus fell on Falkirk.

    In December 2011, Labour’s biggest donor under Ed Miliband, the trade union Unite – led by Len McCluskey – published their Political Strategy.

    Their aim was clear – “Our union needs a comprehensive strategy to advance our political work, reclaiming the Labour Party as an instrument of social progress”.

    And by social progress the union was explicit – they wanted a shift to the Left – in other words, policies that are in their vested interests, and not in the interests of this country’s hardworking people. Policies on their shopping list included an end to spending cuts, an end to welfare reform and more legal freedoms to disrupt people’s lives with strikes.

    Unite is also open that it has adopted the classic tactics of entryist organisations throughout the ages. It would get its people to enter moribund local party organisations – take them over – and then select candidates who were either members of their organisation or fellow travellers. Through the accumulation of muscle on the ground, power would be won at the top.

    As Unite’s document said their political strategy had three main prongs. First, to grow Unite membership in local Labour parties. Second, to develop union friendly candidates for office. Third, to ensure Unite was fully represented on Labour’s main policy making bodies.

    Unite recognised that it would take money – from their political fund of course – to secure these additional Labour party memberships, fix those Labour party candidate selections and shift the balance at the top in their favour.

    In the document “Winning Labour for working people –Strategy and membership.” Unite were clear – “This requires a detailed and concrete strategy, with strong leadership, properly resourced”.

    At the heart of the strategy – as events in Falkirk so dramatically revealed – was the use of those union resources to ensure that every safe – or winnable – Labour seat which came up was won by Unite or its people.

    Unite pledged itself to “Working with other affiliated unions to secure the adoption of trade union (or union-friendly) candidates in winnable constituencies in particular”.

    And Unite wasn’t going to leave anything to chance. It would – like left wing entryist organisations – create its own cadre – or vanguard – of loyal activists. So they promised that “Unite will launch a Future Candidates Programme (FCP). We will promote a new generation of Unite activists towards public office… We intend to produce some potential MP candidates for selection by 2013 at the latest”.

    Just under a year ago, Unite’s Executive Council were updated on plans to take over certain constituencies.

    In the report of the executive council September 2012 meeting, it was minuted that “regions have been asked develop intensive pilot campaigns to pursue the political strategy with the aim of increasing membership of the Labour Party.”

    In case members were in any doubt what increasing Unite membership of the Labour party was for, a further update in December last year reminded them of the success in “the exemplary Falkirk” selection battle. Falkirk was “a seat where a candidate selection, to replace the disgraced Eric Joyce, is reasonably imminent, and where Unite, following regional and local consultation, is very likely to back Unite member and activist, Karie Murphy… we have recruited well over 100 Unite members to the party in a constituency with less than 200 members.”

    We know that Labour subsequently investigated what was happening in Falkirk and suspended the process – but the internal report into just what was happening still remains unpublished – and Falkirk, being an “exemplary” demonstration of Unite’s political strategy, is very far from the only constituency where the union have been deploying their entryist tactics.

    The Lib-Dem Labour marginal, currently represented by the formidable Gordon Birtwistle, was one target. “In the North West,” Unite reported, “initial work was around schools for activists, from specific constituencies with a membership ask. In Burnley this resulted in a number of new members and doubling of the delegates.”

    In Southampton Itchen, where John Denham is standing down, and the Conservatives Royston Smith is bidding to win, Unite have also been active. The union recorded that they had set up a “Southampton local activist political school building on the successful and considerable Unite involvement in local elections a whole new level of election involvement including a number of new members”.

    In Ilford North, where the impressive Lee Scott is defending a marginal seat, Unite have also been showing how enterprising they can be, as the Guardian reported: “flyers sent out by Unite invite its membership to attend a meeting in Ilford east London with McCluskey that offers to pay the member’s first year of party membership”.

    In June of this year, Unite’s then Political Director Steve Hart summed up their progress in an internal political report.

    He confirmed that Unite’s muscle was helping win selections and their political fund would be being deployed to support their people, “We will very much continue with targeted membership growth plans using phone banking and activists alongside constituency initiatives with local candidates, especially where a strong Unite candidate has won through selection” he wrote.

    The degree of energy, he wrote which was being devoted to candidate selection was intense, “As some will have noticed, the work of the Political Department and the Union regionally in candidate selections is a little bit like a swan – all that can be seen is indication of support here or there, while below the water activity is furious!”

    So furious indeed that Unite had ‘been supporting’ 40 other selections in addition to Falkirk. In Hart’s report he lists “candidates we have been supporting in different ways. I am pleased to report that the first on the list, Vicky Foxcroft, was successfully selected, winning over 50% in the first round of balloting in the ‘safe seat’ of Lewisham Deptford”.

    President Lyndon B Johnson argued that the most important skill in politics was not rhetoric or logic – but arithmetic. Being able to count. On votes.

    The greatest manipulator of power in the history of the US recognised that arguments were worthless without the votes in the legislature to get your programme through.

    And Len McCluskey is clearly a keen student of LBJ’s – because his organisation is trying to secure the numbers on the ground – of Labour party members – to secure the numbers in the legislature which will deliver his agenda.

    And it is instructive in all the controversy and debate surrounding what has happened in Falkirk that nothing – precisely nothing – has been done by the Labour leadership to prevent the largest systematic attempt at political entryism in our history since the existence of the Militant Tendency.

    Ed Miliband has failed to act – and has no plans to act – to change how Labour MPs are selected.

    Ed Miliband has failed to act – and has no plans to act – to look at any of the other 40 cases from Burnley to Ilford, Southampton to Lewisham, where Unite openly boast of their entryist success.

    Ed Miliband has failed to act – and has no plans to act – to prevent Unite and its allies buying up Labour memberships to stuff the ballots in selection procedures.

    Ed Miliband has failed to act – and has no plans to act – to prevent Unite and its allies using the political levies which members automatically opt into to fund this process of entryism.

    Indeed the contrast with Neil Kinnock – who originally faced down the Militant Tendency over entryism is striking – and not at all flattering to Ed Miliband. While Kinnock moved bravely and remorselessly to eradicate Militant’s influence and Militant-sponsored MPs from Labour Miliband has done nothing to stop the takeover of his own party.

    Perhaps we should not be surprised at Len McCluskey’s approach – because as well as clearly being a student of LBJ’s tactics, he is also intimately acquainted with Militant’s style of politics.

    He was a member of the Labour Party in Liverpool during the 1980s when Militant took over the local Labour Party and Labour council. While Labour moderates such as Frank Field had to fight off repeated deselection attempts from the hard-left group, McCluskey was their ally. The two principal Militant activists in the city were Derek Hatton and Tony Mulhearn. Both were expelled by the Labour party in 1986. But Mr McCluskey has acknowledged both men were “close friends”, and he has subsequently stated that “on the chief issues (Militant Tendency) were right”.

    It is certainly the case that the chief issues which preoccupy Len McCluskey and Unite today are well to the left of what anyone might term mainstream. And run directly contrary to the interests of the hard-working people who are crucial to our economic recovery.

    Indeed, Unite are explicit that they want to disrupt economic growth, proudly boasting that they have, “set aside twenty-five million pounds to jump-start a dispute fund” in other words money to create strikes, which they say is ” another clear sign that this union means business … And we have deployed our nationwide team of organisers to support our members in struggle through a new leverage strategy, hitting bad employers all the way up and down their supply chain and their customer chain… the CBI is already warning fellow employers’ organisations across Europe about Unite’s leverage strategy”.

    But it’s not enough simply to hit what Unite terms poor employers – all employers – indeed all citizens – need to feel the effects of union muscle. In a paper put forward to the TUC, Unite urged other unions to join them in staging a 24 hour general strike. In the document, Unite argues that ‘such action is desirable’ and that it would be an ‘explicitly political’ attack against the Government.

    In his desire to promote militancy, McCluskey even threatened to disrupt the Olympics which Tony Blair brought to London. He wanted to use this occasion – when the eyes of the world were on this country – to promote public disorder. ‘The unions, and the general community, have got every right to be out protesting’ he said. ‘If the Olympics provide us with an opportunity, then that’s exactly one that we should be looking at… When you say what can we do, and the likes of the Olympics, I’m calling upon the general public to engage in civil disobedience’.

    And the aim of all this activity is a decisive move of the political spectrum – and the Labour party – to the left.

    Len McCluskey has told Ed Miliband that he must not try to move to the centre ground on the economy – indeed he must promise more taxing, spending and borrowing, as he warned his candidate, “He knows within this next 12 months he has got to start out with policy that gives hope to people and something different from the austerity programme that the government is pursuing.”

    Specifically, McCluskey has opposed the changes to the welfare system the Coalition Government has made and wants to reverse the progress we’ve made towards making work pay. He wants to restore the spare room subsidy and end any cap on welfare.  He has argued that all ‘the government’s so-called welfare reforms are designed to marginalise the disadvantaged and vulnerable in our society’.

    And Unite oppose all the Government’s education reforms. When we devoted additional cash to repairing the problems we had inherited they dismissed it as “small beer given the scale of the problems before us” and objected to the fact that “much of that money is earmarked to deliver the highly political free schools programme.”

    In every area of public policy Unite – and their allies in Unison and the GMB – want to see a decisive move left, a move away from the interests of hardworking people. They have opposed making public sector pensions sustainable and more in line with those in the private sector. They have opposed measures to stop vexatious employment tribunal claims that affect small businesses. And they even want a return to the unsustainable tax rates of the 1970s.

    And they believe they are getting what they want from Labour.

    Across the field of policy – wherever Labour has a policy – you can see the imprint of union manufacture on the product.

    In my own area of education Labour have opposed (even though Andrew Adonis has argued for) the move to create more academies with freedom over staff pay terms and conditions, the move to create more free schools with freedom over staff pay and conditions, the move to shift teacher training to the classroom, which is proven to be more effective but which makes union recruitment more difficult and the move to allow schools freedom to recruit expert professionals to teach who are not union members.

    In every case the interests of unions trump the needs of our children.

    Labour’s health spokesman – Andy Burnham – has also dismissed the education reforms parents support but unions oppose – declaring he “wasn’t cheerleading for academies” and his position on NHS reform has been driven by the need to appease the unions. Under Alan Milburn, John Reid and other genuine Blairite reformers pluralism was welcomed within the NHS. The more different providers could help reduce waiting lists, relieve pain and cure disease, the better. But now Labour want no change from the monolithic delivery of services in the way which suits unions such as Unison and Unite.

    In every case the interests of unions trump the needs of those who are suffering.

    And in the economic realm Labour have opposed changes to the Royal Mail which will improve the service to the public, have opposed flexibility in the employment market which helps keep people in work, and have opposed the reductions in public expenditure in the (union-dominated) public sector to allow growth in the (wealth-creating) private sector.

    In every case the Labour spokesman concerned – from Andy Burnham to Chuka Umunna to Ed Balls – will have been thinking as they shaped their policies about the critical role unions will play in any future leadership election – a role Ed Miliband has failed to act  – and has no plans to act – to change.

    More than that, Labour’s operation in Parliament is funded, and directed, by union interests, as Unite boasted in their June 2013 Political Report, where they declared, “The union provided significant contributions to MPs and the Shadow teams” specifically to put forward union amendments such as those which were – in their words – designed to “block the worst aspects of both the Enterprise and Regulatory Reform Bill and the Growth and Infrastructure Bill.”

    That involved ordering Labour MPs to vote against giving employees the chance to own a share in the company they work for.

    All of these positions make life harder for hard-working people. They reduce educational opportunity, increase the burden of the public sector on taxpayers, make it more difficult to get, and keep a job and drive up the cost of the goods and services we all need.

    The trade union influence over Labour’s operation in Parliament can only grow as Unite and their allies continue their long march through the constituencies, racking up the numbers in the Parliamentary Labour Party to deliver on their policies.

    Of course, the focus which the newspapers brought to the Falkirk scandal has forced some action from Ed Miliband. Some commentators have hailed his action to change the way unions operate within Labour as brave. Others have condemned it as foolhardy. I will leave value judgements to others. And look at the mechanics of what’s proposed.

    Most trade unions have what they call political funds – levies on their members to support campaigning activity. It’s that money which is paying for Unite’s efforts to take over Labour parties constituency by constituency.

    Union members are automatically enrolled into paying the political fund. In order to opt-out, members have to jump through various hoops.

    In a poll conducted by my good friend Lord Ashcroft:

    One third of members said they didn’t know whether they contributed to Unite’s political fund. Most Unite members (57%) preferred an opt-in system for the political fund; only 31% supported the current opt-out system.

    The only political party the fund’s cash is ever used to support is Labour. Even though there is evidence that only a bare majority of trade unionists – and indeed Unite members – actually vote Labour. Indeed Unite’s own Political Strategy admits that, “According to opinion poll data today, we would expect that our members would be now indicating 45-50% support for Labour.”

    Ed Miliband could have chosen to reduce union muscle – and indeed democratise British politics – by reforming the operation of the political fund at source. He could have insisted that every union member be asked to opt in to paying the political levy. He chose not to.

    Perhaps because, as Lord Ashcroft’s polling shows only 30% of Unite members said they would contribute to the political fund under an opt-in system; 53% said they would not.

    Ed Miliband could have argued that political funds be distributed to more than one party – in accordance with trade union members’ actual views. Or he could have argued that political funds could go to the politicians union members most admire. He chose no to, and again Lord Ashcroft’s polling of Unite members is revealing.

    According to Lord Ashcroft’s work, 49% of Unite members said they would vote Labour in an election tomorrow, 23% Conservative, 7% Liberal Democrat and 12% UKIP. At the 2010 election 40% voted Labour, 28% Conservative and 20% Lib Dem. Asked which politician was best fitted to lead the country, 40% said David Cameron would make the best Prime Minister, just behind Ed Miliband (46%).

    And of course Ed Miliband could have imposed a limit on how much trade unions can spend on political campaigning of any kind. He chose not to. Perhaps because he knows that the total amount in Union’s political funds is £13.9 million.

    Instead he proposed one – very precise – change.

    In the past trade unions have used their political funds to automatically enlist their members onto Labour’s rolls – to the tune of around £3 per member. This is known as the affiliation fee.

    Ed Miliband has said he only wants those affiliation fees in the future if union members individually agree.

    That does – absolutely – run the risk of Ed Miliband having less money from trade unions which he controls.

    But it does not – at all – reduce the amount trade unions have to spend on their political activities – or indeed in support of individual Labour candidates, campaigns and parliamentary teams.

    Each individual trade union will still raise just as much – perhaps even more – for its political fund. But now each trade union’s General Secretary and executive will have greater flexibility over how that cash is allocated. They can be – and are – in a position now to choose to give more of that money to the Labour candidates, MPs, activists and campaigns which they believe are appropriately ideologically aligned. They can decide which pipers to pay and can call the tunes they wish.

    Unite has pledged specific – additional – financial support for Unite-aligned candidates in the run-up to the General Election. That would involve having phone banks manned for those candidates and, in the words of then Political Director Steve Hart: “committing up to £10,000 to a large number of these marginals based on draw-down of money for concrete proposals. Our overall expenditure on all the above will be significant but it is a very proper use of our Political Fund”.

    Following Ed Miliband’s proposals to reduce his control over the unions’ political funds, Len McCluskey expressed his delight. ‘I want to spend more money on political campaigning, and Labour candidate selections’ he stated.

    While the unions may not like payment by results or performance-related pay in the public services, they clearly approve of it as a political campaigning tool. And the message to any – existing or aspiring – Labour candidate is clear. If you align yourself with Unite there is extra money – and muscle – available to help you get selected – and then help you get elected. Perform in the right way – as decreed by the Unite exec – and your path to Parliament will be smoothed and future financial support will be guaranteed.

    So by changing how the political funds operate – and reducing his slice of them – Ed Miliband is increasing the hold Len McCluskey and his allies have over candidate selection, increasing their control over the composition of the Labour party and increasing the incentive for all Labour candidates and MPs to follow the money – and fall in with Unite.

    It’s not just candidate selection where the unions are liberated to shift politics in their direction.

    As we have seen, Labour’s frontbench team in Parliament have relied on union money, and union ideas, to develop their policies. With the automatic funding that Ed Miliband used to be able to distribute diminishing, those frontbench teams will have to look increasingly outside for resources. And Len McCluskey and his team are only too happy to oblige – if those policies fit his agenda.

    You don’t have to take my word for it. As Len McCluskey himself has explicitly said: “We will look to resource our political strategy in different ways…(through) better, enhanced policy input”.

    So Ed Miliband’s proposed changes will encourage the drift of Labour policy further away from what’s in the interests of hardworking people – as Labour politicians compete for Unite’s favour and resources. We have already seen it happen over this summer – as Andy Burnham moves leftwards on health and Chuka Umunna and Chris Bryant have moved left on employment flexibility.

    After Len McCluskey made it clear he wanted rid of the spare room subsidy, Labour briefed the New Statesman earlier this month that they would oblige. After Len McCluskey said he was ‘furious’ with Labour’s ‘crazy’ decision to back a public sector pay freeze, the Labour leader meekly told his party conference that he was ‘was not talking about the next parliament’.

    And just last week – in direct response to a trade union demand for rent controls the Labour housing spokesman announced he would back intervention in the housing market.

    On top of that, Ed Miliband’s failure to reform the unions’ political levy at source means trade unions can still spend massive sums in the run up to – and during  – the election to support a Labour party that backs their vested interests and to campaign against Conservative policies which have brought back prosperity.

    There is no limit on what the unions can spend on their campaigns – which can be deployed as we have seen to favour Labour candidates and undermine coalition candidates.

    Indeed Unite have – again – been open about their ambitions. “Our provisional plan,” they outlined in their Political Strategy, “which will be developed for launch very early in 2014 is as follows. In each of 100 seats – the key seat 80 plus 20 defensive marginals  Unite will build a structure based on 1 Constituency Captain, and field organisers. The Constituency 10 will have responsibility for organising 10 contacts with each Unite member in the seat in the 20 months up to the General Election – contacts in a variety of ways including face to face conduct. They will be provided with training, and detailed plans and statistics for the CLP – including workplace information, any voting data we have, Mosaic and other information to ensure informed campaigning. Efforts will be made to develop an esprit de corps amongst the 10, including clothing etc and a degree of competition as seen with our US colleagues. We will use Nationbuilder technology to facilitate the work.”

    It would be amusing if it weren’t so chilling that Unite plan to encourage enhanced performance for their left-wing candidates at the election through competition. I suppose that is what you might call traditional values in a modern setting.

    And of course Unite – and their allies – can spend millions on phone banks, canvassing, leafleting and adverts to push their message. A message which is unlikely to be “Same old Labour would make you worse off”.

    At the last General Election, the five Labour-affiliated trade unions registered as third party participants spent over £700,000 – to fund campaigns against things like “Tory cuts”, including one memorable Unison poster of an axe with a blue blade, entitled “Look what’s in the Tories’ first budget”. Nothing in what Ed Miliband proposes will change that – indeed it will give the unions greater freedom, not least to concentrate their resources in support of candidates and causes opposed to the interests of hardworking people.

    But while Unite and other unions will have more money available to push their agenda, Ed Miliband will have less of their money to pursue his.

    So what will he do?

    That brings me to my third question – the question of political reform.

    I am strongly in favour of reform of our political institutions. The cost of politics is too high. Parliament needs to take back power from unaccountable bodies who exercise it without a mandate – not least the European Union. Our democracy needs to be more direct, public figures who exercise statutory responsibilities, not just politicians, need to be more openly accountable and taxpayers need even better information on how their money is spent.

    But the political reform Ed Miliband is offering – the only one so far as I can see – takes us in the opposite direction. It will centralise power, raise the cost of politics, make the exercise of political authority more opaque, parties less accountable and, worst of all, citizens poorer.

    Ed Miliband’s principal proposed political reform is taxing the public more to pay for politics

    In recent years it has been a Labour aim to increase what they call state funding of political parties – but which is more properly described as the compulsory confiscation of taxpayers money to pay for politicians.

    Plans were drawn up by the last Labour Government to increase state funding and it is those plans which the Miliband team are seeking to implement now.

    Some Liberal Democrats have even made the case with my old friend Matthew Oakeshott saying we need taxpayer funding to get the “dirty money” out of politics.

    Well, I personally think there are few dirtier monetary transactions than politicians getting together to agree that they will pick the pockets of people poorer than themselves to fund activities which should be supported voluntarily – not compulsorily.

    If political parties want more money then they can either recruit more members or convince their own supporters to dig deeper. But for the advocates of more state funding on the left, there’s an intrinsic problem in philanthropists giving their money to support their beliefs. It’s alright if philanthropists give to arts, development or other causes. That’s public spirited. But if those same philanthropists decide to support their political ideals – it’s called the taint of big money.

    There is a debate – of course – about whether there should be a limit on donations to political parties – governed by a desire to make political parties work hard to secure as wide a base of funding as possible. That is a sensible position but I shan’t get into the detail today of how any caps might or might not work.

    But what does seem to me be crystal clear is that while it’s a good thing to have more people contributing to the political process – whether financially or otherwise – that should be on voluntary basis. No matter how much any individual might choose to spend from his or her own resources on supporting their ideals surely it cannot be immoral to spend your own money on supporting democracy? But what does raise real questions of morality – and principle – is forcing people to contribute out of their earned income to support political activity they may neither endorse nor welcome.

    And yet that is the position which Labour are now embracing – call it what you will a spin tax, a “Militax”, a going to the poll tax – it’s all the same thing – more taxes to pay for more politicians spending more of your money.

    I think hard-working people in this country already pay enough tax – and the purpose of tax is to pay for doctors, soldiers and teachers – not politicians. But if Ed Miliband gets his way you will soon be forced to pay for him.

    It’s not too late for Ed Miliband and his team to get out of the problem they have created – and which Len McCluskey is so eagerly set to exploit.

    They can take five steps right now.

    First, they can investigate all 41 of the candidate selections Unite set out to manipulate – not just the one in Falkirk. They can examine where the growth in membership has come from, the money unions have been using to rig selections and the sharp practice potentially employed. Candidate selection in those seats could be suspended until a clean bill of health is issued.

    It’s critical of course that such an investigation is independent and seen to be independent. It need not be judge-led. But it cannot be led – as Ed Miliband’s review of party funding is being led – by a former Unite apparatchik like Ray Collins. I would suggest someone like Alex Carlile QC or a cross-bench peer like Lord Guthrie of Craigiebank.

    Second, Ed Miliband can also work with the Coalition to use legislation going through parliament now to reform the unions’ political levy system. We will help him make the political levy an opt-in exercise – at a stroke delivering the new politics he has argued for.

    We would – of course – also support other changes he might want to advance to democratise how any political fund is spent.

    Third, Ed Miliband should move to modernise his whole candidate selection – and leadership election – process to make it genuinely one member one vote, like the coalition parties. He could then submit himself for re-election to the membership which did not vote fro him in 2010. If he did, it would be a real show of confidence in his membership which would give his leadership greater authority.

    Fourth, Labour can also police the funding of candidates to ensure there is no pressure from unions to support certain policy positions in order to secure extra campaign funding. It can restrict union funding of frontbench teams, declare in whose interests amendments are being laid or explicitly disavow introducing legislative changes at the demand of trade unions.

    Ultimately, of course, Ed Miliband needs to go further to convince the electorate that he is ready to stand up to the people who bought him his leadership. He needs to make clear not just that the tactics of McCluskey and his allies are wrong but their policy agenda is precisely the sort of hard-left Militant inspired nonsense up with which he will not put.

    And if anyone thinks I am asking too much I ask simply this – what would Blair do? Indeed, what would even Kinnock have done?

    The sad truth is that – charming, intelligent, eloquent, thoughtful, generous and chivalrous as Ed Miliband may be – in this critical test of leadership he has been uncertain, irresolute, weak. To the question – who governs Labour – his answer would appear to be – increasingly – the unions.

    And if Ed Miliband is too weak to stand up to the union bosses who pick his candidates, buy his policies and anointed him leader, then he simply will be too weak to stand up for hardworking people.

    Our country cannot afford – as we had in the Seventies – the same old Labour party with a weak leader buffeted by union pressure to adopt policies only they want and asking hardworking people to pay the bills.

    That is why when it comes to Labour and the unions, reform has to be fundamental, rooted in core democratic principles and in the public interest. There is no alternative.

  • David Gauke – 2013 Speech on Social Investment Tax Relief

    davidgauke

    Below is the text of the speech made by the Exchequer Secretary to the Treasury, David Gauke, on 22nd October 2013 and was held at the Livery Hall at the Guildhall in London.

    I’m very pleased to be here this morning, in such a historic venue.

    In fact, as something of an amateur historian, when I was given the rather grand job title of Exchequer Secretary to Her Majesty’s Treasury three and a half years ago, I thought it would be a good idea to investigate its history.

    And – after an extensive trawl through the internet archives – I discovered that the title of Exchequer Secretary to the Treasury dates all the way back to the mid-1990s!

    In that context – when I was looking at the history of the term social enterprise – I was not surprised that it predated the title, Exchequer Secretary to the Treasury, but not by as much as I might have thought. It was first coined as recently as 35 years ago, at Beechwood College in Leeds.

    Of course the concept of a social enterprise dates back much further. Whether that be the John Lewis Group in the early 20th century… The Co-operative Group in the 19th century…

    Or going back even further, The Bridge House Estates; which was founded a stone’s throw from here in 1282, to maintain bridges over the River Thames.

    The government recognises the crucial role that such groups have played, and will always play in our economy.

    And we recognise the important role it currently plays. The social enterprise sector – in fact – employs more than 2 million people, and the total annual incomes from the sector are estimated at over £160 billion per year.

    So not only are these organisations good for thousands of communities up and down the country. They also play a key role in driving the UK economy.

    As such, we want to give social enterprise groups the support they need.

    Social Investment Market

    One of the recurring issues that we know these organisations face is access to finance. And without access to capital it can be a real struggle to scale-up, to grow or even to become self-sustaining.

    For this reason the government – led by the work of Nick Hurd – is committed to growing the social investment market.

    And as part of this work, we’ve launched a number of initiatives focusing on all parts of growing this market, including:

    – the supply of finance

    – the demand for finance

    – creating an ‘enabling environment’ for social investment

    So we’ve worked hard to ensure that we’ve got the right regulation in place to support the sector.

    And we’ve also established a number of publically-backed funds to directly support social enterprises in the UK.

    But we know that there remains one massively under-represented type of investor in this market – and that’s the type of investor I want to spend the rest of my time focussing on today. The private, individual investor.

    Individual investor

    Some services to cater for this type of investor are emerging. But we know that there is a further appetite out there, and we need to find a way to tap into it.

    A Cabinet Office paper published in the summer stated that fewer than 16% of High Net Worth Individuals currently have investments with ethical, social or community benefits. Yet 77% of potential pension contributors said they would prefer to contribute to a social investment fund than to a conventional fund for their pension. And 36% said they would choose social investment even when it involves a significant trade-off with financial return.

    So we needed to find a way to tap into this enthusiasm. And I know from my day to day role – my more readily understood, but somewhat less glamorous job title is Minister for Tax – that tax levels and reliefs can be a key lever for encouraging certain behaviour.

    It was with this in mind, and this type of investor in mind, that at this March’s budget, we committed to introducing a tax relief for social investment.

    Social investment tax relief

    That tax relief, the matter-of-factly titled ‘social investment tax relief’ is currently being designed by my officials at the Treasury.

    We consulted on it over the summer and I’d like to thank everyone here that contributed.

    We now plan to introduce the relief by early next summer, through the 2014 Finance Bill.

    In the consultation document we outlined that the relief would:

    Firstly, offer individuals income tax relief – as a proportion of the amount invested – for investment into qualifying social enterprises.

    Secondly, allow social enterprises to receive up to £150,000 in investment through the scheme in any 3 year period.

    Thirdly, offer relief on investment instruments other than equity.

    Fourth, focus on allowing established forms of social enterprise – Community Interest companies, community benefit societies and charities – to benefit from the relief.

    And fifth: allow for investments via a ‘nominee’ – to cater for those individuals who do not want to make investment decisions personally and would prefer to make use of professional expertise.

    I appreciate that there are a lot more details to be ironed out, but we will be publishing our draft legislation on this in December, and I strongly urge you to explore some of the detail then.

    Enterprise Investment Scheme

    Now, some of you may have noticed something familiar in the form of this relief. And this is neither coincidence nor plagiarism.

    The model of the scheme takes inspiration from the successful and long-standing Enterprise Investment Scheme, or EIS.

    A scheme which will not only be well understood by many investors, and thus easy for them to figure out and operate in.

    It is also a scheme which is very successful at achieving its aims. In fact, since its establishment in 1994, it has brought over £8.7 billion of equity investment into nearly 20 000 small, UK companies.

    This shows the impact that a well-targeted tax intervention can have on motivating private investment into specific areas of the economy, and it is a success that we want our relief to emulate.

    Wealth advice community

    So that is how we plan for the social investment tax relief to look.

    But – as many of you will know – announcing a tax relief is only half the story. We need people to know about it. And we need people to know how to use it. And that is why the wealth management sector –many representatives of which are in this room today – will have such an important role to play in all this.

    You are at the forefront of delivering financial advice to the public. You’re the ones they turn to when they want to know where they can invest most safely, or most profitably, or most ethically. So you can play a crucial role in enabling investors to understand and to make use of this scheme.

    And networks such as this one – the Social Investment Academy – have a crucial role to play too, in bringing together people from across the advisory community. And in spreading news of the scheme.

    I understand that this is only your second meeting as a group? So I’m very grateful to have had the opportunity to speak to you so early in your existence.

    And I’m sure that either myself, or a member of my Treasury team will be very happy to attend another of these events closer to the implementation of the tax – when we have greater detail on its exact workings – to explain things in more detail.

    We want to see – as I’m sure do many people in the room – a strong social investment market here in the UK.

    And – as government – we’re doing the best we can to support it – through our actions on both regulation and on taxation.

    We hope that you – as wealth advisors – will be able to help us spread the word, and to build the strength of the market here.

    And I’ll look forward to working with you as you do so.

    Thanks for listening.

  • David Gauke – 2013 Speech on Tax Competitiveness

    davidgauke

    Below is the text of the speech made by the Exchequer Secretary, David Gauke, on 28th February 2013.

    I was very pleased to be invited to speak at this event, which I know forms part of Politeia’s Recovery and Growth economic series.

    ‘Recovery and growth’ are, of course, two of the biggest challenges facing the UK. And as a Government, as a country, we cannot afford to be complacent about our economic position in the world.

    We are in a global race. This race pits us against a number of existing and new competitors and, like any competition, there will be winners and there will be losers. There will be countries that continue to move towards ever greater prosperity, and there will be countries that see their economic outlook, and in turn their standard of living, decline.

    As Government, it’s our role to do what we can to ensure that the UK falls into the former category. That our economy is stable once again, and that our businesses have the right environment to compete in the 21st century. Some factors in achieving this are beyond our control. The economic circumstances we inherited. Commodity prices. The Eurozone crisis.

    But other factors are within our control and, within the strict fiscal constraints in which we have to operate, we have to make sure that we pull all the levers available to us to achieve growth. This is why we are reducing burdensome regulation – reforming planning and employment law, modernising our infrastructure, improving our education system, increasing apprenticeships and reforming welfare.

    But one of the biggest levers we have access to, and the lever that I would like to talk about today, is tax.

    I know that this Government’s tax policy has been at the centre of some very lively debate, and this is a debate that we welcome. Allister has played a very large role in this debate, and it is absolutely right that organisations like Politeia and the Taxpayers Alliance have joined the discussion too, and made calls for radical reforms. I welcome a debate not only on how much we tax but what we tax.

    But what I want to do this evening is take head-on the critique that this Government has failed to make significant supply-side reforms to our tax system and, in particular, our corporation tax system. I will make the case that this Government, when compared to both its international competitors, and its historic predecessors, has embarked on some radical tax reform in challenging circumstances.

    We inherited the largest deficit since the Second World War, but the Government is taking decisive action to return the public finances to a sustainable path. Spending cuts will constitute 79 per cent of the total fiscal consolidation by 2015/16. Total spending, as a proportion of GDP, is forecast to fall from 47.4 per cent in 2009-10 to 40.9 per cent in 2016-17. Nonetheless, we operate in an environment where a competitive and efficient tax system is essential, but with limited flexibility in the public finances.

    So how have we responded? Put simply, this Government wants to establish the most competitive tax system in the G20. Not only to attract businesses here, but also to help the enterprise that already exists on these shores.

    We set out our plans in the Corporate Tax Roadmap, and have worked hard, together with business, to introduce a substantial package of corporate tax reforms to make the UK more attractive as a place to invest.

    We have cut corporation tax from an inherited rate of 28%, to 23% from this April, and then 21% from April 2014. We have reformed the Controlled Foreign Companies tax regime, which is seeing organisations move their head offices to, rather than away from, the UK. We are introducing the patent box and making our R&D tax credit regime more generous; ensuring that the UK is an attractive place to invest for innovation. And we have increased the rate of VAT, as taxing consumption is much less damaging to businesses than taxing employment or profit.

    We’ve managed to deliver all these changes in a time of austerity, and I know that other countries have been envious of what we’ve managed to achieve.

    My focus this evening is on business tax, but we cannot ignore personal tax. The top rate of 50 per cent, as inherited from Labour, was one of the highest in the developed world. It was supposedly implemented to raise greater revenue and address the country’s deficit, but ended up having the opposite effect.

    It only served to discourage talented individuals from working in the UK, it raised little (if anything) in revenue and – most worryingly – it sent a signal to businesses and entrepreneurs (the exact people that could bring jobs and growth and revenue to our country) that Britain was not open for business.  And that is why this April we will be reducing that rate to 45p – a level which is lower than Japan, Germany, Canada and Australia.

    This was a politically brave move, it isn’t one that will make us popular with some people, but I am certain it sends the right message to high earning individuals and strengthens our prospects for growth.

    A better tax environment for business leaders and for businesses though, isn’t just about the policies we introduce. It’s about making sure that we engage with the sector when making these policies, and that we give them advanced warning of any major changes.

    This is why, for example, we published the majority of Finance Bill clauses in draft, for greater scrutiny, at least 3 months before introduction of the Bill. Businesses welcomed this opportunity to engage as early as possible, and this has resulted in better quality tax law. We will continue that engagement. In fact, this greater level of engagement has proven beneficial with regards to collecting taxes too.

    The complexity of many large companies’ tax cases, and the large amounts involved, make engagement the most cost-effective way to improve tax compliance and support businesses at the same time. So for the largest two thousand corporations in the UK, we now have dedicated HMRC customer relationship managers.

    This strategy has been very successful. By supporting the organisations and ensuring rigorous compliance they garnered positive feedback from business, while also helping HMRC to maximise revenues by recovering the right amount of tax.

    But HMRC can only collect the tax that is due under the law. And the law in this area is not simply a domestic matter. As with most major economies, the tax system in the UK is consistent with internationally agreed OECD guidelines.

    There are international concerns over whether the current corporate tax rules manage to properly capture the profits generated by multinational companies in the jurisdictions where their economic activity is located. And it’s understandable that not only citizens, but the vast majority of businesses will feel aggrieved if some companies aren’t seen to be paying their fair share of tax.

    This is a complex area, but any reform will require concerted international action. It is an issue that all countries are facing, and politicians will continue to work with each other to develop the appropriate international solutions.

    We are also working hard to simplify the tax system on our shores. We established the Office of Tax Simplification – or OTS – in 2010 to provide independent advice on simplifying the UK tax system, and we have implemented a number of their recommendations.

    But let me address one argument that is sometimes made – that ‘if only we simplified the tax system, we wouldn’t see the avoidance that has featured so prominently in recent months’. There is an element of truth in this. Complexity can provide the opportunity for avoidance.

    But it is also the case that complex behaviour can take advantage of simplicity in the tax system. Many of the high profile cases that have attracted media attention have had little to do with complexity within our tax system.

    I believe we have to look at the complex interaction between the tax systems of different countries and an international tax architecture that has not kept pace with the complex modern global business environment. In other cases, relatively simple tax rules have been exploited by complex and contrived behaviour. To paraphrase Einstein, a tax system has to be as simple as possible. But no simpler.

    This has been something of a whistle stop tour through this Government’s actions on tax, but hopefully it provides some kind of overview of the large number of actions we’ve taken, and changes we’ve implemented, to reduce the tax burden on businesses. I believe that these have been radical reforms. And I’d like to spend the last few moments explaining why, by comparing the actions that this Government has taken against those of both our international competitors, and our political predecessors.

    With regards to international comparisons, I believe that our approach has been vindicated, and that the UK is increasingly becoming known as a competitive nation for investment. We have a considerably more competitive CT rate than the US at 40%, France at 33.33% and Germany at 29%.

    But perhaps most striking was the recent survey by KPMG, asking tax professionals to rate the three countries they rated as most attractive from a tax perspective. In 2009, the UK featured in only 16% of responses. By 2012, this number had increased to 72%. In three years, we had moved from being an also-ran to the number 1 spot as the most competitive tax regime in the world, ahead of the Netherlands in second and Ireland in third.

    The report stated that a low effective tax rate remains the number one tax factor when assessing the competitiveness of a country’s tax system, but that stability, simplicity and advanced warning of major changes are also of high importance. These are all factors this Government has worked hard to enhance, and the report is a reflection of the way this Government has rebalanced our tax regime from being a business hindrance to a business facilitator.

    So when some complain that we have not taken the radical steps necessary to make our tax system competitive, I would say – ask the people who deal with the tax system for a living, who deal with different tax jurisdictions on a day to day basis. KPMG did just that.  And the answer is clear – and positive.

    Closer to home though, let us compare the radicalism of the current Government, in terms of cutting business taxes, with the Governments of Mrs Thatcher. Like many in this room, I look back with admiration to a Government that came to power at a time when the country faced severe economic difficulties. Our borrowing high, our competitiveness in decline, the Thatcher Government pursued a number of radical reforms which transformed our country for the better.

    But in terms of tax reform, how do we compare?

    A comparison with the first Thatcher Government – with Sir Geoffrey Howe as Chancellor – draws up some interesting parallels. Both Governments have to be described as tax reformers, as opposed to tax cutters. The deficit in 1979 was 4.1% of GDP, lower than the 11.2% we inherited but, like the current Government, Sir Geoffrey’s focus was on reducing borrowing. For example, the overall tax burden was sharply increased in the 1981 Budget, in the teeth of a recession. However, within the constraints in place, both Governments have engaged in tax reform. Both Governments increased VAT and cut income tax, predominantly by raising the personal allowance.

    Turning to business tax, in the early ‘80s, further revenue was found from the Petroleum Revenue Tax and a windfall tax on bank deposits. A comparison can be made with higher taxes on North Sea Oil and the Bank Levy. But if we ignore all those taxes, we see that only minor changes were made in business taxes. In current prices, the value of the net change in the corporation tax burden was less than £1bn per year.

    In contrast, the total fiscal impact of changes to the corporation tax regime introduced by George Osborne, excluding the North Sea, amount to a reduction of around £7 billion per year by 2015/16.

    The current Government’s record also stands comparison to the second Thatcher Government from 1983 to 1987. With the advantages of benign economic conditions (a just reward for the courage shown in the first term), a huge Parliamentary majority and a Chancellor – Nigel Lawson – with a close interest in tax reform, this Government has a deserved reputation for radicalism in this area.

    The 1984 Budget saw the announcement of substantial reductions in the corporation tax rate, from 52% to 35%. However, it should be remembered that this was funded by making capital allowances and other reliefs less generous. That is not to say that the reforms were wrong – they were not, they have stood the test of time and future Governments followed in this direction. But this meant that the net corporation tax burden was reduced by less than £1bn per year in today’s prices for the 1983 to 1987 Parliament, as with the preceding Parliament.

    This once again shows the radicalism of this Government’s equivalent reduction by £7billion a year by the end of this Parliament.

    It is true, of course, that different times require different responses. Capital is more mobile now than it was in the 1980s. Consequently, competition is greater and Governments have to work harder to attract investment than was once the case. Nonetheless, it is clear that not just in international terms but also in historical terms, this Government has delivered substantial tax reforms, making our tax system much more competitive.

    But this is not to suggest that we will become complacent, nor that we think our work is done. The nature of a global race is that one cannot be static. But with regards to tax reform, I believe that we have made strong progress towards our goal of the most competitive tax system in the G20.

    That we are creating a simpler, competitive, well-enforced tax structure, which will help businesses to help the country back into economic prosperity. That we are putting in place the conditions for recovery and growth.

    Thank you.

  • Maria Eagle – 2013 Speech to Labour Party Conference

    marieagle

    Below is the text of the speech made by Maria Eagle to the 2013 Labour Party conference in Brighton.

    Conference,

    Do you remember David Cameron’s promise on rail fares last year? Capping future increases at just one per cent above inflation.

    But remember what actually happened?

    The new year slog back to work.

    The first commute on a cold, dark January morning.

    But the nastiest shock awaiting commuters? A third year in a row of inflation-busting fare rises – some tickets up by as much as eleven per cent.

    David Cameron’s broken promise on rail fares.

    Because he cannot, and will not, stand up to vested interests.

    Because David Cameron will always put the privileged few before working people.

    But we can’t be One Nation if we price more and more people off our transport system. If people can’t afford to live near their job, then find the cost of commuting goes up faster than their wages. If young people are told to stay in education, or find an apprenticeship, but then find they can’t afford to get there.

    That’s why a One Nation Labour government will tackle the cost of living crisis. Banning train companies from hiking fares beyond strict limits. No more averaging out the so-called fare cap, but an actual cap.

    Not on some routes, but on every route.

    Let me say this to the train companies:

    You make hundreds of millions a year, in a system that pays out more in subsidies than you pay back.

    So when fares go up again in January, do the right thing:

    Voluntarily cap fare rises, since Ministers won’t.

    Do your bit to ease the cost of living crisis.

    But if you choose not to act, then a One Nation Labour government will put a proper cap on fares.

    You know, Ministers did announce a cap on rail fares last week – new maximum prices for singles and returns.

    And the new cap?

    £250 one way. £500 return.

    And, that’s not even First Class. Conference, what planet is David Cameron on?

    And it isn’t just the level of fares that drives people to distraction. It’s the feeling that the system is always trying to rip you off. You buy an off peak ticket. But nowhere does it tell you when off peak actually starts. And every train company seems to use a different set of rules.

    So, yes we need to cap fare rises.

    But we need a new deal for passengers too.

    No more talk of Super Peak fares, meaning your season ticket wouldn’t even be valid on every train.

    No more stretching peak time, when it’s actually about stretching profits.

    No more confusing tickets, but the exact time you can use it printed on the ticket.

    No more inflexibility when you book in advance, so you can’t get the next train – even when it’s empty.

    And if you do have the wrong ticket on the train, take off the price you’ve already paid from the cost of a new one.

    No more single and return journeys costing the same. Not just in one pilot area after 2015, as the government plans, but across the network.

    No more charging more at the ticket office than online, just to provide another excuse to close them.

    No more rip offs at ticket machines, but a new legal right to be offered the cheapest fare regardless of how or where you buy a ticket.

    No more inflation-busting increases in the cost of leaving your car at the station, when it’s just another way to clobber commuters.

    No more ripping people off with internet charges, just because you can’t afford to travel First Class.

    And isn’t it time that all trains had wifi in the 21st century? So let’s require it in franchises.

    And when train companies are paid £136million by Network Rail for delays, no more pocketing tens of millions of pounds that should be passed on to passengers.

    In future, it should be paid to passengers, or not be paid at all.

    Isn’t it time to end the racket on our railways, and once again put passengers before profit?

    And let’s tackle overcrowding on our railways that can make the journey to work such a misery. So let’s free up space for new commuter services by moving the growth in longer journeys onto a new north-south rail line. Reducing journey times. Getting more freight off our roads.

    But, unlike the Tories, let’s use the project as an opportunity to create thousands of new apprenticeships for our young people.

    And, unlike the Tories, no blank cheque for any government project. So, as Ed Balls rightly says: we support the idea of a new north-south rail line but, if costs continue to rise – and the value for money cannot be demonstrated, we will have to ask if this is the right priority for £50billion pounds.

    So I say to David Cameron: get a grip on this project. Get a grip on its budget. And get it back on track.

    And get a grip on the chaos in rail franchising too. Entirely caused by ministerial incompetence. What an appalling, unacceptable, scandalous waste of public money.

    Fifty million pounds of compensation to train companies.

    Millions more to lawyers and consultants.

    The expense of two inquiries.

    And now Ministers forced to extend rail contracts by as much as fifty months, while they sort out the mess. And how do you think the crack negotiating team of Patrick McLoughlin and Simon Burns are doing?

    With just two out of twelve extensions agreed, the train companies will pay a staggering £78 million less than last year. Enough to have ended above inflation fare rises.

    Ministerial incompetence adding to the cost of living crisis.

    And now Ministers have come up with a new plan to waste money. A costly and unnecessary privatisation of East Coast trains. It’s on course to have returned £800million to tax-payers. And reinvests all of its profits to benefit passengers. Profits that, from 2015, will be shared with shareholders.

    David Cameron: even at this late stage, abandon this costly, unnecessary, ideological, dogmatic, cynical, wrong-headed, vested-interest driven, disastrous privatisation.

    But if you go ahead:

    End the nonsense that means the only rail company in the world barred from bidding is the one that is running it – and doing so well. Even the French, German and Dutch state railways can bid.

    How completely bizarre that Tory Ministers have no problem with a government-run rail service so long as it isn’t British.

    So, instead of all this waste, let’s reduce costs in our railway. Save money by bringing a fragmented industry together. With responsibilities currently spread across the Transport Department and multiple separate bodies, brought within a reformed and more accountable Network Rail.

    Save money by ending wasteful repainting and rebranding of trains and stations with every new contract. Restore a coherent InterCity identity to national train services, regardless of public or private operator.

    Not just reducing waste, but making life easier for passengers too.

    Conference. To tackle the cost of living crisis, we need reform of local transport too.

    Bus fares, rising by nearly twice the rate of inflation. Transport authorities, powerless to act.

    Unable to insist that tickets work across operators.

    Unable to introduce smart ticketing, like Oyster.

    Unable to cap the daily, weekly and monthly cost of travel.

    Unable to require bus companies to let young people travel free.

    And unable to take control of local rail services, to create a genuinely integrated network.

    All things taken for granted in London.

    But David Cameron’s government is making it harder for councils to deliver change.

    His franchising fiasco has put the brakes on local control over rail. His decision to rig bus funding now penalises authorities that pursue reform.

    I pay tribute to Labour councils and councillors that are determined to fight for a better deal for passengers. Like David Wood, the chair of Tyne and Wear Integrated Transport Authority, now – with his colleagues – pursuing the first ever Quality Bus Contracts. Leading the way and others will follow. Reversing the failure of bus deregulation. Tackling the cost of living crisis.

    And a One Nation Labour government would make it easier. A simpler, faster route to reform. Devolved funding to give transport authorities greater clout.

    Deregulation Exemption Zones, so government can give them the backing they need.

    Let me say this to those bus companies that are opposing reform:

    You already bid for contracts to run rail services.

    You already bid for contracts to run buses in London. And across Europe.

    And you can do so in Tyne and Wear.

    And wherever councils want to secure a better deal.

    Conference.

    Let’s take another step to tackle the cost of living crisis, while improving our health and protecting the environment:

    When nearly a quarter of all journeys are less than a mile, Let’s Get Britain Cycling.

    On this issue Norman Baker and I agree.

    He’s tried to get his Tory bosses to take cycling seriously. But while they’ve set out a plan to spend £28 billion on roads, he’s secured just £38million a year to support cycling.

    And conveniently forgotten the three wasted years that followed his decision to axe Cycling England and its £60million a year budget.

    Come off it, Norman: On ya bike.

    So, here’s what we need to do:clear goals to increase cycling.

    Separated routes.

    Redesigned junctions.

    Phased traffic lights.

    Cycling Safety Assessments for all new transport schemes.

    Restored targets to cut road deaths and serious injuries.

    Duties to support Active Travel, as Labour introduced in Wales.

    20mph zones, the default in residential areas.

    Long term support for teaching safe cycling.

    Space on trains.

    Secure facilities at stations – required in rail contracts.

    Sentencing guidelines reviewed.

    Tough new rules on HGVs.

    Supporting cycling. Increasing numbers. Improving safety.

    Conference. Practical measures to reduce the cost of living.

    Capping fare rises.

    Reforming ticketing.

    Integrating transport.

    Supporting cycling.

    New help for commuters. Removing barriers facing young people.

    One Nation Labour, led by Ed Miliband:

    Dealing with the cost of living crisis. Reducing the pressure on household budgets. Delivering a One Nation transport system that works for working people.

  • Ruth Davidson – 2013 Conservative Conference Speech

    Below is the text of the speech made by Ruth Davidson to the 2013 Conservative Party Conference in Manchester.

    Good morning.

    Friends, I hope you’re enjoying conference.

    And, as you enjoy it, I want you to reflect that this could be your last ever UK party conference.

    Because by this time next year the people of Scotland will have voted in a referendum which will decide not just if Scotland should be in or out of the UK, but will decide whether the UK will exist at all.

    It is a huge decision.

    Touching every one of our great British institutions

    Affecting our businesses and our prosperity, our services and our security, our allies and our place in the world.

    A decision made by people now, on behalf of generations still to come.

    Because this decision isn’t the same as election.

    If we don’t like the result, we can’t just come back in 5 years’ time and vote again.

    It is a choice that is vital and is binding.

    And while everybody understands why this matters to Scotland, I want to talk to you this morning about its importance to the rest of the UK. And why, as Conservatives, we are leading the fight to keep our country together.

    Firstly, we are unselfconscious in the love of our country. We have worked and strived for generations to build a Britain that we can be proud of.

    In the good times, we have shared our prosperity and our expertise.

    In darker days, we have stood shoulder to shoulder with our allies; and with each other.

    The Union is in our DNA.

    But don’t take my word for it.

    Research conducted last month showed how party voters would cast their ballot.

    Only two thirds – 68% – of SNP voters would actually support independence.

    75% of Labour and 80% of Lib Dems were Backing Britain.

    But 98% of Conservatives said they wanted to keep our Kingdom United.

    And friends, d’you know what I want? I want the names and numbers of the other 2%

    Because, as a party, we rejoice in our nation’s success, appreciate our proud history and strive to make Britain better still.

    Our Conservative values – freedom for the individual, success based on hard work, horizons limited only by ambition – they reflect our national character.

    We’re a party that says it doesn’t matter if you’re a grocer’s daughter, or a working class boy from Brixton – you can be Prime Minister.

    A country that says it doesn’t matter where you were born, if you make Britain your home and don the Team GB jersey, win or lose, we will cheer you around the Olympic track.

    A society which says it doesn’t matter if you are Welsh first. Or Scottish, English or Northern Irish. You are British too.

    And we are all equal under the Union flag.

    And that flag is a sign, a symbol of how our nation can be a force for good in this world.

    And let me tell you how I know that – because I’ve seen its power at work.

    Before I was elected, I was a journalist and broadcaster.

    And as young reporter, I was sent to Kosovo, to see the work our troops were doing there.

    I was with the Black Watch regiment, and saw lads younger than me patrolling the streets and protecting schoolchildren from attack.

    Clearing bombs and dealing with bullets aimed at those who came from a different ethnic background.

    And they did all of that with a patch on their arm – the Union Flag.

    They did it because they believed in something, and I believe in it too.

    I know that the world is a safer place for Kosovars, ethnic Serbs and Albanians because of the service men and women of our country.

    Not just the Black Watch, but the Royal Regiment of Wales, who served alongside them in Pristina; the Royal Irish Regiment, the Household cavalry, the parachute regiment, the Royal engineers, the marines, the RAF and others.

    The UK has the most professional fighting force in the world.

    And when Scotland’s First minister, Alex Salmond, says – as he did – that our troops should never have been there, that stopping genocide and ethnic cleansing on Europe’s shores was in his words ‘unpardonable folly’ I say no, Alex.

    That was an unpardonable slur.

    We are a responsible nation in the world and we are not afraid to help shoulder the burden of a persecuted people.

    And we’re only able to do so because we have the integrated armed forces we do – pulling together from every part of the UK to keep our people safe at home and to work for peace abroad.

    Can you imagine this time next year if there’s a ‘yes’ vote; trying to pick apart different divisions, splitting up regiments, dividing our nation’s military hardware…

    …Our frigates and fighter jets, arms and artillery like a feuding couple dividing up their furniture?

    It doesn’t bear thinking about.

    We are stronger together, safer together, at our very best together.

    And, while we can make these arguments of the heart; of our dual identity, of our shared history, of the common endeavour to build and develop the most successful political, economic and cultural union in the modern world….

    …As Conservatives, we are a practical people too, and look also for the arguments of the head.

    Everyone in the UK benefits from our borderless Union.

    Scotland exports more to the rest of the UK than it does to the rest of the world combined.

    And – in return – we buy back too.

    In fact, we import more than twice as many goods by value from the rest of Britain than the rest of the globe.

    Tens of billions of pounds and hundreds of thousands of jobs rely on our shared market and cross border flow.

    And it’s not just goods and finance criss-crossing north and south. It’s people too.

    Labour migration is estimated to be up to 75% higher within an integrated UK – allowing us to share skills and knowledge.

    And it works. More than 800,000 Scots live and work in other parts of the UK.

    And 400,000 people in Scotland were born in England, Wales or Northern Ireland.

    Over the years we have worked together and fought together. We have mixed our families together.

    We are not easily separated by those who now seek to divide us.

    And we work hard for each other.

    Nearly 200,000 financial services jobs in Scotland rely on companies selling pensions, mortgages and insurance to the rest of the UK.

    More likely than not, the financial products which secure your home and support you in old age are looked after in Scotland – as nine out of ten of these customers live in the rest of the UK.

    In defence – right now 5,000 people in Scotland are hard at work constructing the next generation of vessels for the Royal Navy.

    And, In fact, every lens of every periscope of every submarine which has ever served – now or in history – under the white ensign has been constructed by the same specialist company in Scotland.

    I know, because they’re in my constituency in Glasgow.

    And in medical research.

    It’s not just Dolly the sheep.

    Because of the UK’s support structure, nine out of ten women and eight out of ten men are now surviving skin cancer, thanks in part to the work being done at Dundee University.

    Scottish expertise, UK support, worldwide benefits. Achieved Together.

    Now Conference, in Scotland, issues around the referendum are reported every single day.

    I know that’s not the case elsewhere – at least, not yet.

    And when you do get a news report, down south, more likely than not you’ll be hearing from Alex Salmond.

    He’s the one talking Britain down and saying that Scots are desperate to leave.

    Well, I’m telling you now. Don’t believe it.

    When it comes to this issue, Alex Salmond doesn’t speak for a majority of Scots. In fact, he never has.

    Time after time, poll after poll, people in Scotland say they want to stay.

    But we’re not complacent.

    In the months ahead we have a lot of work to do to hammer home to people just how much Scotland gains from being part of the UK and how much the United Kingdom benefits from Scotland as a member.

    As a nation, we know we are greater than the sum of our parts.

    And I think Scotland’s First Minister has cottoned on to that recognition.

    Because he’s opened up a new tack in recent months.

    Not content, to just make promises about everything that would stay the same under independence – Keep the Queen, Keep the pound, Keep the Bank of England – whether it is in his gift or not.

    Not content, just to make assertions about a separate Scotland’s place in the world. – Automatic membership of NATO and the EU – against expert advice.

    But his new tack is the last refuge of every shameless populist in history staring down the barrel of defeat.

    It’s to promise things for free.

    A quick tally shows – with 11 months still to go – at least £32 billion pounds of uncosted promises.

    Under his independent utopia Alex Salmond promises to:

    – Increase overseas aid

    – Reverse benefit reforms

    – Underwrite oil decommissioning

    – Set up a Scottish Spy service

    – Subsidise more windfarms

    – And renationalise the Royal Mail.

    – By polling day, I’m expecting free beer with every vote.

    All of these promises made to people in Scotland.

    None of them with any explanation of how they would be paid for.

    In fact, a secret leaked document from Scotland’s Finance secretary shows his projection that – far from being able to offer unlimited bonuses – Scotland would be worse off than the rest of the UK by 2016-17 and would start under independence laden with a debt and debt interest we’d struggle to pay.

    That’s not me saying Scotland couldn’t be a separate country – of course we could.

    But why would we want to when we gain so much as part of the UK?

    And the man in charge of the sums for breaking up Britain – when even he – admits we’d be worse off as a nation?

    Friends, it is this ‘say anything’, ‘do anything’, ‘promise anything’ approach to breaking up Britain that we are fighting.

    And it is a fight.

    And I’m asking you to join me in it.

    I know that many of you living in other parts of the UK won’t have a vote – but we all have a stake in the result, and we can all play a part in securing our country for the future.

    When Quebec went to the polls to decide whether to leave Canada in 1995, the result was exceptionally close.

    The secessionists were ahead until the day itself.

    There was just a 1% margin of victory.

    And the single fact credited with making the difference between staying and going, between uniting the country or dividing the nation – was that the rest of Canada said ‘We want you to stay’.

    So, over the next year, when Alex Salmond comes on your television, saying things designed to get right up your nose.

    Know that he’s doing it on purpose, and that he doesn’t speak for the majority of Scots.

    Know too, that while this is the most important decision in Scotland’s history – it also affects each and every one you, no matter where you live.

    In three hundred years we have built our nation together, fought together, traded together, lived, loved, settled together.

    Shared our countries risks.

    Benefitted from its rewards.

    We walk taller, shout louder and stand stronger together.

    I am proud of the Britain that we’ve built together

    And I will fight heart, mind, body and soul to keep it together.

    Friends,

    Over the next 11 months, we have a huge fight to save our United Kingdom.

    It’s a fight we can win.

    It’s a fight we must win.

    Conference, with your help, it’s a fight we will win.

    Thank you.

  • Ed Davey – 2013 Speech on Opening Up Energy Markets

    eddavey

    Below is the text of the speech made by Ed Davey, the Energy Secretary, at the Energy UK Conference in London on 12th November 2013.

    I want to start today by saying how crucial your work is to the country.

    You produce and supply the energy that keeps our society running.

    That heats our homes, lights our streets and powers our working lives.

    Every single day, working together, you supply the country with one billion kilowatt hours of electricity.

    Enough power to make 50 billion cups of tea every day. Or cook over 750 million meals.

    But it is not only the power you produce that people need.

    It’s the 103 billion pound contribution to the economy you make every year.

    The taxes you pay.

    The 660,000 jobs the industry supports.

    The new, modern, climate-friendly energy infrastructure you are building to make sure Britain is energy secure.

    So a Britain of blackouts remains a memory of our past, not part of our future.

    And now the economy is growing again, I expect this contribution to grow too – more jobs, more tax revenue, more investment in essential infrastructure.

    And today I want to talk about this energy security challenge we face.

    To ensure we have secure and affordable supplies of energy while we reduce the carbon emissions that cause climate change.

    SERVE THE PUBLIC

    But I have also come today to deliver a tough message.

    Trust between those who supply energy and those who use it is breaking down.

    You’ve admitted as much to me.

    For it is so difficult for people to work out what exactly they are paying for, that they fear the big energy companies are taking them for a ride when bills go up.

    Fair or not, they look at the big suppliers and they see a reflection of the greed that consumed the banks.

    So this is a ‘fred the shred’ moment for the industry.

    You deliver an essential public service, so your industry must serve the public – and the public must have trust in what you do.

    The Government and Ofgem have been acting to open up the market, to increase competition, and put consumers in control of where they get their energy, and how they use it.

    I want the energy companies to be part of that effort as well.

    And that means opening up.

    Opening up the wholesale markets, opening up the retail markets and opening up your books.

    Because Government and society will not accept a closed shop in energy.

    And so I want to talk about the changes we are putting in place to make sure the market work for consumers – keeping prices and bills as low as possible as we make sure energy supplies are secure.

    But let me start first with that energy security challenge.

    Because just as we need to work together to restore trust, so we need to work together to keep the lights on.

    ENERGY SECURITY CHALLENGE

    You are all well aware of the scale of the task we face.

    Energy is the largest infrastructure programme across government.

    We face a decade or more of structural transition as 20% of our old or polluting power stations go off line.

    Replacing that capacity and moving increasingly towards low-carbon generation, as our climate-change commitments require, will be a herculean task requiring £110bn of capital investment between now and 2020.

    Everything we do has to ensure that we drive investment into the system – not scare it off or freeze it out.

    But that is also why energy is one of the biggest opportunities this country has to boost economic growth, speed up the recovery and create new high quality jobs in every nation and region of the United Kingdom.

    This includes upstream extraction as well as infrastructure and networks.

    We are providing the right conditions to make production in the North Sea commercially attractive with a system of incentives and tax reliefs worth billions of pounds.

    Capital investment this year is expected to hit a record high of £13 billion with 167 new licences granted.

    The indications coming out of Sir Ian Wood’s Review, which will report fully next year, suggest there is still more we can do with the potential to boost future returns by at least £200 billion.

    Onshore, we are at an early stage with shale exploration – but it could also to add to indigenous energy supplies with significant benefits to the economy and energy security.

    So we have put incentives in place to ensure that the necessary investigations take place to establish viability in the context of safe and environmentally friendly extraction.

    But by far the biggest energy security challenge is to make sure that we create one of the most competitive and attractive electricity investment markets in the world that drives the transition to a cleaner, low-carbon energy system.

    ENERGY BILL

    And that is exactly what the Energy Bill going through Parliament is for.

    This is putting in place the most robust and comprehensive legal, financial and political framework for energy policy this country has ever had.

    And – despite all the noise in the current debate over consumer energy bills – the Government’s Energy Bill is supported across the political parties.

    Significant political consensus, worth reminding people of.

    And that consensus, on the fundamentals, was confirmed once again by the Opposition front bench only last week.

    So we expect the Bill to become law by the end of the year.

    And the detailed proposals for implementing Electricity Market Reform we published last month will provide further certainty to industry and investors.

    This builds on the progress over the summer with the publication of draft strike prices for renewable electricity under Contracts for Difference, a draft of the contract itself, and detailed proposals for the Capacity Market.

    The fruits of bringing this greater predictability and certainty to investment are already showing.

    Latest estimates suggest that at least £35 billion has been invested in new electricity infrastructure since 2010.

    And much more is in the pipeline.

    Renewable electricity capacity has increased by almost 40% since 2012.

    Renewables are now supplying a record 15% share of electricity generation.

    Halfway to the objective of generating around 30% of our electricity from renewable sources by 2020.

    In the past 12 months alone, we have provided consent for seven major energy infrastructure applications worth about £20 billion, with the capacity to generate electricity for more than 6 million homes.

    That, of course, includes last month’s announcement that we have reached key commercial terms with EDF for the first new nuclear power station in a generation at Hinkley Point C.

    So we are providing a framework for investors and the energy sector that gives long-term certainty with predictable returns, lowering risk and the cost of capital.

    This is the market stability the Government is creating for the energy industry, to ensure energy security.

    RISING BILLS

    So, yes – the market has to work to meet our energy security needs and our historic infrastructure challenge.

    Yes – we have to use the market to drive the decarbonisation that is imperative to meet climate change obligations to future generations.

    So we do need our energy companies to be profitable.

    So they can invest in our energy infrastructure, secure the energy supplies of the future, develop more energy efficient technologies, and create jobs.

    But it is imperative that the markets, both wholesale and retail, deliver for the end-user.

    Because ultimately markets that fail to meet the test of affordability for customers are markets that are broken.

    Centrica’s Chief Executive, Sam Laidlaw, talked last week of the energy sector being in the ‘eye of the storm’.

    Sam and I don’t always agree, but on this he is right.

    When people see energy bills rising way above inflation year on year, you can understand the anger and frustration this causes.

    People fear shareholder interests are being put in front of the needs of families and the fuel poor.

    I am clear that the industry needs a reasonable rate of return.

    Because without profit we won’t get investment.

    And without investment, we risk a return to blackout Britain.

    But those profits cannot come at the expense of the elderly, the vulnerable, and the poorest in our society.

    Customers are not just cash cows to be squeezed in the pursuit of a higher return for shareholders.

    And frankly, the latest round of bill rises have not been fully and openly justified.

    And the public are right to challenge us, both Government and industry, to look at everything we are doing to see if we can bear down on rise.

    So let me start with what the Government is doing before looking at what we expect you, the industry to achieve.

    REDUCING BILLS

    We do the country no favours if we resort to knee-jerk, quick fixes.

    Some on the right wants us to turn our back on our social and environmental responsibilities by axing programs to help the fuel poor and boost green energy.

    The left is in danger of reverting to type by bashing business, and proposing to fix prices.

    But neither of these approaches actually solves the problem in the long-term.

    Cutting energy bills by scrapping outright social and green levies punishes the fuel poor and punishes the future generations who will confront the full force of climate change.

    If we were to pull back on our ambitions for tackling fuel poverty and energy efficiency, we would actually be hurting people.

    And as I told the RenewableUK Conference last week, the level of support for investment incentives for renewables will remain as planned and as published because these are essential for investor confidence in the renewables sector and our commitments to a low-carbon economy.

    Of course, as the Prime Minister has said, these subsidies and obligations shouldn’t exist one second longer than necessary – and that is why we keep them under continuous review.

    And there is a valid debate about the method through which these policies are paid for – through bills, through taxation, or other means.

    So it is right the Government looks at how we can reduce the impact of policies on bills and we expect to make announcements in the Autumn Statement in December.

    But I am also clear that the role of Government is not to fix prices.

    This will have a huge detrimental impact on the investment we need to deliver secure energy supplies.

    And an investment squeeze would mean a huge blackhole in Britain’s energy security – risking blackouts and higher prices in the long run.

    Price fixing would crush competition rather than encourage it.

    Putting small suppliers out of business as they struggle to manage unpredictable rises in wholesale prices.

    And, in the way it has been proposed by Labour for 20 months while they work out what to do next, it will have no permanent effect.

    It’s a sticking plaster with no sticking power – it’s a con.

    And, in my view, one of the most irresponsible proposals from a leader of the opposition made in modern times.

    The best way to keep bills as low as possible for the long term is to continue to pursue our twin track strategy.

    First energy efficiency – to help people use less energy and therefore pay less – through initiatives like the green Deal, ECO and energy demand reduction.

    We are creating the first energy efficiency market in the world – so it will take time.

    There will be no backing down on energy efficiency – because this is the way to bring bills down permanently.

    The second is through robust and rigorous competition in the markets to bear down on costs and prices – keeping them as low as possible.

    And that is what I want to concentrate on now.

    Competition works.

    We’ve seen small suppliers gain substantial business on the back of this year’s high price rises.

    Customers should switch to get better deals from companies who don’t deliver on price or on good customer service.

    And I will do everything I can to enable that choice.

    And make that choice more available to the most vulnerable in our society too – through collective switching and working with trusted third parties like the Citizens Advice Bureau, Age UK and National Energy Action.

    For competition and switching will only work well when there is a relationship of trust between suppliers and consumers.

    And only when consumers have real choice and can control who they buy from.

    So let me deal first with the issue of trust before turning to choice and control.

    OPENNESS

    The Government’s commitment to look how our policies impact on bills must be matched by a commitment in industry to open up your books and set out exactly how you are bearing down on your own costs to make bills as low as possible.

    As Sam Laidlaw said, “the starting point is about transparency, and the energy industry does not have a good story to tell here.”

    There is nowhere near enough scrutiny of how supplier operating costs and profits are made up and why these costs are justified.

    The industry must be much more transparent and Ofgem will have our full support to introduce whatever regulations are necessary to deliver that greater transparency.

    Ofgem already require the big energy suppliers to produce annual statements showing the costs and profits of their generation and supply activities.

    This makes the market clearer for consumers so they can see the margins energy suppliers make on the different parts of their business.

    But the overall transparency of financial flows within companies remain opaque.

    Ofgem will deliver by spring next year, a full report on the transparency of the financial accounts of the energy companies and ways that that could be improved, building on the work already completed by accountancy firm BDO.

    So I urge you to engage fully with the current Ofgem consultation.

    This should not be a reactive process.

    You need to come forward with ideas about how you can open up too.

    And that includes issues such as how direct debits and bill credits are managed.

    That is why I’m pleased, after meeting with Greg Barker last week, that Energy UK has agreed to develop and take forward a best practice model with its members.

    Because the more you demonstrate what you are doing to keep bills down, the quicker trust will be rebuilt.

    But trust is only one part of the equation.

    Today’s highly regulated market must be improved to boost the competition that we know delivers for consumers.

    To deliver a real ability for people to control where they get their energy from and how they pay for it.

    RETAIL MARKET REFORM

    First they have to be able to easily compare prices and to switch to a provider and tariff that gives them the best deal.

    Ofgem’s Retail Market Reforms will do away with the complex web of hundreds of tariffs and confusing information on bills.

    By December Ofgem’s cap on the number of tariffs suppliers can offer will be in place and by the end of March consumers will have clearer bills showing the cheapest tariff suppliers offer.

    But we can go still further to make sure that retail competition operates effectively by working together to unpick the laborious switching system which deters people from acting in their best interests.

    That is why I have challenged the suppliers to deliver faster switching.

    I met yesterday with representatives from many of the suppliers and I’m encouraged by the commitment to make this happen.

    But people also need a choice of who to switch to and that is why I am determined to help dilute the dominance of the big six over the retail and wholesale markets.

    Competition works best when established companies are challenged by innovators, forcing them to adapt their practices to make sure they continue to deliver for their customer base.

    That is why the contraction of the number of suppliers under the last Government from 14 majors in 2000 to just 6 in 2010 was so damaging.

    Freeze out new entrants and you freeze out new business models and new ideas that can deliver better, faster and cheaper for customers.

    So our reforms are opening up the retail market.

    In 2010 there was no independent domestic supplier with a customer base greater than 50,000.

    Now we have three independents with more than 100,000 customers, and a further eight companies have entered the market since May 2010.

    I am determined that this trend continues.

    With 98% of domestic customers still with the big six, there is a lot of room for greater competition and diversity.

    To do that we also need to make sure that the market is accessible to independent generators on a fair basis in the wholesale market.

    Our reforms in the wholesale market may have received almost no attention but I regard them as critical in our fight for consumers.

    WHOLESALE MARKET REFORM

    Thanks to improvements achieved already in the last year or so – led by Ofgem – the big barrier for generators is clearly no longer the day-ahead market but the forward markets.

    Here the UK’s performance is poor.

    This is where there is now great scope to drive competition and drive down prices.

    Ofgem have now set in train an ambitious package of reform.

    The proposed Market Maker reforms will provide independent generators and suppliers greater access to the power generated by the Big Six and other large power producers, enabling them to purchase and deliver cheaper energy to consumers.

    This transparency in the way electricity is traded will give independent generators a foothold in the UK energy market and encourage new players to invest.

    I am prepared to use the powers we are taking in the Energy Bill to improve energy market liquidity should Ofgem’s proposals be delayed or frustrated.

    So I would urge companies to work with Ofgem to implement these proposals as swiftly as possible.

    And how can we make sure that the raft of reforms from retail to wholesale are having the desired effect?

    Well that is the purpose of the new annual competition review.

    The first of the new competition assessments will be delivered by spring next year.

    The assessment will be undertaken by Ofgem, working closely with the Office of Fair Trading and the Competition and Markets Authority when it comes into being.

    Now the exact metrics for the review will be a matter for the regulators.

    But I have made it clear that they should look in depth and across the energy sector at profits and prices, barriers to entry and consumer engagement.

    The Government has equipped the regulators with strong powers to deal with unjustified barriers to competition.

    If abuses are found they must be addressed.

    I speak as the former Minister for Competition, who made and drove the decision to establish the Competition and Markets Authority and reform Britain’s competition law.

    So I can be clear with you.

    The CMA has teeth.

    And the annual competition assessment is an innovation I expect they will cut their teeth on.

    So trust is about playing by the rules.

    And rules have to be enforced.

    Companies that play outside the rules will be penalised and fined.

    With our Energy Bill, Ofgem has powers to require energy companies to make compensation payments directly to consumers who have lost out, but we can and should go further.

    That is we intend to consult on the introduction of criminal sanctions for anyone found manipulating energy markets and harming the consumer interest.

    This is the proper way for Government to intervene in the markets.

    Set the right rules and enforce them properly.

    That is what we are doing.

    That is what will have lasting effect delivering for generators, suppliers and consumers alike, in the years ahead.

    Making sure investment continues to flow, that industry can flourish and that the markets deliver for consumers.

    CONCLUSION

    So this is a tough message I’ve delivered today.

    These are very difficult and complex issues we are working through.

    There is no quick fix.

    And I reject the counsel of those who say you must be either on the side of consumers or the side of business.

    That is the bad old days of conflict and division.

    We need to make sure we keep bills affordable.

    But we also need our energy sector fit and healthy.

    Delivering the power we need.

    Delivering jobs and economic growth.

    Building the modern climate-friendly energy infrastructure that will keep this country running far into the future.

    And with the stability and certainty the Government is providing, now is the time to grow and invest and improve.

    And I know that you are rising to this challenge.

    So let’s together meet the challenge of affordability too.

    Making sure that well regulated and competitive markets deliver for the hard-working citizens of this country.