Tag: Speeches

  • Robin Cook – 1974 Maiden Speech to the House of Commons

    robincook

    Below is the text of the maiden speech made by Robin Cook in the House of Commons on 14th March 1974.

    I, too, am a new Member and I begin by paying tribute to my predecessor, Mr. Tom Oswald, who represented Edinburgh, Central in this House for over 20 years. I have been a Member of this House for only a very short period, but in that time I have come to appreciate how much those who worked beside Tom valued him as a conscientious and reliable Member of this House.

    We in Edinburgh have long respected Tom as one who always gave the first claim on his time to any constituent with a problem. Those who knew him well will be familiar with his habit of maintaining a running serial number on all items of correspondence which he dispatched from this House. It will give some idea of how hard he worked for his constituents when I tell the House that at his retirement Tom Oswald had just reached his 40,000th letter.

    We do not conduct much agriculture in the city centre of Edinburgh. Therefore, I do not intend to follow those hon. Members who have spoken on this subject in the debate. However, we have a serious housing problem. For many of my constituents the expenditure on housing is the major expenditure in their weekly budget. Therefore, I propose to address myself to the price of housing and to the increase in the price of housing which has taken place in recent years.

    We have heard a lot in this debate about the increases in international commodity prices. We have heard how world market forces have pushed up prices with the inexorability of the laws of dynamics. It is worth noting that there is no world market in council houses. We neither trade them nor play the commodity market with them. Yet twice in the past 18 months my constituents have been faced with a major increase in the weekly price of their housing, their council rent, although the rent they pay is among the highest in Scotland.

    Therefore, I welcome wholeheartedly the rent freeze announced by the Secretary of State last week. I do so as chairman of the housing committee of Edinburgh, an authority with 52,000 council tenants. However, very few of those council tenants actually live within my constituency. Indeed, the reason for the acute housing shortage in the city centre is that for decades we have torn down the slums and failed to replace them with modern houses. A much greater proportion of my constituents are private tenants, and to many of those private tenants that rent freeze will be of far greater benefit than to most council tenants.

    I went on a number of walkabouts in my constituency around the shopping centres, expecting to meet shoppers who would talk to me about the increase in food prices. They did, but far more often we met elderly people, private tenants, who were desperately worried by the notice they had just received of the increase in their rent. In one case there was a punitive increase of £98 per annum for a room and kitchen.

    I concede that in some cases the rent of privately rented property is unrealistically low, but it must be remembered that many of those who still benefit from rent control are themselves elderly people receiving the old-age pension. They have not only a low income but are least capable of adjusting budget habits of a lifetime to a situation in which their weekly rent is trebled.

    It must also be remembered that we are talking of property which is the worst in the housing stock and the most neglected. Only this week I received a letter from a constituent who informed me that his rent was being increased by 400 per cent. phased over only four years. Yet this tenant has no hot water and there is no obligation on the private landlord to provide hot water at any stage in the course of those four years.

    Elsewhere in my constituency there are over 100 private tenants who are faced with a rent that will treble; yet I have a letter from the factor of their landlord informing one of the tenants that he is under instruction to spend no money on the repair of the properties. In these circumstances, what possible cost inflation or conceivable wage claim could justify these price increases?

    I regret the extent to which discussion on the Housing Finance Act has concentrated on the council sector. I regret it because it has concealed the greatest evil of the two Acts—the evil that for the first time since the Great War it is possible to get a good return on money invested in slums.

    We have been told that we need not worry unduly about these price increases because those with low incomes—the weak members of society—are protected by rent rebate and rent allowance schemes. On Tuesday there was quite a bit of chest-beating by hon. Members who seemed to imply that because we shall repeal the Housing Finance Act we might somehow contrive to make rebate schemes illegal. The hon. Member for Perth and East Perthshire (Mr. MacArthur), who is not here tonight, referred to 149,000 council tenants in Scotland who are living rent free because of the Housing Finance Act. That is not the case. Less than one-tenth of those council tenants are living rent free because they receive a rebate. Over 90 per cent.—the overwhelming majority—live rent free because they receive supplementary benefit and always have their rent paid for them in any case.

    It is worth remembering that, even before the Housing Finance Act, nine out of 10 council tenants in Scotland were already covered by a rent rebate scheme. Indeed, the rebate scheme that we in Edinburgh were compelled to drop by law was significantly more generous than the rebate scheme we then had to introduce. I do not expect that the Government intend to make it illegal for us to retain a rebate scheme. I am confident that they will restore to us the freedom to make that rebate scheme more generous once again. Repeal is only a first step and a beginning towards a more just system of housing finance.

    Those of us interested particularly in housing will watch the proposals put forward by the Government with particular concern to see whether they tackle the causes of increased housing costs. I welcome particularly the commitment given in the Gracious Speech to bring into public ownership building land. Here we have one of the clear, root causes of the recent increases in the price of houses. There have been references to commodity speculation forcing up prices. There is no clearer case of that than in building land.

    The hon. Member for Merioneth (Mr. Thomas) has already referred to speculation in agricultural land. Let me give one example of speculation in urban land which has occurred in the city centre of Edinburgh. A major industrial company wished to dispose of four acres of derelict industrial land. It was sold on a Wednesday for £137,000. On the Thursday, the company which acquired the land sold it again for £200,000. On the afternoon of that Thursday the gentleman to whom the company sold it, sold it again for £220,000—an increase of £80,000 within 24 hours.

    The company which sold the land in the first place is not an innocent in business. It is a major industrial concern, well known to many hon. Members on the Government benches for the very fine beer it brews, and to the Opposition for the fine donations that it makes to their party.

    Presumably, the company regarded the price as a fair one for the site. The £80,000 beyond that represents pure profit on speculation, and it has two consequences. First, it has the consequence that the site could not be used for council housing because we could not afford it at that price. Secondly, it means that every house now being built on that site will finally sell for £800 more because of the increase in the cost of the land.

    It is scandalous that we should allow speculation to drive up the price of an essential commodity such as housing in this way, and I welcome the commitment to take building land out of the market. I was distressed to see in the Gracious Speech that “Proposals will be prepared”. I hope we do not take too long preparing those proposals because unless we have public ownership of land, it will not be possible to expand the house building programme.

    Finally, I should like to thank the House for the courteous silence maintained throughout my speech, particularly as all I have said has not been of a non-contentious nature. However, I do not apologise for having confined myself to one topic. Housing is the major problem of my constituency, and its rising cost is the major inflationary pressure on my constituents. I am confident that they will welcome the prompt action of the Government to contain those costs.

  • Alistair Carmichael – 2014 Speech on Higher Education

    alistaircarmichael

    Below is the text of the speech made by Alistair Carmichael at the University of Edinburgh in Scotland on 29th January 2014.

    Thank you Charlie for that introduction, and for handing me the task of keeping our audience invigorated immediately after lunch.

    I am delighted to be able to join you today to speak about what is, by any measure, a Scottish success story.

    In Scottish higher education, we have a sector that enjoys an international reputation for excellence. A sector that punches above its weight on research.

    And a sector that is currently teaching record numbers of students.

    Earlier this month, figures published by the Higher Education Statistics Authority showed that in 2012/13 the number of qualifiers in Scotland was up.

    The proportion of students obtaining a first or second class degree is higher in Scotland than elsewhere in the UK. And we have a higher proportion of women qualifying in science and technology.

    The future

    But it is to the future that we must look – a bright future if our current world rankings are anything to go by.

    Five Scottish Universities rank in the latest top 200. The UK as a whole excels in academic excellence.

    We are ranked second only to the United States. in terms of world-class research.

    The UK’s share of the world’s top 1 per cent most cited publications is on an upward trend.

    And in 2013 the UK was ranked third in the world for innovation in the Global Innovation Index.

    UK-wide research

    There are many reasons for this success – but one that is absolutely fundamental is the highly integrated research environment in which our universities and higher education institutions can operate.

    This integration ensures a coherent and strategic approach to research activity in a common research area.

    It allows funding, ideas and people to flow unhindered across the UK in pursuit of research excellence.

    And that is of benefit to us all. A benefit that comes from being part of a United Kingdom.

    And that is where I want to focus my comments today.

    For too long there has been the simplistic assumption of devolved and reserved.

    Devolved – for the Scottish Parliament and Scottish Government alone. Reserved for the UK Parliament and UK Government.

    But the reality is much more complex than that.

    Whilst policy responsibility resides either north or south of the border, we all continue to work within a shared common framework.

    And perhaps nowhere is this more clearly illustrated than higher education and research.

    Last year I published a paper in our Scotland analysis series with the Minister for Universities and Science, that examined the contribution Scotland makes to our UK-wide research framework, and the benefits that Scotland gets as a result.

    As part of the UK we are able to share the costs and risks of research, funding it from a large and diverse tax base to make research more affordable.

    As we set out in that paper, in 2010 the UK Government allocated £1.9 billion for science and research capital for the period 2011-15.

    And since then we’ve allocated an additional £1.5 billion funding for science and innovation capital.

    Research councils

    We’ve got a network of seven Research Councils operating across the UK providing a clear strategic overview of all research disciplines.

    This network minimises duplication and overlap in institutions maximizing our ability to make new and innovative discoveries, and to go on to turn these discoveries into the next miracle cures of the future.

    A shared set of policy guidelines, rules and regulatory arrangements provide a consistent grounding for research excellence and a shared framework on which research collaborations can be built.

    And it’s not just at home that we invest.

    Through our Embassies and consulates we have a Science and Innovation network in 29 different countries to help extend the reach of the UK’s research base.

    Here in Scotland we’ve grasped the nettle to make the most of this UK-network.

    In 2012-13, Scotland secured £257 million of research grant funding from the UK Research Councils.

    This amounts to 13% of the funding available, all for a country which has 8.4% of the UK population.

    Higher Education Research and Development figures for 2011 show that Scottish Higher Education Institute spent £953 million. This is the equivalent to approximately £180 per head of population in Scotland compared with £112 across the UK as a whole.

    The point that I make is that we don’t get access to this despite being part of the UK, we get it because we are part of the UK.

    So the questions we need to ask ourselves are:

    How would an independent Scottish state maintain the level of research quality excellence currently enjoyed by Scottish Higher Education Institutions as part of the UK?

    AND what evidence is there that independence would improve the performance of our institutions?

    It’s not just me asking these questions….

    We’ve seen academics specialising in subjects as diverse as bacteriology to space engineering, veterinary science to the food industry, highlighting the risks.

    What the white paper says

    Of course the Nationalists would have you believe that all would be well in the event of independence – in this and every other walk of life.

    But merely asserting it is not enough. Evidence is required to back up their case.

    And when getting involved in the world of academia, evidence is not a nice to have, it’s a prerequisite.

    And yet, of course, it was evidence that the White Paper lacked.

    We were promised a blueprint for independence, but we didn’t get it.

    Instead we got a set of assertions and grand statements: ‘there will be major direct gains in an independent Scotland for Scotland’s universities.’

    What we didn’t get was any explanation of how we might achieve these gains.

    Instead all we got was a list of the things we have right now in our higher education institutions as part of the UK.

    I don’t disagree with what the paper says about positive student surveys. As a graduate of a Scottish University with a sixteen year old son currently contemplating his own possible applications to them, I celebrate that.

    I don’t disagree with student mobility initiatives such as Erasmus and Fulbright – I wholeheartedly support them.

    Nor do I challenge the fact that this sector helps to drive the Scottish economy and the importance of maintaining a strong research base to ensure that it keeps on doing just that.

    But the point is, all of these things are happening already; as part of a constitutional setup that delivers to the people of Scotland the best of both worlds.

    All the Scottish Government did in their White Paper was to draw attention to everything that is already good about higher education in Scotland.

    At the same time they failed to examine what we stand to lose by breaking up the UK-wide networks that we have.

    According to the Scottish Government we’ll have a common research area between an independent Scotland and the continuing UK.

    Sounds a lot like what we have right now doesn’t it?

    Except of course for one vital distinction. National Governments fund national research.

    There is no international precedent for sharing or replicating a system on the scale of the current UK funding streams across international borders.

    Independence would mean creating a new separate Scottish state; and at the same time creating a new international border with England, Wales and Northern Ireland – the continuing UK.

    You have to ask yourselves why would a state that we had just chosen to leave, want to carry on sharing institutions, funding, expertise in the same way that we do now because we are part of it?

    Some of them have talked about the ‘international trend’ in research for collaboration between countries.

    Let’s take a look at an example.

    NordForsk is an organisation under the Nordic Council of Ministers that provides funding for Nordic research cooperation, as well as offering advice and input on Nordic research policy.

    So far, so good.

    But the bit the Scottish Government are less quick to highlight is that in 2011 the fund amounted to around £13 million – compared to the £307 million secured by Scottish institutions alone from UK-wide Research Councils in 2012-13.

    We have excellent academic links with countries across the globe – of course we do.

    No-one is suggesting that there would not be collaboration between scientists and researchers in a separate Scotland and their colleagues on the other side of an international border.

    But the reality is simple.

    Divergence in research frameworks could make the flow of funding, people and knowledge harder.

    Domestic collaborations would become international collaborations and would carry larger risks.

    An independent Scottish state might wish to share arrangements and facilities but we do not share our Research Council funding – or have a common research framework, the very life-blood of research and innovation in the UK – with other states.

    Why should we in Scotland expect to be treated differently?

    Common research

    The White Paper states that the Scottish Government would seek to continue the current arrangements for a common research area.

    Much as they seem to seek a common currency area; common border area; common regulations for business.

    I have said elsewhere that while the Scottish Government want people to believe they have a vision, in fact what they proffer is a mirage.

    And like all mirages, the closer you get, the less real it becomes.

    In research – as in so many other areas – there can be no guarantees.

    If we vote in September to create a new separate state, we also vote to leave the United Kingdom.

    Becoming a new state means setting up new institutions. And it means leaving the institutions we have in the UK, like the UK Research Councils.

    The Scottish Government cannot assert that shared arrangements will be secured. This will all be subject to negotiations.

    And as anyone knows who’s ever taken part in negotiations, to get a deal you have to give as well as take.

    On top of this – we know they want to do a deal that sees them keep all the bits they like from being part of the UK, whilst giving up the bits they don’t, at break-neck speed. Something has to give.

    But it would seem that the Nationalists want to rely on goodwill and generosity from the continuing UK.

    They want agreement to share institutions from the UK family that we would have just walked out of.

    A family to which we had decided to stop making our contributions.

    But at the same time there’s no offer of goodwill the other way.

    Take the situation of students from the continuing UK paying fees in an independent Scotland.

    The White Paper states the Scottish Government remains committed to free tuition in Scotland.

    At question 240 they recognise that students from any EU member state have, and I quote ‘the same rights of access to education as home students. This means EU applicants for entry are considered on the same academic basis as home students and pay the same. This will remain the case with independence.’

    And yet the answer to the question will students from England, Wales and Northern Ireland still be charged is a simple ‘yes’.

    Mike Russell has nothing to offer the higher education sector in his vision of independence.

    Assertions

    His White Paper is full of assertions and makes promises he cannot deliver.

    That is precisely why he has chosen to distract attention with a synthetic spat around immigration with accusations of xenophobia.

    It is the oldest trick in the book that when you have nothing of substance to say you seek to create heat as a substitute for light.

    The UK Government has of course taken its own tough decisions on fees in England, and we know well that this is not easy.

    But those decisions – like all decisions in government – must be taken in light of affordability, legality and non-discrimination.

    Devolution has allowed the Scottish Government to make its own funding decisions within a member state. But as part of the EU an independent Scotland would have to abide by the law and not discriminate against another country.

    Let’s just think about this for a second.

    We’ve got a Scottish Government here claiming on the one hand that it could charge students from England, Wales and Northern Ireland…

    …Whilst on the other hand admitting that if an independent Scotland were a member of the EU it would have to offer free tuition to students from every other EU member state.

    What does it say about the good faith that the Scottish Government would go into negotiations with those representing the continuing UK we had just left?

    I can see the script now: “We’d like to share the UK pound with you , and we’d still like to have access to the Bank of England – but as for your young people; they will have to pay fees whilst young people from France, Spain and Italy can get into our universities for free.

    And can we have a common research area too, please?”

    I don’t know about you, but I’m not convinced this is the greatest opening line for a set of negotiations of the sort the Scottish Government envisage with the continuing UK.

    Not to mention the fact that it would be illegal under EU law.

    First we saw a group of academics query the proposal saying it would run into ‘significant problems with EU law’.

    Academics including Professor Hugh Pennington and Professor Peter Holmes.

    We were told that there was legal advice. We’ve heard that before of course.

    And just as with the legal advice the Scottish Government claimed to have on automatic EU membership, when people like the former Director of Universities Scotland, David Caldwell ask to see it, it goes strangely quiet.

    The professor of European Union law at the University of Edinburgh has said that the Scottish Government would face an ‘extremely steep uphill battle’ to convince the EU that charging students from the continuing UK would be legal.

    And Paul Beaumont, Professor of European Union and Private International Law at the University of Aberdeen has said there’s a ‘substantial hole’ in the Scottish Government’s plans for funding higher education in Scotland.

    But it’s not just academics within Scotland who have voiced concerns.

    The spokesman for the European Commissioner for education has confirmed that ‘unequal treatment based on nationality is regarded as discrimination and is prohibited by article 18 of the treaty on the functioning of the EU…’

    The former European Commissioner for Education Jan Fiegel put it even more simply:

    ‘this would be illegal. This would be a breach of the Treaty.’

    So now we have a Scottish Government planning to speed through its accession process for the EU

    …securing all the favourable terms that the UK has built up over years and decades’ worth of negotiation

    …whilst publicly stating that they immediately intend to breach the terms of EU membership which prohibit discrimination between states.

    Again, if this weren’t so serious it would be laughable.

    International stage

    But this is how the Scottish Government would seek to represent Scotland on the international stage – and to think that Mike Russell has the temerity to accuse me of xenophobia.

    A state that chooses to pick and choose from the rule book to suit its own ends.

    That wants to rely on some kind of ‘social union’ and ‘great friendship’ to get good terms from those that it walks out on, but is unwilling to offer any goodwill in return.

    I said at the beginning that higher education and research is an excellent example of how being a part of the UK delivers the best of both worlds.

    A thriving network of universities that are delivering opportunities for all, regardless of social background, to improve life chances and enabling students to go on to contribute to the common good.

    Graduates – doctors, teachers, scientists amongst them – all delivering benefits to society.

    Whilst at the same time we are part of a UK-wide research network supported by a diverse and strong economy.

    A network that provides the funding to allow our doctors and scientists go on to be the very best of their professions, exploring and making new discoveries that benefit us all.

    The best way to ensure that our sector can continue to perform as it does is to reject independence and stay with a system of higher education that draws on the best of both worlds.

    And if you cherish our system of higher education as I do

    …if you are proud of the amount of highly rated research that is being undertaken here as I am

    …and if like me, you believe in investing in our young people so that they can to make the most of what we have on offer…

    You will make the positive choice for Scotland and for higher education, and vote to stay a part of our UK family.

  • Alistair Carmichael – 2014 Speech in Brussels

    alistaircarmichael

    Below is the text of the speech made by Alistair Carmichael, the Secretary of State for Scotland, in Brussels on 20th January 2014.

    The most important political debate of my life-time – indeed of most Scots’ lifetime – is taking place now. In just 8 months Scots will have the opportunity to cast their vote on the future of our country in a referendum on Scottish independence.

    We will take the most fundamental collective decision that a nation can ever be asked to take: Whether we stay part of the United Kingdom family or go it alone. That is Scotland’s choice.

    There are many questions to ask and answers to give on the impact of such a permanent and irreversible step. It is by no means a new debate but it is one that still manages to throw up fresh issues and uncertainties.

    You won’t be surprised to hear that I’m very clear on my view: Scotland is better off within our United Kingdom, and the United Kingdom is better off with Scotland as part of it.

    But this isn’t a decision that will only impact on our day-to-day lives within Scotland and the UK. It’s a decision that will affect our relationships with people and countries around the world.

    Today I am going to set out why that would be and why I believe that it is in all of our interests that it should not happen.

    I want to show how Scotland has flourished and achieved within the United Kingdom and because of the United Kingdom – not in spite of it. I also want to show how Scotland can continue to contribute to and benefit from our United Kingdom family. And why that contribution is important to all of us who live there and to our friends and partners here in Europe and across the globe.

    Setting the scene

    But first, let me recap on how we got here. The Scottish National Party’s outright win in the May 2011 election to the devolved Scottish Parliament in Edinburgh meant that Scotland had its first single-party majority devolved government since the Parliament was established in 1999.

    The SNP entered that election campaign with a manifesto pledge to hold an independence referendum and succeeded in electing more than enough Members of the Scottish Parliament to set the legislative agenda.

    What it did not have, however, was the legal power to hold that referendum. In the settlement which established the Scottish Parliament in 1999, the responsibility and power over all aspects of the constitution was retained by the UK Parliament at Westminster.

    Whatever the legalities of the situation the politics was quite clear so the UK government took steps to ensure that rather than just talking about a referendum, there could actually be one.

    For the Scottish Parliament to have acted alone would have been to act outside the law. And as every government knows: the rule of law is a fundamental first principle of government. You abandon it at your peril.

    So Scotland’s two governments agreed a framework for a legal, fair and decisive referendum in Scotland. A framework that ensured the decision on Scotland’s future could be taken by people in Scotland. Reaching an agreement on the process was a big moment in 2012.

    But now we are in an even more vital phase of this debate – discussing the substance, not just the process. What choice should Scots make?

    I do not believe in Scotland remaining part of the UK because of dogma, ideology or nostalgia, but because of what the UK means in the here and now and what it can deliver in the future.

    For too long successive Governments have allowed to go unspoken the contribution that Scotland makes to the UK – and we’ve been equally silent on the benefits that Scotland gets from being part of it.

    We all put something in and we all get something out: the UK – like the European Union – is greater than the sum of its parts.

    2013 was the year when the UK started putting the record straight.

    EU in the context of the debate:

    We embarked on an analysis programme examining the facts, reviewing the evidence and making the case for Scotland as part of the UK in a series of detailed papers.

    Last Friday we published the ninth paper in this series – our first in 2014. This examined the benefits for Scotland of being part of the UK in the EU and on the international stage.

    These issues are not esoteric. They matter for very practical reasons.

    Ours is an age where people derive real benefit from increased cooperation and being part of a global society. Where the logical direction of travel is to break down barriers and work together rather than to erect them and create difference. Scots, like all Europeans, gain from our status as European citizens.

    Membership creates employment, growth and prosperity across the UK thanks to the EU-wide single market. 1 in every 10 jobs in the UK is linked to the EU single market and nearly half of British trade, worth around £500 billion, is with other EU member states. 40% of cars and other vehicles built in the UK are sold in the EU. And 86% of British meat exports go to the EU

    Being part of the EU also helps to open up new markets for UK businesses around the world. The EU has trade agreements with over 50 countries including emerging countries such as Turkey, South Korea, Mexico and South Africa.

    And the EU is currently in negotiations for a free trade agreement with the US which is worth a potential £10 billion to the UK economy.

    Economic benefits

    These economic benefits cannot be underplayed. But all of us here today know that the EU offers our citizens more than an economic union.

    EU cooperation is crucial for tackling cross-border security threats to the UK such as terrorism, drug smuggling and money laundering. The European Arrest Warrant is a crucial mechanism for combating cross-border crime.

    Since 2009 it has been used in the UK to extradite over 4000 criminal suspects.

    The EU also plays a crucial role in tackling climate change, increasing energy security and creating the low carbon economy we need for our future. A united ‘Team EU’ approach was critical in establishing the Kyoto Protocol and the Durban agreement.

    And of course being part of the EU increases our individual opportunities: 2.2 million Britons live in other EU countries, working, studying or enjoying retirement.

    More than half of all UK nationals have a European Health Insurance Card which allows us to receive free or reduced cost healthcare when visiting another member state, benefiting the 24 million of us who holiday in EU countries each year.

    Of course, both the EU and the UK have been built over time and on the basis of shared interests and outlook.

    The UK family sits within the European family and each has its own set of values and institutions that have put down roots. Most British citizens feel pride in the National Health Service that we built together. In the BBC whose reputation for broadcasting excellence is understood at home and overseas.

    And in the sporting success we have enjoyed not least in the 2012 London Olympics where athletes from every part of the UK trained together, competed together and won together.

    As European citizens we can all take pride in an unprecedented Common Market that creates jobs and has made untold millions of goods accessible to our citizens.

    As a lawyer who is passionate about human rights I cherish a European justice system that protects civil liberties and has exalted human rights through the ECHR.

    And a set of institutions that has brought democratic accountability across a continent in a way that would have been unimaginable just a few short decades ago.

    Benefits of UK terms of membership

    But as part the UK Scots benefit still further from being one of the largest member states in the EU. We are able to use our UK influence to deliver on subjects that are of direct interest and importance to people and businesses in Scotland.

    We have secured ‘Hague Preferences’ allowing Scottish fishermen to benefit from higher quota shares. In the face of fierce opposition we secured protection for Scottish salmon from unfair trade from imported Norwegian salmon.

    And in negotiations on the EU’s Third Energy Package we secured a special provision for energy companies based in Scotland to enable them to comply with European legislation without needing to sell off parts of their business.

    We also benefitted from the flexibility that the European family has shown to our specific asks and needs. The United Kingdom was able to negotiate a permanent exemption from the euro.

    We have also maintained our own common travel arrangements with an opt-out from Schengen. And then of course there’s the UK’s budget rebate. As one of the largest net contributors to the EU budget, the UK has negotiated a refund on a proportion of its contributions.

    All three are at risk for Scotland if we leave the UK.

    An independent Scottish state would have no share of the UK’s rebate from the EU, nor be likely to secure an abatement of its own.

    The analysis we published last Friday shows that without its own budgetary correction even under the most optimistic scenarios Scotland’s net contribution would be at least 2.2 billion Euros higher during the current budgetary period than it would have been as part of the UK. That’s an extra 840 Euros per household in Scotland.

    Scotland gets to share in these benefits with people across the UK because we are part of the United Kingdom. If we choose to become a new separate state, we choose to leave the United Kingdom.

    And in doing so we would need to become a member of the EU in our own right.

    Law not politics

    That is not a question of politics – that is a question of law. We set out the clear, legal position in the first of our analysis papers.

    The EU is a treaty-based organisation and the UK – not Scotland – is the contracting party to the Treaties of the EU.

    In the event of independence, the remainder of the UK – England, Wales and Northern Ireland – would be the same state as the existing UK, with the same international rights and obligations.

    Its EU membership would continue on existing terms. The Scottish Government used to deny this of course.

    They used to assert that an independent Scotland would automatically be a member of the EU. And they used to say they had legal advice to back them up.

    But eventually – the truth was forced out of them (only after spending thousands of pounds of taxpayers’ money I might add) There was no legal advice. There is no automatic entry.

    The Scottish Government now grudgingly accept that negotiations would be required for EU membership. But I’m afraid they still fail to tell Scots the reality about that process.

    Rather than applying in the same way that every other new member has under Article 49 of the Treaty of the European Union – seeking the unanimous support of the European Council; having membership approved through an Accession Treaty; and having the application ratified with the constitutional requirement of each existing member State – we are told by the Scottish Government in their White Paper that Scotland could become a new member of the EU by the ‘back door’.

    The so-called “Article 48 route” is held up by the Scottish Government as the super highway to EU membership. The fast track not only into the EU but also exactly the same rights and responsibilities that we currently enjoy as part of the UK. But in reality this is a dead-end.

    Article 48 has never been used to expand membership of the EU. There is no way round the law.

    A new state must apply, it would be no different for an independent Scotland.

    This is not to say a new Scottish state could not or would not become an EU Member State. But before the Scottish Government start excitedly quoting me on that, let me remind them that membership – and critically, the terms of membership – would have to be negotiated with 28 Member States.

    This isn’t just our view. It’s the view of the President of the European Council and the President of the European Commission.

    It’s a view expressed by some of those Member States that an independent Scotland would have to negotiate with including the Spanish Prime Minister.

    And it’s the view of expert lawyers like Jean-Claude Piris, the former director general of the EU Council’s legal service who has said “it would not be legally correct to try to use article 48”. The Scottish Government ‘vision’ of independent Scotland in EU is a mirage

    But it’s not just the question of process that’s at stake here. It’s the substance too.

    And here we’ve seen yet more rocking from front-foot to back from the Nationalists when it comes to the heart of this debate.

    Earlier in Alex Salmond’s leadership, Independence in Europe was the slogan for the Scottish National Party. And there was bullish rhetoric about a separate Scottish state, in Europe, punching above its weight.

    On fishing for example – a subject of the greatest importance to my own constituents in Orkney and Shetland – the Nationalists used to assert that a better deal would come the way of a separate Scotland.

    But now that the words require substance, the picture that Nationalists paint is not clear but blurred and patchy.

    I have said elsewhere that while the Scottish Government want people to believe that they have a vision, in fact what they proffer is a mirage. Like all mirages, the closer you get, the less real it becomes.

    Nowhere is this more true than on their position on EU membership. Their recent White Paper on independence demonstrates this perfectly.

    There is a cursory mention of the implications of independence for Scotland’s fishing industry.

    There is no mention of how an independent Scotland would avoid the recent cut to structural funds that has been shared throughout the UK. And despite their robotic assertions there is no explanation of how Scottish farmers could expect to do better under independence.

    Uncertainty

    In applying for separate membership, as a new state, there would of course be considerable uncertainty. This of course explains the curious mix of assertion and omission that stake out the SNP’s position.

    But let’s just think this through.

    Why would all 28 member states agree to reopen the terms of the Common Fisheries Policy to suit a new member with a small population and specific demands?

    Why would they agree to revise the structural funds formula so that their money is redirected to Scotland to compensate for the loss that comes with leaving the UK?

    And why would other member states that have had to phase in Common Agricultural Policy receipts over 10 years agree to an independent Scotland automatically receiving payments from day one?

    Not just that – but according to the Scottish Government – reopening the CAP deal and agreeing to give Scottish farmers increased payments too.

    That would mean newly joined countries like Croatia accepting to a deal that was never offered to them or their farmers.

    And on the Scottish Government’s timetable this would require all 28 Member States to rip up the hard-fought EU budget ceilings agreed to 2020 and reduce their share of the budget in order to give Scotland more money.

    Now that’s all before we even get to why those member states that have been required to join the euro and Schengen as a condition of membership – or that would like a rebate but have none – would now make special provision so that Scotland could have what they could not?

    All of these things that the Nationalists say they would want for Scotland in the EU: The exemption from the euro and Schengen, the retention of the rebate – reform of the Common Fisheries Policy.

    All of which as part of the UK, Scotland already has today, or is better placed to achieve them in the future.

    Leaving the UK means leaving the EU, then trying to fight your way back in seeking the same terms from a weaker position. This runs against Scotland’s interests.

    And we can’t afford to forget that the Scottish Government are seeking to rush all of this through in a flash. They have made clear that, in the event of a yes vote this September, they would declare independence in March 2016 – just eighteen months later.

    But they have also said that they intend to settle the terms of EU membership – and gain unanimous agreement from all 28 member states – in that timeframe.

    This would be a negotiation of record-breaking speed to obtain extraordinary terms.

    Little wonder that experts like Professor Adam Tomkins – Chair of Public Law at Glasgow University and David Crawley – a former representative of the Scottish Government in Brussels – have said that such a timetable is simply not realistic.

    Of course, in any negotiation, the more you give up, the more likely you are to reach a speedy conclusion. Equally the more emphasis you put on a deadline, the less leverage you have over the deal.

    European leaders will be aware of this; Alex Salmond should be too.

    The eighteen month timetable he proposes to place both on himself and the rest of the EU is a negotiating position of extraordinary weakness.

    One man’s obsession to deliver independence not just to a specific timetable, but to a specific day of the week…would not just undermine Alex Salmond’s hand in negotiations, but Scotland’s future in Europe.

    Instead of showing he has Scotland’s interests at heart, this obsession with a date rather than the deal reveals just how much of a vanity project this really is.

    Of course the reality is that the terms of membership could not be known until such a time as they were agreed.

    But the Scottish Government is morally bound to set out in detail what terms of membership they would seek and we are all entitled to assess just how likely this is to happen.

    That clarity of terms is being denied by a party whose head is buried in the sand – and that hopes that other European leaders’ are likewise. The terms that they seek are by turns unclear and unrealistic.

    The process they propose is flawed in legal terms and destined to fail in the cold hard light of political reality.

    Tactics

    Let no-one think that the Scottish Government has a vision for its membership of Europe. As in all areas it has tactics.

    Not tactics to secure a good deal for Scotland. Just tactics to minimize the risks and uncertainties of independence in the eyes of Scots. Not just about the EU – Scotland’s place in the world is stronger as part of the UK

    I’ve focused my remarks on Europe – but we all need to remember that this is not just a question of EU membership. The UK is at the heart of all the world’s most influential organisations.

    We use our diplomatic global network to help others and to represent Scotland worldwide, promoting the interests of businesses based in Scotland and looking after Scots who get into difficulty overseas.

    The Scottish Government claims that Scotland holds international priorities and values that are distinct from the rest of the UK – this is simply not true.

    The UK has played a leading role in strengthening the rule of law, supporting democracy and protecting human rights around the world.

    Scotland – as part of the UK – was one of the founding members of the United Nations. We have a permanent seat on the UN Security Council helping to take decisions on major foreign policy and defence issues.

    Together, we can make a bigger impact on global poverty. Pooling our resources, we have grown our aid budget and become the second largest donor nation in the world today.

    Put simply – as a United Kingdom, in Europe – we achieve more now, and will continue to do so in the future, if we stay together.

  • Alistair Carmichael – 2014 Speech on Scottish Independence

    alistaircarmichael

    Below is the text of the speech made by Alistair Carmichael, the Scottish Secretary, at Stirling University on 13th January 2014.

    It is a real pleasure to be with you all here in Stirling University today to talk about Scotland’s future.

    On 18th September this year we will take the most fundamental collective decision that a nation can ever be asked to take. This is a once in a generation decision:

    We have just over eight months to decide whether we stay in the United Kingdom family or go it alone. Eight months to choose between remaining part of this four-nation partnership that we have built together or to break away and to start from scratch. That is our choice.

    That time will fly by – but I’m determined to the make the most of every minute. Why?

    Quite simply because I believe in Scotland within the United Kingdom.

    I believe in the contribution we’ve made over the last 300 years along with our friends and families across England, Wales and Northern Ireland: our common effort to create and share something bigger and that serves us all well.

    I believe in the benefits we get from being part of this larger shared community.

    I believe this because I can see the evidence around me – at home in Orkney, here in Stirling, in Edinburgh, Glasgow, Manchester, Newcastle, right throughout the United Kingdom.

    Greater than the sum of its parts

    We all put something in and we are all getting something out: the UK is greater than the sum of its parts.

    Right now Scotland sees the benefit of this long shared history. Right now, we get the benefits from natural resources like North Sea oil – but we are able to manage the volatility in production and price as part of a much larger and diverse economy made up of 60 million individuals rather than just five.

    Our economy comprises four and a half million companies rather than 320,000 – a market with no boundaries, no borders, no customs – but with a stable UK currency that is respected and envied across the world; a single financial system, and a single body of rules and regulations.

    Because we share in these benefits, Scotland is best placed to succeed. We are the wealthiest area of the UK outside London and South East, and we have achieved that as part of the UK. And right now, all of this supports jobs here in Scotland.

    Jobs in industries as diverse as oil and gas, defence, food and drink and the new and emerging creative industries of the future.

    Let us not forget we get more back than we put in. Public spending in Scotland is currently 10% higher than the UK average.

    Yes, there are national differences across the UK – we are not a monolithic culture, thank goodness. That’s true of our economy and our society.

    One of things of which I am most proud in the UK is that we’re able to absorb, to protect and to cherish differences: differences of culture, religion, accent, origin and much, much more.

    But let no-one underestimate what we share together and how that helps us succeed together.

    Of course, our commitment to the UK family is not just about the facts and figures. It’s also about the values and ambitions we share.

    The hands that built the United Kingdom have created things of enormous value. They strike a chord of pride within us and remind us all of what we can achieve together.

    Institutions

    Together, we built a National Health Service.

    When William Beveridge identified the five “Giant Evils” facing post-war Britain – squalor, ignorance, want, idleness and disease – these evils blighted every nation of our United Kingdom.

    And when the UK Parliament established the NHS, it did so to fight those evils within the entirety of our borders. We faced the same problems, we felt the same outrage and we together we found the same solution.

    Today, people across the UK family take enormous pride in a National Health Service, providing comprehensive health services, free at the point of use for all UK citizens wherever they fall ill within our United Kingdom.

    Together, we built the BBC – three letters that stand for excellence in broadcasting at home and around the world.

    They invoke quality, depth and impartiality. It is the product of our shared wish for a national broadcaster that can educate, entertain and inform.

    It is funded by a flat licence fee that guarantees access to programming that is both UK wide and nation and region specific. It serves local communities with a local presence in places like my own communities in Orkney and Shetland. It provides national reporting and entertainment across the nation. Around the world people look to the world service as a source of truth and impartiality.

    It is unrivalled, unparalleled, and irreplaceable.

    Together, we have built a formidable sporting culture too. In so many sports, the nations of our UK family have different traditions, different strengths and different teams.

    But while we maintain a strong pride in our teams for football, rugby and so much more we also maintain an enormous pride in the sporting clout that we represent together.

    Whether that’s the British Lions, or next month’s Winter Olympics, or of course, our astonishing achievements in the London 2012 Olympic Games.

    At those Games, the UK won 29 gold medals. And over the Games, as the tally went higher, so did our collective sense of national pride.

    Chris Hoy, Jessica Ennis, Andy Murray, Mo Farah, Katherine Granger. Those outstanding athletes weren’t cheered on by parts of the UK, but by all of us.

    They were our representatives. They worked together, they competed together – many had trained together at facilities across the UK. Their success fed our pride.

    The NHS, the BBC, our sporting events, teams and heroes. These are just a few of the things that bind together our family in pride and endeavour.

    Shared values

    Shared values, shared effort, shared achievements. Why should we now break these things up? As separate states must.

    When we have achieved so much through our common values and labour, wouldn’t we go on to achieve so much more?

    The challenges we face today may be different but they are every bit as demanding as those we faced in the past.

    Together, we can afford the subsidies that will bring about a renewables revolution in this country. Cutting carbon emissions, tackling climate change, strengthening the green economy. Together, we can make a bigger impact on global poverty.

    Pooling our resources, we have grown our aid budget and become the second largest donor nation in the world today. Together, we can rebalance our economy and become more prosperous.

    Growing faster than any other G7 country, becoming the largest EU economy within perhaps just twenty years, providing the financial security that safeguards our banks and secures our currency.

    The motivation to prevent climate change, to protect the most vulnerable and to build a strong prosperous and sustainable economy. These values are common across the United Kingdom.

    And by staying together, we can build on those values to create a strong and secure future. Why should we now break these things up?

    2013 – the year of evidence

    I don’t believe in the UK family because of dogma, ideology or nostalgia but because of what the UK means to us in the here and now and what it can deliver for us all in the future.

    For too long we have allowed to go unspoken the contribution that Scotland makes to the UK – and we have been equally silent on the benefits that we get from being part of it.

    2013 was the year when the UK Government started putting the record straight.

    We embarked on an analysis programme examining the facts, reviewing the evidence and making the case for Scotland as part of the United Kingdom in a series of detailed papers.

    Soon we will publish our first paper of the new year. It will examine the benefits for Scotland of being part of the UK in the EU and on the international stage.

    The UK is at the heart of all of the world’s most influential organisations. As part of the UK we are one of the founding members of the United Nations and have a permanent seat on the UN Security Council – helping to take decisions on major foreign policy and defence issues.

    As part of the UK we can use our influence to help others – whether to give our home-grown businesses access to new export markets through our highly-developed embassy network; or providing support and assistance to other countries in times of crisis.

    Our paper will set out the facts about Scotland’s contribution and the benefits we get from being part of this world-leading partnership. We’re talking about a complex, detailed piece of analytical work.

    That’s because what we have in the UK is a product of years, of decades worth of cooperation and negotiation – both within the UK and with our neighbours.

    Academics, businesses and legal experts here in Scotland have read – and contributed to – the papers we’ve published to date.

    Facts and evidence

    They support the facts and the evidence we have presented.

    You’ll find no grandiose flights of fancy here – only the very facts of our United Kingdom:

    – our banks are safer

    – we have greater financial protection for savers and pensioners

    – greater levels of competition delivering cheaper mortgages and insurance for families and businesses

    – we invest in research, infrastructure and industry to remain at the forefront of new technological developments

    – we have a single labour market which allows people to move freely within the UK for jobs

    – we use our international influence to make a positive difference

    The list can – and does – go on.

    Together these facts to make a positive case for Scotland in the United Kingdom. And throughout the remainder of this year we’re going to keep making that case.

    But you don’t just have to accept the facts we’ve published, just take a look at some of the other contributions we’ve had so recently in this debate:

    We have heard the supermarkets talk about the benefit of being part of a single large economy where food and drink costs us, the consumers, the same regardless of the costs of production and distribution.

    We’ve heard the CBI – the organisation that speaks on behalf of business – say that the nations of the UK are stronger together and that Scotland’s business and economic interests will be best served by remaining part of the UK family

    We’ve seen the body that represents accountants in Scotland continue to ask questions about the Scottish Government’s proposals for pensions – questions that remain after the White Paper’s publication

    And we’ve heard legal experts describe independence as ‘a road to nowhere’

    It’s no surprise that the Scottish Government argue against all the evidence and the facts that we’ve presented – but their eagerness to shout down the experts from the worlds of business, academia and the law is worrying and regrettable. Other side of the argument – not being honest

    I don’t argue with the right of those on the other side of this debate to feel the way they do about the future of our country.

    But I do feel very strongly that those who want to break up our United Kingdom have a duty to listen to the experts and to make an evidence-based case of their own.

    It is not good enough to adopt the politics of ‘he who shouts loudest’. It’s not good enough to say, when challenged, “just because I say so”.

    For most of 2013 the Scottish Government told us in response to almost every question put to them: ‘wait for the White paper’; ‘the answer will be in the White paper’. But what we got in November was heavy on rhetoric and light on answers. It was a wish list without a price list.

    Promises

    On the one hand we got a set of promises that the Scottish Government can’t deliver.

    No matter what they say, it is not for the Scottish Government to dictate what deal a separate Scotland could negotiate with the rest of the UK.

    As Scots we all have to ask ourselves if we choose to leave the UK, why would those we’ve walked out on want to continue to share the things we have at the moment precisely because we part of the UK?

    If we stop contributing to the UK, why would we keep getting the benefits from being part of it?

    And that’s before we even start to think about the negotiations that would be required with all 28 EU member states, bilateral relations with countries around the world and international organisations.

    Yet on the other hand we saw the Scottish Government promising things post-independence that they could be delivering today.

    The Scottish Government chose to put the spotlight on childcare in their White Paper – something that it is within their power to do right now.

    Last week they finally acknowledged the folly of this approach and came forward with proposals to start the catch-up with childcare provision in the rest of the United Kingdom. In so doing they made the case for what we have – not for what they want.

    The Nationalists like to assert that they have a vision for an independent Scotland and that their White Paper is its articulation.It is not. This is not a vision; it is a mirage.

    Like all mirages, the closer you get the less real it becomes.There is no coherence whatsoever in this nationalist document – or any other – about the kind of country Scotland would be if we were to leave the UK family.

    This is not surprising. The Scottish Government has long been skittish and evasive about the model for an independent Scotland.

    They proffer whatever fits for any given audience at any given time. Then switch it for something else when the moment suits.

    Back in 2007 we were told that Scotland would be the free market Celtic Lion. Roaring to the sound of banking deregulation, and echoing across the arc of prosperity to Iceland and Ireland.

    By 2011 the tune had changed. Now we would be a Scandinavian-style social democracy. With social services and public spending priorities that looked east, not west.

    The White Paper couldn’t decide which way to jump.

    A promise to cut some taxes, and freeze others, clumsily grafted on to expensive commitments on nationalisation, public spending and a lower retirement age. All based on a single, solitary page of numbers and the wilful omission of data from 2008 – the inconvenient year of the financial crash.

    In every sense, it simply does not add up. Even in the best of times, no-one can have a low-tax economy paying for Scandinavian levels of social provision. If they could, Scandinavia – and others – would have done it.

    Lack of vision

    To say that they will do so with the backdrop of an ageing population and reduced oil and gas revenues, only adds insult to injury. There is no vision, just 670 pages of words.

    All things to all people, big on rhetoric, low on facts, it offers no true picture of what kind of country Scotland would really become.

    What currency would we use? What terms of EU membership could we hope to achieve? How much would independence cost and just how would it be paid for?

    It is for the Scottish Government to present a full, true and costed vision of what independence would mean. If they refuse to do that, what are people being asked to vote for?

    Positive case

    In 2014 my job – and the job of all those who believe in the United Kingdom – is to make the strong positive case for the UK and to make it loudly and proudly.

    We can do that confidently, because our case is supported by the experts. The substance of the argument is on our side and it has gone without meaningful challenge by our opponents.

    Now our job is to make sure that every voter is aware of these facts before they enter the polling station.

    Because ultimately this isn’t a debate that will rest on the production of papers by Governments, however learned and substantial they may be.

    This is a debate that must take place in the pub and in the bank – at the school gates and on the factory floor – our universities and in our supermarkets. This must be a debate in which we are all involved.

    We cannot leave this to someone else and hope they get it right for us. We must not let anyone tell us what we can and cannot think or say.

    In this debate, everyone’s voice matters. We all get one vote.

    The future of our country really is in our hands and we must take it, grasp it and decide for ourselves.

    So my hope for 2014 is this: in September I hope that all of us who can vote, do vote.

    And I am confident that people right across Scotland will make the positive choice and vote no. The positive choice to stay part of the United Kingdom family. The positive for a bright Scottish future as part of the United Kingdom.

  • Alistair Carmichael – 2013 Speech on Scottish Independence

    alistaircarmichael

    Below is the text of the speech made by Alistair Carmichael on 13th November 2013.

    It is a pleasure to be here in Inverness today – as an MP of 12 and half years I’m used to making speeches, but this is my first key-note speech as Secretary of State. In terms of where and when to make it I gave only one wish for my speech it was not going to be in the central belt!

    It is an enormous pleasure for me to be here in the city of Inverness, capital of the Highlands. This is a city that has seen enormous growth and change over the decades and is now home to many businesses in a wide-range of fields, but which is still identifiably a Highland community in its feel.

    This seat is home to my friend and colleague Danny Alexander, I have been privileged to work closely with Danny over the years and we have both been Ministers in this coalition Government and he has become an enormously influential politician.

    When Danny tells people in Government to listen they do – and Danny takes every opportunity in his job to speak up for the Highlands.

    Now in Cabinet a boy from Colonsay sits across the table from a boy from Islay who represents Orkney and Shetland – two island men both represented at the heart of this Government.

    Proud

    I am very proud to take up the role as Secretary of State for Scotland particularly at the current time. Right from the start I got to see how quickly the labels get put on you on this job.

    Their labels as a ‘bruiser’ or any of the rest of it are all a predictable part of how the press covers politics: plenty of reminders of what I look like dressed as a Viking warrior for the Up Helly Aa (and I can let you into a little secret – it’s not an outfit I wear every day) to being described as a ‘supposed Scot’: all in the space of four weeks!

    The latter description was, I suspect, designed to provoke. It certainly did tell us something about this debate – that I’m not alone in experiencing.

    Not content with trying to divide the UK, the supporters of independence also seek to divide our fellow Scots – depending on their voting intentions in the referendum.

    I tell you this – once you start mixing up politics and patriotism you can quickly get into dangerous territory.

    I am proud to be a Scot and come from a family that as far back as we can trace, have always lived in Scotland. My father is a native Gaelic speaker and as a child and a young adult I competed at local and national Mods.

    I was educated in the Scottish state sector and studied Scots Law at the University of Aberdeen and qualified as a solicitor in Scots law. I have held a commission as a Procurator Fiscal Depute – one of the great ancient offices of the Scottish legal system.

    Since 2001 I have represented a Scottish constituency in the House of Commons. I look forward to Hogmanay as much as Christmas Day. I drink malt whisky and I’m partial to the occasional tunnocks teacake.

    What else do I have to do for these people to regard me as a “true” Scot as opposed to being a “supposed” one?

    Scottishness

    No one has a right to question my Scottishness or anyone else’s come to that.

    Polls would suggest that most people in Scotland want to remain part of the United Kingdom. Many others do not.

    A few weeks ago, in yet another effort to have a debate about the debate rather than having the debate itself, Alex Salmond called on David Cameron to debate independence. He wanted, he said, to see the Prime Minister “argue against Scotland”. Not, you note, “against Scottish independence” but “against Scotland”. In the nationalist mindset it seems to be the same thing.

    Let me be clear: You are not a better Scot if you support independence. Nor are you better if you don’t.

    Being a part of the UK doesn’t undermine our Scottishness – our identity as Scots is not and never has been at threat.

    This is not a debate about patriotism – It is a debate about whether or not we should continue to work together across the United Kingdom, or whether we should go it alone.

    A lot of airtime gets devoted to what independence would mean for Scotland – and rightly so – there are plenty of questions, I’ll return to just some of those later.

    But before we make a choice about our future, we need to understand what it is we have right now as part of the United Kingdom.

    The nationalists like to take us right back to 1707 and even further to Bannockburn. Don’t get me wrong – history is important: but our recent history is just as important as the more distant. That recent history has been one of collaboration, of partnership, of working together.

    Best of both worlds

    I’m not going to turn this speech into ‘the greatest hits of the UK’ – but I will say this: we have achieved a great deal working together. And I don’t think those of us who believe in a strong Scotland within a strong United Kingdom spend enough time talking about that.

    So next time someone asks ‘what has the UK ever done for me?’ I want you to remember this….

    Together our economy is stronger and more secure.

    We have a domestic market of 60 million individuals rather than just 5, 4.5 million companies rather than 320,000 – with no boundaries, no borders, no customs, but with a common currency, single financial system, and a single body of rules and regulations.

    I am in no doubt: businesses right across Scotland have no wish to change this system.

    I put it like this: we have a stronger place in the world with a great and wide network of embassies and diplomatic offices across the globe – supporting our businesses overseas and looking after Scots abroad.

    As part of the UK we are a major player on the international stage: with significant influence in the EU, UN, G8 and other international institutions. We can and do make a real difference to people in other parts of the world in times of trouble, as our work in the Philippines is showing right now.

    Benefits of the UK

    At home the benefits of our United Kingdom can be seen not just in the make-up of families like mine and many others right across the UK, but also by the more than 700,000 Scots who live and work in other parts of the UK and the 30,000 people who travel between Scotland and the rest of the UK each day to work. All of us benefit from a common passport, tax and national insurance system, meaning that people as well as goods and services can move freely.

    Where it makes sense to have decisions taken in Scotland by the Scottish Parliament responsibility has been devolved to Holyrood. It is a constructive and positive approach. Devolution within a United Kingdom really does give us the best of both worlds.

    Week two of the job and the crisis at Grangemouth petro-chemical plant landed on my desk. That illustrated well what the best of both worlds gives us: working together John Swinney and I could bring together the resources of government to secure the future of the plant more effectively than we could working separately.

    That is why at the start of this year we embarked upon a detailed programme of work to examine Scotland’s position in the UK today and to make clear the choices that would face all of us if the UK family were to break up.

    These papers have been detailed and evidence based and together set out a detailed case that shows every part of the UK makes a valuable contribution and that together we are greater than the sum of our parts.

    When we go to the polls next year we’ll be asked the question: ‘Should Scotland be an independent country?’. We’ll be asked to put our cross in a box saying yes, or a box saying no.

    That simple act – will be replicated right across Scotland from the highlands and islands, to the borders; in our great cities and our rural communities.

    Each of us will be asked the same question. And when we answer – we will all do so on the basis of what is best for us as individuals, for our families and for our communities, now and in the future.

    And the benefits of being part of the United Kingdom can be seen in our future as much as our past:

    There are the challenges we already know about: by pooling our resources we are better placed to meet some of the demographic challenges that we will face in the future: funding pensions through contributions from the working populations of Scotland, England, Wales and Northern Ireland is more sustainable than simply trying to fund our ageing population in Scotland alone: you don’t need to be an expert economist to work that one out.

    Then of course there are things that we can’t predict:

    Fifteen years ago the idea of broadband roll out across the UK, including our remotest areas would have sounded like a pipe-dream.

    And yet here we are, with UK wide funding helping to join us up and bring us all closer together. Twenty per cent of the UK broadband budget is being spent here in Scotland – that’s more than our fair share – and we can do this because we pool our resources across the UK.

    We need to ask ourselves: what will the next broadband be? And will it be more sustainable to fund it by clubbing together as the UK or doing our own thing in a separate Scotland?

    It is this past, present and future United Kingdom that we need to think about when we go into the polls next year.

    White Paper

    But right now attention is turning to the Scottish Government’s White Paper which will be published in just less than two weeks. And rightly so.

    This is after all a long awaited document.

    Whilst we have published our analysis – on the legal implications of independence, on financial services, on the economy, on the challenges of an oil fund, or on the currency – what we’ve so often heard in response is ‘wait for the White Paper’.

    The First Minister tells us that this Paper will resonate down through the ages and Nicola Sturgeon has said it will answer all the questions – boy does it need to.

    But before we get to the detail let’s start with ‘The ‘why?’. Why do the nationalists want independence?

    Since signing the agreement with the Prime Minister over a year ago to ensure that we would have a referendum, the answer to ‘why’ seems to have become less clear, rather than more.

    In the few areas where the Scottish Government have sought to offer any answers, they – ironically – seem obsessed with UK wide solutions. According to them:

    We will leave the UK…but have a shared currency and keep the Bank of England working as lender of last resort;

    We’ll leave the UK…. But continue to share a UK welfare system;

    We’ll leave the UK….. but still get UK warships built in Scottish yards;

    We’ll leave the UK…but still share a single set of financial regulations….

    The logic of the Scottish Government’s position has left many scratching their heads in puzzlement. But in truth it is just part of a pattern we see from the Scottish Government: They are doing this to offer false reassurance. Independence would prove very different in practice and they know it. Right now all they are proving is that they are prepared to say anything and promise everything to try to win votes.

    But let’s be generous and leave that most fundamental question of ‘why become independent’ to one side for a moment.

    The Scottish Government have another duty in the White Paper: to explain how independence would work and what it would mean. This is an important decision for us all. The details matters. We cannot be offered a prospectus of ‘it will be alright on the night.’

    Now we know that for many issues all the White Paper can do is provide a wish-list of what the Scottish Government might like to secure in negotiations:

    An independent Scotland would need to sit down at the negotiating table with the rest of the UK – who would then be a separate state from us.

    Sit down with the member states of the EU and the Allies of NATO to thrash out an enormous amount of very important detail.

    In each case an independent Scottish state would be pursuing its interests, just as the other states would pursue their interests.

    So the Scottish Government should take the opportunity in the White Paper to tell it straight about the fact that many important issues will need to be negotiated and they need to be upfront that there can be no guarantees in advance.

    Fundamental questions

    But that does not excuse the First Minister and his team for dodging some fundamental independence questions that they can answer.

    The White Paper must be frank on a few fundamentals of independence if they are serious about bridging the credibility gap that exists with their plans.

    Today I am posing three very straight-forward questions that need to be answered if people in Scotland are going to get any closer to knowing how independence will work and what it might mean for them.

    Let’s start with the pound in our pocket. Or, to be precise, the UK pound sterling in our pocket.

    This is fundamental.

    The First Minister is fond of saying that the pound is as much Scotland’s as it is the rest of the UK’s. It is now, but if Scotland decided to leave the UK, we would also be leaving the UK currency.

    Public international law is clear: the UK would continue. The UK’s currency would continue and the laws and institutions that control it like the Bank of England would continue…for the continuing UK

    But if Scotland became an independent country, we would need to put in place our own currency arrangements; new currency arrangements.

    Currency union

    The First Minister says he wants a currency union with the rest of the UK.

    The UK Government – and plenty of others – have pointed to the challenges of currency unions between different states. You only need to look at the Euro area to see that everything can appear fine in year one, and how quickly circumstances can change.

    And there are plenty of examples of currency unions that have failed. When Czechoslovakia broke up the Czechs and Slovaks tried it. It lasted 33 days.

    The bottom line is that a currency union may not be in the interests of Scotland or the continuing UK and it is highly unlikely to be agreed – not because of any malevolence, but because it wouldn’t work. It would be very foolish for anyone to vote for an independent Scotland on the basis that they will get to keep the pound. It’s high time that the Scottish Government stopped claiming that a currency union is a given and instead answer this first question: will the White Paper set out a credible Plan B on currency?

    Pensions are another fundamental building block of any state. The UK and other developed countries are facing rising pension costs because of ageing populations. Independent forecasts by the ONS confirm that the demographic challenge Scotland faces is greater than the rest of the UK. We will have more elderly and retired individuals receiving pensions compared to those of working age who are paying taxes.

    So my second question is will the White Paper set out how much more pensions will cost each of us in the future if we leave the UK and leave behind 90 per cent of the people that are currently paying into the larger UK pension pot?

    Price tag

    Finally, the overall price tag of independence is something we never hear anything about. John Swinney’s private paper to his Cabinet colleagues said a new tax system alone would cost more than £600m each year. Setting up a new Scottish state from scratch will not be cheap. The White Paper must tell us how much it will cost us to set up.

    But in truth it’s not just the one off set up costs we need to think about.

    In public we see the Scottish Government promising more and more ‘goodies’ for an independent Scotland. But people aren’t daft: we know that every goodie has to be paid for.

    So I want to know how much we are expected to pay to go it alone as an independent state. Rather than making empty promises, the White Paper has to tell us how an independent Scotland would fill the black hole.

    OK – I’ll admit – that’s more than three questions – trust me I could ask plenty more.

    But what I’d really like to hear are the questions you want to see answered when you open up the White Paper.

    Because this must not be a document that Governments alone pour over – as much as Alex Salmond might like it, this isn’t a debate between the UK and Scottish Governments.

    Indeed despite the approach of those SNP members who question the right of ‘supposed Scots’ like me to speak out, this is a debate that each and every one of us has a right to be involved in: we each have a voice in this debate.

    I hope to hear yours.

  • Alistair Carmichael – 2005 Speech to Liberal Democrat Conference

    alistaircarmichael

    Below is the text of the speech made by Alistair Carmichael in civil liberties to the Liberal Democrat Party Conference on 22nd September 2005.

    If there is one issue which defines us as a party then surely it is liberty. For us to defend the right of the individual to live his or her life without undue interference from the state is as instinctive as it for Messrs Blair, Blunkett and Clarke to attack it.

    Let us be clear. Being in favour of civil liberties is not about being “soft” on anyone. It is not about being soft on terrorism any more than it is about being “soft” on the anti-social behaviour that blights the lives of so many people in city centres and housing estates the length and breadth of our country. As Jim Wallace who was a formidable justice minister for four years in Scotland made clear yesterday, the liberty to bully abuse and intimidate your neighbour is not a civil liberty and those who do so will get no comfort or succour from this party.

    To be fair, the New Labour government started well. The passing of the Human Rights Act incorporating the European Convention on Human Rights into our laws was a major advance in protecting our freedoms. We supported that when they did it and we continue to support it today. What has become clear since, however, is that they had no idea what they were doing at the time. Since New Labour passed the Human Rights Act they have had little to say on the subject apart from lambasting and abusing the judiciary every time they implement it.

    It is already clear when we return to Westminster in three weeks time we shall face another onslaught from a government determined to take control of every aspect of our lives. In the aftermath of the London bombings on 7th July the Prime Minister and the Home Secretary sought to establish a consensus on the measures that were needed to be taken. They were right to do so. Just as Mark Oaten and Charles Kennedy were right to respond positively as they did.  As ever, however, New Labour’s authoritarian instincts are kicking in. They now seek to push the boundaries of that consensus. Let me promise you this, conference, if a consensus ever emerges at Westminster that supports three months detention of suspects or the creation of new offences as vague and problematic as the glorification then that will be a consensus that will emerge without us. We shall not be part of it.

    I have no doubt that we shall be misrepresented.  I have no doubt that we shall be abused. I have no doubt that we shall be accused of all manner of things. And do you know what?   I really don’t care. If we can not defend liberties as fundamental as these then what is the point of being in parliament? This is what I was elected by the people of Orkney and Shetland to do. Just as they elected Jim Wallace before me and Jo Grimond before him.

    If civil liberties and human rights are important then they are important for everyone, regardless of nationality, race or religion. Just because someone has come here as an asylum seeker or has been brought here by a people trafficker to work in the sex trade or some other part of the black economy does not diminish their entitlement to fair and dignified  treatment by the state. That is why the government must now ratify without further delay the European Convention on the Trafficking of Human Beings. Even before that, however, there are changes that can and must be made now.

    The recent publicity in Scotland surrounding the practice of dawn raids being made on the homes of families of failed asylum seekers  has shocked all right thinking people. The children’s Commissioner in Scotland has been unambiguous and absolute in her condemnation of it and she was absolutely right to do so. I wonder how many of those people who voted Labour in 1997 or again in 2001 or 2005 did so because they wanted to elect a government that would send immigration officials into a family home early in the morning to take children from their beds. It traumatises children. It demeans us all because it is done in our name by our government. It is barbaric and it has got to stop now.

    Conference, we are to be asked to delete the part of this motion that asks us to deplore the planned introduction of compulsory identity cards and a national identity register.  I do not yet know why and I shall leave those who urge us to do so to explain their reasoning. I have to tell you, however, conference that I had the honour of leading for this party on the standing committee examining the ID Cards Bill. We went over that bill line by line and clause by clause. I have learned more about computerised identity databases and biometric information since May than I would ever have believed possible, let alone desirable. If I didn’t deplore the introduction of identity cards and the national identity register before I started that process then I certainly did by the time I finished it.

    Conference, be quite clear. The introduction of identity cards is about a lot more than the issue of a piece of plastic to help us get access to our public services. It is in fact a fundamental rewriting of the relationship between the citizen and the state. The bill which is currently going through parliament places massive amounts power in the hands of the government to obtain hold and share information not just about who we are but also about where we have been and what we have done.

    No doubt we shall be told that if we have nothing to hide then we have nothing to fear but those who hold that view fail to understand the nature of the relationship between the citizen and the state. It seems to assume that it is for the government to ask the citizen whether he or she has something to hide and that the citizen is somehow  answerable to the government. In a liberal society it is the other way round. The government is answerable to the citizen. The citizen should only have to justify themselves to the state if they are shown to have done something wrong.

    The only saving grace about the government’s plans to introduce ID Cards is that you just know they are not going to work. The government is going to buy a computer system that will hold three pieces of biometric information about every citizen in the country, install card readers in every public office in the country, retain records of when and when that service is used. Aye right. I’ll believe it when I see it. This is the government that after years of trying has still not been able to buy a computer for the Child Support Agency that will work out 15% of an absent parent’s salary. Something most of us would call a calculator. The operation of identity cards is going to be a massive but as yet unquantified cost to the tax payer – or more likely the people who are to be compelled to have them. The LSE calculated that the cost to the individual required to pay for an identity card could be as much as three times the government estimates of £93. The best part of £300 for the privilege of having the government keep tabs on you. Conference if we do not deplore the erosion of our civil liberties then surely waste of public and private funds on this scale is something to be deplored.

    History will record that this New Labour Government tried to rob us of some our most valuable freedoms. Let history also record that it was the Liberal Democrats who resisted and stopped them.

  • Greg Clark – 2012 Speech on City Deals

    gregclark

    Below is the text of the speech made by the Financial Secretary to the Treasury, Greg Clark, on 29th October 2012 in London at the City Deals Wave Two Launch.

    I would first like to thank the Centre for Cities for hosting today’s event.  I can think of no better organisation to help us announce the Government’s plan for unlocking the economic potential of UK cities. Like me, the Centre for Cities is committed to decentralisation, ensuring that cities are given the opportunity to develop bespoke solutions to local economic issues. As the Centre’s Chief Executive, Alexandra Jones, has said previously, the introduction of City Deals represents “the biggest shift in central and local government relations for decades.”

    Today the Government is launching the second wave of City Deals. Building on the success of Wave One we are inviting a further twenty cities to bid for a City Deal. But before I go into the detail of today’s announcement I’d like to reflect on the success of Wave One, the principles behind Wave Two and the process I am launching today.

    It would be fair to say that people were at first sceptical about City Deals. In fact, the motto of the Royal Society, in whose magnificent hall we stand today, ‘Nullius in verba’, which roughly translates as ‘take nobody’s word for it’, pretty much summed up people’s reaction when we launched Wave One ten months ago. And yet now Wave One has exceeded all expectations.

    I think the figures speak for themselves. The deals agreed earlier this year will create up to 175,000 jobs and 37,000 new apprenticeships.  But what has been achieved is about more than simply numbers. It is about no less than a transformed relationship between national and local government, in which cities, not just Whitehall, have the right of incentive over new policy.

    I am delighted these deals have been agreed and I am committed to ensuring they are implemented with vigour.

    Why City Deals?

    To prosper, and for people to realise their ambitions, we need to grow. We need the right macroeconomic environment – a sound economy with low interest rates – and the right microeconomic conditions – competitive taxes, labour laws that are flexible and workforces that have the right skills.

    But, or course, growth doesn’t take place in the abstract , at a national level. It happens in particular places, where new businesses locate and take on people, or existing businesses expand and increase their sales. Our cities have a particularly important place in this. In fact, I believe that the drive for growth – for Britain’s economic future – needs to be most energetic in our cities.

    There’s a good reason for that. As the Harvard economist, Ed Glaeser, has recently argued “cities are our greatest invention”. They lower transport costs, help us share knowledge and spark innovation. As the world becomes ever more complex, the role of cities in bringing people together and facilitating collaboration will become increasingly important. Cities are the building blocks of the global economy.

    Cities are where things happen. 74% of Britain’s population lives in a city or its surrounding area. And they account for 78% of all jobs. Take the 20 urban areas assembled here today for the second wave of City Deals. Their assets include 2 of the top 10 universities in the world, one of the largest concentrations of oil and gas and process and marine engineering industries in Europe, and the heart of Europe’s automotive industry, including its most productive plant. In short, the cities represented here today can count on global assets and huge growth potential.

    And yet too many of our cities haven’t done as well as those in other countries. Even in the supposed boom decade leading up to 2008, the number of private sector jobs in Nottingham and Birmingham actually fell.

    In England, Bristol is the only one of the eight largest cities outside London that has a GDP per head above the national average – while in Germany, every single one of the eight biggest cities outside Berlin has better than average GDP per head. In other words, German cities are the engines of national growth, generating wealth and prosperity, pulling the rest of the country behind them. Most of England’s big cities have not been doing the same – yet.

    So that is why this Government introduced City Deals.  For our economy to operate at its potential our cities must achieve their potential.

    So now to extend them

    If the Government had decided to stop, having done deals with only the biggest cities, then I believe we would be failing in our task of putting urban policy at the heart of our economic growth agenda. Instead, we are pushing forward by opening up discussions on a second wave of City Deals, potentially benefiting more than 7million people, and signalling this Government’s desire to promote growth across the country.

    First the next biggest urban areas:

    • The Black Country
    • Bournemouth and Poole
    • Brighton and Hove
    • Coventry and Warwickshire
    • Hull and The Humber
    • Leicester and Leicestershire
    • Plymouth
    • Preston and Lancashire
    • Reading
    • Southampton and Portsmouth
    • Southend
    • Stoke and Staffordshire
    • Sunderland and the North East
    • The Tees Valley

    Just think of their strengths. Plymouth; home to the largest naval base in Western Europe and one of the largest marine and maritime clusters in England. Sunderland; home to Nissan’s super-productive car plant. Coventry; home to Jaguar’s corporate and research headquarters. The Tees Valley; the UK’s fourth largest port, with strengths in petrochemicals, steel and process industries.

    We are also extending city deals to fast growing cities. The Centre for Cities, in its Private Sector Cities report in 2010, said some of England’s cities “have been creating thousands of new jobs in the private sector, but need to be expanded further to help businesses and workers take advantage of the opportunities being generated.”

    So, in addition to our biggest cities, we are extending an invitation to some of our fastest growing cities.

    • Cambridge
    • Milton Keynes
    • Norwich
    • Ipswich
    • Oxford
    • Swindon and Wiltshire

    Wave Two won’t be identical to Wave One. Each city and their Local Enterprise Partnership will be invited to put forward a proposal that addresses a significant local economic issue requiring a transformative response. The big challenge here will be identifying and prioritising a specific local challenge that needs to be addressed and coming up with a tailored plan to deal with it. Every place is different. Unique, in fact. So come forward to us with a proposal that reflects that uniqueness – that takes a new direction at solving a problem that is holding back your area.

    We also want to ensure that cities have a suite of powers that give them the flexibility to respond to local challenges as they arise. Bespoke arrangements will, therefore, be complemented by a ‘core package’, consisting of measures that will devolve significant powers and functions to all cities that go on to negotiate a deal with Government. This will capitalise on the progress we have made so far, demonstrating our commitment to the devolution of powers from central to local government, if local areas are willing to offer significant reform in return.

    Another difference is that there is now a competitive element. We are inviting 20 cities to put forward an initial proposal. We will use this to assess your appetite to do a deal; and that you are thinking boldly about how you might unlock growth in your city.

    We are therefore having a three month period to determine which cities are ready to proceed. Selected cities will then go forward to work with us to develop and negotiate proposals over the following months.

    Cities will need to make a case for new investment and powers, with a clear evidence base and a strong economic rationale. You will need to show how new flexibilities will benefit local people. And you will need to demonstrate how you would manage budgets, and hold yourselves accountable to residents. Every deal is a two-way trade. We expect you to be ambitious in your asks of Government, but you should expect the Government to be equally demanding in return. There must be significant benefits and credible commitments for both parties.

    You will, of course, shortly receive detailed guidance on the process but the priorities for me are:

    One.  Governance. I have already covered this, but you must demonstrate strong and collaborative governance across your economic area. We have already encouraged local leaders to think and work together in ways that reflect their true economic geography. We want to see this approach continuing so that the decisions necessary for the growth of the area as a whole can be taken quickly and effectively.

    Two.  Doing more with less. The Government is looking for proposals that can create new jobs and growth and that will drive better outcomes with the same, or fewer resources. If you can demonstrate to us that you can achieve better outcomes with the same or fewer resources why would we not say yes?

    Three.  Your ability to harness significantly greater private sector input, expertise and resources.  Where urban policy does not involve the private sector it is much more likely to fail.  So ensure that your LEPs are at the heart of your proposals, make sure you test your ideas with local business leaders and above all demonstrate to us how your proposals can unlock private sector investment. We know that the public sector resources are limited so we need to make sure those that we do invest get as much leverage as possible.

    Four.  I want you to be under no illusions, this will be a tough negotiation with difficult decisions required along the way.  We therefore need to know that you are as committed as we are. Your ability to demonstrate your readiness to put resources into delivering the deal and your willingness to take on risk is crucial to you moving forward.

    Five. Propositions should address a clearly defined economic problem. My advice would be to not come back to us with a shopping list of projects that you have dusted off the shelf.  Instead, take the time to have another look at your evidence, focus in on a particular economic problem and start to think about what you, by working across your functional economic area and with specific empowerment from central government could achieve. Your proposed solutions should be of significant scale and cannot be achieved through existing mechanisms.  They should also demonstrate how they will support the government’s objectives of reducing regulation, create well functioning markets and promote an enabling environment for business and boost private sector growth and investment.

    A hundred years ago there was no question that the future of every one of our great cities was driven by the initiative of the leaders and people of those cities. Yet during the last century, year by year, the power has ebbed away from the City Hall to Whitehall.

    I am determined that this Government will turn that tide and once again restore initiative, power and – through that- prosperity to our cities, and through them, to our country.

  • Greg Clark – 2012 Speech on the Financial Sector Restoring Trust

    gregclark

    Below is the text of the speech made by the Financial Secretary to the Treasury, Greg Clark, on 17th October 2012.

    Good afternoon,

    I’m grateful for the opportunity to speak to you today about how banking and financial services can be restored in their reputation as an industry upon which Britain can depend and of which we will be proud.

    The financial services industry is of fundamental importance to this country, not only to people in this room and in the City of London, but to all of us in Britain.

    I’m thinking of the two million people in this country who are employed – directly or indirectly – by financial services.

    The ‘City of London’ is often seen as a piece of shorthand but more than two thirds of those people work not in the square mile, or even greater London, but in the rest of Britain. Over 200,000 jobs in the North West and in the Midlands, and over 150,000 in Scotland.

    The overwhelming majority of those members of staff are not the high rollers of popular imagination, but ordinary working people holding down respectable jobs on modest salaries in which they work hard to take care of their families.

    Furthermore, their effort pays a big chunk of the taxes that support our public services on which we all depend on. Even in the recession, some sources estimate that financial services contributed one pound out of every eight pounds of government revenue – that’s about £1,000 every year for every man, woman and child.

    Then there’s the value of the services provided directly by the industry: 50 million personal bank accounts, 11 million mortgages; hundreds of billions of pounds of loans to small and medium-sized businesses; UK financial managers are responsible for £3.2 trillion in financial assets.

    And it’s not just the provision of these services that is important – it is the efficiency and the inventiveness with which they are provided. A vigorous, competitive, well functioning financial sector keeps the costs of capital low – and that counts for a lot.  For instance, if mortgage rates are one per cent less than they otherwise would be, that saves homeowners about £12 billion a year.  And that’s to say nothing of the higher returns that come from getting money into the most productive assets.

    The financial services industry is Britain’s biggest exporter – generating, last year, a £37 billion surplus from overseas trade – a surplus comparable to that of Luxembourg, Switzerland and Germany combined, and providing us with the vital foreign exchange we need to import goods and services without borrowing more from the rest of the world than we already do.

    So when I say that the financial services industry matters, I mean that life would be unimaginable without it.

    The foundation of this industry – probably more than any other – is trust.

    Think about it this way: how many people in your life would you trust with all of your money?

    Not that many, I’m sure. And yet every day, tens of millions of us place our trust in a bunch of complete strangers, confident that they – or rather you – can be trusted with our financial security now and for the rest of our lives.

    That’s why there is – correctly and obviously – such an intense interest in what you are doing. It could hardly be otherwise: if there is a scintilla of doubt that the people trusted with our money may not be totally sound, the consequences are calamitous.

    That soundness is something we take for granted. But for most of human history – and still in many parts of the world – it is a rare and precious commodity.

    Building a reputation for trustworthiness was therefore instrumental in Britain’s success as a major trading nation.

    The goldsmiths who took over the nascent business of banking during the 17th Century were able to do only because the merchants who banked with them knew that their gold would be safe – safer, certainly, than it had been in Royal Mint when it was seized by Charles the First! Two centuries later, when their successors saw the opportunity to make the move from trade to the financing of trade, they knew that honesty was the bedrock on which their new business would be built.

    As the years went by, the importance of trust has grown further as the sums became larger and the leverage greater.

    One of my abiding memories from childhood was on a trip from Middlesbrough to London when I went to see the Stock Exchange. Looking down on the trading floor – this was before Big Bang – I was struck by the force of that great motto Dictum meum pactum – my word is my bond.

    Trust remains the essential condition for the functioning, let alone the prosperity, of the financial services industry today. Ordinary working people rely on you to help them negotiate every stage of their lives. Businesses depend on you for their very growth and survival.

    This is why the events of recent years – and recent months – have been so shocking and so corrosive.

    We all remember the scenes of 2007 when tens of thousands of people queued up outside the branches of Northern Rock, fearful that their bank could no longer be trusted with their money.

    And that was just a precursor to the worldwide financial crisis of 2008, when many of the world’s largest financial institutions teetered on the brink of collapse, forcing governments around the world to step in and bail them out.

    At a time like this – when the banks are still recovering, and the crisis in the Eurozone continues, the importance of trust is greater than ever.

    And yet we have had exposed the scandal of LIBOR in which people in positions of great trust attempted manipulate what The Economist called “the most important figure in finance”, in order to achieve personal or institutional gain.

    We have had small businesses conned by their banks – which they thought of as their longstanding partners and advisers- into buying products that were worthless to them but were a nice little earner for the wolves in shepherd’s clothing on the other side of the deal.

    We have seen the recklessness of reputable financial institutions operating products and in markets of such complexity that even those in charge didn’t understand them.

    Ordinary working people have been shocked to discover that they have been unwitting participants in these events – discovering, too late, that it was actually their own money in savings and taxes that had been put up for others to play with. When they read of bonuses that exceed in a year what they can earn in a whole lifetime, is it any wonder the mood is black?

    Of course, in this, United Kingdom financial services are not unique, or even the worst offenders. From the US subprime mortgage bubble, to the near collapse of Société Générale at the hands of a rogue trader, trust has been shattered around the world.

    But the fact that these scandals have happened in other jurisdictions is of absolutely no comfort.

    In a world where trust is in retreat, it is incumbent on this country to provide a haven of confidence and security. But this won’t happen unless we merit higher standards of trust than apply elsewhere. The reputation of the City of London is a precious national asset built up over centuries. We are the temporary stewards of its reputation, and we have a responsibility to hand that reputation on to future generations whole and intact.

    The overwhelming – and urgent – imperative, then, is to rebuild trust. Trust is not secured by any single contributory factor, but by the interaction of several, including effective regulation; meaningful sanctions; clarity of structures; well-aligned incentives between principal and agent and, most of all, an all-pervading culture of integrity.

    The system of regulation that we’ve had for the last decade was found wanting. It missed the risks to the financial system as a whole by concentrating on the individual sources of risk in isolation, and did that in a way that suborned flexible and intelligent monitoring to bureaucracy and form filling. It made the FSA responsible for delivering both prudential and conduct regulation, which require different approaches and skills.

    That is why the Financial Services Bill, currently before Parliament, establishes a new Financial Policy Committee of the Bank of England to monitor overall risks in the financial system, identify bubbles as they develop, spot dangerous inter-connections and stop excessive levels of leverage before it is too late. And we are creating two separate organisations, the Financial Conduct Authority and the Prudential Regulatory Authority, with mandates clear as to their different tasks. In both cases, the regulators will be asked to exercise judgement and intelligence, rather than providing mere repositories of data.

    There has been some debate about whether one of the objectives of the new regulator should be the competitiveness of the financial services industry. Adair Turner has said that it is not the role of the regulator to be the cheerleader of the industry.

    I think that he is right. But that is not to say that the regulator does not have a role in competitiveness. In a world of diminished trust, a properly functioning, credible regulatory regime can be a source of competitive advantage.

    Second, sanctions. Most people expect things to work in a certain way. If someone breaks the law, they should be punished. When the crime is serious, they should be locked up. This should be as true for criminals who steal through financial manipulation as it is for those who break-and-enter. Indeed, just as sentences handed down to those who were convicted in last year’s riots reflected their contribution to the breakdown in the confidence and security enjoyed by ordinary working people, so must a similar premium apply to those crimes which destroy trust that so many people depend on.

    Third, simplicity. The right response to a complex world is not to multiply complications, but instead to seek to simplify. That injunction applies to directors and senior managers as it does to policy makers and regulators. If you don’t know what is going on in your bank, you should be bringing about changes in the scope and structure of your operations so that it is always within your grasp.

    The ring-fencing of banks’ retail from investment banking operations, as recommended by Sir John Vickers and his colleagues on the Independent Commission on Banking, will simplify banks’ structures and so make them easier to resolve without recourse to the taxpayer.

    Simplicity goes hand in hand with transparency. The more people who see and understand what is going on, the more they can have confidence that they are not being bilked. I see some positive steps here. I am pleased to say that the five largest UK banks have agreed to continue the voluntary disclosure of the pay of the top eight executives, in addition to the existing mandatory pay disclosures in respect of directors on the board, in advance of European legislation in the years ahead.

    Fourth, incentives. Reckless risk taking in banking – and mis-selling in wider financial services – have usually been associated with incentives for individuals which divorce them from the interests of the shareholders, consumer and taxpayers that they exist to serve. That’s why the Government has taken strong action to curb these practices. Under the FSA Code, up to 80% of bonuses must be deferred or paid in shares, thus limiting cash to 20% of the bonus.

    Martin Wheatley, the UK’s principal conduct regulator, has warned that at individual salesmen and women must never be remunerated in a way that is at odds with the interests of their customers. And to protect taxpayers, we have supported the FSA’s review of bankers’ bonus and dividend distribution plans to ensure that they are consistent with the required capital levels needed for them to be able to lend to families and business, and to protect taxpayers’ interests. I deeply regret the failure of industry leaders not to have acted earlier of their own accord on the matter, requiring the regulatory safeguards that I have described.

    The fifth, and, to my mind, the most important, contribution that can be made to the rebuilding of trust is cultural. The vast majority of the people working in financial services have taken pride in being part of an industry whose traditions are those of integrity, sobriety and responsibility. For most of our lives, to work in a bank – at whatever level, in whatever capacity – was to be marked out as someone of real standing in the community.

    It outrages me that the millions of people who have lived and breathed those values throughout long and devoted careers should have to endure the injustice of the damage to their reputation by being linked inadvertently to a reckless few.

    Earlier today, I announced to Parliament the Government’s response to Martin Wheatley’s review of LIBOR. He did an outstanding job and we support – and will immediately act on – every one of his recommendations. They are totally consistent with every element of the 5-pronged approach that I have set out to you this afternoon; including stronger and more explicit regulation; new criminal sanctions for abuse; a phasing out of many of the reference rates currently used to achieve a sharper focus on the more liquid sections of the LIBOR market; a removal of the potential for incentives to distort the behaviour of submitters and the creation of a new code of practice to which everyone involved must adhere.

    The Government will play its part to make the necessary regulatory changes in the Financial Services Bill and I expect all institutions involved to make swift and decisive progress towards fully implementing the Wheatley recommendations in a way that promotes business continuity and legal certainty.

    During the weeks ahead, a cross-party Parliamentary Commission, established under the chairmanship of Andrew Tyrie, will consider the question of standards in the banking industry. I look forward to hearing the recommendations of the Commission early next year.

    The leadership of this industry – which comes together in this Association – has the duty to set the tone from the top: to have, and to promote, a clear view of the ethos you collectively insist on, to challenge anyone who, by falling short of that, imperils the standing of the industry as a whole. The same is true of every individual firm that makes up the membership: every chairman, every chief executive, every board member has a responsibility to ensure that every employee – whatever their role – is in no doubt about the purposes of their bank in deserving the trust of their colleagues, customers, their shareholders and the general public. This is the moment for the leaders of this industry – many of them new – to place themselves at the vanguard of this movement for reform.

    I know that this has already influenced your discussions today – and Anthony Browne’s proposal of a Banking Standards Board is one suggestion to address the task ahead – although it could only work if it had teeth and credibility.

    There is, I am conscious, an irony that some of the discoveries that have undermined trust in financial services in this country have come to light because – however much they can be improved – our systems and institutions are more transparent than those in many other countries. But that is nothing to regret. Our international reputation for probity and strength brings with it a more exacting set of demands to justify the benefits that it brings.

    I am a friend of the financial services industry in this country – but a critical friend. In my view that is better than the only alternative – not the uncritical friend, but the hostile enemy.

    When I met Antony Jenkins, the new Chief Executive of Barclays, I asked him what, in his view, the purpose of Barclays Bank is. He replied that the Bank’s purpose is to make the lives of its customers easier. That seems to me to be the right direction.

    I will stretch every sinew to – with you – make certain that the people of this country have total confidence in the system of finance that serves them, employs them, supports them with taxes and is a source of pride and excellence the world over.

    Britain needs you to succeed, and I for one am determined that you will.

  • Louise Casey – 2014 Speech to Women’s Aid Conference

    Below is the text of the speech made by Louise Casey, the Director General of Troubled Families, on 5th March 2014.

    Good morning everybody. I’m very pleased to be with you today and honoured to have been asked to address you at this important event. Thank you Polly for inviting me.

    I head up the Troubled Families programme for government, a programme to turn around the lives of 120,000 families where kids aren’t going to school, where youth crime and anti-social behaviour are a problem and where parents are out of work.

    Before taking on this role, I did other jobs on victims, crime, anti-social behaviour and homelessness for governments of different persuasions.

    Some of you will know me from the voluntary sector and I have had a long association with Women’s Aid and others from the sector represented in the room today.

    I know times are hard, austerity measures are tough and I can see that many colleagues out there are struggling.

    I know that you are doing very difficult jobs in difficult circumstances and so I hope you’ll take what I have to say today as an important recognition of the work you do day in day out.

    I’m glad that you’ve given me the chance to share with you some reflections, having spent 2 years in this job listening to troubled families from cities to shires and to the workers who help them change.

    It would be true to say that I rarely have a conversation with troubled families where domestic violence does not feature.

    Most troubled families I meet, yes, they are families where no one is working, where children don’t go to school, where there is anti-social behaviour and crime.

    They are also, in many cases, families where parents themselves grew up with violence, families where mothers have fled violence only to end up with another controlling man.

    Whether domestic violence is the cause or the symptom, what I have learnt from listening to them is that:

    – their problems are multiple

    – their problems layer one on top of the other

    – and their problems are intergenerational

    When I listen to troubled families, they nearly all talk about:

    – a history of physical violence and sexual abuse, often going back generations

    – the involvement of the care system in the lives of both parents and their children

    – parents starting to have children very young and being unable to deal with them

    – those parents in violent relationships

    – and the children going on to have behavioural problems

    – leading to exclusion from school, anti-social behaviour, crime and worklessness

    These are families on the edge in every way – on the edge of eviction, on the edge of custody, on the edge of care.

    What shocks me more than their problems in a way is the normalisation of those problems – the matter of fact way they accept what has happened and is happening to them, because it is ‘normal’ in their experience, it was ‘normal’ when they were growing up.

    A few months back, I met a woman called Linda, 28 years old, 3 children from 3 different fathers.

    Her 14 year old girl out of school, committing crime, hanging around with older men who did not see her as a child.

    Her 13 year old sister not in school enough and too much at home or on the street and following in the footsteps of her sister.

    Finally, Linda had brought an 8 year old into this world with another man and endured 8 years of violence at his hands, witnessed by that 8 year old child and the 2 teenage girls.

    Linda had been caught for shoplifting and other thieving and was under a probation order. Family intervention got involved when she stopped turning up to see her probation officer.

    When I met her, I asked her how she ended up there and she told me she’d experienced violence and abuse throughout her childhood. She had her first child at 14, a series of violent partners, she got addicted to drugs.

    Taking Linda, a woman who has lived a life of abuse, who is from a family of abusers and simply categorising her as a shoplifter and dealing with her shoplifting would not get us anywhere.

    Helping her deal with domestic violence was central to her recovery. Now, the violent man is out of her life, she’s off drugs and all 3 kids are back in school.

    Last week, we sent out a survey to all 152 local authority troubled families coordinators asking them about domestic violence.

    Within hours, I had responses from 55 councils – that shows me for a start, it’s a big issue for them.

    By the end of the week over 100 of the 152 had replied. Every single one of them said that they use domestic violence as a local criteria for including families in the troubled families programme.

    In this survey, we also asked about the levels of domestic violence in the families being worked with in the troubled families programme.

    Four in 10 said that domestic violence is an issue in more than half of their cases. For some it’s a problem in more than 3 quarters of the families they work with.

    So, in turning around the lives of 22,000 families which colleagues in local areas have done so far, we have learnt a lot through this process, that these families are best helped with family intervention, but as part of that, the domestic violence must be dealt with.

    Can I explain quickly what I mean by family intervention. It is:

    – a dedicated worker dedicated to the family – someone who the family knows by name and who is alongside them helping them to change; not making an assessment, going away and sending them a letter 6 weeks later

    – that dedicated worker needs an assertive and challenging approach – they don’t go away when the door is closed in their face or back off when a family won’t engage

    – that dedicated, assertive worker needs to look at what’s really happening for the family as a whole – but in situations where there is violence or coercive control, looking at what’s happening for the family as a whole may mean actually helping to get him out of the house or rescuing her to a place of safety

    – the worker gives practical hands-on support – so in 1 family I met the breakthrough with the mother came when the worker sorted out beds for the kids and a skip for all the rubbish in the garden, which included all the internal doors in the house

    The mother then told her that the reason the doors were all off their hinges and dumped in the garden was because the kids had asked for them to be taken off. Although the man was now gone, following years of violence in the house, they were terrified of what went on behind closed doors.

    And the mother was overwhelmed. You could classify this as a domestic violence case mental health case, you could classify it as an anti-social behaviour case, you could classify it as a rent arrears case.

    But it was a troubled families case, where the mum and the family were living with a legacy of domestic violence and the bridge-building with that woman started with a practical solution and a skip.

    And finally for family intervention to work, other agencies need to agree to the plan for the family – specialist workers may need to be called in at the right time, but essentially, the mantra is 1 family, 1 plan, 1 worker.

    What is clear when talking to families and to workers is that 5 factors of family intervention I’ve just described are underpinned and made possible by the relationship built by the worker with the family.

    This is something you may see and do in your day to day work.

    Good workers start not with a long list of agencies’ requirements but by finding out where the family want to start.

    They are curious about their lives, their past, their interactions with each other.

    It’s striking that families often say, ‘nobody had ever asked me that before’.

    Nobody had asked the right question before that meant the mother opened up about the abuse in her past.

    Nobody had ever elicited before the level of the violence from her current partner.

    Good workers go into people’s homes and uncover what’s really going on.

    We know that when troubled families cases are referred, they are not always referred because of domestic violence. We find that out once the worker has gone in. It is only by working with the family that we find out is really happening.

    Violence has not been reported and the signs of violence have not been put together: the police callouts logged as non-crime; the child out of school because they don’t want to leave their mother; the regular visits to GP complaining of unspecified problems, or repeat sleeping pill prescriptions, anti-depressants, or hair falling out.

    As one troubled families co-ordinator said that while more than 3 quarters of their cases involved domestic violence they rarely know about it until after they’ve started work with the family – they uncover it once they’re in the home.

    Sometimes that’s because data isn’t shared. Sometimes that’s because women keep violence a secret, for fear of losing their children; or because when they did make a disclosure, the right help wasn’t there.

    Sometimes that’s because the consequences of facing up to a violent relationship – leaving with all that this entails – are just too much.

    Problems with money, problems with housing, problems having to uproot your kids. As one local coordinator of domestic violence services said to me the other day, ‘the thing is, there can be so much to lose when they leave’.

    And they’re afraid. They’re afraid if they stay and they’re afraid if you go. The fear is overwhelming.

    That’s where the right intervention from the right person at the right time comes in.

    So one worker talked to me about a family where she only ever saw the mum. ‘Where’s their dad?’ she asked. ‘Oh, he’s upstairs, he doesn’t come down in the day’. And yet it was obvious he was a controlling influence in the house – the kids were told they’d be sent up to see him if they misbehaved. There was a sense of fear.

    It is not that family intervention workers are ‘jacks of all trades’, they are masters of one – the relationship.

    Good workers are both kind and tough.

    I’m always struck when I meet these families that so many, if not all, of the influences in their lives are negative – they are so isolated.

    The relationship with the worker is not a friendship; it is more like a life buoy in a storm, until they can be pulled to a place of safety and away from a place of danger.

    And that’s what a refuge is too of course. It’s not just commissioning bricks and mortar. It is more than a roof over someone’s head.

    Maslow’s hierarchy of need shows us that basic needs for food, shelter and safety must be met first, then we can hope to improve someone’s self-esteem and relationships with others.

    The key therefore to all of this is the relationship, the human interaction.

    It is not when someone is told they must change, but when someone comes along with the skill to make them feel they want to change.

    I don’t want to make this sound easy – none of this is easy.

    Not for the mother, not for the families, not for the system.

    Nearly 2 years ago, I met a young woman who I’ll call Carly. Carly had been with a violent partner for years. He had actually been imprisoned for violence towards her in the past, but she hadn’t left him. They had a 6 year old child together and she was expecting a second child.

    Both her 6 year old and unborn child were on the child protection register.

    I’m quoting now from the worker who first came into Carly’s life at this low point. She said:

    Carly bore the whole responsibility for the relationship and the protection of the children absolutely fell to Carly.

    She was told what she needed to do but not how to and she was left to do it all. It was Carly who had to keep him away when he came out of prison, it was Carly this and Carly that and it was about making sure it was achievable because you know, it’s one thing saying you must not allow him into your property, but if he wants to come to that property and put a brick through your window he is going to come and do that.

    There was a day when they were doing activities with the child and Carly had a black eye and when asked what happened, she said she fell or something and I just went over and said, ‘you’re lying’.

    I said I can go and find out whether you’re lying because you must either have been to hospital or the police were called. And because by that time we had a relationship, I could challenge her. And then we talked about what her options were.

    And we said we’re not leaving you to the wolves, we aren’t leaving you.

    So for Carly, having that worker alongside her, knowing she wasn’t going to be ‘left to the wolves’, gave her the courage to leave that violent man, the strength to stay away for good and the determination to be a good mother to her children.

    A year after I first met Carly, I went back to see her again. She looked like a different woman. Her children were off child protection, they were thriving and she was thinking about her future in a different way – she actually joked with me that she wanted to become a family intervention worker, so important had that relationship been to her.

    But it wasn’t easy, not for Carly and not for the worker.

    I’m quoting again from Carly’s worker:

    It is uncomfortable stuff we do – we have to put ourselves in an uncomfortable situation because that’s what we’re asking of the families.

    People working with these families may well be working in an ‘uncomfortable’ space. It’s not always a cosy, comfortable relationship. There has to be challenge as well as support.

    Serious case review after serious case review talks about a lack of challenge by professionals. It is not easy to ask the most uncomfortable questions or think the unthinkable. It wasn’t easy for Carly’s worker to say to her, ‘Look, I know you’re lying’.

    We have to ask ourselves does this parent have the capability, the capacity and the willingness to change?

    This isn’t easy for the system, but we’ve got to be tough where people won’t change. There’s a balancing act between the rights of the child and the rights of the woman and to be frank, taking entrenched positions doesn’t help.

    And within that, we must acknowledge that domestic violence is overwhelmingly perpetrated by men against women.

    We all know the statistics – women make up 89% of those who are repeat victims of violence. Two women die every week at the hands of their male partners or ex partners.

    So when I talk about violence in the wider context of the family, in no way do I want to divert attention from that reality. I’m not suggesting domestic violence affects everyone equally, regardless of gender.

    But what we are seeing in these families are the consequences of violence being left to fester:

    – the transmission of violence from one generation to the next

    – the effects on children as they grow up

    – and violence becoming the normal way of life

    In one case I know of, Debbie was the victim of domestic violence, and her children had witnessed their father abusing her. He had also lent her out to other men for sex.

    When the family intervention worker asked her about the past, Debbie said that growing up her partner had watched his step-father battering his mother, his mother was violent to her children and his brother remembers ‘battering a lad with a wooden handle’ at primary school; another brother had tried to strangle him.

    I’m not making excuses for this man’s violent behaviour – I’m trying to illustrate that violence is intergenerational and its destruction can spread throughout the family.

    It often doesn’t take long for the pattern of violence to start repeating itself. If nobody works with the mother to build her resilience, it may not be long before another controlling or violent man is in her life.

    If nobody works with the children to help them deal with what they’ve witnessed or been subjected to, by the time they move from primary to secondary school they are replicating the violence or doing it even younger to their brothers and sisters.

    If nobody works with the father, then he’ll continue to go on to do it others – not necessarily a subject for today, but one that we must come back to.

    We have to get to kids younger and we have to do something to change these families who are being destroyed by violence.

    That might start with empowering the woman, giving her the support she needs to end the violent relationship. But our response can’t end there – the children who have witnessed that violence deserve more.

    One very experienced worker put it like this, and again, I’m quoting:

    The number of children that I see who have reached the age of 14, 15 and it’s not ADHD, we’ve assessed that, there might be a social/emotional behaviour statement around the SEN side of it, but there’s not a learning disability or he’s not autistic.

    What this child is exhibiting are all the classic signs of post traumatic stress, because the houses that they’ve been living in have been like war zones.

    So I’m glad that local authorities are already using the local criteria to help those suffering from domestic violence through the Troubled families programme.

    Last summer, the government announced an expansion to our troubled families programme, seeking to extend help to a further 400,000 families from next year

    We know that domestic violence will be an issue in many of these families and therefore it will become a focus of the extended scheme.

    It is human interactions that are at the core of this.

    It is the behaviour of human beings that dictates what it feels like for a neighbour to live in a community, for a woman to live in a relationship, for a child to live in a family.

    Many of you, of course, are dealing with wider issues around domestic violence, but for me, the troubled families programme is about changing the most difficult families.

    If we continue spending all the resources we have been on the highest need families we will never have enough money for all the others out there who we also want to help.

    I say to you today, please support this programme because we have got a once in a generation opportunity to break the cycle.

    But it’s not without its challenges and one of those is the challenge of early intervention.

    Together we need to work out how we how we share data in the right way that helps women who present at their GPs suffering the signs of domestic violence, but do that in a safe and secure way.

    Together we need to work out how we get to those 6 year old boys already hitting out at school and the solution doesn’t lie in a prescription for Ritalin.

    Together we need to work out, how we get perpetrator programmes that work, how we track violent men once the woman’s left or got him out of the house to stop him starting again with another woman, in front of another 3 children.

    I know none of this is easy. Many of us in this room have been working in these sectors for years.

    There are a lot of people out there who think that we can’t change these families. Who think it’s just not possible.

    And could live with a country where the kids in the families never go to school, their parents never get a job and their lives are never improved.

    Well I don’t agree with that. I hope that you don’t either.

    So whether it’s colleagues from the domestic violence sector in the room today, those from the children’s sector, those from local government charged with delivering our own troubled families programme,

    We must stand together to tackle intergenerational disadvantage, abuse and violence.

    I’ll do whatever I can to support you in what you’re doing to help stop violence and abuse.

    And I hope you’ll support me in trying to help the most vulnerable and troubled families.

    And together we can give the children in these families chance of hope for the future.

  • Menzies Campbell – 2006 Speech to Liberal Democrat Spring Conference

    Below is the text of the speech made by the then Leader of the Liberal Democrats, Menzies Campbell, at the 2006 Liberal Democrat Spring Conference on 5th March 2006.

    Well I’m delighted to be here.

    For those of you don’t expect me to be here too long, I have a worrying statistic for you.

    The previous Ming dynasty lasted for 276 years.

    I want to begin by acknowledging Chris Huhne and Simon Hughes, and particularly their generosity since the announcement of the result last Thursday.

    Innovative thinkers, gifted communicators and tenacious campaigners – and that was just when they were having a go at me.

    God help the opposition.

    They are formidable opponents, tremendous allies and it’s great to have them on our team.

    To the members of the party, I want to say thank you for giving me this chance to serve.

    I want to celebrate the enormous contribution of my predecessor, Charles Kennedy.

    Under his leadership the Liberal Democrats have become a much more powerful political force.

    With more votes and more seats at Westminster.

    Ever-greater influence in Brussels.

    Running more major cities than ever before.

    Charles has been the most successful leader in the liberal tradition since Lloyd George.

    And why? Because this party is serious about politics and serious about government.

    We’ve shown how well we can perform in local government, from parish councils to great cities.

    We’ve shown how we influence legislation in Europe and in the House of Lords.

    We’ve shown we are the driving force in Scottish Government and in Welsh politics too.

    And now my task – our task – is clear.

    It is to lead this party from protest, into power.

    A few short weeks ago every London-based commentator wrote us off.

    But the political obituary writers were rudely interrupted.

    By the very people the political establishment often forgets – the voters.

    Willie Rennie’s spectacular triumph in Dunfermline and West Fife has shown us the way.

    All the big guns came to Dunfermline. Brown, Salmond, Cameron.

    “Dave” came up for a day trip.

    But in his first electoral test, he didn’t just lose his tie – he lost his shirt.

    Gordon Brown masterminded the whole Labour campaign.

    He smiled, and showed us his lighter side.

    But for all the smiles, the voters said thanks, but no thanks.

    It’s ironic.

    David Cameron and Gordon Brown.

    One desperate to be Tony Blair.

    The other desperate not to be Tony Blair.

    Me, I’m just happy to be myself.

    We’ve had enough of Blairism.

    The country is crying out for a principled liberal democratic alternative.

    A principled liberal alternative has never been more needed than when there are people being abused and held without trial at Guantanamo Bay.

    The Prime Minister calls it “an anomaly”.

    Let me address him directly; Prime Minister, this is not an anomaly…

    This is an outrage.

    But under this government, the “anomalies” are becoming the norm.

    Schemes to keep citizens under house arrest,

    Identity cards.

    A Labour party member – a Labour party member – Walter Wolfgang arrested as a terror suspect for daring to heckle at the Labour Party Conference, taken into custody for shouting ‘Rubbish’ at the Foreign Secretary.

    I hope they don’t introduce that in the House of Commons – otherwise I will be joining him.

    And members of the public like Maya Evans arrested outside Downing Street just for reading out the names of British soldiers killed in Iraq.

    Who knows what this government would have done with Siegfried Sassoon, or Wilfred Owen, if it had been in office during the First World War.

    Once Westminster was the cradle of democracy.

    Under this government it is becoming the graveyard of democracy.

    And I’m not just talking about terror.

    Look at every department of state and I will show you bureaucracy and regulation, an ever-greater threat to enterprise, diversity and freedom.

    Our alternative is clear:

    – a greener, fairer, decentralised and democratic Britain

    – a Britain at peace with itself at home and admired abroad.

    So what of David Cameron and his Conservative alternative?

    Well if you know your Scottish history, you’ll know that down the centuries the Campbells have always got the better of the Camerons.

    And now Mr Cameron tells us he’s a liberal.

    Some liberal.

    This is the David Cameron who has told his Euro MPs to abandon the mainstream and join the extremists.

    This is the David Cameron who was Michael Howard’s ideas man? The man in the shadows on Black Wednesday and the author of the Tory manifesto of 2005 – the most reactionary, unpleasant, right-wing manifesto of modern times.

    And this is the David Cameron who supported the Iraq war and has just sent William Hague off to Washington to restore links with the hard right of George W Bush’s Republican Party.

    Forget neo-cons. This is a real con.

    During the leadership election, there were fewer differences between the three of us than there are between David Cameron on Tuesdays and David Cameron on Wednesdays.

    But he’s right in one respect. He knows that this country is turning to liberalism. And that’s why he’s been trying to steal our clothes.

    But the voters know better. Why go for an imitation when you can vote Liberal Democrat and get the real thing?

    And what about the oldest double act in town? Tony and Gordon.

    Remember 1997? So much promise and so many promises. Things can only get better.

    Better? Who would have thought the heirs of John Smith’s devolution would have created the most over-centralised country in the Western world?

    Who would have thought the guardians of Robin Cook’s ethical foreign policy would have become the standard-bearers for an illegal war in Iraq?

    Who would have thought the opponents of apartheid would become the apologists for rendition?

    After that, things can only get better.

    As for Labour’s record on civil liberties, it’s quite simply a disgrace. This government never tires of invoking terrorism and security threats to justify illiberal laws. No-one denies the reality of the threats we face, at home or abroad.

    But the legislation proposed by the Government would not have prevented the tragic loss of life we saw in London last year.

    Identity cards would not have helped.

    Nor would locking up British citizens for 90 days without trial.

    The right to due process and freedom from summary arrest are part of this country’s  proud traditions.

    Indeed they are revered throughout the world.

    We support practical measures that can defeat the spectre of terrorism – not the erosion of this country’s values. We should be relentless in the pursuit of those who perpetrate terrorist acts and unswerving in our commitment to uphold justice. That’s why we’ve argued if this Government wants real justice it should allow telephone intercepts to be used as evidence in court, as in every other Western nation.

    In the leadership campaign I talked of the need to wage war on poverty. Labour’s record on social justice is a sorry one. Where you are from, what your parents did, the school you went to: these determine your success in life more than ever today.

    Shelter estimates that one in twelve children is likely to develop asthma, TB or bronchitis because of poor housing.

    Yes, you heard that right – one in twelve children.

    Over a million children live in slums in this country.

    A Britain which tolerates this is not a liberal Britain.

    One of the biggest scars on our society is child poverty. It is worse today than when I grew up in Glasgow.

    A Britain which tolerates this is not a liberal Britain.

    I want the Liberal Democrats to be the party of opportunity, aspiration and ambition.

    Labour has promised welfare reform, but failed to deliver.

    Our party has a proud record of reform – yes and delivery too.

    People saw the difference when Lloyd George ushered in the state pension 100 years ago, and when Beveridge built the welfare state forty years later. Today it again falls to the Liberal Democrats to reshape our welfare system, to build a society secure against poverty, and create a system founded on opportunity and responsibility with incentives to work and to save.

    Over last the eight weeks, people asked me what my leadership would mean.

    Those commentators who said I would simply tread water for a while are in for a rude shock.

    I joined the Liberals because I wanted to challenge the settled orthodoxies of British politics. I still do. I intend to lead a party willing to think anew. A party willing to develop fresh ideas. A party drawing on enduring Liberal Democrat principles but ready to apply them in a rapidly changing world.

    That need for fresh thinking is even more acute today.

    Look around you.

    The pace of social, economic and environmental change is without precedent. Consolidation and caution will not be an adequate response, either for our country or for our party. Liberal Democracy cannot be a struggle between those who wish to modernise and those who do not. To be a Liberal Democrat is to be a moderniser.

    You showed courage and willingness to think anew yesterday, when you backed Norman Lamb’s proposals to give our Post Offices a future. Take that policy and sell it on the doorstep to the British people in these critical May local government elections.

    I am determined that under my leadership the Liberal Democrats will be at the cutting edge of debate and new thinking. Our policies must address the world as it is, not as we would like it to be. Over the next 6 months, and before we meet again in Brighton, I intend to set out in more detail key challenges and policy directions on the major issues of British politics: the economy, the environment, welfare reform, better government, education and skills, crime and social policy.

    Our policies need to be thoroughly tested. They will be subject to new levels of aggressive scrutiny.  Labour and the Conservatives realise we are their principal opponent in all parts of the country. They will turn their guns on us. And we must be ready.

    As Richard Kemp said yesterday, opposing is not enough; our policies have to be fit for government. And that means when we campaign for greater localism we must be clear what we mean.

    All three main parties now speak the language of localism. We have New Labour’s double speak about “double devolution”. And we have David Cameron’s miraculous conversion to decentralisation. But in my experience the voters have long memories.

    They remember the sustained attacks on local government by the Conservatives and Labour. They know that only Liberal Democrats are credible when we advocate the reduction of excessive Whitehall power. But there’s more work for us to do.

    Our public services today are not accountable to the local people they serve. And I agree with the conclusions of the Power Inquiry. Last week it said that we need a shift away from the executive back to Parliament, and from central to local government.

    It is absurd that if a hospital operation goes wrong the first democratically elected person in the chain of responsibility is the Secretary of State for Health. But we need to explain in clear terms how localised school and health systems would work. We need to explain how we would move from central targets to local accountability.

    We need to explain how we would maintain national standards, while creating a climate that would allow local diversity to flourish.

    Let us be clear – localism necessarily means that things will be done differently in different places. Policies that work for the people of Harrogate may not work for the people of Haringey. That is acceptable if in each area there is full democratic decision making, accountable to local people, and free from interference by Whitehall.

    On taxation, too, we need to think afresh. The Tax Commission was established by Charles Kennedy to do precisely that. Too much attention has focused on our manifesto policy for a new higher rate of income tax on earnings over £100,000 a year.

    We should avoid becoming fixated on one tax rate. You cannot create a valid tax policy based on a single tax rate any more than you can have a valid defence policy based on a single weapons system. Nor can you create a fairer society without a fairer tax system.

    Here are my three principles for a new, fairer tax regime.

    First, the tax burden must be lighter for those on lowest incomes.

    Second, the tax system must provide incentives to companies and individuals to behave in a way that sustains our environment.

    Third, the system must be simple – it must support enterprise and must not stifle it.

    Fairer taxation will build an economy that’s more efficient and a society that is more just. We’re not going to spend more, when we can spend more wisely.

    I see no case for an increase in the overall tax burden in the present economic cycle. And if we are looking for areas to save money let me suggest some – the Child Trust Fund, identity cards – even the Department of Trade and Industry.

    And there is another area where we must embrace reform – and that is Europe. I am a passionate European, and always have been; Europe as the guarantor of our peace and prosperity.

    But the old ways of the European Union are no longer working. The European Union is now become much larger and more diverse. It is intolerable that decisions that affect the lives of every one of us are taken by Ministers meeting in secret. The veil must be cast aside. True friends of the European Union are true friends of its reform.

    When we see the return of old-fashioned protectionism at the heart of Europe, we must be the liberal voice for free, fair and open trade without which the EU will not survive. I want to see the nations of Europe open to each other, yes…  and open to the products of the poorest countries in the world too.

    Our party has always fought economic nationalism – and must now do so again in Washington, Paris and Brussels.

    To maintain our credibility, as the only truly liberal force in British politics, will also require changes in the way we organise ourselves.

    We have just had the most successful general election for over eighty years. We must build on that success – as we become more successful, so too we must become more professional. We must now modernise our organisation to sustain our growing presence throughout the country.

    I’m going to ask a team of our leading campaigners to draw on the latest techniques to make sure we maintain our lead as the most innovative campaigning party in British politics. Raising money, selecting and training candidates and agents, building and maintaining local parties, involving and including our members, communicating through a 24-hour media are all areas where we need new ideas.

    I will reform the way we support women and ethnic minority candidates. I am going to set up a special trust fund to provide them with financial support. I am going to ask every single Parliamentarian to mentor a woman and ethnic minority candidates – to give them the support and skills they need to get and elected. How can we represent this country if we are not representative of this country?

    We now have a wealth of youthful talent in our party. For the brightest and best of this generation are Liberal Democrats. Our new frontbench team will be more than a match for the Conservatives and Labour Party.

    I will draw on the many strands of our liberal democracy – social, economic, personal and political – to mark out distinctive territory in British politics. There is no conflict between economic and social liberalism. You cannot deliver social justice without economic success – and discipline.

    We can build a fairer Britain, not the means-tested, target driven, over-centralised country run by Labour today.

    Our unity must not come at the price of clarity. We must be clear and consistent in all that we say and do. We are moving out of the comfort zone of opposition politics. We must make three-party politics a credible reality.

    Under New Labour, politics has become managerial, not inspirational. The Conservatives have taken the same course, shunning conviction and desperate only to emulate a value-free Downing Street.

    Britain does not need a third managerial party. It needs a distinctive liberal democratic party. I will lead this party with a clear vision of Liberal Democracy.

    To empower people, and not the state; to promote social mobility; to nurture the aspirations of all individuals; to shape events in the wider world; to cherish our shared environment; to defend the cause of liberty, and to promote the radical reform of Britain’s tired political system – and that means fair votes for Westminster.

    To be the leader of the Liberal Democrats is to be the trustee of a great party, with so much to be proud of – but with so many dazzling achievements still to come.

    Let us pledge today that where we see unfairness we will challenge it; where we see injustice we will attack it; and where we see prejudice we will confront it.

    Together we must campaign as never before. Together we must become the rallying point for a new liberal democratic Britain. Together we will win.