Tag: Speeches

  • Michael Howard – 1983 Maiden Speech in the House of Commons

    The Leader of the Conservative Party Michael Howard, delivers his speech to the Conservative Party Conference, Bournemouth.

    Below is the text of the maiden speech made by Michael Howard in the House of Commons on 29th June 1983.

    I begin, Mr. Deputy Speaker, by echoing the remarks of my hon. Friend the Member for Bolton, West (Mr. Sackville) and of the hon. Member for Birmingham, Ladywood (Ms Short) for being permitted to make my maiden speech today. I am particularly pleased to have caught your eye at such a relatively early stage in the Parliament because it enables me to pay an early public tribute to my predecessor, Sir Albert Costain. He is a much loved man both in the constituency and, as I have discovered during the past fortnight, in this House. He is not a man who seeks the limelight but he has rendered sterling service both to his constituents and to the House. More than 22 years ago he first became a member of the Public Accounts Committee and, I believe, the length of his service since then is without equal in the history of that Committee. During a much shorter period when I was a prospective parliamentary candidate, he was unstinting in his kindness to me. That was somewhat remarkable as he had some cause to be disenchanted with those who, like me, enter the House as practising banisters. On one occasion he was waiting to catch Mr. Speaker’s eye but felt constrained to visit the room which was referred to with such affection by Mr. Speaker in his acceptance speech. Before he left the Chamber, Sir Albert entrusted his notes for safekeeping to one of his hon. and learned Friends. When he returned to the Chamber, he was somewhat dismayed to find that hon. and learned Gentleman addressing the House in a most accomplished manner with Sir Albert’s notes in his hand and Sir Albert’s words on his tongue.

    My constituency of Folkestone and Hythe is a richly varied area, containing some 20 miles of coastline, Romney marsh, a most beautiful stretch of the north downs and the two towns that give it its name. Its economic activities are similarly varied. Communications to the continent of Europe are excellent and communications with the rest of England will also be excellent when the missing link of the M20 motorway between Maidstone and Ashford is completed. I am grateful to my right hon. Friend the Member for Guildford (Mr. Howell) for reinstating that project in the road programme when he was Secretary of State for Transport. His successor will hear a good deal from me about the priority to be given to it and the date on which we may expect completion.

    I cannot pass from my constituency without reminding the House that it includes, in Hythe and Romney, two of the original Cinque ports which answered the summons issued by Simon de Montfort in the name of King Henry III to send representatives to what is usually regarded as our first Parliament in 1265. They have valued the closeness of their links with their Members of Parliament over the centuries since then and the loosening of those links which would be a consequence of the proposals for electoral reform presently being put about would be something I should greatly deplore. When one considers not just the proposals for electoral reform but also those for regional government espoused by the alliance parties and the sympathy with the creation of a federal European state expressed by the right hon. Member for Tweeddale, Ettrick and Lauderdale (Mr. Steel), it is not always appreciated how much the total package of alliance proposals would emasculate the powers of this House. I hope to retain for many years the trust of the people of the Folkestone and Hythe constituency who have sent me here, and I hope to continue to serve their interests in a House of Commons that has not been shorn of its powers.

    I understand that there is still a view that a maiden speech should keep its distance from controversy. Although as a practising barrister of nearly 20 years’ standing I cannot pretend to be a stranger to controversy, I shall do what I can to honour that tradition in the hope that the two brief points that I wish to make will command such widespread assent that no question of controversy can arise.

    In the recent election, it was widely recognised, not only by Conservatives, that strikes and industrial action contribute to the problem of unemployment. Increasing recognition of that in recent years has been reflected in the increasing reluctance of workers to take industrial action. My right hon. Friend the Chancellor referred earlier to the importance of the reform of trade union law, especially as it affects the rights of individual members of trade unions. There is one critical area — critical for the personal freedom of individual workers as well as for the link between strikes and unemployment—in which in my view the legislative support given to the individual is inadequate. I refer to the position of the worker who refuses to join a strike, who may be excluded from his trade union as a consequence and who in a closed shop may lose his job for that reason. It may surprise some of my hon. Friends to know that, despite all the legislation of the last Parliament, it is still possible for that fate to befall a worker and for that worker to be denied any of the compensation or other remedies generally available at law for a worker who is unfairly dismissed.

    The Government have not been wholly insensitive to this issue. In some circumstances, set out in the code of practice on closed shop agreements and arrangements which in its revised form came into operation last month, it is likely that compensation will be payable. In my view, however, that is by no means good enough, for two reasons.

    First, as a matter of basic individual freedom a worker should be entitled to know without qualification that he cannot be sacked for refusing to strike without being entitled to all the remedies for unfair dismissal provided by our law. That protection is rightly conferred on the worker who is sacked because he is or proposes to become a member of a trade union. The worker who is sacked for refusing to strike is surely entitled to the same protection.

    Secondly, in the real world it is stretching credulity beyond breaking point to suppose that a worker faced with an extremely difficult decision and subject to considerable pressure will sit down and go through the code of practice line by line to determine whether the circumstances set out in it correspond with those of the strike in which he is involved. The full absurdity of the situation becomes apparent when one appreciates that the definition of the circumstances set out itself involves very difficult questions of law and a consideration of the meaning of statutory provisions recently described by Lord Diplock, sitting in a judicial capacity in another place, as most regrettably lacking in the requisite degree of clarity. That brings me to my final point, which has far wider application than the law relating to employment. When the same case was before the Court of Appeal, the Master of the Rolls made a plea to Parliament which we should do well to heed. He said: My plea is that Parliament when legislating in respect of circumstances which directly affect the ‘man or woman in the street’ or the ‘man or woman on the shop floor’ should give as high a priority to clarity and simplicity of expression as to refinements of policy. He continued: When formulating policy, Ministers, of whatever political persuasion, should at all times be asking themselves and asking parliamentary counsel ‘Is this concept too refined to be capable of expression in basic English? If so is there some way in which we can modify the policy so that it can be so expressed?’ Having to ask such questions would no doubt be frustrating for ministers and the legislature generally, but in my judgment this is part of the price which has to be paid if the rule of law is to be maintained. I do not believe that the refinement of policy which gave rise to the inclusion of some circumstances and the exclusion of others from the code of practice on the closed shop can be justified. Even if it could, I believe that the questions posed by the Master of the Rolls should have been asked. Had they been asked, I believe that the answer would have been to abandon that refinement of policy.

    In the first maiden speech of this debate, my hon. Friend the Member for Derbyshire, South (Mrs. Currie) asked for greater simplicity in the law as it affects the right to buy council houses. I endorse that plea, but the area that she identified is not the only one that calls out for such treatment. For the reasons that I have given, lack of clarity in employment law can cause injustice and can damage the economy. I hope that my right hon. Friend the Secretary of State for Employment will introduce measures to alleviate that injustice in the near future and that my other right hon. Friends who bring forward legislation will pay full attention to the plea made by the Master of the Rolls. Many of us on the Conservative Back Benches intend to encourage them to do so in the months and, I hope, years ahead.

  • Gerald Howarth – 2012 Speech on Greener Defence

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

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

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

    Effective defence calls for effective collaboration.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    However the Alliance does need to be revitalised.

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

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

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

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

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

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

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

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

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

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

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

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

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

    Smarter defence is actually about future proofing.

    Working together to make sure our resources go further.

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

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

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

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

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

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

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

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

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

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

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

    All of which impacts on our military effectiveness.

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

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

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

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

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

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

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

    In other words, you can be smart and green.

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

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

    Thank you.

  • Gerald Howarth – 2007 Speech on the Future of the British Army

    On the 30th January 2007 there was a Westminister Hall debate on The Future of the British Army. 

    The following is taken from the Hansard report for the 30th January:

    Mr. Gerald Howarth (Aldershot) (Con): I follow on from what the hon. Member for Dunfermline and West Fife (Willie Rennie) said and pay tribute to one of Britain’s greatest success stories, Her Majesty’s armed forces, and particularly, in the light of today’s debate, the British Army. I do not believe that there is an army in the world that can match ours.

    I congratulate the hon. Member for Crosby (Mrs. Curtis-Thomas) on securing the debate. I am sorry that more hon. Members are not present, but I pay tribute to her because she is a tribute to the armed forces parliamentary scheme. She has clearly benefited from it and proven to the House and, we hope, to a wider audience—she has certainly done so to the Minister, although he needs no confirmation of this—that the scheme is an extremely good organisation and helps to ensure that Members of Parliament who do not have experience of the armed forces are introduced to what is, as I said, one of Britain’s greatest success stories.

    I shall not go through all the points that the hon. Lady raised, but she made two fundamental ones. The first was that the Falklands campaign illustrated the importance of being prepared to fight for one’s country, territory and interests. We must never forget that that is what our armed forces are for. Having come straight from a meeting with Baroness Thatcher and just discussed these issues, I can reinforce that remark.

    The hon. Lady’s second point was about Sierra Leone. That is a very different operation, but it is one in which the British Army is conducting itself magnificently. It illustrates the extraordinary versatility of Britain’s Army and particularly those who come from less privileged backgrounds. Some people come from very difficult home backgrounds and poorer parts of society, and it is a tribute to the British Army that it manages to train them and turn them into such stalwart citizens who are both brave and versatile. In theatres such as Sierra Leone, they are winning hearts and minds, as they are doing in Iraq and Afghanistan. That is an enormous tribute to them. As Conservative Front-Bench spokesman on defence, but also as one who has the privilege of being the Member of Parliament for Aldershot, the home of the British Army, I have to say that this is a wonderful opportunity for me not only to extol the virtues of the British Army, but to highlight some of the difficulties. May I say to the Minister, who has been in post even longer than I have, that if I do highlight the difficulties, I do so because it is part of the constitutional duty of the Opposition to hold the Government to account? Much is being done that I am sure is good. New equipment is coming on board, and the Minister mentioned accommodation, but there are real problems. The hon. Member for Dunfermline and West Fife illustrated some of those. General Sir Richard Dannatt’s first intervention when he became Chief of the General Staff was to say:

    “We are running hot, certainly running hot. Can we cope? I pause. I say ‘just’.” Coming from the head of the British Army, that should send a shock through all Members of this House, not just Ministers, but it was a considered view and reflects what is happening on the ground. The trouble with the military is that when asked to do something by politicians, invariably their answer is, “Yes, sir. We can do it, sir.” We politicians then glibly say, “Okay, that’s fine. Let’s crack on with it.” The military are reluctant to say, “No, we can’t do it,” because they would feel that they were failures or that they had failed to deliver what was expected of them by the politicians. I think that what General Sir Richard Dannatt said is absolutely right. It is certainly borne out by my experience and by the figures.

    I remind the Minister that in 1997 the required strength of the British Army was 106,360. That had fallen by 2006 to 101,800. The trained strength of the Army in 1997 was 101,360. Last year, it was 99,570. We now have the smallest Army since 1930. The fundamental difference between 1997 and 2007 is that today we are fighting two wars. There is no point in pussy-footing around: when we say that people are going on operations, they are going into war zones. Iraq is effectively a war zone and Afghanistan is most certainly a war zone, as are the myriad other operations that the hon. Lady mentioned and to which we are committed.

    The fundamental basis of our criticism of the Government is that there are insufficient men to undertake those tasks. It is no good saying, as the former Secretary of State did, that platform numbers no longer count because we have such sophisticated equipment. Of course numbers count. One ship cannot be in two places, as Admiral Sir Alan West, First Sea Lord, said. Equally, soldiers are human beings. To take territory and hold it, one needs men, and that means numbers. It does not matter how sophisticated the weapons are, the physical presence of the soldiers is what counts. We cannot understand why the Government have cut four British Army battalions when General Richards in Afghanistan has called for precisely 2,500 men. What is that? It is four battalions. That is in addition to what they are doing to cap badges and to destroy much of the morale and ethos that is associated with the support for individual units. Men do not fight for their country; they fight for the man next to them. They fight for their unit, their regiment and that battle honour. Anyone who doubts that should watch the 3 Para video of Afghanistan, which is extremely well worth watching. It exemplifies the sense of camaraderie and ethos.

    In 2005, some 3,350 more people left the Army than joined up. Last year, the number was about 1,500. I agree that the problem is not so much with recruitment, although only two battalions are properly recruited—the Gurkha battalions—while the rest are under-recruited and under-strength. There is an attraction for young men and women in serving their country and taking part in the kind of operations that are under way. The problem is something else. When I go around and speak to people, many of them tell me, “I’ve done Iraq”—probably three times—and “I’ve done Afghanistan. It doesn’t get much better than that, so I’m quitting.” The people who are leaving are the backbone of the British Army: the captains, majors and senior warrant officers. They are the repository of the real experience in today’s Army. Their loss is potentially the most damaging, and something has to be done about it.

    I have two Guards battalions in Aldershot at present—the Irish Guards and the Grenadier Guards. Before Christmas, the commanding officer of the Irish Guards, Colonel O’Dwyer, told me, “Sir, we are not valued.” That is a serious wake-up call and we need to wake up. The colonel is a splendid chap, and he did not say that in any way politically, but it is an accusation against the political classes. It is our job to make sure that they are valued. I shall return to the military covenant later.

    Mrs. Curtis-Thomas: In what context was that comment made?

    Mr. Howarth: I protested to the colonel that there is not a Member of Parliament who does not stand up in Westminster and proclaim the virtues of the British Army. He said, “We get less telephone time than prisoners, and when we go on a train we have to buy a travelcard. Police officers just flash their warrants and don’t have to pay anything.” I realise that those are small things.

    Mr. Ingram: I shall respond to that now because I might not have time to deal with all the points that have been raised in detail. It is not correct to say that forces members have less telephone time than prisoners. We recently increased it to 30 minutes a week. Perhaps the hon. Gentleman can go back and correct the misunderstanding or misinformation that is being pedalled around.

    Mr. Howarth: I am happy to do that, but I want to make it clear that that is not the fundamental issue. It is more like the straw that breaks the camel’s back. If I am issuing a warning to the Minister, it is this: we are taking the British Army too much for granted. It is at a tipping point. Take the Grenadier Guards. In the 115 weeks between March 2006 and June 2008, they will be on operations for 48 weeks, doing field exercises for 20 weeks, and have 10 weeks of post-operational tour leave and pre-deployment leave. To anyone who thinks that that involves swanning around at home, I say that post-operational tour leave provides the process of decompression that is essential when men are taken out of a theatre such as Iraq or Afghanistan having seen what they have seen. It is not a holiday. We do them no service.

    Servicemen and women tell me that the negatives of service are the separation from their families and lack of adventure training—the kind of thing that used to make up part of the whole military package. It is now tilted in favour of duty, responsibility and work and less in favour of the benefits that made the whole package attractive. Yet these days, unlike in the cold war, those men and women are putting their lives on the line for us day in, day out. They are dying for their country. They are giving a real, not abstract, commitment.

    I pay tribute to those who have given their lives for our country and to their families, who deserve the biggest tribute because they supported them. They are the ones who have experiences like the lady who said,

    “When I put the children to bed, the house is silent.” She will live with that silence, and we need to bear that in mind.

    Mrs. Curtis-Thomas: Is the hon. Gentleman arguing that we should limit the exposure of the Army to a specific number of areas of engagement, or does he support the argument that while the Army’s diversified activity is positive, it is crucial that we have more people to deliver that diversity comfortably?

    Mr. Howarth: It is the latter. I simply do not think that there are enough people, and that is the generally held consensus. There are not enough people to do all the jobs that are being done. I have no desire for us to retreat into a United Kingdom shell and remove ourselves from the world stage. We are a power for good in the world and I want us to play that role. I am a Tory. I believe that strong defence is the first duty of any Government—certainly a Conservative Government. We are able to play a great role in the world. Anyone who compares British forces, and how we deal with people, with the American forces in Abu Ghraib can see that we are good. Personally, I have no wish to see our role diminished.

    I have written to Air Marshal Pocock about how the change in the allowances will affect the Grenadier Guards and they will lose £681,750. They are doing two operations—they just came back from Iraq in October and are going to Afghanistan in March—and they are uniquely disbenefited by the changes. I urge the Minister to look at that again.

    I want to address one or two issues about equipment, starting with armoured vehicles. We have been warning for years that the nature of the operations in Iraq, in particular, and now Afghanistan, puts our troops at grave risk from roadside bombs and sophisticated improvised explosive devices. I was told in Iraq, three years ago, that the insurgents there had achieved more sophistication in 30 months than the IRA did in 30 years.

    On my return from the armed forces parliamentary scheme visit to Iraq, on which there were no Labour Members, in 2005, I went straight to the Secretary of State and said, “You’ve got to do something about this.” I did not go to the press because my duty is not to spread fear and alarm among families. I have been criticised for not going public about it, but that was my view. The Government have made a mistake, although they are now bringing new kit on board.

    We have a duty to give the men the best possible protection, so I welcome the Cougars coming into operation, but we were told last July by the Secretary of State that they would be fully operational at the end of 2006. I do not regard having four Mastiffs, as I believe the British Army now calls them, in theatre in Iraq as being fully operational. Everybody knows the limitations of the Snatch Land Rover and it is time that the Government did more to recognise that they have a duty to protect our troops. Equipment exists that is able to do that—for example, the Pinzgauer, which I have been to see. Others dismiss it, and I do not think that it has the full armoured capability of the RG-31 or the Mastiff, but it will make a contribution.

    The second issue on equipment concerns helicopters. I understand that the Government have decided that the Danish EH101s are not available or that they will not go ahead with acquiring them. It is clear that we particularly need lift in Afghanistan, as it is insufficient. That which there is in theatre is being used at a far higher rate than had originally been envisaged, which is imposing a far greater toll on the maintainability of the helicopters. I gather that Eurocopter has put a bid before the Government concerning six Pumas; there is a possibility that three will be made fully theatre-prepared and available by July, with the rest available by the end of the year. The Government have a duty to do something about lift, because it is available, and I cannot understand why they are taking such a long time to deal with it. I know that there is a bit more time available so would it be in order for me to have another five minutes, if the Minister agrees, as he would still have time to reply, Mr. Gale?

    Mr. Ingram indicated assent.

    Mr. Roger Gale (in the Chair): The Minister is happy, so I am too.

    Mr. Howarth: I am grateful, because there are many other issues that I could raise about the British Army. Although I do not have time to raise them all, I want to mention the important matter of medical care. We have an inadequate system of dealing with the aftermath of military operations and the Government need to do much more. The issue of mental health problems arising out of operations is also of paramount importance. If the Minister could do anything to increase the support that he makes available to Combat Stress, he would be doing a great service and would be widely thanked. We know that there are insufficient numbers of nurses and doctors. They are about 43 per cent. under-recruited, and that will also have to be addressed.

    Mention has been made of the military covenant. There is not a person in this land who believes that Britain’s armed forces have not fulfilled their part of the bargain. They have done so in shed loads. They have met their duty under the military covenant, but the nation has failed them in return. We have not given them the kit, the sufficient manpower, the family support or the accommodation. Whatever the Minister is now doing, we have not done enough for our armed forces to enable us to look them in the eye and say, “We have fulfilled our part of the military covenant.” I want to make a point to the Minister by taking as my text the remarks made by the former Secretary of State, now the Minister for Europe, in supporting essay 2 to the Defence White Paper of 2003, “Delivering Security in a Changing World”.

    He stated: “Since SDR our Armed Forces have conducted operations that have been more complex and greater in number than we had envisaged. We have effectively been conducting continual concurrent operations, deploying further afield, to more places, more frequently and with a greater variety of missions than set out in the SDR planning assumptions. We expect to see a similar pattern of operations in the future”.

    In other words, we are imposing on our armed forces a commitment that is greater than was proposed in the strategic defence review. The SDR was never properly funded and this is not properly funded. The situation is, “Commitments of SDR, plus; funding of SDR, double minus.” That sums up the dilemma that the Government face.

    It is no good the Prime Minister saying, as he did against a military backdrop—on HMS Albion—in a wonderfully orchestrated and typically Labour spin thing, that we are going to spend more on defence. When the matter was raised in the other place—I raised this with the Prime Minister at Question Time last week—Lord Davies of Oldham said of the comprehensive spending review that “there will be a number of contributions to that debate. The Prime Minister’s contribution will, of course, be regarded very seriously and very importantly indeed.”—[Official Report, House of Lords, 17 January 2007; Vol. 688, c. 647.]

    What have we come to when the Prime Minister of the land deliberately gives a stage-managed appearance on HMS Albion telling the armed forces, “Don’t worry boys, I am going to look after you. I give you a commitment” and that is a “contribution to that debate.”? That debate is presided over by, undoubtedly, the next Prime Minister, the Chancellor of the Exchequer, who has betrayed the armed forces. He has failed to fund them to the level required to meet the commitments that the Prime Minister has imposed on them. He is as much a part of this Government as the Prime Minister, and he has failed abysmally in doing the job that he ought to do of supporting our armed forces.

    My hon. Friend the Member for Mid-Sussex (Mr. Soames) and I offered a little challenge before the previous election. We offered a magnum, no less, of Pol Roger champagne—the favourite champagne of his grandfather, Sir Winston Churchill—to the first person to spot the Chancellor of the Exchequer arriving at, or leaving, a military establishment. The magnum of Pol Roger is still on my sideboard awaiting collection. I believe that the Chancellor has now been to Iraq and is trying to ingratiate himself with the armed forces, but he is a man who has never done anything to help them. He may say that the Tories cut defence spending, but we did so because the circumstances after the ending of the cold war, which was achieved by my noble Friend, Baroness Thatcher, meant that we had to have a rethink. To this Government’s credit, they had a review. We should have had a review, but we did not. We cut defence expenditure but the trouble is that the Labour party wanted to cut it even further. The Government should not tell us that we did not do the right thing by the armed forces because Labour wanted further cuts.

    There is an issue about the funding of our armed forces, and the hon. Member for Crosby raised it. On 30 October, The Daily Telegraph gave figures from an opinion poll that asked people whether they thought more or less should be spent on defence. Some 46 per cent. of people said that we should spend more on it, of whom 18 per cent. said that significantly more should be spent. Only 22 per cent. said that less should be spent on it. Interestingly, there was an opinion poll about Iraq in another column showing that 57 per cent. of people said that we should be out of Iraq either now or within 12 months. That illustrates the complete disconnect between the public’s opposition to the Iraq war and their support for the armed forces.

    We have a duty to support the greatest army in the world. It has served us well and I, like everyone else, is proud of it. We are not doing our stuff by the Army and, if we do not do so, the haemorrhaging of people leaving the armed forces will get even worse and experienced people will go. Such people cannot be replaced. The military covenant requires us to do our duty by our magnificent armed forces.

    The Minister of State, Ministry of Defence (Mr. Adam Ingram): I thank my hon. Friend the Member for Crosby (Mrs. Curtis-Thomas) for securing the debate. I will come to some of the points that she made, but I want to start by paying tribute to the members of our armed forces for their dedication and the invaluable contribution that they make on a daily basis to our efforts for global peace. She put that into context well.

    I also pay tribute to the families, particularly those who have lost loved ones. I was up in Kinloss yesterday for a most moving memorial service in recognition of the 14 brave men who lost their lives in the aircraft crash. It was a powerful event that brought home to me people’s resilience, dedication and commitment. I spoke only to RAF personnel and to some of the families, but all three services were represented.

    As an aside, I should say that I appreciate the comments made by my hon. Friend about the armed forces parliamentary scheme. I was one of the early participants in it, which is possibly why I have ended up in this job for six years. I wanted to spend my time with the RAF because my father had been in it, but as two places had been filled, I ended up with the Army. I am glad that I did, because it gave me an insight into things that I did not have much knowledge of, other than through family contacts of a vintage period from the second world war. However, the Army’s future is not dependent on the armed forces parliamentary scheme. If it were, more participants of that scheme would be taking part in the debate. It is to be noted that so few of them are.

    I appreciate my hon. Friend’s recognition of what is being done in the incredible training programmes in the armed forces and, considering who we recruit and where, particularly in the Army. People are lifted and become exemplars for others in their communities, and we give welfare to tens of thousands of younger troops. That is an example of what we are trying to do as part of the covenant. We want to create an ongoing ethos. What we have done is not new, but training is getting better, sharper and better funded.

    One of the baselines is how we bring on young people who come into the armed forces. In my six years as armed forces Minister, I have been dealing with the Deepcut issue—the four tragic deaths that occurred there. We have analysed it and now transformed the whole training regime, which has been independently audited and examined. Those in the armed forces who have had to deal with it must be given credit for transforming their approach, which will give the forces strength. The regime is not perfect, and there is still a lot to be done. There are accommodation issues to consider, but we have invested heavily in both financial and people terms to turn that around. If we do not get it right, we will not get right other aspects of what we are doing. I shall come to equipment, which is a key matter.

    Hon. Members have mentioned the Prime Minister’s speech on 12 January. It is wrong to diminish its importance, but I understand the political knockabout that takes place. It is worth while to read the speech: it was successful and examined where we stand. The Prime Minister talked about the transformation of the context within which the military, politics and public opinion interact. We are in a new climate and environment, and some changes are driven by events and some would have had to be made anyway because of circumstances evolving beyond our shores.

    Mr. Howarth: What the Prime Minister said on HMS Albion was:

    “For our part, in Government, it will mean increased expenditure on equipment, personnel and the conditions of our Armed Forces; not in the short run but for the long term.”

    It was a Minister in the other place, Lord Davies of Oldham, who said that that was merely a contribution to the debate. I say to the Minister that this is not knockabout stuff. If the Prime Minister’s words did not mean that the armed forces were sent the message, “We are going to increase expenditure,” what did they mean?

    Mr. Ingram: I have read the comments made by my colleague in another place, and knockabout is a word that I could use to good effect in describing them. The Prime Minister’s speech was more than a contribution; it was a substantial analysis of where we stand. We are not here to consider that speech, which covered matters beyond the future of the British Army, but it put the armed forces into context. The Prime Minister talked about public opinion, politics and where Her Majesty’s armed forces sit. He also mentioned the need to invest in our nation’s warfighting capabilities to pursue our foreign policy. The sharp end of that is the British Army.

    There are people who do not believe that we should be a warfighting nation, including some in the House and perhaps in the other place. I think that they are wrong, because that represents where we best position ourselves and where we have historically and traditionally given great effect at momentous times in world history. We are doing that in Iraq and Afghanistan today, and who knows where we will do it tomorrow? The Prime Minister set out a variety of security threats and challenges that we face and where the armed forces sit in relation to them. Much of what he said is what we have been addressing in the Ministry of Defence since the strategic defence review.

    I am grateful to the hon. Member for Aldershot (Mr. Howarth) for admitting that the Conservatives failed in government to address what was coming after the end of the cold war. The downsizing and the changes that took place were not well structured. The Conservatives did not analyse what the needs of the future would be. They immediately reduced defence expenditure dramatically so that they could invest it in trying to win the forthcoming elections.

    Mr. Howarth rose—

    Mr. Ingram: I shall give way in a moment on that point, but I do not agree with the analysis with which the hon. Gentleman closed his speech.

    The incoming Labour Government considered where the armed forces should be positioned and how best they should be structured. That was an intensive programme, driven directly by the armed forces themselves. They knew that they had to get themselves better structured and positioned. On the back on the conflicts in Iraq and Afghanistan, it was clear that more needed to be done. There was not a full review, but more consideration needed to be given to how to structure the armed forces, particularly the Army.

    We considered the new technology that was coming in, which changed the relationship between the various services and how they could fight interdependently and flexibly, meeting new challenges and a different type of threat and enemy. All that had to be included in the examination process. Such a process will always be complicated while we are engaged in heavy commitments such as in Iraq and Afghanistan.

    Other countries where we are engaged have been mentioned, and it is interesting that people forget about Northern Ireland. Only a few years ago we had more troops committed there than to Iraq and Afghanistan put together. We have transformed Northern Ireland: when I was the Northern Ireland Office Minister with responsibility for security, we had about 15,000 troops committed. Some were on rear bases, but that was the total commitment, the vast bulk of which came from the Army.

    The peace process was required for a lot of reasons, one of which was the heavy resource commitment. We had been there for far too long and there was another, better way of doing it. We could never have solved the problem militarily, yet we had a large commitment. As of next year, we will have a commitment of 5,000 troops—not for the peace process, although a measure of support will be given to the civilian authorities, but overall. That is a major transformation and it has reduced pressure.

    Two parts of our re-examination were called future Army structure and future infantry structure. The future Army structure represents a complete overhaul of how we brigade the British Army. Virtually every Army unit establishment was subject to examination, and will be in the months and years ahead. Some 10,000 posts will be redistributed, which will reshape and restructure the Army and is intended to get a better balance between heavy, medium and light capabilities. We inherited an imbalance: the enemy and threat had changed, so we had to change accordingly. That required re-roling and people doing tasks other than those that they thought they would do when they entered the armed forces. We were committed to one objective: maintaining the high quality and standard of Her Majesty’s armed forces.

    A previous Secretary of State, now the Minister for Europe, commented on the matter on 16 December 2004, saying:

    “However, enhancements that we have already decided on include the creation of a new commando engineer regiment, a new port and maritime unit, an additional strategic communications unit and a new logistics support regiment for each deployable brigade. We are also creating a number of new sub-units for surveillance and target acquisition, bomb disposal and vehicle maintenance capabilities.”—(Official Report, 16 December 2004; Vol. 428, c. 1796.)

    In April last year, a new special forces support group was also formed to work alongside special forces tackling the terrorism that we face globally. I have visited a support group and spoken to those deployed in Afghanistan. I cite those examples because they are never recognised as part of the process of substantial change that we have seen. That process has been driven by a military imperative to get things right, and there has been political and financial support for it.

    Mr. Howarth: I entirely endorse that point, and the Minister is absolutely right, but we need to introduce changes to meet the circumstances of today, not the limbo in which we found ourselves in 1989, following the fall of the Berlin wall. It is absolutely right to do that, but the Minister’s problem is that he is still operating with an Army of less than 100,000. As far as I can work out, we would have to go back pretty well to the time of Wellington to find an Army as small as that. That is where the problem lies—not with the new units that the Minister is creating, which I applaud, but with the reduction in the Army below the critical 100,000 level.

    Mr. Ingram: Let us look at the figures. The hon. Gentleman said that trained strength was 101,300 in 1997. It dropped to 100,900 the following year and to below 100,000 the year after that. In terms of the figure being below 100,000 and the reference to 1935, therefore, he is wrong. The current figures are marginally below the 1999 level. Interestingly, however, recruitment grew at the height of the Iraq controversy, when there were massive demonstrations in this country.

    In 2004 and 2005, the figure went up to 102,400. That tells us something that is probably hard to analyse—recruitment went up against the trend, but we are now having recruiting difficulties. Tempo is unquestionably part of the issue, but people tend to forget the strength of the economy. The hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith) mentioned the strength of the Scottish economy and his own region. It is difficult to recruit from a particular cohort when the economy is strong, and especially when the demographics and all the higher and further education opportunities open to young people, which were not there before, are working against us.

    That is what this debate is about, and if people can find a solution to that problem, they should tell us. A lot of effort is being put into working towards the best conclusion. We offer young people immense opportunities not only in the Army, but in the armed forces, and my hon. Friend the Member for Crosby (Mrs. Curtis-Thomas) mentioned the educational opportunities. We market and advertise the opportunities that the armed forces provide so that people are aware of them. Sometimes those recruiting campaigns work, but sometimes they do not. We are no different from any other major organisation that is trying to reach a market and attract people in.

    What militates against our efforts is people arguing that the British armed forces are underfunded, ill equipped, badly treated and badly looked after. There may be some underlying truth in terms of issues needing to be addressed, but no wonder we find it difficult to recruit when debates such as this present a picture of complete negativity, rather than highlighting the positive attractions for young people. That is why we are putting so much effort into our recruiting strategy and trying to lift the quality of the debate as best we can.

    Mrs. Curtis-Thomas: That is an interesting point. We have certainly seen that situation in the north-west, and particularly in Liverpool, which is a big recruiting area for young soldiers, although the economy and job opportunities have gone through the ceiling, which means that the Army is not as attractive as it was. However, I take my right hon. Friend back to my earlier point that the Army has made strong attempts to ensure that any qualification it gives has equivalent civilian accreditation. Many individuals were locked into the Army because their experience could not be marketed outside it, but that barrier has now gone. That means that they can gain fantastic opportunities and then say, “Where can I best use them?” That is quite an important factor, and I applaud the fact that we have taken those steps, but it does create retention problems.

    Mr. Ingram: It is probably a no-win situation. Not every young person who comes into the armed forces because of the opportunities that they offer—they are not all 16 or 17-year-olds, and some are a bit more mature—is focused on training and education, and some come in to do what they want to do with the Royal Marines or the Army, but they are all given every opportunity. I agree that that raises an issue, in that we are making people employable who were not employable before.

    I talked to RAF personnel at Kinloss yesterday, and several of them were looking at openings in the outside world. As a nation, we have give them that opportunity. Some would have taken it as a result of their own choice, but many will now be able to do so because we have provided the resources—the hundreds of millions that we pour into the education of our personnel.

    I want now to touch on equipment because we hear so much about equipment problems—indeed, that is all we are ever told about. When the issue arises, Defence Ministers try to take those who make such comments through the argument. Let me give a good example of what applies to the Army today and what will apply into the future. Four years ago, an eight-man fire team would have had roughly three SA80s; one light support weapon; an individual Mk 6 helmet, webbing and Bergen; enhanced combat body armour; the old Clansman; a light anti-tank weapon; an individual weapon sight; and a 51 mm mortar. Now, such a team has a light support weapon; a light machine gun; an underslung grenade launcher; thermal imaging sights; the Mk 6A helmet, which is an improved defensive aid; all-round Osprey body armour, which has saved lives; the interim light anti-tank weapon; the Bowman personal role radio; head-mounted night-vision sights; a long-range image intensifier; and an automatic lightweight grenade launcher and a 60 mm mortar in support.

    All those developments have taken place because of the theatre in which we find ourselves. That is what is happening on the procurement of equipment, and it is the same with armoured vehicles. I am really surprised that the hon. Member for Aldershot criticises what we are doing and says that we should do more. What more can we do, other than procure the numbers that we need and ask industry to supply us, which it is doing to a considerable extent? All that will place the Army in a better position in the years ahead.

    Let us just consider one fact: equipment valued at more than £10 billion has been delivered to the armed forces in the past three years. When people say that equipment is not being supplied to provide for force protection and wider capabilities, they are simply wrong. If they want more defence expenditure, let me hear where they want less expenditure. I shall advocate more expenditure as part of a spending Department’s approach with the Treasury—it is our job to do that—but let those who want more for defence say where they want a reduction. In health? In education?

    The issue is part of our covenant with the British people, and the Prime Minister set it out in his argument. Have we got the balance right? The argument is now out there, and the Prime Minister certainly made more than a contribution—his was a powerful examination of where we stand as a nation and what we need to do against unknown threats and enemies. However, we must get ourselves in the best position. I welcome this debate, and we should have more such debates, but I just wish that more hon. Members would participate in them.

  • Mark Hoban – 2013 Speech on Social Justice and Welfare Reform

    markhoban

    The below speech was made by the Minister for Employment, Mark Hoban, at the LGA Conference on Troubled Families in London on 23rd January 2013.

    Under the previous government, billions of pounds were moved around the tax and benefits system in an attempt to reduce poverty. But the complexity of the previous system had the perverse effect of trapping thousands of people on benefits. Through tax credits in particular, even quite wealthy people became entangled in a labyrinthine benefits system. The benefits bill spiralled out of control, and despite this, child poverty targets were missed.

    This is something the coalition government is determined to tackle. True social justice will only really be achieved when families are able to provide for themselves.

    Now this is no simple task, and of course there will always be people who need our help. But this help should be in the form of a safety net, and a leg up. Not a way of life which traps people with little hope of escape.

    The only real, sustainable way this can be achieved is by giving people the help and support they need to move into work. By working, people can earn the money they need to look after themselves and their families.

    But money isn’t the only reason. Having a job means much, much more.

    Having a job gives you pride, self-worth and dignity. Having a job gives you more control over your own life. Having a job shows your children that a life on benefits isn’t the only option.

    Now of course none of this can be achieved without there being jobs available. I am not complacent – I know there are people up and down the country who are struggling to find work.

    But despite tough economic times, recent employment figures have been encouraging, with more people working than ever before. Indeed figures which were published only this morning show that once again employment is up and unemployment is down.

    But I am well aware this isn’t the only answer. We need a benefits system which helps people move into jobs. And that is why we have embarked on the most radical reform of the welfare state ever.

    The benefits system had become so bloated that, for many people, moving into a job didn’t seem like an option.

    So under Universal Credit, which starts to be rolled-out in a few months, people will always be better off in work. People will no longer be trapped in a confusing web of entitlements and add-ons. And people will always be able to increase their hours without losing out financially

    And whether it’s giving lone parents the help they need to move off income support and into work, or reassessing people on incapacity benefit to see if they are capable of work, I am determined that we never again write people off. Never again will there be so much wasted potential. Never again will people be consigned to a lifetime on benefits when they could be helped into work.

    But getting the structure of the benefit system right, whilst necessary, isn’t enough in itself. We need to remove the barriers to work, particularly for the hardest to help – those who are furthest away from the labour market.

    For people in a family where there are multiple problems, having the jobs available is only part of the solution. They might need help to tackle unsatisfactory housing, help to manage a violent domestic life, help to learn personal skills and increase their confidence. These can all be vital in helping people make the change from a life on benefits to a life in work.

    And that is where we need to work together. As people on the front line, you more than most will see how complex the lives of people in troubled families are. And you will see the need for extra help.

    That is why, in December 2011, we set up the programme to provide support for people in families with multiple problems – to help them tackle some of their difficulties and move towards a job.

    Funded through the European Social Fund (ESF) programme, the DWP made two hundred million pounds available to help tackle entrenched worklessness amongst troubled families. This help is there to support families identified by Local Authorities as having the sort of problems that typically overwhelm people. Families who feel there are just too many barriers to see work as a realistic prospect. Families struggling with problems like debt, difficult living conditions, involvement with drugs or crime, and a lack of skills or work experience.

    This programme is intended to work across the family, across the generations and across the range of problems they may face.

    Now working to tackle such challenging problems across local and national government is inevitably going to have teething problems. But I have to say that collaborative working is nothing new, and I’ve seen for myself how it can work very well.

    Only last week I went to Wood Green Jobcentre Plus where their Community Engagement Adviser works closely with Haringey council and their locally-led jobs fund.

    Or in Grimsby where a local fish-filleting factory is able to take on trainees using a combination of Youth Contract measures and a wage incentive offered by the local authority. Or in Gloucester where Jobcentre Plus advisers work with schools and the Local Authority to pool resources and provide a single point of contact for young jobseekers.

    We want to replicate such successes with the ESF programme. By combining your expertise at working with these families with the tailored support that our providers are offering, together we can make a big difference to people’s lives.

    Because where this has happened, the scheme is working well.

    Take Rochdale Council, for example, where there is very strong support for the families agenda from the Chief Executive down, and they play a leading role in the Trouble Families Programme for Greater Manchester. Rochdale’s ESF families support and their Troubled Families programme are very closely integrated, helping them to identify pockets of deprivation to target resources.

    Or in Liverpool where the council works closely with the prime contractor, Reed. Together they ensure that the ESF Families programme complements their existing ‘Liverpool in Work’ scheme, without duplication or competition. Now the provisions are able to refer people between them depending on individual need.

    So while there are a number of shining examples, I think everyone here would agree that it could be working better.

    I know that you have not been asked to make direct referrals on this scale before, and I know that some of you have frustrations with the way things have worked.

    But let me reassure you – we are completely committed to turning around the lives of some of the most troubled families in this country, and we are looking at ways in which the process can be fine-tuned. And in return we hope that you, the Local Authorities, to play a stronger role too.

    Perhaps the most fundamental issue is the lack of a sufficient flow of people and families into the provision; meaning expert knowledge isn’t being used to its full potential. I recognise that some of the providers have faced initial difficulties, which is why we have made some changes to things such as funding. And I completely understand that a number of local authorities have been reorganising their services in order to deliver programmes like these.

    But the funding and the expert provision is there to be taken advantage of. And the provision is often innovative and flexible, such as Skills Training UK who have re-branded the ESF Families provision as ‘Progress! The Go Further programme’ in the South East. In one local authority, Progress arranges courses on anger management and confidence-building. But rather than having to wait for a new course to start, they are run on a ‘roll-on, roll-off’ basis so people can join whenever they are ready.

    So now is the time to take action – it is really important that you encourage your frontline staff to make use of the provision available. And my commitment to you is that I will ensure my Department’s extensive employment expertise is able to be more directly supportive of outcomes for these families.

    I believe that helping people move closer to a job is the best way to fundamentally change people’s lives. Of course, this won’t be easy for some people, but that doesn’t mean we shouldn’t do all we can to tackle it. Because between us we have the expertise and skills that have the potential to make a real difference to people’s lives. But we can only do this by working together.

  • Mark Hoban – 2012 Speech on Youth Unemployment

    markhoban

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

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

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

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

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

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

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

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

    …They are ambitious…

    …And, above all, they have great potential.

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

    Let me say categorically: no, we are not.

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

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

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

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

    We do not do this.

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

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

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

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

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

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

    And that is exactly what we are doing.

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

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

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

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

    What a great lasting legacy that would be.

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

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

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

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

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

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

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

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

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

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

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

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

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

    …give them a chance to help your business grow…

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

  • Mark Hoban – 2011 Speech at the Markit Conference

    markhoban

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

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

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

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

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

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

    Want to see stronger and more resilient markets.

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

    But I recognise also that fundamental reform is incredibly challenging.

    It requires thought.

    Evidence.

    Careful deliberation.

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

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

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

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

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

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

    With detailed consideration of the relative costs and benefits.

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

    So let me take these priorities in turn.

    Europe’s Financial Sector

    Starting first with the issue of stability.

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

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

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

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

    Derivatives

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

    Indeed, derivatives continue to divide opinion.

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

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

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

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

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

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

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

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

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

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

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

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

    All the arguments clearly favour the first approach

    Why?

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

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

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

    High frequency trading (HFT)

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

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

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

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

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

    Competition

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

    But they are also vulnerable.

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

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

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

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

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

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

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

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

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

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

    MiFID

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

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

    Member States worked in relative financial isolation.

    Were hampered by high costs and low liquidity.

    And the Single Market had hardly got off the ground.

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

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

    Deutsche Boerse;

    the London Stock Exchange;

    Euronext-Liffe – just to name a few.

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

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

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

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

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

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

    the SME market proposals;

    the underlying theme of investor protection;

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

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

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

    This should be commended.

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

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

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

    So with MiFID, areas such as;

    the governance of trading platforms and venues;

    pre- and post-trade transparency requirements and;

    transaction or position reporting.

    we must implement proportionate regulation.

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

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

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

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

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

    EMIR

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

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

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

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

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

    Engagement

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

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

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

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

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

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

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

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

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

    As we need more hard-headed analysis.

    To strengthen our argument.

    Make clear our concerns.

    And deliver outcomes to suit everybody’s needs.

    We’ll need your engagement.

    Your evidence.

    And your positive ideas for reform.

    So that any amendments to the current rules are;

    proportionate – not overbearing;

    grounded in fact – not political whim;

    and look to support stability, growth, and competitiveness.

    That is what we need to achieve.

    Thank you.

  • Michael Heseltine – 2012 Speech on Economic Growth

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

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

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

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

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

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

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

    We have world beating companies in manufacturing and the services

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

    We have a civil service free of corruption

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    So, what has it done?

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

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

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

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

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

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

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

    Making it happen

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

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

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

    But this government is making positive moves.

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

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

    The Treasury has sponsorship of the financial services industry.

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

    Departments

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

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

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

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

    The investment in thousands of new homes, DCLG

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

    But the link to growth is less obvious elsewhere.

    It’s welfare policies that get people back to work

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

    The challenges of keeping an ageing population healthy and independent.

    Non-executive Directors

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

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

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

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

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

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

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

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

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

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

    Sectoral activity

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

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

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

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

    Our cities

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

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

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

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

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

    Local wealth creators

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

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

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

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

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

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

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

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

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

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

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

    Trade associations

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

    Deregulation

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

    Planning

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

    Procurement

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

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

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

    Conclusion

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

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

    Huge infrastructure demands and hungry institutional funds – link them

    Excellence in industry, commerce and academia – extend it

    England’s cities pulsing with energy – unleash it.

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

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

  • Michael Heseltine – 2007 Speech on the Cities

    The below speech was made by Michael Heseltine on 30th September 2007.

    When parts of our cities erupted in riots a quarter of a century ago, I asked the Prime Minister to release me to walk the streets of Liverpool.

    After three weeks of listening, questioning, it became clear how politically impoverished our great cities had become.

    There was no shortage of opportunities or ideas. What was missing were people willing and able to take responsibility.

    For decades after the Second World War power had shifted remorselessly to London.

    Nationalisation had turned powerful provincial industries into London bureaucracies.

    Inflation and confiscatory taxation had wiped out much of our independent enterprise.

    That same punitive tax regime effectively choked off the ability of the enterprise system to renew and revitalise.

    Takeovers had undermined the independence of large and resourceful companies loyal to our cities. The dependency of the branch office was no substitute for local owners.

    Local government underwent a similar centralising process. As Governments did more, spent more so more control followed the expenditure.

    Those of us who served our party through this period, remember all too well the influence of the Labour Party in this process of centralisation.

    The reversal of this process culminated in the great battles of the 1980’s and 1990’s.

    The return of British industry to the competitive market place.

    Tax levels that enabled enterprise to flourish.

    Council house sales that enfranchised a million families.

    The Trade Unions brought within the rule of law.

    In the longest apology note in political history the Labour Party tore up its historic manifesto, accepted our agenda and pursued our reforms as though they had thought of them in the first place.

    I have perhaps become too tolerant as the years went by.

    But my tolerance is stretched to breaking point as I listen to the announcement of one more Labour initiative, another name change, as yet another Tory idea is relabelled and recycled.

    Today they have learnt a new language.

    But language is no substitute for action.

    When it comes to action they are unable to distinguish between public expenditure and quality of service.

    Every crisis has its new grant, every newspaper headline its ministerial initiative, every cock up its spin.

    Not only do few of these things work, even more insidious is the consequential public disbelief. It is a question of trust. Time and again on my TV screen I hear members of the public say “you can’t believe a word they say”.

    Take education.

    Ten years of Labour Government.

    Ten years at the end of which over one in four of all children in primary schools are unable to read, write, and add up properly.

    And those are the Governments own figures. God knows what the truth is!!

    Ten years of Labour Government and our examination system is so discredited that an increasing number of schools – independent schools which have the freedom to choose – are opting out and moving to internationally respected standards.

    Tony Blair said it in these words Education, Education, Education.

    Gordon Brown is now repeating it.

    Tomorrow, Tomorrow, Tomorrow.

    Translated into Spanish I think that reads Manana, Manana, Manana.

    It is no surprise that Gordon Brown managed to speak for over an hour without once mentioning our inner cities.

    There lies opportunity for our party.

    The renaissance of the enterprise culture in the 80’s and 90’s flowed because we restored freedom to the enterprise society.

    But millions of our fellow citizens work for Government, local authorities, ‘not for profit’ organisations.

    They also long for responsibility and the chance to use their initiative in solving local problems.

    Reforming the public sector remains a huge challenge.

    David Cameron asked my task group for a report on reviving the cities.

    About empowerment of local communities.

    About rebuilding the great powerhouses of provincial England.

    Cities are the centres of human enterprise and endeavour.

    They are the great engines of our economy.

    They can sustain the infinite variety of human talent upon which a sophisticated society depends.

    They provide choice and diversity in academia, the arts, culture, sport, entertainment and the quality of life.

    I have proposed to David a vision for a new partnership.

    Central Government cannot abandon its responsibilities for the proper use of taxpayers money.

    But taxpayers money does not have to be channelled through the quangos of central Government.

    Ten thousand million pounds a year goes through the Housing Corporation, the Regional Development Agencies, English Partnerships and the Learning and skills councils.

    To achieve value tax payers money should recognise local priorities, local initiatives, local ambitions.

    I say this not in any way to criticise the motives, integrity or ability of Whitehall and its civil servants.

    I say it because I don’t believe that there are simple, national solutions to complex and infinitely varied local challenges and opportunities.

    But that is what centralisation does. It creates an intellectual straight jacket.

    Solutions are devised.

    Rules drawn up.

    Circulars issued.

    Guidelines promulgated.

    But Birmingham is not Manchester

    Leeds is not Liverpool

    Bristol is not Coventry

    And none of these cities are Scottish or Welsh.

    If the English tax payer has to pay for the new freedoms of Scotland and Wales there should be choice, diversity, opportunity and, yes, experimentation in the relationship between Whitehall and Town Hall.

    Each city has a different history, different strengths, different opportunities.

    We believe in trust for the people.

    We should also recognise that same spirit of independence in the governance of provincial England.

    We should never forget that the majority of us live in or are affected by what happens in our cities.

    I know of no country like ours that so suffocates its cities. In Europe and the United States they are respected for the great human powerhouses that they are.

    Of course, there are difficult issues to be faced.

    Chief Executives of major cities are paid around £150k to £200k per annum placing then amongst the highest paid in those cities.

    But they are not held to account by local people.

    The leader of the Council works at least the same hours, faces public and press scrutiny, and is paid a fraction of the Chief Executives salary.

    I believe it’s time to combine these two jobs.

    I believe cities should elect leaders held democratically to account every four years.

    The constituency should be the whole city and not a small part of it that is often socially unrepresentative.

    It is tempting in politics to present ideas in the most dramatic and innovative way possible.

    Tempting but misleading.

    Most initiatives are evolutionary not revolutionary.

    I advocate changing the balance. The interests of provincial England were heavier in the scales yesterday than today.

    Indeed we created the greatest empire the world has ever seen at a time when Mancunians proclaimed “what Manchester says today, the rest of England says tomorrow”. There may be an element of controversy in that statement but no one would quarrel with the pride and self confidence it revealed.

    Britain of past centuries thrived, on its dispersed dynamic centres of enterprise and municipal pride.

    The legacy lives on in the majestic buildings, the rich endowments, the museums and art galleries. Too much of that independence has been snuffed out.

    London has become one of the world’s pre-eminent cities.

    Paris maybe more beautiful.

    New York richer.

    Washington more powerful.

    But add history, culture, politics, finance, commerce, sport, music, the arts, and the rule of law… and London has no equal.

    We all gain from this but it creates great pressures on London and the South East.

    Too many in the provinces feel left out. They want their chance to thrive.

    We should offer it to them.

    Let us think about the changes that follow an elected Mayor.

    The first change requires a bonfire of central Government circulars, targets, ring fences and all those hidden persuaders that tighten central Government’s grip.

    Next, we must ask – what powers should a Mayor have?

    First, existing local Government responsibilities such as education, transport, housing, planning, remain.

    Next, policing. Nothing is of greater concern to our citizens than effective policing.

    There are no simple solutions to lawlessness, drunkenness, violence and a range of criminal behaviour.

    But people want these issues tackled. And they want an accountable person in charge.

    Our party has rightfully recognised this. Our policy for the election of local sheriffs to break the Home Office monopoly over the police is an imaginative response.

    Any such new power should be vested in an elected Mayor.

    Next, the huge sums of money spent by Central Government quangos.

    These powers were largely removed from local authorities and should be restored.

    Next, there are imaginative ideas that could enhance local democracy.

    Over my four decades in the House of Commons I was very aware of changing public attitudes to the Health Service.

    There remains overwhelming support for our National Health Service, and great admiration for the men and women who often provide extraordinary service and skill.

    But when things go wrong the scale of the machine, the remoteness of responsibility, the feeling that there are more excuses than answers argues for local not national accountability.

    Next, we should look at the administration of education.

    Study the statistics of crime.

    Examine the background of our prison population.

    You will find educational failure.

    That is the extreme.

    But look at the long-term unemployed. You will find educational failure there too.

    Ask any employer if they can recruit the people they need with adequate education and proper training.

    You will get an emphatic “no”.

    The lost opportunities are immeasurable.

    There are too many overlapping authorities each with a finger in the educational pie.

    A wider education authority could also have responsibility for much of the positive aspects of employment policy.

    Getting people back to work is often about the failures of education.

    In the pursuit of raising national education standards we should empower local people to devise local solutions.

    I have spent too much ministerial time wrestling with local Government finance to believe there are easy or acceptable alternatives.

    But there are changes that are possible.

    Authorities could keep additional business rates created through new development.

    They could have access to the capital bond market with no Government guarantee.

    Finally, we should build on our City Challenge ideas of the 1990’s.

    We proved that if central Government offered to help finance local development plans, then local communities were enthusiastic to respond.

    In every city there are organisations whose interests can coincide. Imaginative leadership can bring them together.

    Such plans would be rewarded on their merits.

    Yes, some cities would get more.

    The others would try harder.

    That is how you drive standards up.

    The simplest example are the housebuilders who will build houses on brown field sites if the public sector first eliminates toxicity from them.

    Such interrelationships are endless.

    Clean-up canals and tourist facilities flourish.

    Specialist universities bring business parks.

    Roads open up development.

    Better environment encourages new jobs.

    It is about building on local strengths, creating communities of self interest, letting people own their cities.

    We all know we have a fight on our hands.

    We have to fight in the cities because we can’t return to Government without their enthusiastic support.

    We know it can be done.

    We control Birmingham, Coventry, Bradford, Trafford, Dudley, Solihull, Walsall and a range of London Boroughs.

    Winston Churchill once famously rallied our country with his exhortation to fight on the beaches, the fields and the streets.

    In very different circumstances and with very different weapons.

    We must fight with ideas.

    We must offer a new, a fairer, an exciting partnership for tomorrow.

    Set the people free.

    Let us start by giving our cities back to the people.

  • Michael Heseltine – 2006 Speech on Conservative Policy

    Below is the text of the speech made by Michael Heseltine on 7th April 2006.

    It is very rare in public life to be given the chance to revisit previous responsibilities. Having served on three separate occasions in the Department of the Environment – twice as Secretary of State – I am delighted that David Cameron asked me to look again at the opportunities to stimulate the regeneration of our cities.

    I can bring experience to the task but with that experience come the opinions that arose from that experience.

    I should stress that whatever I may believe should not be confused with what a future Conservative government may do.

    I act rather as a headwaiter.

    I can produce a menu.

    It is for David and his colleagues to decide what, if any thing, they will consume from it.

    My task is also partial. Inner city policy embraces an agenda that touches on virtually all domestic issues. I am concerned with structure and physical regeneration. John Gummer and Ian Duncan-Smith with their policy groups carry the demanding work load concerning human relations and social provision.

    Today we look forward to important local elections.

    Let us be clear about one thing.

    We are not here today to take part in a wake to remember the glorious past of Conservatives in urban Britain.

    We have an altogether more optimistic purpose.

    Already we control Trafford, Dudley, Solihull, Walsall and many other authorities.

    We control nine London boroughs and we run Birmingham, Bradford and Coventry.

    There is one clear message.

    We have taken the beach heads.

    Now to advance.

    Let our cry be – if we can do it there, we can do it here.

    Wining control of more authorities are skirmishes in the battle of the next general election.

    Stepping stones to power.

    The chance to serve.

    As we bring the skills of good administration to more and more authorities let us remember politics is not all about fact, statistic or spinning the truth.

    It is also about passion.

    If you want to understand why Labour is bad for Britain walk about the deprived parts of Britain’s cities.

    After nearly a decade of power what has New Labour actually done for the forgotten people?

    What does that most overblown phrase of modern politics “Education, Education, Education” actually mean to those kids leaving our sink schools barely literate?

    Do the elderly feel safer?

    Is the litter picked?

    Is there a glimmer of hope shining through the drab concrete world that is as far as the horizon stretches?

    Walk around.

    Feel the insecurity.

    Absorb the squalor.

    Understand what it’s like to lose hope.

    Ten years of excuses, ten years when new Labour forgot a generation who simply missed out.

    What a challenge here for our party.

    With: the right policies,

    the right candidates,

    the right language,

    and, above all, an unswerving allegiance to the Churchillian vision of a net of civilised living above which all are free to rise, below which none may fall.

    Time and again the Tory party has leapt the simple barriers of class to bring hope.

    Lord Shaftsbury took the women out of the mines and the children out of the chimneys.

    Disraeli gave the working man the vote.

    Rab Butler was responsible for universal education.

    Mrs Thatcher’s government enfranchised the council tenant.

    In forgotten Britain there are challenges today of such historic scale.

    Do not for one moment think that these problems are self contained, affect only that proportion of society that actually live in urban deprivation.

    There is high unemployment in deprived areas.

    That is a human tragedy.

    It is a tax payers bill.

    The education is inadequate.

    Illiteracy impoverishes someone for life.

    To the drug barons it is an opportunity. It is a recruiting ground. The drug peddlers do not restrict their sales to inner cities.

    Low or no education standards, drugs, here is the cauldron from which criminals come.

    But the crimes threaten us all.

    So it is our problem too. Less personal. Just as important.

    Expensive

    Dangerous

    Threatening

    I began by saying that it would be quite wrong for me to make statements that sound like policy decisions. I would like therefore to cover just three themes today.

    First

    What were the critical changes and consequences for the regeneration of our cities of the Thatcher and Major governments?

    Second

    Are local governments capable of carrying greater responsibility for their destinies?

    Third

    Why should a conservative government pay particular attention to the regeneration of our cities?

    First, the critical changes.

    The sale of council houses and the transfer of much of the remaining stock into self administering trusts was a social revolution of historic proportions.

    Well over a million families became homeowners.

    Many millions more were enabled to exercise a more direct influence over their housing conditions.

    I give Tony Blair credit for making fashionable the concept of stakeholder.

    It was a very good way to describe the property owning, share owning society we had already created in the teeth of Labour opposition.

    Second, Geoffrey Howe’s, Nigel Lawson and Ken Clarke’s budgets created the conditions whereby the enterprise system could regenerate itself.

    Everywhere today there are flourishing new companies creating local wealth and jobs.

    We made that possible.

    Third, less conspicuous but equally profound, our policies broke the barriers of prejudice and bitterness between the public and private sectors.

    Both have their strengths.

    We created the incentives to forge those strengths into formidable partnerships where the old enmities were replaced by constructive co-operation.

    You may ask what do all these changes, now centrepieces of modern government, have in common?

    I will tell you.

    Every one was opposed by the Labour Party.

    In the dark corners of deprived Britain which had been their fiefdom for decades, they had become the custodians of deprivation, the champions of mediocrity.

    We let the light in and there grew an urban renaissance on a scale and quality not seen since Victorian times.

    Let me be specific. Take Manchester

    GMex the great exhibition centre

    The concert hall

    The velodrome and other great sports stadia that came from our support for the Commonwealth Games

    The redevelopment of Castlefields

    The transformation of the Hume estate

    After the bomb outrage the recreation of the City centre itself

    The list goes on.

    It can be replicated in City after City.

    London, Liverpool, Leeds, Birmingham, Newcastle, Cardiff, Glasgow. Many others.

    I come to my second question.

    Are local authorities capable of carrying greater responsibilities for their own destinies?

    Well let’s say something rather uncomfortable.

    The chief executive of a major city is paid in the order of £150-200,000pa.

    He or she will be amongst the highest paid people in most cities.

    If they are not capable of doing the job, there should be a system to replace them by someone who is.

    If they are capable, why should Whitehall double or triple guess every decision they make?

    We should give them real freedom to serve local people as local people determine.

    But let me say something else uncomfortable.

    You will say to me “but surely the leader of the council runs the show, why are they paid a fraction of the Chief Executive’s salary?

    And anyway why do we need two Chief Executives?

    One badly paid and answerable to an electorate and one extremely well paid and enjoying a tenure far removed from public accountability.

    I believe that the time has come to combine these two jobs.

    I believe great cities should elect great leaders and hold them to account.

    They should be elected by the constituency of the whole city and not just a constituency that is often an unrepresentative part of it.

    There is a second part to my question as to whether cities are capable of carrying greater responsibilities.

    It is this.

    Would central government ever devolve real discretion to local authorities?

    Anyone who has any experience of the relationship between central and local government is familiar with what happens.

    Ministers legislate.

    Officials get at it.

    Circulars prescribe in detail after detail what the law means, what it entitles an authority to do or not do.

    When I first became Secretary of State I discovered that a housing authority had to answer 80 questions about the detail of any scheme before they would put a brick on the ground.

    And councillors thought they were free!

    We changed much of that, but the culture remains.

    Central government pays for 80% of local expenditure, so it controls the details of that expenditure as well.

    The money comes in labelled packages each with its own detailed prescription and set of rules.

    Rules mean Whitehall knows best.

    Whilst Whitehall checks its forms, questions the detail, imposes its remote perspective, it also creates delay, generates cost and, even worse, encourages a culture of drab conformity and stifled initiative.

    I think we should breathe freedom into local authorities.

    We should welcome the diversity of policies that would flow.

    We started in the early eighties to link government grant to the after use of reclaimed land. By such linkage local authorities had to find private sector partners who in turn added more investment on land reclaimed at public expense.

    City challenge was the logical next step.

    Government grant was available for local authorities with the most attractive proposals involving local communities of up to 30,000 people and partnership across public and private sectors.

    This simple idea made local authorities’ officials much more inclined to work together as a team as opposed to their traditional role as outpost of their sponsoring Whitehall department.

    Times have moved on but the lessons remain.

    I think that such ideas could be extended to cover whole authorities and not just parts of them.

    Directly elected local leaders would prepare an overall plan for the administration and development of their authority.

    The scale of central finance would relate to the quality and imagination it contained.

    Local leaders would be rewarded for the vision they conceived, the partnerships they formed and the co-operation they secured at local level.

    In any competitive allocation of funds not every authority would win.

    Those that lost would have a choice.

    Moan about the result or try harder next year.

    I think they’ll try harder.

    It worked with City Challenge.

    It would work on a larger scale.

    I understand the arguments about public accountability, but this should be the job of the Audit Commission. I do not believe that our public services are so well administered by the present rigid control that we should deny authorities the freedom to experiment, diversify, set their own priorities, design policies that reflect local needs as local people see them.

    Our party places its faith in choice, initiative, individual responsibility. Why should we apply these inestimable human qualities only to the private sector?

    We have to encourage the public sector to adopt similar attitudes and approaches.

    The way to do that is to devolve responsibility not impose restraint.

    I come to my last question. Why should a conservative government pay particular attention to the regeneration of our historic cities?

    Cities are the great engines of our economy.

    They can sustain the infinite variety of human talent upon which a sophisticated society depends.

    They can educate and train a workforce without which investment drains away.

    They provide choice and diversity in academia, the arts, culture, sport, entertainment and the quality of life.

    They are the great centres of human enterprise and endeavour.

    They were built on the enterprise of countless generations

    As the party of enterprise we have so much to give.

    But there is another answer to my question.

    Just two words.

    One nation.

    Someone once said to me “why do you bother with inner Liverpool? There are no votes for us there.”

    No Tory can accept that.

    I do not see this nation as packages of voters, some to be cherished, others discarded because they vote another way.

    I do not pretend to know from which school some great academic originally came or from which part of society a world class entrepreneur may emerge.

    I only know it is our responsibility to give to each and all the best start in life we can.

    I believe passionately in the free enterprise system as a creator of wealth, but markets know no morality.

    It is our responsibility, as it has been the tradition of our party throughout its long and distinguished history, to bring a balance to the books of life.

    To recognise that, if we fail to educate our people, we will pay for their unemployment benefits or, worse, fill our prisons to overcrowding.

    If we let large parts of our cities become the preserve of the low skilled, the elderly, the dependent, then have no doubt that one day society will pay the price of dereliction and decay.

    We must fight to regain a place in our cities because by any standards I understand they will be better run if we do.

    It is right to do so.

    What is morally right cannot be politically wrong.

  • Michael Heseltine – 1989 Speech on Science

    Below is the text of a speech made by Michael Heseltine at the Cavendish Conference Centre in London on 23rd November 1989.

    I would not pretend to be a scientist. But there are very few ministerial positions in government in which one is not brought face to face with the government’s role in research and development.

    I have been fortunate in having held several such positions. At the Department of the Environment in the early 1970’s, I saw something of the work of the Road Research Laboratory in the furtherance of safety measures. As Minister of Aerospace I took over responsibility for the crisis surrounding Rolls Royce, the last development phase of Concorde, and I initiated the fusion of ELDO and ESRO into the European Space Agency.

    I was responsible for Britain’s part in the European Airbus and had the task of setting up many of the Industrial Requirements Boards designed to give effect to the Rothschild principle of customer-contractor relationships. As Secretary of State for the Environment in the 1980’s and then as Secretary of State for Defence, I was responsible for the research programmes in a variety of different fields: in nuclear waste, disposal of toxic wastes, the construction industry and many others. As for Britain’s contribution to research and development in the defence field, that is a major source of controversy, perceived as pre-empting a disproportionately large share of our available scientific and technological resources.

    Although I have never held responsibilities directly for the university or educational world, it is, I think, reasonable to claim that I have seen, both at home and abroad many of the complex issues which fall to Ministers to address. And I recognise that, for all the brave words, the range of government support and the means by which it is administered look markedly similar today to those that I first encountered.

    I would like to thank you for inviting me to make this speech because it has provided me with an opportunity to think back over those earlier experience and to address, in the light of them, the implication behind your invitation: that British science needs saving.

    Saving British Science?

    The first question that occurs to me is, why should we be pre-occupied to save British science? If in the market place, people move into non-scientific activities, if people choose to pursue their careers in the arts, literature, or languages, if people are content to gravitate increasingly to the service industries – using other people’s scientific abilities, purchased in the market place – why should we be concerned about that?

    There are, I believe, ready answers to these questions. First of all, because of the value of increasing knowledge and understanding for their own sake: mankind is inherently driven by curiosity and must be free to explore the limits of his mind and experience

    Secondly, there is wider social purpose. An ever-widening base of knowledge is the hallmark of a civilised and civilising society in a very practical sense – diseases, disasters help for the disabled, safeguards for the environment, a whole raft of ever-emerging problems – require scientific knowledge. And I would say to our young people, reluctant – as it seems – to persevere with science at school or university, the pursuit of science and scientific research is not just the foundation of our future wealth as a nation but is the source of the safety of the planet at large.

    In the final analysis, the advanced nations of the world are more than ever dependent on science-based industry. Investment in science, the training of their most talented young people in science, and the enhancement of the technological base of industry, are to all of them national priorities of the first order. To be part of the technological revolution sweeping through the modern world necessitates a strong science base.

    So, if the arguments are conclusive and we come to the same conclusions as all other similar, advanced nations that we will compete in this arena, where should the emphasis of policy lie? There is, of course, a chicken and egg situation. If you have not got facilities of the first order, if you cannot demonstrate achievements at the exciting frontiers of knowledge, you will not attract new generations of young people by example. And it follows, if you do not attract the talented new generations, you will not develop a scientific base from which excellence can emerge.

    The international context

    We have to cut into this circular arrangement. It is obvious that, if we do not educate and train our young people to the standards of our competitors, the likelihood of decline is greatly increased. There can be no argument that the British are incapable of scientific excellence. For over a hundred years we have been at the forefront of the scientific revolution that has transformed peoples lives. Only the United States surpasses us in the number of Nobel prizes. Where we have been less successful is in the exploitation of our knowledge. There is no substitute but that we educate and train on the scale that will enable us to remain in the race.

    Sadly, of all the OECD nations, the numbers in the UK involved in research have for some years been in decline. Not enough of our best brains pursue science at school or in higher education. Applications for science and engineering places are falling, with a serious knock-on effect on the pool for top rate post-graduates. The latest official forecast of science and engineering graduates and post-graduates contained in the January 1989 public expenditure White Paper projects an increase of only 2,000 to 46,000 by 1991-92. Thereafter, numbers are expected to level off before rising again towards the end of the 1990’s. Clearly there will be intense competition for this limited pool of talent.

    After twenty years of debate, Britain is at last adopting a core national curriculum. The significance of this reform should not be underestimated in providing a deeper grounding in science and technology for all young people. But at the route of the problem must surely be the shortage of inspiring science teachers who could pass on their enthusiasm to future generations. We shall need to recognise the market value of such people. We shall have to consider what salaries will be needed if we are to ever to address this problem seriously. Too many who can teach science can rapidly move into more lucrative areas of business.

    Sir Monty Finniston vividly identified a mare basic failing in his Royal Commission Report, “Engineering:  All our Future”, that there has been in this country, for many generations, a cultural hang-up about all things technical. But I also suspect that a basic distrust of science is engendered from an early age. There has long been a British prejudice in favour of the arts, grounded in the early traditions of classical education. In Japan, Germany and France technologists assume a more significant role in business and government.

    It must follow that for us to devote resources to achieving the highest standard of skills is not with the philanthropic intention that Britain shall export our talent to other nations’ industries or universities with our talent. We are doing it, not just four our citizens as young people, but because we believe that by investing in them in their formative years, they will deliver the wealth and stimulus from which we can all benefit.

    Spending and infrastructure

    So the next step follows: that in a free society, the market place will buy the talent. And the talent will be attracted by both the financial rewards on offer, but also by the quality of scientific opportunity on offer. You simply will not keep top-class scientists by doubling their money and halving their research budgets.

    You will not attract the best academic minds to work in the worst scientific conditions. So the facilities matter and we therefore need to ask whether, in both the public and private sector, the opportunities for young British people, hopefully educated and trained to the highest standards are such as to persuade them to fulfil themselves in our laboratories, universities and companies. And how best can we direct public and private resources to that end, for staying on the frontiers of research cannot be done on  the cheap.

    A growth economy needs to invest in its intellectual assets. Though from the mid-1970’s we went through a period when university laboratories were, in large measure, living off the 10% annual growth of the 1960’s, the government has now given new importance to the funding of basic and strategic science. The Science Budget over the next three years is now planned to increase by £178m more than in previous projections. By 1990/91 it will be 27% higher in real terms than it was in 1988/89.

    The turn-around is dramatic when one considers that in 1987 the forecast was for a 4% annual reduction up to 1991. Sixteen government departments, other than the Ministry of Defence, contribute £1.1bn directly to the nation’s research effort; the MOD’s expenditure is over £2.25bn; the five Research Councils pay out £641m in addition to the contribution of the University Funding Council. This is by any standard a major and influential commitment by the British government.

    I draw a conclusion from all of this. It is that common sense prevails. The larger the pool of scientific resources you create, the larger the fish that will swim in that pool. There is, of course, a caveat. It is no use simply throwing money at the problem.

    What should be the disciplines? Indeed, are there practical disciplines which can apply to the frontiers of scientific knowledge? Is not blue-sky research desirable of itself: the right to know, the right to explore, the right to pursue the unknown? You cannot put a price tag on so amorphous an objective. You cannot measure the returns in terms of dividends or wealth-increase. In many cases there is more gamble than risk. There may be no returns at all.

    But the pool, of course, is not infinite. The government must define the scale of the public’s contribution to it, while companies are limited by the scope of their balance sheets. Judgements are unavoidable. Priorities have to be established.

    And there is yet another dimension. For we do not live or trade on a desert island. But the closer one examines the realities, the more one discovers the relationships between mighty companies and the public procurement programmes of the governments behind them. Competition there certainly is. But the idea that it is competition on the level playing fields of the corporate sector is unrealistic, as it is foolish to behave as though it is the case.

    Slowly, by patience – as the European Commission is attempting to do – we may change the rules. But we must be very clear that we do not in the meantime put our industry where, by the time the rules have been brought to common form, the strength of our industry has been eroded

    We need to understand the scale of British expenditure.

    UK research investment

    The first fact is that gross expenditure on research and development has risen by over £1bn since 1981. The latest figures available to me show that in 1987 we spent £8,703m compared with £7,677m in the earlier year.

    Can it be argued that by international comparison this is too low? In 1987, the last year for which I have complete statistics, Britain spent the same proportion of her GDP on research as France at 2.29% and considerably more than Italy at 1.19%. We do not, however, match the Americans at 2.71%, the Germans at 2.81% or the Japanese at 2.87%.

    But of course these figures do not reveal the full picture. They ignore the critical factor: the size of the respective gross national products. Then the investment gap becomes evident.

    OECD figures reveal that in 1987 Britain and France spent virtually the same at £9.4 and £9.5 billion. Germany spent £13.3bn, Japan £26.7bn and the United States £70.3bn.

    Whereas in the case of our competitors, the percentage of GDP devoted to research has steadily risen (for example, in France from 1.97 in 1981 to 2.29, and in Germany from 2.42 to 2.81) the UK percentage has fallen from 2.42% to 2.29%.

    As a result – as you know only too well – half of the “alpha” research proposals submitted to most of the Research Councils in 1987 and 1988 were underfunded. Britain’s output of scientific achievement remains outstanding, but the truth is that others are catching up.

    There is, of course, the question  of why we have not been very effective at moving research results into product development, but it is no solution to that problem to reduce the level of fundamental research.

    Industrial R&D

    Higher profits in recent years have been reflected in higher R&D spending in the private sector in the last two years but there is a sizable leeway to make up.

    These figures throw out their own questions.

    What philosophy should the government adopt to the money it does spend?

    Has the government got the balance right between military and civil expenditure?

    How do medium-size countries such as ours give the sort of support to their industries as is available to our overseas competitors?

    I do not see how it is possible to argue that the government’s withdrawal from near market research and the transfer of responsibility for this to the private sector can be questioned in theory. That is not to say that industry should not be encouraged to sub-contracting to our universities and polytechnics. The private sector will be more disciplined in the use of resources, will cut off false trails more quickly and exploit new developments more effectively. And quite frankly they are more likely to exploit them in their own plants and laboratories than public research organisations who can be more orientated to the publication and dissemination of ideas than their exploitation.

    I do not say this as a matter of doctrine because I know enough of the workings of government to know that in practice most governments are deeply involved in making judgements every day about the use of public funds in support of specific projects, though certainly automatic grants are today the creatures of the past.

    The requirement for government support is now invariably a large private sector commitment, and preferably collaborative projects.

    Industrial strategies

    Across the world this trend to “privatise” the research and development programmes in the new market is discernible. But no one should confuse privatised research and development with a genuine market place. The United States, with far and away the largest commitment, operates a protected market for its hi-tech industries, offering generous partnerships for co-operation where an overseas partner has the technological lead but rigidly imposing the technology transfer provisions of national legislation in all other circumstances.

    Japan has transferred much of the former government funding of MITI to its private sector but just look for examples of where any overseas company is allowed to gain access to the ownership of one of those companies and you will see a protected market at work.

    It is within this real world of industrial politics that any British government must assess its priorities. But the real world contains another dynamic. The decade ahead is going to see the completion of the regional market of Western Europe. Its precise form or scale is secondary to the consequence for industry and our research programmes. The consequence will be mergers on a European scale. They may be driven by American partnerships pr they may be furthered by Japanese investment but ten years from now Europe will not think of national research programmes, for the simple reason that such programmes will not be able to match in scale or sophistication the American or Japanese challenges.

    The more we continue to duplicate or triplicate our invention of the wheel in the nation states of Europe, the less competitive we will be with the two giants.

    So company merger in Europe will bring together the research resources of the European countries. Competition for scarce national scientific resources will lead to collaborating but also specialisation at the academic level across the universities and research laboratories of Europe. Governments will be forced by the logic of the market place to follow this pattern.

    I have set out my support for the view that industry is best trusted with the application and exploitation of research. It is the servant of the market place and its disciplines.

    Government as a customer

    But what of the circumstances where governments are themselves the market? The scientific and technological consequences in such cases can be profound. It is not so much a case of the jobs involved, rather the attainment of a technological base and the ability to set standards that flow from the availability of public procurement funds.

    It is here that governments cannot avoid decisions about their role in support of their industry. And none of them, in practice, do.

    Let me give five examples where in the pursuit of public policy, the government – as customer or in the discharge of its own responsibilities – has opportunities to enhance the technological base of our industry:

    1)      Euro-control for the management of our airspace. An area in which British industry has a direct stake in the British Government taking a lead is in the creation of a Europe-wide air traffic control system. As the largest single source and destination of all flights in Europe this is a major national interest. It won’t be easy, as the system must go wider than the twelve and countries over which planes fly have different priorities from those like us where they begin and end their flights – which is why only governments can create the necessary frame work.

    But the prize is great. And not just in terms of quicker flights and less delays. A whole new market at the leading edge of technology, in the telecommunications, computer and other equipment industries would be opened up. The potential fillip to European industry is enormous. The Americans and japans will certainly challenge for the contracts. The French, Italians and Dutch, with the support of their governments, are gearing up. If the British Government plays its hand skilfully, British companies could have a major role as well.

    2)      The European Space Agency. There has been much questioning of Britain’s role in space. I believe we are wrong to remain apparently detached as our competitors commit growing resources. There is an unquantifiable but inescapable message in such a policy. Younger generations need not just the prospect of financial reward in their choice of career, they also need intellectual stimulus and vision. If we want them to see the broad field of engineering and scientific research as the outlet for their energies, the exploration and conquest of space offers a unequalled challenge for the enquiring mind.

    But Britain cannot afford such a journey alone. Indeed, it would be a massive waster of our resources to explore what others already know. The European Space Agency was a British initiative. We secured, from its creation, a European lead in communications satellites. We achieved in partnership what, alone, the limitations of our resources would have denied us.

    3)      The management systems of government. I have long been one of those pre-occupied to improve the efficiency and effectiveness of management in government. In a recent report, published by P.A. Management, we argued how far there is to go in converting Whitehall’s paper-based management information systems into the state of the art technology. Better value for money and improved public accountability are now on offer, but only following an investment in the latest equipment and programmes. As a parliamentarian, I am interested in how we use the taxpayers’ resources and account for them. Pace-setting contracts to equip Whitehall with the sophistication that a major multi-national company would take for granted, could present industry with a turn-key to world markets.

    4)      The relocation of civil servants. Decisions about the siting of head offices, the location of staff, where they are to live and work affect the distribution of wealth. We should disperse the civil servants from the South-East, not in a mean and penny-pinching way to the backstreets of provincial Britain, but to offices built as models, as exemplars of what dispersed and decentralised offices can be like – equipped for the space age rather than the steam age.

    5)      The relocation of our public sector research laboratories. There are no government research laboratories in the North West, yet the growth potential that centres around research laboratories is enormous. In March the government announced its plans to move the MOD Quality Assurance Division from Woolwich to Teeside by 1995. The Division is going north before companies it monitors move south. Some 1500 jobs are involved, of which 650 would be scientific and engineering post and 250 would be apprentices. But is had taken five years just to get the decision announced. And it is taking another five years to implement it.

    I would like to see the use of the proceeds of the sale of expensive land in the south to build centres of excellence in the North. North West is the heart today of Britain’s booming aerospace industry. The heart, that is, of Britain’s private sector aerospace industry. But think what we could do to build on that. Why does Farnborough have to be in the road-congested, air-congested South East? Why not use that site for activities that have to be in the South and move Farnborough to the North West? Why not encourage local universities and polytechnics to direct more of their courses towards the pursuit of such technical excellence? Industry-sponsored science parks located near to universities would benefit enormously from the academic input. Why not, indeed, go further? Britain could encourage its space industries to locate around a Space Centre in the North West. Far and away the most important contribution to all this would be a dynamic private sector. But the concept and its initiation would have to involve a partnership in which the government, as the most important customer, recognised an enabling and sponsoring role.

    Conclusion

    In each of the examples I have given the government’s interest is an improved service or a more effective economy.

    In each case the private sector has a massive role to play.

    In each case government can improve our competitive ability and achieve better value for money.

    Our scientific values would be enriched, our citizens better served, our industry strengthened.