Tag: Speeches

  • Richard Bowker – 2001 Speech to CFIT Conference

    Richard Bowker – 2001 Speech to CFIT Conference

    The speech made by Richard Bowker, the then Chair of the Strategic Rail Authority, at the Millennium Gloucester Hotel in London on 3 December 2001.

    [Chaired by Sir Bob Reid]

    Good morning and thank you Bob for those kind words of introduction.

    David very kindly invited me to speak at this conference and suggested that I give a few practical and inspiring words! Well, you can all be the judge of that soon enough; I don’t intend to say a huge amount this morning but I did want to tell you a bit about my background, the issues we face as an industry and the personal perspective I intend to bring to solving them. In particular, I wanted to answer the most repeated questions asked of me over the past few weeks; Why? and What? Why did I agree to become executive chairman of the SRA and What am I going to do to get the railway working properly again? .

    So first of all, Why? Why leave a rather good job working with an exciting bunch of people, for one of the most iconoclastic brands and singular business leaders of the last 25 years? The answer is because I have a real vocation for Britain’s railways and for this job leading the Strategic Rail Authority. It’s based on an unshakeable belief that we can find our way back together as professionals to deliver once again a railway service of which we can be proud. So where does this belief come from?

    My father was and still is a senior figure in the bus industry having worked in it for over 40 years and through him I came to have a strong appreciation of the role integrated public transport can play in our lives. My grandfather was a master joiner with the London Midland and Scottish Railway in the 30s and 40s. Transport and the provision of a public service is in my blood and like many professional railwaymen and railwaywomen before me, the sense of being part of a living, breathing organism called the railway runs very deep. We forget sometimes, and certainly Railtrack forgot in a most spectacular way, that the railway exists to deliver one primary mission. That is, the provision of passenger and freight services for its customers, safely and reliably, day in, day out. I, like many of you, have watched with a mixture of sadness and disbelief as this once proud and competent railway organism has lost both its sense of purpose and raison d’etre as well as its self confidence and innate professionalism.

    To find the reason why this has happened, there are those who would urge upon us a re-examination of the underlying structural principles of privatisation and in particular at the number of different companies involved. Do all those in the industry, trying to make it work each day, share this view? What many will recall is the pain of the five years that the privatisation restructuring took. Five years that its architects now describe as “breakneck speed”. So to do it ‘properly’ might be, what, six or seven years?

    Whatever the strength of the argument, this is a prospect to consider with great care. Many more years of the current carry-on and there may not be a railway network surviving in the form we now know it. Some radical organisational changes I would not rule out, indeed some simplification initiatives I would definitely rule in, but as the primary focus of attention, no thank you.

    I am not saying that the industry relationships should escape careful forensic examination to see what works well and what doesn’t, and then make changes as necessary. Indeed the administration of Railtrack facilitates that very well. But to understand why we have a problem – and believe me we do – I believe we need to concentrate effort elsewhere.

    Where we need to focus first is on people and in particular, on management. People make businesses work and work well. Its not contracts, it’s not regulation and it’s not the complexity and detail of financing agreements that determine performance, it’s people. This is where we must start.

    It was Railtrack’s senior management that failed it for example. They didn’t focus on understanding their assets nor on looking after their customers, two fundamental maxims for success. Instead they focused on inflating the value of the Regulated Asset Base with no real incentive to deliver projects to a reasonable cost as a consequence, thereby increasing their rate of growth in shareholder value. They forgot that this needed to be done whilst also delivering their public law duty as the licence holder and therefore steward, not unassailable owner in perpetuity, of a very precious national asset. They outsourced maintenance, nailing suppliers to thin margin contracts and then failed to manage them effectively. In setting up this chain of command they failed to understand what it was that actually delivered a reliable railway; supervisors, line managers, the ‘black macs‘ and ‘sergeant majors‘ as Chris Green and others have called them. Railtrack today is still full of dedicated men and women, hugely professional in all they do, but the management of the company let them down and badly.

    But it doesn’t have to be like this. There is no need why we should put up any longer with this inadequate leadership in our industry.

    Stability day to day

    First we must restore a sense of stability and belief back into the running of the day-to- day railway. Rediscover our self-confidence, our pride in the job, our pursuit of excellence in all we day. To do this, we need to bring in new blood into the senior ranks of some of the key players in the industry. In Railtrack’s successor for example we need people who understand engineering, asset management, production and industrial processes, quality assurance, supply chain management and logistics technology. They exist in other industries; the oil and gas extraction sector, the hi-tech industrial processes sector and in the motor industry to name a few.

    Let me give you an example. Twenty five years ago it was still possible to buy a truly terrible motor car, frequently (unfortunately) made in Britain! But now, whilst you can buy a cheap car, an economical car, a sports car and any one of hundreds of people carriers, you cannot really buy a bad car. The motor industry as a whole has raised its game, got its act together, sorted the processes and put engineering quality at the heart of everything. It is no surprise to me that Ian McAllister has been asked to put together the CLG bid for the successor to Railtrack. Ford is a company that rediscovered the need to allow its engineers to design cars such as the Mondeo and Focus, not its accountants, with the consequence that they have built good quality cars that sell well. And yes, they’ve succeeded with the prestige brands too, Jaguar and Land Rover. We need more Ian McAllisters and fast. They exist and they will cost money but the payback will be both immediate and long lasting. At the same time we must look after the railway knowledge that still exists in Railtrack and other companies. We need to nurture it, empower it, allow managers to manage and railway people to do what they do best but within a framework set by a competent and focused leadership.

    The Strategic Rail Authority will play a full and active part in this process. In general terms, I shall use every opportunity made available to me to encourage and cajole anyone and everyone who has a part to play in delivering a safe, reliable day to day railway. Specifically, I intend to release the creative talent that exists in the SRA so that we have a proactive organisation, one which energises, and helps establish a common sense of customer focus. We will win the respect of the travelling public and of the freight/logistics operators. The SRA has substantial powers and I shall not hesitate to use them to ensure the public interest is served. We have to offer value for money. I am determined to build constructive partnerships with Train Operating and Freight Operating Companies to achieve this. The door is open and the phones are manned. Please come and see us, talk to us, engage with us. We can all do so much simply by focusing on the job in hand, acting decisively and implementing professionally.

    Over the coming weeks and months there will be progress on a number of fronts. I know there has been frustration, and I am determined to resolve blockages. We will demonstrate that we are an action oriented Authority, not afraid to ask tough questions, set tough agendas and make tough decisions when required.

    Rediscovering Planning

    The second thing we must do is to rediscover the practice of planning. This is not just for the long term. Its absence is what so often undermines what has to be done on a day by day and week by week basis and we need to get better at it. The first step will be to launch the Strategic Plan in January. I’m sorry David that this conference was designed to coincide with the launch of the Plan. I took the decision to delay its release but the decision was taken for good reasons. A huge amount of work has gone into the Strategic Plan which, once funded and committed to by Government, and we’re nearly there, will enable the rail industry for the first time to plan the future with a degree of confidence and clarity from the operational companies through to the infrastructure businesses and the supply sector. I delayed it because I felt it needed to set a clearer vision for the future and this it will now do. It will be launched on January 14th 2002 (please put the date in your diary) and will I believe be a huge step forward in restoring a sense of direction to the industry. However, planning is not a static exercise, it’s a way of working. While it is the SRA’s plan, of course it is for the whole industry to use And yes it is challenging to develop plans which can provide direction for a large and complex industry, but don’t think that we’re alone, as an industry sector with such a challenge. We will review it and update it to ensure we remain on track to deliver the bigger, better and safer railway outlined in the Ten Year Transport Plan.

    I know there has been a worry about the amount of taxpayers’ money set aside in the 10 year transport plan for railways, a worry that this isn’t enough. Well, let me say this. Continuing Treasury and tax-payer support depends on this industry performing. Before arguing we haven’t enough (and it may well turn out that’s correct), let’s acknowledge that we have the kind of long term financial support from this Government that (say) previous BR chairmen could only dream about. What we don’t have is the performance to match. So it’s clear where the real emphasis must lie. We have to deliver a better performing railway to stand a chance. You can count on me to argue the case for funding increases, but you the railway industry will have to create a stronger bargaining hand.

    One of the problems is that no-one has in my opinion yet sat down and produced an irrefutable, soundly argued, analytically robust and tested integrated plan that demonstrates the point. So we need a planning framework that takes all the inputs and then examines all the possible relationships to ensure that the outputs are optimised for a given level of input. The key relationships between renewals, upgrades and enhancements compared to management and optimisation of the service plans of train and freight operating companies has never been properly understood because the SRA and ORR have never sat down together with that single objective in mind. That is about to change forever. Tom Winsor and I have agreed to bring our two senior teams together to create a process designed to model these relationships in a transparent manner so that we can see a true holistic model of the investment need of the railway.

    A wise procurement chum of mine once said ‘Fail to prepare, prepare to fail’. So has it been with investment planning on the railway. The SRA will play a full part in the forthcoming Spending Review and we will champion the railway cause to the fullest extent. But we shall do it armed with proper and robust analysis. We stand far more chance of winning if we are properly prepared.

    I’ve mentioned Tom Winsor and the ORR so perhaps a little more on relationships is useful. One of the most unedifying sights of the last few years (and ultimately one of the most destructive) has been the continual bickering and backstabbing process carried out by many sectors of the industry on a regular and very public basis. That must also be consigned to history. This conference has been organised by the Commission for Integrated Transport. What hope do we have for that if we can’t even behave as integrated industry ourselves. I have known Tom for some years and whilst we do not always agree, we have professional and mutual respect for each other, have our debates in private, and then get on with the job. I expect everyone else in the railway industry to do the same.

    Conclusion

    In summary therefore we must do these two things. First, restore stability to the railway and confidence that we can do the job. Everyone must play their full part and the SRA will lead where required and play its full and proactive part. Second, put in place a planning framework which will for the first time enable us to have complete transparency of the costs, benefits, risks and funding opportunities for the railway.

    My vision is of a railway for which people are proud to work, in which customers can have confidence is professionally managed and can deliver a safe, reliable and value for money service and in which investors, including Government, wish to invest. We do have a Government which for the first time I can remember has a bigger and better railway as a stated and quantified policy objective. Lets not let the chance pass us by. We can do this; we have the people and the tools, if we have the vision and desire, we can achieve anything. Lets go for it.

    Thank you.

  • Richard Bowker – 2001 Speech to the RPC Network

    Richard Bowker – 2001 Speech to the RPC Network

    The speech made by Richard Bowker, the then Chair of the Strategic Rail Authority, on 5 December 2001.

    Introduction

    ….thank you Stewart for those kind remarks. Congratulations too on organising this conference at the start of my third day in the job. As the date was set some two months before I accepted the post, you get a high score for strategic planning!

    As you can see from the title of this session, I believe it is time that the SRA rose up to the challenge facing the industry in general. Specifically, it is time to lead.

    So, first of all, why did I take on this huge and challenging task, and leave behind a good job in order to do it? The answer is because I have a real vocation for Britain’s railways and for this job leading the Strategic Rail Authority. It’s based on an unshakeable belief that the industry can find its way back together as professionals to deliver once again a railway service of which we can be proud.

    I reckon many of you in this room this morning share something of the same belief. Why else would you devote such a huge amount of time to the work of the Committees, well beyond the hours expected in many cases? The railway generates strong views and attachments and this is as much for the users as well as the railwaymen and women who serve them.

    So, let me start by talking about the state and future of the railway, and then move on to the key role of the RPC network in delivering the strategy.

    The Railway

    Looking at the ‘doom and gloom’ headlines of the press day by day, it is easy to lose sight of the fact that the railway is delivering each day, carrying a third more passengers than five years ago, and 40% more freight.

    Everyday 18,600 trains are run (21% more than five years ago). Every day 2.8 million passengers are carried, and 480,000 people are safely delivered to Central London between 07.00 and 10.00.

    The results of the last five year’s planning are starting to be delivered. New trains are arriving. The c2c fleet has been transformed. As of today, nearly 30 Voyagers are operating, bringing new standards of quality to cross country services… and last week, the first of the Pendolino trains were delivered for use on the West Coast Main line. They begin driver training very soon. The freight fleet has been transformed with over 300 new locomotives and 2,500 new wagons – the first major investment in a generation.

    Yesterday, I was in Edinburgh, to mark the start of work on the Crossrail project – part funded by the SRA with an RPP grant. Tomorrow, with Stephen Byers and Ken Livingstone we start work on the East London line extension. On Friday, I will be announcing extension of the RPP fund, together with new guidance for users, and we will soon be able to set out details of the refranchising programme.

    And in January, on the 14th to be precise, we launch the Strategic Plan, the first blueprint for a generation on how we are going to plan and deliver a better railway in line with the Government’s Ten Transport Plan.

    I find it frustrating that we have not got these messages across. I am not suggesting everything in the garden is rosy. It is not and I shall return to that in due course. But there are some great things to celebrate. Privatisation has brought some tremendous benefits in new equipment and services, new technology and new investment. I say this because it is all too easy to lose sight of this amongst the tremendous issues and challenges that we face both in the short and longer term.

    So what of the future?

    In my view, the latent demand for rail services will continue to drive rail usage towards the growth targets the Government set out in their Ten Year Plan. Economic growth brings with it an increasing demand for transport. Trunk road and motorway congestion is not likely to reduce. Parking constraints are not going to get easier. Indeed, a number of cities – including London – plan to introduce congestion charging, which if it goes ahead will increase pressure on rail demand.

    Can the railway cope?

    It has to. We have to find ways of making it capable of meeting the demand. The road system cannot handle the growth in demand nor should it be have to do so. Apart from this, any significant new road building could take ten years or more to achieve. We have to equip the railway to play a bigger role in meeting Britain’s transport needs. But that is a defensive position to take in isolation. I do not want to see a railway simply doing its best to play “catch up”. The railway is moving a third more passengers than at privatisation and I think that’s fantastic! Remember all the statistics of the 1980s? Ridership down, freight down, investment down. That’s been turned on its head. What we have to do now is stimulate more demand by making rail the mode of choice where it can be, and make it so attractive and welcoming a transport proposition, that people actually positively switch to rail and feel good about doing so.

    Things are not good enough at the moment. Performance is very ragged, and the combined effects of September 11 and the collapse of Railtrack have left uncertainty for passengers, for train operators and for rail staff, who also feel the brunt of the daily onslaught in the media. We can’t just issue vague platitudes about ‘things will get better’. We need to get on with practical things and now.

    So, where do we start?

    First we must restore a sense of stability and belief back into the running of the day-to- day railway. The tremendous railwaymen and women that are the bedrock of this industry have to rediscover self-confidence, pride in the job, pursuit of excellence in all they do. To do this, we need to bring in new blood into the senior ranks of some of the key players in the industry to lead. In Railtrack’s successor for example we need people who understand engineering, asset management, production and industrial processes, quality assurance, supply chain management and logistics technology. They exist in other industries And we should be actively seeking to attract them to the railways.

    We need to nurture our staff, empower them, allow managers to manage and railway people to do what they do best but within a framework set by a competent and focused leadership.

    The Strategic Rail Authority will play a full and active part in this process and take a lead. In general terms, I shall use every opportunity made available to me to encourage and cajole anyone and everyone who has a part to play in delivering a safe, reliable day to day railway. Specifically, I intend to develop the potential of the SRA, to energise it and help establish a common sense of customer focus. We will win the respect of the travelling public and of the freight/logistics operators and I am determined to build constructive partnerships with Rail Companies and their users to achieve this.

    The RPC network has a key role to play here – particularly on restoring confidence. You can help us identify the problem areas from your local knowledge and your discussions with TOCs. You can help rebuild public confidence in the comments you make to the local media – particularly as performance starts to turn the corner – and you are uniquely placed to highlight best practice and to encourage its spread around the network.

    So what are we going to do to rebuild confidence? Prioritisation has had a terrible press as a word. Most people jump to the conclusion that it means ‘cutback to what can be afforded’. It does not. It means focusing on the things that maximise benefits for users within all the relevant constraints. In the railway industry, this means skills and technical resources as much as money. For example, the next two years will see Railtrack completing full implementation of TPWS, essential signalling renewals and the signalling for the West Coast upgrade. It is a period during which some key signalling resources are going to be in limited supply.

    Focusing on delivery means some hard choices in the short term – replacing the “wish list” with the priority list for passengers but, I am adamant the longer term is not forgotten, indeed, quite the opposite. I am determined that the projects that will define our future – many of which may not come to fruition until long after my term as Chairman of the SRA is over – are developed and planned now. This is a long lead time industry and many of the problems we face today are a direct consequence of short term investment thinking in the past. We will not repeat that mistake.

    I am also committed to making sure we do not lose sight of smaller things that can be done quite quickly to really improve the quality of the overall travel experience. Stewart and I discussed recently the need to really look at our station infrastructure. Stations are the gateway to the service, the first point of interaction between the passenger and the railway network. And let’s face it, some of them are truly dire. That is why we are so keen to develop the RPP programme and make it easier and quicker to access. Many schemes have been successfully implemented but I am keen to see them happen more quickly in the future.

    In summary, you will see how all of this fits together when we publish the Strategic Plan.

    The team at the SRA has done a very thorough job in analysing the issues and producing a plan which deals with them, notwithstanding the uncertainties that face our industry today. Whilst assumptions have to be made – they do in all Strategic Plans – it will set a clearer vision for the future than has existed before. However, planning is not a static exercise, it’s a way of working. While it is the SRA’s plan, of course it is for the whole industry to use. I know the Council has been involved as a partner in the preparation of the plan, and I am grateful for the input from Stewart and his team.

    I said on Monday, (my first day) that the popular belief is that we need more money than was contemplated in the Ten Year Plan in order to deliver a long term sustainable railway network. The problem is, no-one has yet sat down and produced an irrefutable, soundly argued, analytically robust and tested integrated plan that demonstrates the point. So we need a planning framework that takes all the inputs and then examines all the possible relationships to ensure that the outputs are optimised for a given level of input. The key relationships between renewals, upgrades and enhancements compared to management and optimisation of the service plans of train and freight operating companies has never been properly understood because the SRA and ORR have never sat down together with that single objective in mind. That, however, is about to change. Tom Winsor and I have agreed to bring our two senior teams together to create a process designed to model these relationships in a transparent manner so that we can see a true holistic model of the investment need of the railway. We may be separate organisations but we will show by example that we can really deliver when we work together. This will revolutionise the way in which we undertake investment planning in the future.

    The RPC Network

    I have seen how the RPC network has been transformed over the last eighteen months, with a bigger remit and bigger responsibilities – matched by a bigger budget! The working relationship with the SRA and the rest of the rail industry has become more proactive, with more practical suggestions for improvement, rather than acting simply as a complaints forum.

    This is an important role for the network, as is the strong regional focus of the Committees. For us as an organisation based in London, strong, regional imput is essential. Links between the Committees and regional and local Government are important, and I would like to see this virtuous circle completed, building on the strong links already established between the SRA and Scotland, Wales and the English Regions.

    Consultation is a word that is often used but abused. My concept is simpler – let’s talk to each other. If a week goes by and you haven’t talked to or heard from the Rail Development Manager or one of Chris Austin’s team, then pick up the phone and ask “What’s new”? I know Stewart and Anthony will do the same to me! Formal consultation may be needed for things like PSR changes, but it should be no substitute for regular dialogue. I can promise you, there will be plenty to talk about over the next few months!

    Given that our goals are the same – providing a better service for passengers (and freight customers) and encouraging development of the railway, this relationship needs to evolve into a partnership.

    Conclusion

    My vision is of a railway for which people are proud to work, in which customers can have confidence, is professionally managed and can deliver a safe, reliable and value for money service and in which investors, including Government, wish to invest. We do have a Government which for the first time I can remember has a bigger and better railway as a stated and quantified policy objective. Lets not let the chance pass us by. I believe we can do this; we have the people and the tools, if we have the vision and desire, and we work together, we can achieve anything.

  • Richard Bowker – 2001 Speech to Rail Freight Group

    Richard Bowker – 2001 Speech to Rail Freight Group

    The speech made by Richard Bowker, the Chair of the Strategic Rail Authority, on 11 December 2001.

    Introductory Remarks

    It’s a great pleasure to be here on my 7th working day as Chairman of the SRA. I was keen to get stuck in to freight early on but I never imagined I would meet so many of you so quickly. This is a truly impressive turnout.

    You all know where I’ve come from and so you will not be surprised that I have a steep learning curve to climb when it comes to freight. I am told that the rail freight industry is a hard nosed and commercial – that’s fine – that’s what I’m used to. I don’t expect you to base your businesses and investments on promises; you want to see results and will judge the SRA on delivery. I intend to deliver for freight.

    Industry Wide Issues

    Right now there are huge issues to address for the whole railway. We must get this right for the whole railway – Freight operators as well as the infrastructure provider and passenger TOCs. If we don’t there’s no future for any of us.

    Everyone is worried about what the successor to Railtrack should look like and how we should get there. But we must not be distracted. We must concentrate in these next few months on making what we have today work better, providing a period of stability focussing on the people who make the industry work and working better together. I see it as a key part of my role to ensure this happens and I’ve already started by seeking a better relationship between the SRA and the rest of Government. The SRA and the ORR senior teams are about to sit down together for the first time with the objective of understanding the key relationships between renewals, upgrades and enhancements and the management and optimisation of the service plans of passenger and freight operating companies.

    The Strategic Rail Authority is ready to play a full and active part and take a lead. I shall use every opportunity available to me to encourage and cajole anyone and everyone who has a part to play in delivering a safe reliable day to day railway. I intend to develop the potential of the SRA, to energise it and help establish a common sense of customer focus. We will win the respect of the travelling public and the freight and logistics operators and I am determined to build constructive relationships with Rail Companies and their users to achieve this.

    Freight issues

    I want to build a productive partnership with you in the Rail Freight industry. For starters you can rest assured that I have heard and understand your fears about ‘vertical integration’. All I ask of you is that you recognise we must not ignore the debate on vertical integration but must engage in it – you have a crucial role to play.

    I know that freight flows change more frequently than the passenger timetable sometimes on a week-by-week basis, I know that freight moves across the network in an entirely different way from the main passenger movements often crossing several ‘zones’. I know that 40% of all rail freight today uses the West Coast Main Line for part of its journey. And I know that not all rail freight is the same. Different markets have different needs – coal is different from aggregates, is different from automotive, is different from deep-sea containers, is different from mail. Together we must serve them all if we are to achieve our target 80% growth.

    This means a network fit for purpose as well as the targeted support for the development of new services and facilities set out in our Freight Strategy. I know we must invest government money in capacity for freight and a higher loading gauge for the new generation of containers as well as supporting improvements in efficiency by reducing journey times and increasing train lengths. Getting the Railtrack question right is key to this – whatever organisation succeeds Railtrack must facilitate not block enhancement and we must be able to develop the network at reasonable cost. The SRA will take a lead in the future on this all-important upgrade enhancement work.

    It is two and a half years since the first appointment was made to the SRA freight team. A lot has been achieved in that time from a standing start but we have yet to see any actual work start on the network. I expect to put this right next year and, building on the development and appraisal work undertaken by the team already, make a start on one of our major projects and I hope more than one of our smaller schemes.

    Other Priorities for the next 12 months

    So what are our other priorities for the next 12 months for freight?

    Top of the list has to be the issue of would-be immigrants and the disruption of Channel Tunnel freight services. This was top of my agenda even before I formally took up my post and I have already discussed it a number of times with Ministers. We are doing everything we can to put pressure on at home and in France to resolve the issue through physical security measures, additional security staff or operational solutions. We are exploring whether or not we can provide a financial contribution towards ensuring that the fence around Frethun Yard is adequate. Further meetings are planned this side of Christmas and early in the New Year with SNCF and others. It would be a desperately depressing start to my time as Chairman of the SRA if in the first month some of the dire consequences that are threatened as a result of this situation were to come to pass. I sincerely hope that a resolution early in the New Year will be soon enough.

    On a more positive note I hope the Freight Industry will be pleased when the Strategic Plan is published on 14 January to see that the Freight Strategy as previously set out remains a key part of it and that we expect to provide sufficient money for its implementation out of our resources. You will, I am sure, be looking for an update on our progress with the Freight Strategy and I expect the team to produce this around the anniversary of the publication of the Strategy in May.

    As well as reporting on the timetable for improvements to the network we should be in a position to announce the timetable for introduction of the ‘Company neutral revenue support scheme’ we have been working on and new grant rates for the removal of heavy lorries from our congested roads.

    Next year will see the publication for consultation of the first of our Regional Freight Strategies pulling together freight flows, network improvements, interchange requirements and land resources into a clear framework to support the Regional planning process. We will work jointly with TfL on a rail freight strategy for London.

    For me personally the main imperative is to get to know you and understand your businesses and to this end I am asking the team to set up a number of visits for me during the next year to see rail freight working at first hand and to provide an opportunity to hear about your concerns. I want to ride a mail train and see the Princess Royal Distribution Centre, I want to visit the port of Felixstowe, I want to visit EWS’s Doncaster Customer service Centre and ride the heavily used Doncaster – Immingham route. I also need to see quarries and depots, intermodal terminals, and meet with the Freightliner, DRS and GB Railfreight. I must get to know freight customers and would-be customers and understand them as well as rail passengers.

    Closing remarks

    I still have a lot to learn about freight but I already know how important it is and that I want to achieve that target. I recognise and respect the fact that the vast majority of freight runs without subsidy, I understand that in the absence of a franchise structure we must become willing partners in our joint endeavour, I admire the way the freight industry has been prepared to invest – close to a billion pounds since privatisation – and to argue its case in front of the Regulator for lower access charges. I relish the prospect of working together and getting to know you better.

    My vision is of a railway for which people are proud to work, in which customers can have confidence, is professionally managed and can deliver a safe, reliable and value for money service and in which investors, including Government, wish to invest. We do have a Government which for the first time I can remember has a bigger and better railway as a stated and quantified policy objective. Lets not let the chance pass us by. I believe we can do this; we have the people and the tools, if we have the vision and desire, and we work together, we can achieve anything.

    Thank you for inviting me – the new boy – to join you for your annual Christmas lunch, I wish you a Merry Christmas and a prosperous New Year.

  • Rishi Sunak – 2023 Keynote Speech on Building the Future

    Rishi Sunak – 2023 Keynote Speech on Building the Future

    The speech made by Rishi Sunak, the Prime Minister, on 4 January 2023.

    New Year should be a time of optimism and excitement. Yet I know many of you look ahead to 2023 with apprehension.

    I want you to know that as your Prime Minister, I will work night and day to change that, and quickly.

    Not just by providing relief and peace of mind for the months to come – although we will.

    But also by changing our country…and building a better future for our children and grandchildren.

    A future that restores optimism, hope, and pride in Britain.

    Let me first address two issues that I know are at the forefront of everyone’s minds:

    I know there are challenges in A&E – people are understandably anxious when they see ambulances queuing outside hospitals.

    You should know we’re taking urgent action:

    Increasing bed capacity by 7,000 more hospital beds and more people cared for at home.

    Providing new funding to discharge people into social care and the community, freeing up beds.

    And the NHS are working urgently on further plans for A&E and ambulances.

    And, on strikes.

    There’s a lot of misinformation out there.

    So I want people to clearly understand the government’s position.

    We hugely value public sector workers like nurses.

    They do incredibly important work.

    That’s why we want a reasonable dialogue with the unions about what’s responsible and fair for our country.

    And in the coming days we will update you on the government’s next steps.

    Today, I want to make a simple commitment: this government will always reflect the people’s priorities.

    People don’t want politicians who promise the earth and then fail to deliver.

    They want government to focus less on politics and more on the things they care about.

    The cost of living, too high.

    Waiting times in the NHS, too long.

    Illegal migration, far too much.

    I think people do accept that many of these challenges are at least in part, the legacy of Covid and impacted by the war in Ukraine.

    But that’s not an excuse; we need to address these problems, not just talk about them.

    Since I became Prime Minister, we’ve made progress:

    Stabilised the economy and people’s mortgage rates.

    Provided £26 billion of support for the cost of living.

    Invested billions more in schools, the NHS and social care.

    Deepened ties with allies around the world on everything from Ukraine to our collective economic security…

    Continued our unwavering support for the armed forces in their efforts to keep us safe.

    And set out a concrete plan to stop the boats and tackle the unfairness of illegal migration.

    But of course, we need to do more.

    So I want to make five promises to you today.

    Five pledges to deliver peace of mind.

    Five foundations, on which to build a better future for our children and grandchildren.

    First, we will halve inflation this year to ease the cost of living and give people financial security.

    Second, we will grow the economy, creating better-paid jobs and opportunity right across the country.

    Third, we will make sure our national debt is falling so that we can secure the future of public services.

    Fourth, NHS waiting lists will fall and people will get the care they need more quickly.

    Fifth, we will pass new laws to stop small boats, making sure that if you come to this country illegally, you are detained and swiftly removed.

    So, five promises – we will:

    Halve inflation.

    Grow the economy.

    Reduce debt.

    Cut waiting lists.

    And stop the boats.

    Those are the people’s priorities.

    They are your government’s priorities.

    And we will either have achieved them or not.

    No tricks… no ambiguity… we’re either delivering for you or we’re not…

    We will rebuild trust in politics through action, or not at all…

    So, I ask you to judge us on the effort we put in and the results we achieve.

    These five promises are the people’s priorities. So, they’re my immediate priorities, too.

    But they’re not the limit of my ambitions for our country.

    They’re the foundation.

    My aim is to build a better future for our children and grandchildren.

    A future where they feel optimism, hope, and pride.

    To realise that vision, we need to change our mindset.

    Politicians talk a lot about change…

    But the truth is, no government, no Prime Minister, can change a country by force of will or diktat alone…

    Real change isn’t provided – it’s created.

    It’s not given – it’s demanded.

    Not granted – but invented.

    The choices we make as individuals…as workers…business owners… parents…all add up to something far greater.

    And if we are honest, change also requires sacrifice…and hard work.

    It’s a big risk for a politician to say that.

    But the stakes are too high…and the rewards too great…not to level with you.

    So, change is hard. It takes time. But it is possible.

    And we know that because we’ve done it before.

    During Covid, we protected millions of people’s jobs and businesses – a record I’m proud of.

    And we know it’s possible because you can see change happening, you can feel it.

    Just look at our state schools, empowered by reform, in some of the most deprived parts of our country, producing some of the best results.

    Those teachers and pupils work hard and make sacrifices because they know that what they are doing is bigger than themselves.

    They demand, inspire, and deliver excellence.

    And their ethos of excellence can become the animating spirit of our nation.

    Inspired by them, together we can change our country’s character.

    We can reverse the creeping acceptance of a narrative of decline.

    Reject pessimism and fatalism.

    Refuse limits on our aspirations.

    To do that, we need to have the imagination and confidence to do things differently and better.

    The vision to do today what is needed for tomorrow.

    In other words, we need to change the way our country works.

    That requires a change in mindset.

    What does that mean in practice?

    It means:

    A more innovative economy…

    Stronger communities and safer streets…

    A world class education system…

    An NHS built around patients…

    And a society that truly values the family.

    In all these areas and more we must have the courage to change.

    To think bigger, strive for excellence, not give up when things get tough.

    And if we can do that…

    …then we really can build a better future.

    In the coming months I will set out our plans in each of these areas.

    But let me set the direction, today.

    A better future is one where our economy is growing faster so that everybody, everywhere across our Union, has new opportunities for better paying, good jobs.

    And the change we need is to put innovation at the heart of everything we do.

    An ethos embodied by so many of the fantastic businesses here at Plexal.

    Some people think innovation is about gadgets and geekery – a nice to have, peripheral to growth compared to the traditional levers of tax and spend.

    That’s exactly the mindset we need to change.

    Let me tell you why innovation is so important.

    Over the last 50 years, it was responsible for around half of the UK’s productivity increase.

    New jobs are created by innovation.

    People’s wages increased by innovation.

    The cost of goods and services reduced by innovation.

    And major challenges like energy security and net zero will be solved by innovation.

    The more we innovate, the more we grow.

    And the world is seeing an incredible wave of scientific and technological change…

    …so right now, the most powerful way to achieve higher growth is to make sure the UK the most innovative economy in the world.

    That’s why we are:

    Increasing public funding in R&D to £20bn to enhance our world leading strengths in AI, life sciences, quantum, fintech, and green technology.

    Seizing the opportunities of Brexit to ensure our regulatory system is agile and pro-innovation.

    Making sure entrepreneurial and fast-growing companies get the finance they need to expand.

    Spreading a culture of creative thinking and doing things differently across every part of the UK.

    If we’re going to deliver this better future, people will have to work hard.

    But I believe good, well-paid jobs are about more than just financial security.

    They give people purpose, confidence, dignity – the chance to build a better life for themselves.

    But I also believe that if you work hard and play by the rules – you should be rewarded.

    Which is why as soon as we can, the Government will reduce the burden of taxation on working people.

    And it is staggering that at a time when businesses are crying out for workers, a quarter of our labour force is inactive.

    So our growth plan will look at how we can support those who can, to move back into work – including through the welfare system.

    Now all of this will make this country a beacon of science, technology, and enterprise and lift our productivity, raise our growth rate, create jobs in the decades to come.

    Good jobs give people pride in their own lives.

    But a better future also means reinforcing people’s pride in the places they call home.

    And the change we need is to do away with the idea that it’s inevitable that some communities and some places can never and will never get better.

    I love my local community and it’s not right that too many for far too long have not felt that same sense of meaning and belonging.

    Government can’t create it – it’s something we build together.

    But the state does provide the foundations.

    So we will deliver on our promise to level up – with greater investment in local areas, to boost growth, create jobs…

    …and reinvigorate our High Streets and Town Centres.

    But all the regeneration in the world won’t mean anything unless people feel safe in their communities.

    By this Spring, we will have an extra 20,000 police officers, patrolling the streets, answering the call for help, and catching criminals.

    We’ve got to stop violence against women and girls – and let’s be frank…

    …that means men taking responsibility for creating a culture and society where women are safe in their communities and at home.

    We’ve got to reduce reoffending – because a small number of career criminals account for disproportionate amounts of crime.

    And we’ve got to beat addiction – because heroin and crack addicts account for almost half of all robberies.

    Strong communities are also built on values, on the golden rule: treat others as you would like to be treated yourself.

    But too often, a small minority break that golden rule.

    They spray graffiti on war memorials.

    Discard needles and Nitrous Oxide cannisters in children’s playgrounds.

    Gang together and cause disorder and disruption.

    Anti-social behaviour isn’t inevitable or a minor crime.

    It makes life miserable for so many and it can be a gateway to more extreme crimes.

    So, this government will work tirelessly to crack down on anti-social behaviour, giving police forces, mayors, and local authorities the tools they need…

    …and giving communities confidence that these crimes will be quickly and visibly punished.

    Wherever you live in our United Kingdom, you should be able to feel proud of your community.

    And that’s what we’ll work together to achieve.

    So, we will create a better future by changing our economy and strengthening our communities.

    We also need greater social justice.

    And the way we achieve that – is education.

    This is personal for me.

    Every opportunity I’ve had in life began with the education I was so fortunate to receive.

    And it’s the single most important reason why I came into politics: to give every child the highest possible standard of education.

    Thanks to the reforms we’ve introduced since 2010, and the hard work of so many excellent teachers, we’ve made incredible progress.

    But with the right plan – the right commitment to excellence – I cannot see any reason why we can’t rival the best education systems in the world.

    To do that, yes – we’ll need to fix the damage of Covid, especially for our youngest pupils.

    And yes – it’ll require more investment, which is why just weeks ago in the Autumn Statement we provided £2bn of extra funding for schools.

    But that’s not the limit of our ambitions. We’re not content with just catching up.

    First, we need to support good teaching and spread best practice with a plan to improve attainment in primary schools.

    Next, we need to stop seeing education as something that ends aged 18 – or that sees university as the only option.

    With more technical education, lifelong learning, and apprenticeships.

    And one of the biggest changes in mindset we need in education today is to reimagine our approach to numeracy.

    As Chancellor, I introduced Multiply, a new programme to give hundreds of thousands of adults the opportunity to get the basic numerical skills they need.

    But we’re one of the few countries not to require our children to study some form of maths up to the age of 18.

    Right now, just half of all 16–19-year-olds study any maths at all.

    Yet in a world where data is everywhere and statistics underpin every job, letting our children out into that world without those skills, is letting our children down.

    So we need to go further.

    I am now making numeracy a central objective of the education system.

    That doesn’t have to mean compulsory A level in maths for everyone.

    But we will work with the sector to move towards all children studying some form of maths to 18.

    Just imagine what greater numeracy will unlock for people:

    The skills to feel confident with your finances, to find the best mortgage deal or savings rate;

    The ability to do your job better and get paid more;

    And greater self-confidence to navigate a changing world.

    Improving education is the closest thing to a silver bullet there is.

    It is the best economic policy, the best social policy, the best moral policy.

    And that’s why it’s this government’s policy.

    As we build this better future for our children and grandchildren…

    …I feel a deep responsibility to pass on a health service that will be there for them…

    …just as it was there for our parents and grandparents.

    When I talk about the NHS, I’m not just talking about a prized public service.

    I’m talking about my family’s life calling.

    My Dad was a Doctor. I grew up working in my Mum’s pharmacy.

    I saw day in day out the devotion they gave to their patients.

    And my record demonstrates how important those memories are to me.

    We’ve significantly increased funding for health and social care.

    Recruited thousands more doctors and nurses.

    Upgraded more hospitals with cutting-edge technology.

    But Covid has imposed massive new pressures and people are waiting too long for the care they need.

    We’re fixing that.

    But we need to do more.

    At a time when we’re putting record sums into the NHS…

    And recruiting record numbers of Doctors and Nurses…

    Healthcare professionals are still unable to deliver the care they want…

    And patients aren’t receiving the care they deserve.

    So we need to recognise that something has to change.

    That doesn’t mean structural reforms to the NHS.

    We will always protect the founding principle of an NHS free at the point of use.

    But what it does mean is an NHS where patients are in control, with as much choice as possible.

    Where we’re comfortable with the NHS using more independent capacity – if that’s what it takes to get patients quicker and better care.

    Where patients can access more information and data, allowing them to make more informed choices and hold services to account.

    And where we will no longer accept unwarranted variation in performance between trusts.

    Because high quality healthcare should be there for you wherever you live.

    And as the NHS works with professions to develop a workforce strategy early this year, I’ve asked them to consider how we can best support Doctors, Nurses, and other healthcare professionals, like pharmacists, to work more flexibly.

    We all share the same objective when it comes to the NHS: to continue providing high quality, responsive healthcare for generations to come. And that’s what we are going to deliver.

    Our vision of change will revitalise every aspect of our lives – better jobs, stronger communities, world-class education, an NHS built around patients.

    But family is something politicians struggle to talk about because you can all too readily be pilloried for being out of touch or worse, hostile to those who don’t conform to some idealised form.

    We live in a world today where family can and does take many forms.

    But whatever your family looks like, it doesn’t matter as long as the common bond is love.

    We shouldn’t be shy about it: We cannot not talk about the thing that is most important in most of our lives.

    Not when the evidence is clear that strong, supportive families make for more stable communities and happier individuals.

    I wouldn’t be where I am today without the love of my family, the kindness they gave me, the sacrifices they made for me, and the values they taught me.

    I learnt from them the virtues of hard work and self-improvement…

    …the importance of treating others with respect and the value of service…

    …of how a community relies on people going above and beyond what they are required to do.

    Today, it is the love of my wife and children that sustains me in the most difficult moments in this job.

    Family matters.

    We need to support parents to manage the demands of modern workplaces without weakening the irreplaceable bonds of family life.

    And we’re going to roll out Family Hubs to offer parents the support they need to raise a child.

    Because I believe deeply that family – not just government – can help us answer the profound questions we face as a country.

    When it comes to health, family cares for us when we are sick and old; family teaches us values in education; when it comes to community – family guides us in right and wrong.

    That’s why family runs right through our vision of a better future.

    When I first spoke to you as Prime Minister, I stressed that trust was not given but earned.

    I hope that in these first few weeks in the job I have begun to earn your trust.

    And I’ve made five promises today to deliver peace of mind. We will:

    Halve inflation.

    Grow the economy.

    Reduce debt.

    Cut waiting times.

    And stop the boats.

    But I know this is just the start of what we need to do to build a better Britain together.

    As well as peace of mind today, this afternoon I’ve also set out a vision for a better future for our children and grandchildren.

    We’re not going to get there overnight.

    Or even in this Parliament.

    But this is the journey we are on.

    And despite all the challenges we face, all the anxieties that people feel, I know we can get there.

    Others may talk about change, I will deliver it. I won’t offer you false hope or quick fixes, but meaningful, lasting change.

    I want people to feel something that they do not always feel today:

    A belief that public services work for them;

    A knowledge that if you work hard in the good times, the state will be there for you during the bad;

    A hope that the world will be better for their children than it was for them;

    A sense of belonging in the place they call home.

    I guarantee that your priorities will be my priorities.

    I pledge that I will be honest about the challenges we face.

    And I will take the tough but necessary decisions to ensure our great country achieves its enormous potential.

    I will only promise what I can deliver. And I will deliver what I promise.

  • Richard Bowker – 2002 Speech to the Railway Forum Conference

    Richard Bowker – 2002 Speech to the Railway Forum Conference

    The speech made by Richard Bowker, the then Chairman and Chief Executive of the Strategic Rail Authority, on 2 July 2002.

    It is some seven months since I stepped up to the footplate as Chairman of the SRA. In that time, the SRA has published its Strategic Plan, secured some additional Government funding, appointed a new team to lead it, let the first 20 year franchise, (more deals are under development) and we have negotiated the basis of a stable future for the network operator to replace Railtrack.

    During this time too, we have taken stock, consulted extensively with the rail industry and stakeholders. We have listened and learned and shall shortly be launching consultation on a number of critical policy issues.

    But, time is not on our side. As an industry, we are in danger of losing the goodwill that is willing us to deliver. There is no value to anyone in us failing and the world is intrinsically on our side but we have to deliver some of the improvements that have been promised. That’s why this conference title is so appropriate and why Alistair also focused on getting on with the job in hand. Now, I know we know we have begun and we do have to get better about talking about it. There are many new trains on order or delivered. We have CTRL, TPWS and a whole raft of other projects and I know there is a vast amount going on behind the scenes that we can talk about shortly. But even some of these have not been without problems and we need to raise the game consistently and show what the railway can do when it puts its considerable collective skill and effort to delivery.

    Leadership

    I am determined we shall deliver the Government’s objectives for the railway, and to do this, I want first to look at one task that is set out very clearly in the Directions & Guidance to the SRA:

    2.1″The Authority is to provide leadership for the rail industry and ensure that the industry works co-operatively towards common goals.”

    This morning I shall be setting out some of the detail of the direction in which I intend to lead. But beware, it comes with a health warning attached. The destination is set, the route will be marked out and we shall not, repeat not be deflected from it and will not wait to pick up stragglers or argue with those who don’t agree with where we’re going.

    Role of the Public Sector

    When the railway was privatised, there was a view that over time subsidies would decline to be replaced by premia, centralised control of policy would be very limited, the innovative and entrepreneurial flair of the new private companies would create a dynamic and self sustaining market and what little interference did remain would be confined to ensuring that socially necessary service provisioning would be looked after. Admittedly, this was against a backdrop of a railway no-one expected to grow fast, if at all, but even so, isn’t it incredible how wrong we could have been? Looking back now I believe that the issue was not primarily structure. It was not even fragmentation (although both of these have clearly impacted) but rather a total lack of leadership and proper planning.

    The laissez faire model of the market is no more likely to work now than it did in 1996, indeed, I believe it is less likely to work now. The railway has in those intervening 6 or 7 years become more complex and constraints that did not apply then certainly do so now, perhaps most clearly in terms of capacity utilisation. Incentive regimes have not driven the expected behaviours and those who were brave enough to become involved in seeking to expand the capacity and capability of the network have found it an uphill struggle to secure the delivery of their contracts.

    Transport planning does not just “happen” – it requires a lead from the Public Sector, which has a special role in relation to railways, which I believe is now very clear. It is:

    (i) leadership – saying and then following through with the things that will never be universally popular for popularity is not synonymous with true leadership

    (ii) strategy – setting the strategy and a framework against which the industry can plan and develop. Strategy does not always mean long term – a strategy is defined as a plan and plans can be short, medium and long term

    (iii) specification – it is for the public sector to specify the outputs it wishes to buy and it is the SRA who fulfil this role in the railway industry

    (iv) funding – Public sector funding, slightly less than 50% of the annual total, comes from the SRA, either directly or indirectly

    Leadership does not mean popularity. I did not take this job to be popular. I took it to make a difference, a lasting difference. So we will consult when necessary and then, in consultation with the policy makers in Government if appropriate, make decisions, tough decisions. According to one paper at the weekend I am simply spouting ‘robot management speak’. Well judge for yourselves at the end of this.

    The Growing Railway

    Back in February, I talked about the need for a new radicalism. By that, I did not mean a fundamental restructuring of the industry, but a change in the way we approach its management. Is that still a realistic view? Can we make what we have work or do we have to think radically to make any headway? Well, one of the most consistent messages I have received in the last 6 months is please, let us have stability. Stability of policy, stability of funding, stability of structure, stability of objective.

    Well I agree but the railway is growing, and growing strongly. Compared with six years ago, it has 20% more trains, a third more passengers and almost half as much freight again, despite the problems of Sangatte. But it is also six years older, and in too many areas too little has been spent on renewing and expanding it. You’ve heard all that but it is also true that this underlying strong growth potential is inevitably going to continue. Hatfield caused a shock, but the trends are upwards and are actually more marked on freight than passenger. Not only did rail freight grow by 8.8% last year – above the trend needed to meet the 80% target by 2010/11 – but market share has also grown, so that it now stands at almost 12%, compared with 8.5% seven years ago.

    The Prophets of Doom – and we have no shortage of them will always urge caution on the basis that growth will fall away, but such an approach is flawed and will mean that we will always be condemned to struggling with inadequate capacity. This is something I feel passionately about as it is clear that a number of factors are now combining to drive up demand for rail services, quite apart from the marketing efforts of the industry.

    • The road system cannot cope with the growth in demand – either for passenger travel or freight transport
    • Town and cities are looking to the railway to help solve their congestion problems and some are prepared to back this with congestion charging or funding park and ride schemes.
    • The logistics industry is increasingly looking to rail for trunk haul movements to combat road congestion and the impact of the EU Working Time Directive
    • The South East’s airports are at capacity, certainly in the medium term, and the marginal cost of extra domestic flights to London will be high.
    • All of this is set against a Government Ten Year Transport Plan with growth as a key factor.

    So, OK for stability, but growth will come. And it has proved incredibly difficult to progress major upgrade schemes, partly through the institutional inertia that comes with a leaderless and fragmented structure, partly through escalating costs, and partly through the time taken to plan, secure consents and build new infrastructure.

    That is starting to change. Leeds First has provided more capacity, and the doubling of Chiltern’s main line north of Bicester is almost complete, albeit at a cost to bring tears to ours eyes, more of which later, but we have to recognise that, even with leadership and funding from the SRA, and with greater industry cooperation, there are no “quick fixes” when it comes to big capacity increases. If anyone was in any doubt on this, the history of the West Coast upgrade will convince them!

    Capacity

    Returning therefore to the theme of planning, the conclusion from this is that in the short to medium term, we have to be much better at making use of the capacity we have, while we are planning to increase it in the longer term.

    This gives added impetus to the Capacity Utilisation Policy that we are developing, and on which we will start consultation next month. From this we will develop individual route strategies which will also involve revisiting the Passenger Service Requirement as necessary.

    Over the last five years, timetables have grown piecemeal, with additional services being slotted in as individual promoters perceive a benefit, irrespective of whether it is abstractive overall, and the result is sub-optimal use of the available route capacity. It is now time to take a strategic look at the whole structure to see how we can make best use of the capacity that exists to provide a more reliable service, and in some cases, perhaps, a more frequent one.

    It also means some compromise in order to make the most of what we have got. On some routes, we may have to accept some variation in clock face departures of local trains to accommodate less frequent long distance or freight services. In other cases, we may have to look at a slightly slower long distance service to fit in with peak period stopping services and vice versa. We should not be afraid to question a few cherished principles to produce a solution that works for passengers or freight customers, and works reliably.

    This policy has to be driven by good railway operating and engineering principles – robust, practical and safe. It needs to align the railway’s priorities with those of its customers – freight as well as passenger. We know how to measure the benefits of train service provision at the margin, and we will apply a consistent methodology to underpin our choices.

    Capacity is linked to the other policy on which we will shortly start consultation – on fares. The structure and level of fares affect demand and the capacity requirement. Fares also provide income for investment. We need to make sure that the fares policy supports the Government objectives through a degree of direction and regulation, but leaves some commercial freedom for train operators to do what they are good at – filling empty seats.

    There are a whole series of other areas where our new approach to planning will be profoundly felt and welcomed and although I haven’t gone through them in detail here they include our relationships with Devolved Government, Regional and Local Development Agencies and Authorities and PTAs and PTEs,

    Costs

    But whilst we can have the most sophisticated and joined up planning in the world, we have to be able to afford what we want to buy. One thing which we have to tackle together is the steady rise in the real cost of operating the railway. Not just on capital projects, but on running costs as well. These costs are racing ahead and have to be curbed. There are many contributing factors.

    • Wage costs – particularly when coupled with a 35 hour week – are racing ahead of inflation.
    • Safety standards are ratcheting up, and these have to be paid for. So does meeting the requirements of Disability Discrimination Act, and the EU directives on interoperability.
    • Project Costs – Does it really cost the kind of £ per mile figures we are currently seeing for major projects. I leave you to answer that yourself
    • Investment has to be paid for through access or leasing charges. Transaction costs and consultancy costs are high.
    • Reliability – in terms of extra trains or staff – has to be paid for.

    Now many of these headings have some justification but taken together, they add to a considerable burden. Over the next few months and years we have to address these spiralling upward costs, or we risk making the full development of the railway unaffordable.

    Some of these costs are a “pass-through” to the SRA which on the face of it might seem alright – but its not! Our budget is limited and we have to manage it at an aggregate level. So unless we can get a grip on them, rising costs could choke off investment at the margin, and restrict our ability to respond to local plans. For all its faults, BR did apply relentless downward pressure on costs which led to some innovative ideas like radio signalling, or which, like the HST, generated big increases in revenue. We must do the same.

    There must be cheaper ways of running the rural railway than meeting the same stringent standards as on high speed lines. Maybe some suburban routes around the country could be better run as light rail than as they are now. Manchester Metrolink now carries as many passengers as the whole of the rest of the Greater Manchester suburban network. There must be better ways of carrying out engineering work than the present hopelessly inefficient possessions regime. Productive driving time still occupies, on average, less than half a shift for train drivers.

    Network Review

    Pulling all this together –

    • Capacity Utilisation Policy
    • Route utilisation strategies
    • PSR review
    • Fares Policy
    • Planning in general, and
    • The need to get a grip on costs,

    amounts to a pretty fundamental review to enable us to be very clear about what we want to buy. We will be setting this out progressively over the coming months and longer and the conclusions will not please everyone.

    There will be many commercial deals to be done which do not call on SRA support, and these will be welcome, but here too we need to be involved when it comes to the effect on network capacity utilization and on other operators.

    The SRA Team

    I recognize that to deliver this leadership and work programme requires a resource at the SRA of the highest calibre and I am delighted to say that the team is now complete and in place bar one which I shall come back to shortly. Chief Operating Officer (Nick Newton), Managing Director (Strategic Planning) (Jim Steer) and Managing Director (Finance & Commercial) (Doug Sutherland) are now all in place. Together with Julia Clarke (Freight), Chris Austin (Corporate Affairs) and Ceri Evans (Media), we are very much open for business and, with the major milestone reached last week on Network Rail, we can begin to move forward on all aspects of our work programme.

    That just leaves one key vacancy, for a Technical Director. I have recently taken the view that such is the scale of the agenda with respect to ERTMS, standards, European matters (notably Interoperability) and so on, that someone at the SRA must take an industry lead on this. We will shortly be starting the recruitment process.

    Conclusion

    I would like to rewind to that extract from the Directions and Guidance again. The second part of it referred to working co-operatively towards common goals. Working together is essential if we are to deliver the railway we truly need and we are capable of doing it, of that I have no doubt. Over the last few months in particular, there has been clear evidence that it is happening, not least of all when we have been dealing with difficult issues.

    We are now moving to a clearer position in the railway industry where responsibility and accountability can start to be clearly understood. It is certainly the case that the role of providing leadership, of setting the strategy, of specifying the outputs and determining the value for money case for injecting public money rests with the SRA. It’s a challenge we’re up for. But it is nothing without a strong and vibrant private sector, willing to take risk because the opportunities, the strategy and the risks and rewards are clear. The SRA and the ORR with our separate but complementary jurisdictions are creating that framework. Together with all of you, we need to “Get on With It”.

    Thank you.

  • Strategic Rail Authority – 2002 Franchising Policy Statement

    Strategic Rail Authority – 2002 Franchising Policy Statement

    The policy statement document issued by the Strategic Rail Authority on 1 November 2002.

    Text of document (in .pdf format)

  • Peter Hain – 2000 Speech on Angola and the Responsibilities of Wealth

    Peter Hain – 2000 Speech on Angola and the Responsibilities of Wealth

    The speech made by Peter Hain, the then Minister of State at the Foreign Office, on 6 July 2000.

    I was born in Africa, and grew up in Pretoria where my parents were first jailed, then banned, then forced into exile in London where I continued their struggle as a leader of the British Anti-Apartheid movement.

    And now my job as British Minister for Africa gives me again the chance to make a difference. I am determined to do so. Our goal is a proud, safe, democratic, prosperous Africa. A self-confident Africa in which the views and aspirations of all Africans can be clearly heard, and fully taken into account.

    I have been to Angola before, in 1995. As now, it was strangled by war. Images of Huambo stay in my mind: Limbless, starving people. Every shop, office, and house gutted. Hopelessness and despair on peoples’ faces. The misery of the displaced. Thirty-five years of fighting fuelled first by the Cold War ideological clash between communism and capitalism, then by the pure greed of oil versus diamonds.

    During that visit I met the Government in Luanda. Then I flew deep into the bush to Bailundo, to meet Jonas Savimbi. He promised he would honour the United Nations peace agreement he had signed in Lusaka. But at the same time as he lied to me, he was re-arming, and the war started all over again. And still there is no end: the Angolan people deserve so much better.

    I am particularly pleased that so many members of Angola’s civil society are here. We usually hear talk only of the Government, of UNITA, of the United Nations. But civil society as a whole – press, NGOs, the churches, trade unions – all have a vital, perhaps a central, role to play in Angola’s future.

    Angola has suffered from slavery, from colonisation, from the geo political rivalries of the Cold War. But the past cannot continue to be used as an excuse. Angolans cannot allow themselves to be trapped by their history. Angolans must take responsibility for their future.

    In the past, foreign interests in the USA, South Africa and Europe supported UNITA and Savimbi to prolong the war for their own interests. Today I can assure you that this is not true for Britain. I hope it is no longer true for any other country. Some foreign individuals do profit from war in Angola by buying blood diamonds from Savimbi and selling arms and fuel. But there is no reason why Angolans should allow these evil people to control your destiny. If Angolans can find a just peace, no outsider should come between them and a secure and prosperous future. Your economy could develop. Your roads and hospitals could be rebuilt. Your children could be educated. You could travel freely throughout your beautiful country.

    The rest of us would benefit too. Britain would spend less on humanitarian aid and save money on the UN. British businesses would have new opportunities for investment and trade. Angola would become a dynamic force for stability and progress in Southern Africa, instead of a dark threat to the peace and prosperity of its neighbours.

    SANCTIONS

    But for this vision to become a reality, the war has to end. What can you do? What can we do to bring peace closer? The British Government’s view is that there are two major issues to be addressed. I will describe them here:

    First, Savimbi’s power to wage war has to be blocked by sanctions, vigorously enforced. We want to stop him selling his diamonds and block his supplies of fuel and munitions, until he is forced to lay down his arms as he promised in the Lusaka Protocol in 1994.

    I have been in the forefront of the international efforts to make sanctions effective. For as long as the fighting continues the British Government will seek to tighten the sanctions against UNITA, to cut off the outward flow of diamonds and inward flow of arms and fuel that sustains the misery of the Angolan people. And we will continue to expose those involved, however high or low: from African Presidents, to European arms and diamond dealers, to African based air companies – whatever their nationality. Their dirty trade deserves international condemnation. It is also illegal, so each of these individuals should be tracked down, publicly exposed and prosecuted. The diamond dealer in Belgium receiving UNITA’s blood diamonds helps to landmine children. The arms company in Bulgaria or Ukraine helps Savimbi to kill and maim. The European or South African pilot is just as culpable. Without these guilty people, the war would be over.

    Savimbi has repeatedly broken the United Nations peace agreements he has signed. So how can we trust his word again? Could he change? Could he contribute to the search for peace? I very much doubt it. Attacking convoys taking food and shelter to the displaced, planting mines to maim those who try to raise a crop, mutilating and killing unarmed villagers – these are not the actions of a leader with a cause who wants a better Angola for his people. They are the actions of a bloodthirsty tyrant who wants personal power at all costs.

    But UNITA needs to be part of a political debate about the future of Angola. It needs to have a new policy for peace. It must lay down its arms and play an active part in a dialogue about Angola’s future. Britain is willing to help achieve this. Too much is at stake. UNITA represents an important constituency in the country, politically, rurally and ethnically. Its voice deserves to be heard – but through ballot box not through the barrel of a gun.

    The world will not tolerate any more of Savimbi’s lies and obstructions. UNITA must be part of a political process and it must naturally honour any commitments it makes. To end such a long and bitter war everyone has to compromise. It will take courage on all sides. Agreements must be honoured in full. And I promise this: Britain along with other European Union countries will back such an agreement. We will support the Angolan people in their right to peace, to live a decent life, to begin farming properly again, to begin rebuilding their shattered country.

    GOOD GOVERNANCE, DEMOCRACY AND HUMAN RIGHTS

    The second issue is good governance, democracy and human rights. These have to be made a reality for all Angolans so that they can peacefully share in Angola’s prosperity.

    There must be space for the exchange of ideas, which is fundamental to democracy. Having different ideas about the best way forward does not mean disloyalty to the state. But the debate is not just between the MPLA and UNITA. There are other political parties. As important, there is civil society.

    A strong, independent civil society is very important to sustain a healthy democracy. In every society there are groups of people who come together because of their profession, their beliefs, their interests, their ideals.

    These formal and informal groups – churches, trades unions, humanitarian societies, human rights groups and many more – are each entitled to have their voices heard when they argue for what their members believe in. The more they are seen to live up to their own ideals, the more likely they are to gain the support of their fellow citizens. Although political parties are vital in a healthy democracy, civil society groups help connect government to the people. Open debate is good for our democracies.

    Of course, those of us in Government do not enjoy being criticised. As a Minister I know only too well what it feels like to see my name in the press or hear it on the television followed by critical or ill-informed comment. But that criticism is one of the guarantors of our democracy. I urge the Government to be bold in recognising the same in Angola. In any democracy there will be protest marches. (I used to organise marches myself years ago against apartheid!). And it is a rare journalist who thinks that the Government has got it absolutely right. Open discussion in an open society: that is the way forward to success.

    I have condemned the broken promises and murderous activities of Jonas Savimbi. But I have also felt able to speak honestly to President dos Santos and his Ministers and advisers about the evils of corruption. Angola is rich country made poor by corruption and dishonesty. Her wealth must benefit all her people not just a few. The money from oil and diamonds must go to new hospitals, schools, universities and technical institutes. It must build new roads, bridges and railways. It must be used to lift ordinary Angolans out of poverty, fear and dependency. And used to ensure that they can develop both themselves and their country to their full potential.

    In five years time oil export revenues could be as much as eight billion US dollars (depending on oil prices) per annum. This compares with government expenditure in 1999 equivalent to around three billion US dollars.

    Ending corruption and making government accountable will boost international business confidence and create greater prosperity and jobs.

    Angola’s huge resources – its natural wealth and its people – must not be squandered on War. The Government’s recent offensive against UNITA has been more successful than many expected. But I do not believe that there is a purely military solution to this war. Angola has become a war economy. Huge riches from oil and diamonds are just being wasted away as lives are lost or brutalised and the country devastated almost beyond belief. We have to make a fresh start. And Britain is ready to help.

    Ending the war is not enough. We must rule out the chance of future wars. Angolans deserve open and transparent administration. No bribes. No favours. Just good, clean government. Angolans deserve to see their economy being transformed into an open market functioning within the rule of law and delivering benefits to all.

    I welcomed the news that the Government has agreed to an IMF Staff Monitored Programme. A vital first step. You need the IMF, we need the IMF. We all live in an interconnected world. I urge the Government to publish the programme soon so that civil society can play an active part in achieving its targets. The Government has demonstrated its commitment to working for economic reform. They can be justly proud of that. Let’s make it happen through open discussion and open policy making. That is the way to win popular support from the people. That is the way to increasing investor confidence and economic advancement for all.

    In the anti-apartheid struggle I remember campaigning alongside MPLA comrades during the 1960s and 1970s. In Government the MPLA made sacrifices to support the struggle of the African National Congress for freedom in South Africa. The MPLA has an honourable history as a liberation movement. It faced almost impossible odds when it took over a country ruined first by colonialists, and later by UNITA’s foreign-backed subversion, invasion and brutal war. Despite this the MPLA government managed to implement new and bold health and education policies from which so many Angolans benefited. But somewhere along the way, something went badly wrong.

    We must build a new future. And look at what the result could be. Not a country bled dry by war and poverty and corruption. But one of the great African states. You have the oil, the diamonds. You have the agricultural potential. Luanda could be as big in the international trading market as Pretoria, Lagos or Nairobi. It is long past time that you took your place with them.

    CONCLUSION

    I speak today as a friend of Angola. And it is the duty of a true friend to speak honestly. I am determined to make a difference. I care about Angola because when I see the future of peace, I see a country, which could be the breadbasket of Southern Africa, feeding not just its own people but many millions of others. I see a country of great beauty with a people of great ability and potential. I see a country of enormous wealth that could be a powerhouse in Africa. An African Lion that could help make Africa roar with success. Instead of an Angola of war and poverty and corruption, I have a vision of an Angola in which human rights, social justice, democracy and prosperity for all flourish.

    Let us pledge ourselves to realise that vision.

    Let us all join together – you, I, your African brothers and sisters, the international community – in a rising chorus demanding peace and a new beginning.

  • Keith Vaz – 2000 Speech on the Europeanisation of South East Europe

    Keith Vaz – 2000 Speech on the Europeanisation of South East Europe

    The speech made by Keith Vaz, the then Minister for Europe, on 7 July 2000.

    Your Excellencies, Ladies and Gentlemen, good morning.

    This conference comes at a key moment for South East Europe. One year after the Kosovo crisis democracy is spreading throughout the region. People have exercised their right to vote in free and fair elections in Croatia, many parts of Bosnia and Herzegovina and in Montenegro. There will be elections this autumn in Kosovo, Albania and Bosnia and we hope that Serbian local elections and FRY state-level elections later this year will allow democracy to flourish there too.

    We want to see a new EU Balkan agenda to encourage this trend, one which will show the practical benefits of living up to European standards and ideals which will strengthen support amongst ordinary people in the region for what Chris Patten has described as the road to Europe. As President Clinton said during his visit to Europe in June, our goal must be to de-Balkanise the Balkans. Relations with the European Union are already growing stronger.

    EU ENLARGEMENT

    Bulgaria, Hungary, Romania and Slovenia are negotiating to join the European Union. Macedonia and Croatia are well on the way to EU Stabilisation and Association Agreements. The European Union has set a clear path for Albania and Bosnia and the Federal Republic of Yugoslavia is also eligible once they meet the European Union’s conditions.

    The prospect of closer EU relations and eventually EU membership is an important incentive for change. We welcome the growing evidence of commitments to European ideals and standards and to genuine intra-regional co-operation and I look forward to the summit hosted by the French Presidency in Croatia this autumn, which will be an opportunity to reinforce that message. The Stability Pact is reinforcing this process of Europeanisation, encouraging the countries of South East Europe to work together for shared goals. It has provided 2.4 billion euros for a variety of projects starting in the next twelve months. Britain has particularly supported the pact’s investment compact of which several of you must have attended yesterday’s meeting.

    OVERCOMING LEGACIES OF THE PAST

    Nevertheless there are significant challenges ahead for the region, including for Serbia. The West can and should help, but the real work has to be done by the people of South East Europe themselves. Overcoming the legacy of nationalism, extremism and war is a huge task, but South Africa, Northern Ireland and the Middle East show how old enemies can set aside their quarrels and work together for everyone’s benefit. France and Germany were at war for much of the first half of the last century, yet a common European destiny has made them and the rest of Western Europe firm allies and friends.

    Constructive leadership is crucial. Look at the example of Croatia. The Croatian Government and people have witnessed a dramatic turnaround in their relationship with Europe since the beginning of the year. The same path, the same opportunities, are open to the people of Serbia, but not while they are held back from their rightful place in the European family by a selfish corrupt regime whose leaders refuse to be held responsible for their past actions. Milosevic has presided over the ruin of his country. The cost of Milosevic may have been as much as a hundred billion dollars, the difference between actual national income since 1991 and what that income might have been if Serbia too had embraced economic and democratic reform. Only when Milosevic has gone to The Hague can Serbia’s reconstruction begin in earnest and there should be no doubt of our willingness to help when that happens.

    TRADE AND INVESTMENT

    I hope the conference today will build links between us and the region in the areas where the European Union can really make a difference. Trade and investment, it is time for the EU to be bold, imaginative and generous. We should open its markets to South East Europe’s products and South Eastern Europe in return needs to attract investors by creating a favourable climate for investment. That is why I am so delighted to see here today so many leading members of the private sector. The private sector’s involvement of the reconstruction of the Balkans is absolutely crucial. We shall hear more from Sir David Wright on this point later. Secondly, civil society, people to people links between NGO’s, universities, towns, cities and other civic groups will help spread awareness of Europe.

    The Lisbon Economic Council highlighted the importance of the information society for the EU. We want South East Europe too to exploit the opportunities of e-commerce and the Internet in increasing economic growth, breaking down ethnic barriers and facilitating freedom of information.

    CONCLUSION

    Finally, the European Union has committed over fifteen billion euros to South East Europe over the last decade, but Europeanisation is not just about a transfer of resources, but a transfer of vision, including the people of this corner of our continent and in our common European destiny. The European Union has just such a vision for the people of Central Europe and over the last decade tremendous change has already happened there. I hope for the same for South East Europe. Following this seminar we shall be establishing a UK-Balkans Task Force to build on what we have achieved here and to monitor progress. I shall be calling on some of you to take part in that Task Force.

  • Peter Hain – 2000 Speech on Corruption in South Africa

    Peter Hain – 2000 Speech on Corruption in South Africa

    The speech made by Peter Hain, the then Minister of State at the Foreign Office, at the Royal Institute of International Affairs on 10 July 2000.

    Can I begin by congratulating Transparency International on its role as a scourge of corruption and bad governance, and for organising this important conference.

    Corruption is of course not unique to Southern Africa: it happens the world over and always has done. But the African continent has a particularly bad dose of it. And whereas in the past this was accepted as a fact of life – one of the legacies of colonialism and economic exploitation from which Africa has suffered so badly – today it can no longer be tolerated.

    This is not simply a moral imperative. The new factor is globalisation. Modern communications mean it is less easy to cover up. And whereas foreign investors have happily colluded with corrupt governments or public officials through the ages, today’s global investors have less interest to do so. Modern capital is so mobile it prefers to invest where corruption does not take a slice of profits. It is also much more at risk of exposure in today’s transparent and highly competitive environment.

    In Southern Africa today destabilising civil conflicts such as in Angola and the Democratic Republic of Congo have hit the region as a whole. HIV/AIDS threatens to wipe out large swathes of Southern Africa’s productive population. Drought – and more recently flooding in Mozambique and neighbouring countries – has devastated the agricultural output of the region and diverted scarce resources away from productive activities to rebuilding infrastructure and rural communities.

    These serious problems have been hugely debilitating and contributed equally hugely to Africa’s main problem: poverty. But, resolving conflicts, and eradicating poverty is badly hampered by corruption. Sustained poverty in Southern Africa is partly due to failure of governments and corruption is a central feature of this failure.

    REDUCING POVERTY THROUGH INVESTMENT

    The British government is committed to halving the proportion of people living in extreme poverty by 2015. But ultimately poverty reduction requires sustained economic growth and a key element in this is attracting foreign investment. Foreign investment delivers clear benefits: the transfer of capital and resources (including skills and know-how), new jobs, and a boost to the rest of the economy. Some African countries, such as South Africa, Botswana and Mauritius have been relatively successful in attracting Foreign Direct Investment (FDI).

    Yet Sub-Saharan Africa receives only 0.4 per cent of global FDI. And that figure is falling. Greater investment flows will only be possible if the investment climate improves, raising business confidence.

    The reasons given by businesses for not investing in Africa vary, but corruption is almost always on the list. It is difficult to quantify, although in Eastern Europe this is an extra 10 per cent tax on business according to the World Bank and EBRD. Just as important as the financial cost is that doing business is much more complex and confusing in a corrupt country. Many foreign investors will simply walk away if the environment is too difficult. Globalisation gives them plenty of alternatives.

    THE IMPACT OF CORRUPTION

    Corruption is the abuse of a position for private gain. We can draw a distinction between petty corruption and what George Moody Stuart calls ‘grand corruption’. Clearly it is right to start tackling the problem at the top with the big fish. But ultimately the aim must be to change cultures where petty corruption is viewed as normal. The causes of corruption are complex. Certain economic policies can inadvertently promote corruption. Foreign exchange or import controls often encourage corruption. There are obvious risks attached to uncontrolled deregulation as well. Too much economic power in the hands of political elites is undesirable. Africa’s leaders must shoulder some of the responsibility; Western Governments must hold their hands up and accept their share of the blame too.

    The consequences are widespread. When the law is for sale, why obey it? If your political leaders are only interested in enriching themselves, why respect them? If an official demands a bribe to perform the simplest service, why bother? The insidious result is a society whose members do not trust its institutions or even each other. Individuals and groups therefore act regardless of the consequences for others. The rule of law and with it any sense of a coherent society breaks down.

    If government decisions can be influenced by illegal or improper means, they are unlikely to be good ones. Hospitals or roads may be built in the wrong place; incompetent contractors may be given contracts which they never complete; friends and family members end up running businesses into the ground. In brief, corrupt governments do not do their job as well as honest ones.

    In the last few years – pushed and prodded by organisations such as Transparency International – we have all come to realise that corruption (and good governance in general) is not an optional extra. Without tackling corruption, the task of encouraging sustainable economic growth in Southern Africa is impossible. So what can be done?

    COMBATING CORRUPTION

    All Southern African countries should develop their own national strategies to promote good governance and eradicate corruption. Only if there is an internal drive led from the top is an anti-corruption initiative likely to be successful. Without it, no amount of help from outside experts will secure the demonstrable change necessary. There is no one model. But any strategy should include all the key players in society, public and private sectors, NGOs, civil society, political parties, foreign investors, religious leaders and financial institutions.

    Some African countries have taken the first step towards such a strategy by agreeing the Global Coalition for Africa’s Anti-Corruption Principles. I hope that other African countries sign up to these and that they can form the basis for a coherent set of national strategies. Excellent work is being done by the World Bank Institute in seven African countries to develop national anti-corruption strategies. The Institute’s approach of trying to work with a wide range of interests in each country is commendable and I understand that our Department for International Development is looking at ways to build on this work.

    Signing up to the international instruments is, while a welcome first step, is not enough. A corruption free environment must be supported by the enforcement of national laws against corruption. Those laws need to have real teeth. There will be genuine public support if serious and high level corruption is tackled vigorously.

    It is by no means an easy task, but real progress is possible, as a number of African countries have shown, for example Kenya.

    In July 1999, after years of criticism from both inside and outside the country, and a steadily declining economy, President Moi announced an Economic Recovery Strategy designed to root out corruption and inefficiency in the civil service. The Strategy included the establishment of a Change Team headed by Cabinet Secretary and Head of the Civil Service, Richard Leakey. The Team has implemented wide-ranging economic management and governance reforms. These have included:

    • the establishment of an autonomous Kenya anti-corruption authority (KACA). It is now fully operational, with 50 staff and has received 800 complaints to date;
    • dismissals and prosecution of corrupt officials, including one serving and one past Permanent Secretary;
    • key public agencies have been reorganised and management changed in response to complaints and investigation about corruption e.g. a Nairobi City Council oversight Board has been established. Top officials in the Ministry of Land have been replaced and past decisions on land disposal are being reviewed. Top managers of the ports, Kenya Coffee Board, Kenya Tea development Authority and Central Tender Board have been replaced;
    • there has been high profile naming of alleged corrupt officials in the Parliamentary Select Committee report on Anti-Corruption;
    • Cabinet approval has been given to a new public service code of conduct and declaration of assets bill;
    • There is a commitment to introduce a new Anti-Corruption and Economic Crimes Bill which substantially enhances the prosecution and investigation powers of the Kenya Anti-Corruption Authority, strengthens its preventive and advisory functions and establishes a corruption court and a Parliamentary Ethics and Integrity Committee. The statute of limitations (currently 3 years) will be abolished for serious fraud, embezzlement and corruption;
    • civil service reform (rightsizing, pay reform, improved management and performance appraisal);
    • procurement reform: restructuring of the tendering and procurement system and revamping of the Central Tender Board including the establishment of an appeals board and quarterly reporting of activities including bids received and acted upon. Development of new legislation to amend current procurement regulations and the establishment of a new independent Public Procurement Agency.

    These tough measures have already brought benefits to Kenya. As a direct result, the IMF/World Bank have resumed negotiations with the Government of Kenya for a Poverty Reduction and Growth Facility (PRGF) – the previous ESAF having lapsed in 1997 because of governance concerns.

    Although there is a long way to go, and there is obstruction by vested interests, including some Kenyan Ministers, the country has made a start and President Moi and his team deserve to be both congratulated and supported for this.

    BRITIAN’S ROLE IN FIGHTING INTERNATIONAL CORRUPTION

    Meanwhile we are looking at ourselves. Britain is in the process of reviewing the UK’s laws on corruption, and last month, the Home Office issued a discussion paper. Partly this is to ensure we meet the highest international standards, but primarily it is to ensure that we are effective in deterring British citizens from involvement in corrupt practices wherever they take place.

    We are playing a leading role internationally to promote greater efforts by all countries to stamp out corrupt practices. We strongly support the OECD’s Convention on Combating Bribery and urge all countries to sign up to it. We are also exploring with our G8 partners what else we might do to drive this work forward. Corruption will be one of the subjects discussed at the G8 Summit in Okinawa next week.

    Our Secretary of State for International Development, Clare Short, has made quite clear that tackling corruption is a very high priority for UK development assistance. Practical help for tackling corruption is now a major part of her Department’s (DFID’s) strategy in Africa and elsewhere, as indicated by their support for this event.

    Britain is a leading player within the G8 and the EU in tackling corruption and illegal diamond trade that is fuelling Angolan War. I have just returned from Angola where I pressed the Government of Angola to encourage more transparency and accountability within its budgetary process. We are also working with them to ensure that the proceeds of the legal diamond trade and oil exports are not diverted elsewhere and are channelled directly to benefit the Angolan people, not just individuals within the country. And of course, we are working with the Government of Sierra Leone to try to stop the proceeds of diamond sales financing the rebel military campaign.

    I should say that African diamonds are not synonymous with conflict. Just look at what Botswana, the world’s leading diamond producer, has achieved in using its diamond wealth to promote development. With growth of 9 per cent, it is one of the fastest growing economies in the world. What is the secret of Botswana’s success? Good governance, transparency and an uncompromising approach to corruption.

    A GLOBAL ISSUE

    Corruption is a global issue. Corruption in Southern Africa often involves participation by foreign entities, including major corporations and individuals seeking contracts and business opportunities. The UK accepts its responsibility for trying to ensure that UK nationals are discouraged from corrupt practices and we will change our legislation to be more effective in doing so. Most of our European and OECD partners do the same. All should.

    The UK is working with its partners in the IMF, World Bank and other multilateral and bilateral aid agencies to encourage them to use their influence to promote anti-corruption systems in the countries where they are working, particularly in Southern Africa. It is important that clear guidelines for promoting good governance, such as those developed by the IMF in 1998, are replicated by all organisations, including NGOs, procurement agents and other service delivery participants. Country assistance programmes and strategies should take into account and promote anti-corruption strategies at the national level. Particular attention should be paid to the level of transparency and accountability in government decision-making. There are a number of international initiatives to tackle corruption. Apart from the OECD’s Bribery Convention, there are also the Council of Europe’s Criminal and Civil Law Conventions on Corruption covering active and passive bribery of domestic and foreign public and private sector officials, including judges and members of public assemblies. I hope that Southern African countries will consider introducing similar provisions in their own legislation which explicitly criminalise corruption. Britain is willing to help.

    The Commonwealth Framework sets out some clear principles to address governance and corruption in member countries. Commonwealth Heads of Government signed up to the Framework at the Durban Summit last year. A proposed ‘code of conduct’, which could apply equally to government ministers and civil servants as well as parastatal companies and their employees, is particularly worthy of implementation. The code of conduct needs to be legally enforceable, with appropriate and robust sanctions for breaches of the code.

    The profits from corruption can be huge. But if they are to be safe, they need to be laundered and then hidden away out of reach of the domestic authorities. A key element in fighting corruption is therefore to be able to trace and seize the proceeds both to reimburse the country and to reduce the financial incentive.

    Britain has played a leading role in international efforts to tackle large-scale money laundering, whether linked to corruption or other crimes. We are supporting the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), established last year to strengthen legislation and regional cooperation to tackle money laundering.

    CONCLUSION

    The key role of corruption has been ignored for too long. For those of us who love Africa, it is painful to imagine what might have been achieved over the last thirty years without corruption. Honest governments working for the benefit of their people could have brought great prosperity to that continent. Instead, corrupt, selfish regimes have blocked their people from finding their way out of poverty and misery.

    But Africa can still turn itself around. If it can tackle the central problems of governance, then globalisation offers unlimited scope for attracting investment and beginning the process of catching up with the Asian Tiger economies and establishing its own successful Lion economies. The global growth in information and communication technologies will force governments to become more transparent, helping cut out corruption. As we have seen in the last two months in Zimbabwe, growing use of the internet by the Opposition MDC has helped lead to a more open, inclusive society, with stronger institutions, and a greater voice for civil society. IT can improve information flows to foreign investors. New technology (for example mobile telephones and solar panels) may provide ways round traditional obstacles to growth. African governments must look to these new ways of doing business if their development plans are to succeed.

    For, while the rest of the world has been getting richer, Africa has got poorer. We must build a new partnership between African Governments, bilateral partners and international financial institutions to find solutions for Africa’s economic problems and give the people of Africa the chance for success.

  • Gordon Brown – 2005 Speech at the National Gallery in Scotland on International Development

    Gordon Brown – 2005 Speech at the National Gallery in Scotland on International Development

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at the National Gallery in Scotland on 6 January 2005.

    Let me start this morning in front of this audience brought together by its shared concern for world poverty and for the needs of others by expressing on all our behalfs not only our sorrow at the tragic consequences of the biggest and most devastating earthquake the modern world has ever witnessed but also our shared resolve to do everything in our power to help the victims, to tend the sick, to support the needy and to assist the reconstruction.

    Recent days have shown both our shared vulnerabilities and our linked destinies as an earthquake in one continent has left families devastated in every continent.

    But humbled first by the power of nature, we have since been humbled by the power of humanity – the awesome power of nature to destroy, the extraordinary power of human compassion to build anew.

    For in recent days we have we have witnessed not only an unprecedented demonstration of sympathy but also an unprecedented demonstration of generosity.

    More people giving spontaneously than at any time and in any previous appeal.

    Young children giving often more than they can afford.

    Men and women separated by geography but drawn closer than ever together by a shared determination to help, to care, to heal the wounds.
    Individuals in afflicted countries, even when they have been left with so little themselves, selflessly doing so much to help others.

    And the true test of the international community will be how we can fund and assist both the immediate day-to-day emergency services needs but also the long-term reconstruction of these countries.

    We know that just as we must ensure that all Heavily Indebted Poor Countries get debt relief so they can finance the development of their health and education systems, so too we must ensure that countries affected by the tsunami are not prevented from paying for essential reconstruction because they are having to fund the servicing of their debts. So, for afflicted countries that request it, we and other Governments are proposing an immediate moratorium on debt repayments.

    And just as we are proposing more generally that we widen and deepen multilateral debt relief, we are also proposing 100 per cent multilateral debt write-off for Sri Lanka — and unilaterally we, Britain, will pay ourselves 10 per cent of that debt write-off.

    And depending on the conclusions of the needs assessments, which should now take place, I believe that the G7 and Paris Club must also stand ready to consider all options for further assistance. And this will be on the agenda for the G7 Finance Ministers meeting – which will be chaired by Britain – at the beginning of February.

    Although the scale of last week is unprecedented, tragically natural disasters can befall any country but the capacity of countries to withstand and respond to these events in part reflects the state of the emergency services, health care systems, the basic infrastructure. And all of these reflect the underlying levels of prosperity and poverty. Put starkly, countries without adequate warning systems, with less developed health care and sanitation systems, with poorer infrastructure, weaker institutional capacity and fewer resources are more vulnerable during disasters, less able to cope in their aftermath and a minute of devastation can wipe out years of development.

    So from new early warning systems to proper healthcare the world will have to do more.

    The UN Secretary General this morning has asked for $1 billion more.

    And, as a starting point, we welcome the decision by the World Bank to make hundreds of millions of additional resources available for reconstruction.

    And we welcome the offer of $1 billion of emergency assistance loans by the IMF to the Maldives, Indonesia and Sri Lanka.

    And, as Tony Blair, Hilary Benn and I have all said, we – Britain – will do everything we can.

    And does not already the response to the massive tidal wave in south east Asia show just how closely and irrevocably bound together today and in our generation are the fortunes of the richest persons in the richest country to the fate of the poorest persons in the poorest country of the world even when they are strangers and have never met? People who now see that they have the same shared concerns, the same mutual interests, the same common needs and the same linked destinies.

    When I delivered the CAFOD lecture a few weeks ago about the economic, social and moral case for us now seeing people we have never met and may never meet in other continents not as strangers but as neighbours, I argued that what impelled us to action where there is need was not just enlightened self interest that recognises and acts upon our interdependence – our dependence each upon the other for our sustenance and our security – but, even more important, a belief in something bigger than ourselves: our shared moral sense that moves human beings even in the most comfortable places to sympathy and solidarity with fellow human beings even in far away places in distress.

    And the worldwide demonstration in the last few days not just of sympathy but of support shows that even if we are strangers, separated and dispersed by geography, even if diverse because of race, even if differentiated by wealth and income, even if divided by partisan beliefs and ideology – even as we are different diverse and often divided – we are not and we cannot be moral strangers. We are one moral universe. And the shared moral sense common to us all makes us recognise our duty to others.

    And it is this moral sense exhibited in the worldwide response to disaster that shows not only what can be done – in Britain alone £76 million raised so far by the British public, after Gift Aid almost £90 million – but also demonstrates what has now to be done – that we address the underlying causes of poverty.

    So while 2004 was a year which ended in the horror of a natural disaster, 2005 is a year that can start with the hope of human progress.

    2005 is a year of challenge but also a year of opportunity when – from the foundation of hope – we can, I believe, see real change.

    A year which is also the year when the UK has special responsibilities as President of the G7 and European Union, a year in which we can tackle not just the terrible and tragic consequences of the tsunami – working together to forge a long term plan for the reconstruction of Asia – but also forge a new ‘Marshall Plan’ for the entire developing world.

    And let me say the urgency and scale of the agenda I am going to propose for debt relief, for new funds for development and for fair trade is now even more pressing given the tragic events of recent days.

    It is because I want a world that does not have to choose between emergency disaster relief and addressing the underlying causes of poverty and injustice – between advancing first aid and advancing fundamental change – that the proposals I am putting forward today to advance the interests of all the developing world will – the Government believes – find support in all parts of the world.

    In just a few months time, just a few miles from here in Edinburgh, the G8 will meet in Gleneagles to discuss the most important issue of our generation – world poverty.

    This year is the year when world leaders will first gather here in Scotland and then in September at the United Nation’s Millennium Summit to examine just how much we have to do together if we are to seriously address the scale of poverty round the world today.

    We meet because exactly five years ago in New York and in a historic declaration the world signed up to a shared commitment to right the greatest wrongs of our time including:

    the promise that by 2015 every child would be at school

    the promise that by 2015 avoidable infant deaths would be prevented

    the promise that by 2015 poverty would be halved.

    In other words promises that rich countries would work with the poor to right the great wrongs of our time.

    The Millennium Development Goals were not a casual commitment.

    Every world leader signed up.

    Every international body signed up.

    Almost every single country signed up.

    The world in unison accepting the challenge and agreeing the changes necessary to fulfil it – rights and responsibilities accepted by rich and poor alike.

    But already, so close to the start of our journey to 2015, it is clear that our destination risks becoming out of reach, receding into the distance.

    The first commitment to be met is that by next year the gap between the chances for girls and boys in primary and secondary education would be closed.

    But we know already that not only are the vast majority – 60 per cent – of developing countries unlikely to meet the target but most of these are, on present trends, unlikely to achieve this gender equality for girls even by 2015.

    And we know one stark fact that underlines this failure: not only are 70 million girls and 40 million boys of school age not going to school today but today and every day until we act 30,000 children will suffer and 30,000 children will die from avoidable diseases.

    At best on present progress in sub Saharan Africa:

    primary education for all – the right to education so everyone can help themselves – will be delivered not in 2015 but 2130 – that is 115 years late;

    the halving of poverty – the right to prosper so each and every individual can fulfil their potential – not by 2015 but by 2150 – that is 135 years late;

    and the elimination of avoidable infant deaths – the right to a healthy life so all have the opportunity to make the most of their abilities – not by 2015 but by 2165 – that is 150 years late.

    For decades Africa and the developing world has been told to be patient.

    To those who say Africa should remain patient, the reply now comes from Africa: 150 years is too long to be patient. 150 years is too long to wait for justice.

    150 years is too long to wait when infants are dying while the rest of the world has the medicines to heal them.

    150 years is too long to wait when a promise should be redeemed, when the bond of trust should be honoured now, in this decade.

    In 1948, with much of Europe still in a state of ruins, the American Secretary of State General Marshall proposed, for his generation, the most ambitious plan for social and economic reconstruction.

    Marshall’s starting point was a strategic and military threat but he quickly understood the underlying problems were social and economic.

    Marshall’s initial focus was the devastation wrought in one or two of the poorest countries but he rapidly realised his plan should be an offer to all poor countries in the neighbourhood.

    Marshall started with a narrow view of aid needed for an emergency but quickly came to the conclusion that his plan had to tackle the underlying causes of poverty and deprivation.

    Marshall’s early thoughts were for small sums of money in emergency aid but very soon his searching analysis brought him to the conclusion that a historic offer of unprecedented sums of money was required.

    He announced that America would contribute an unparalleled 1 per cent of its national income.

    He said that his task was nothing less than to fight hunger, poverty, desperation and chaos.

    His Treasury Secretary argued that prosperity like peace was indivisible, that it could not be achieved in one country at the expense of others but had to be spread throughout the world and that prosperity to be sustained had to be shared.

    And Marshall’s plan – and the unparalleled transfer of resources – not only made possible the reconstruction of Europe but the renewal of world trade and generation of prosperity for both these continents.

    And I believe today’s profound challenges call, even in a different world, for a similar shared response: comprehensive, inclusive, an assault on the underlying causes of poverty, with unprecedented support on offer from the richest countries.

    I believe in 2005 we have a once in a generation opportunity to deliver for our times a modern Marshall Plan for the developing world — a new deal between the richest countries and the poorest countries but one in which the developing countries are not supplicants but partners. And as we advance towards the G7 Finance Minister’s meeting next month and the Heads of Government meeting chaired by Tony Blair in July, our Government calls on all countries to join with us in agreeing the three essential elements of a 2005 development plan for a new deal:

    first, that we take the final historic step in delivering full debt relief for the debt burdened countries;

    second, that we deliver the first world trade round in history that benefits the poorest countries and ensures they have the capacity to benefit from new trade; and

    third – alongside declaring timetables on increasing development aid to 0.7 per cent of national income – that we implement a new international finance facility to offer immediate, predictable, long term aid for investment and development – building on commitments by individual governments, leveraging in additional funds from the international capital markets, raising an additional $50 billions a year each year for the next ten years, effectively doubling aid to halve poverty.

    I make this proposal for a new deal between developed and developing countries because as we meet here today – at the start of 2005 – I am aware not only of the pressures for emergency aid but that the promises we all made five years ago will forever remain unfulfilled unless we act together and act now.

    So 2005 is a year of challenge.

    A testing time as to whether the world can not only provide the emergency aid that is needed now to help the millions affected by the Asian crisis but whether we can wake up to the tragedy of global poverty and all its implications. Whether we can finally live up to the scale of the promises made. Whether we can come together as never before to fashion a new relationship between rich and poor countries and peoples.

    Later this month there will be a special report – the UN Millennium Project Report on poverty – which will provide devastating evidence on the scale of poverty and how far we have still to go.

    Next month under UK chairmanship the G7 Finance Ministers meet to examine what the G7 can do on debt and finance for development.

    In March there will be a personal report by Kofi Annan on world poverty — and the publication of the recommendations of the Africa Commission.

    In April then June special meetings of G7 Finance Ministers will prepare a final paper on debt and development.

    In July Britain plays a special role hosting the G8 summit in Gleneagles.

    Leading to in September the UN Millennium Summit.

    And then it is only a few weeks before December in Hong Kong the world trade talks – what was intended to be the development round for trade – resolving the other great development issue of our time.

    And with the public reaction to the tsunami showing the mood of the British people, I believe this support is growing wider and deeper with already in ‘Making Poverty History’ more than a hundred aid, development, and trade organisations and anti poverty organisations coming together in demonstrations, campaigns, petitions – in challenging Government to make poverty the issue of the year.

    Let me just summarise what I believe can be achieved by our Marshall Plan proposal… that as developing countries devise poverty reduction plans, expand their own development, investment and trade, tackle corruption and demonstrate transparency, we the richest countries ensure justice by taking this year, now, urgently, three vital steps.

    First on debt relief, let us in 2005 make a historic offer that finally removes the burden of decades old debts that today prevent the poorest countries ever escaping poverty and leading their own economic development.

    Whereas in 1997 just one country was going to receive debt relief, today 27 countries are benefiting with $70 billion of unpayable debt being written off, and 37 countries are now potentially eligible, up to $100 billions of debt relief now possible.

    And it is because of debt relief in Uganda that 4 million more children now go to primary school.

    Because of debt relief in Tanzania that 31,000 new classrooms have been built, 18,000 new teachers recruited and the goal of primary education for all will be achieved by the end of 2005.

    Because of debt relief in Mozambique that half a million children are now being vaccinated against tetanus, whooping cough and diphtheria.

    And it is partly because of debt relief that in the past decade in developing countries, primary school enrolments have increased at twice the rate of the 1980s; the proportion of those aged over 15 who can read has risen from 67 per cent to 74 per cent; life expectancy has increased by from 53 years to 59 years; and the number of people living in extreme poverty has fallen by 10 per cent.

    We do not wipe out the debt of the poorest countries simply because these debts are not easily paid. We do so because people weighed down by the burden of debts imposed by the last generation on this cannot even begin to build for the next generation.

    To insist on the payment of these debts is unjust – it offends human dignity.

    What is morally wrong cannot be economically right.

    And when many developing countries are still choosing between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why this year we must make rapid progress and today I want to set out both the principles to govern the next stage and the measures that can be delivered.

    While we have achieved bilateral debt write off, the fact is that up to 80 per cent of the historic debt of some of the poorest countries is owed to international institutions and a solution to the debt tragedy now requires progress on debts owed not just to us but owed to the World Bank, the IMF and the development banks.

    So we propose, first, that this year the richest countries match bilateral debt relief of 100 per cent with the bold act of offering 100 per cent multilateral debt relief – relief from the $80 billion of debt owed to the IMF, the World Bank and the African Development Bank.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by a detailed plan and timetable we now agree to use IMF gold.

    Third, we propose that countries make a unique declaration that they will repatriate their share of the World Bank and the African Development Bank’s debts to their own country.

    I can state that Britain will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank. And we will both deepen and widen our debt relief as we will pay our share on behalf not just of Heavily Indebted Poor Countries but – because their need is just as great – of all low income countries, as long as they can ensure debt relief is used for poverty reduction.

    In the G7 Finance Ministers meeting next month I will be asking other countries to contribute directly or to a World Bank trust fund.

    And I also ask the European Union which deserves credit for more than 1.5 billion euros of debt relief so far to match that generosity with deeper multilateral debt relief.

    Alongside more debt relief, 2005 is the opportunity that may not easily return if missed to agree a progressive approach to trade.

    Economic development is the key to meeting the Millennium Development Goals and long term prosperity.

    And no country has escaped poverty other than by participation in the international economy.

    Our task is and remains helping developing countries build the capacity – the monetary and fiscal policies, the infrastructure, the support for private investment – essential for their development.

    But we also know the damage that rich countries protectionism has done and that the developed world spends as much subsidising agriculture in our own countries as the whole income of all the 689 million people in sub Saharan Africa taken together.

    Fair trade is not simply about the financial benefits, it is also about empowerment and dignity – enabling people to stand on their own two feet and using trade is a springboard out of poverty.

    It is not enough to say ‘you’re on your own, simply compete’.

    We have to say ‘we will help you build the capacity you need to trade’.

    Not just opening the door but helping you gain the strength to cross the threshold.

    So in 2005 we need to make urgent progress.

    First we the richest countries agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy – showing we believe in free and fair trade.

    Second, while recognising that while bringing down unjust tariffs and barriers is important, agree that developing countries receive the support necessary to carefully design and sequence trade reform into their own poverty reduction strategies.

    And third, we have to recognise that developing countries will need additional resources to build their economic capacity and the infrastructure they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty as they become integrated into the global economy.

    We know that after macroeconomic stability, poor infrastructure, lack of transparency, legal problems, poor labour skills and low productivity are key risks and deterrents to both foreign and domestic investment.

    Nor do many countries have the elasticity of supply to react to international market signals. The World Bank estimates that giving 24 of the poorest countries total access to western markets would have no impact on their economies as they would not have the capacity or infrastructure to make use of the opportunity.

    Even today for 12 African countries less than 10 per cent of their roads are paved.

    Telecommunication costs are such that calls from the poorest countries to the USA are five times the costs of calls from a developed country. While water and sanitation underpin health and development, even today 40 billion working hours in Africa each year are used up to collect water.

    And while tariff costs are often highlighted, it is actually transport costs that often constitute a bigger burden of the cost of exporting. With freight and insurance costs representing 15 per cent of the total value of African exports it is difficult for them to be competitive.

    It is also a fact that the informal economy accounts for more than 50 per cent of national income in most poor countries and the International Labour Organisation (ILO) estimates that in Africa 93 per cent of new jobs are in the informal sector.

    So countries need investment in physical infrastructure, institutional capacity -from legal and financial systems to basic property rights and, at root, transparency that avoids corruption – physical infrastructure and, of course, investment in human capital to enable growth, investment, trade and therefore poverty reduction.

    And to secure investment in development we need funds for development.

    2005 can be the year when we free nations from the burden of crippling and unpayable debts and remove unacceptable barriers to trade and private investment but it is clear that we cannot solve the urgent problems of poverty and development around the world without a third step — a substantial increase in resources for development, for investment in the future.

    Making better use of existing aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek but we face uncomfortable facts:

    that while ten years ago aid to Africa was $33 per person, today it has not risen but fallen to just $27;
    that when 80 million African children still do not go to school, all the public spending on education in sub-Saharan Africa taken together is still, per pupil, under $50 a year: less than $1 a week for schools, teachers, books and equipment; and
    that when in Africa 25 million people are infected with HIV/AIDS, with in 24 countries one in every ten of children dying before the age of one, sub-Saharan Africa still devotes only $12 per person per year to public health, a fifth of one per cent that is spent on the health of each individual in the richest countries – which is why the everyday commonplace tragedy is of mothers struggling to save the life of their infant child and in doing so losing their own.

    With the AIDS pandemic average life expectancy in Africa is less than 50.

    And today Ethiopia the scene of Live Aid twenty years ago has 70 million people but only 2,000 doctors.

    So it is clear that we are a long way short of the predictable, regular financing necessary to make the difference that is needed.

    At the UN Monterrey Financing for Development Conference, donor countries pledged an additional $16 billion a year from 2006. For the UK’s part, our level of Official Development Assistance will increase to £6.4 billion – 0.47 per cent of our national income – by 2008. Beyond that we wish to maintain those rates of growth which, on this timetable, would lift the ODA ratio beyond 0.5 per cent after 2008 and to 0.7 per cent by 2013 – and over the next year we plan to ask other countries to join us and nine others in becoming countries which have either already reached 0.7 or have set a timetable towards it.

    But we know that even if one or two of the G7 could overcome fiscal constraints and go to 0.7 per cent tomorrow, we will still not reach the scale of the resources needed to achieve the Millennium Development Goals – at least $50 billion more a year – not in 2015 but now.

    And the truth is that the scale of the resources needed immediately to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer today.

    That is why the UK Government has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through an International Finance Facility.

    And let me just explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional $16 billion already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    And let me tell you the significance and the scale of what I am proposing.
    With one bold stroke: to double development aid to halve poverty.
    $50 billion more in aid a year each year for the poorest countries.

    Think of what it could achieve:

    as many as half of all malaria deaths could be prevented if people had access to diagnosis and drugs that cost no more than twelve cents;
    a quarter of all child deaths could be prevented if children slept beneath bed-nets costing only $4 each;
    $3 more for each new mother could save up to 5 million lives over the next ten years;
    and in total for an investment of $9 billion more a year we could build schools so that every child can get primary education;
    $10 – and preferably $20 – billion more a year could tackle TB and malaria, build health systems and address the tragedy of HIV/AIDS.

    I believe the International Finance Facility has the following advantages.

    First, the IFF would urgently create the scale of funding necessary to invest simultaneously across sectors – providing humanitarian assistance as well investment in education and health, trade capacity and economic development – so that instead of having to choose between first aid and tackling poverty, between health and education, between capacity building in trade and tackling aids, the impact of extra resources in one area reinforces what is being done in others and has a lasting effect.

    Second, the IFF would provide a predictable flow of aid to developing countries so they no longer have to suffer from an up to 40 per cent variance in the amount of aid they receive from year to year which prevents them from investing efficiently in health and education systems for the long term and tackling the causes of poverty rather than just the symptoms.

    Third, the IFF is designed to invest now to prevent problems later – to scale up development aid between now and 2015, enabling us to frontload aid so a critical mass can be deployed as investment now and over the next few years when it will have the most impact in achieving the Millennium Goals.

    Indeed, the fact is that unless we adopt the IFF or a similar mechanism immediately there is simply no other way of meeting the Millennium Development Goals in time.

    The IFF is not only complementary to existing commitments to the 0.7 per cent target – allowing participating countries to take faster steps towards 0.7 by increasing the resources available now – but can be implemented alongside continuing consideration of other proposals to provide financing in the longer term – including international taxes, special drawing rights and other forms of revenue raising on a world wide basis.

    I believe that the advantage of the International Finance Facility I have described is not just that it is a means of providing the necessary resources immediately and thus far faster than other initiatives, but also that we can move quickly with a committed group of countries – not moving at the pace of the slowest but tackling the problem head-on now with those that are prepared to sign up

    And so the practical benefits of the IFF are:

    we provide the support poor countries need straightaway – frontloading investment in infrastructure, education and health systems, and economic development so they can benefit from access to our markets;

    we provide grants immediately to help ensure a sustainable exit from debt so poor countries do not need to choose between emergency relief and long term investment;

    we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future; and

    we advance towards our global goals of cutting infant mortality and maternal mortality on schedule, eliminating malaria and TB and treating millions more people who are suffering from HIV/AIDS.

    Let me give an illustration of what – because of the IFF model – could already be possible.

    The Global Alliance for Vaccines and Immunisation (GAVI) – who have immunised over the last five years not a few children but a total of 50 million children round the world – is interested in applying the principles of the IFF to the immunisation sector – with donors making long term commitments that can be leveraged up via the international capital markets in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over the next ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015 and a further 5 million lives after 2015. And I praise Bill Gates and Bono for their farsightedness – coming together to urge this week a financing proposal for making immunisation available to millions more.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together.

    And there are other possibilities that could change the world.

    Let me say that with proper funds the medical breakthroughs now being achieved in developing a preventive vaccine for malaria could be matched by the farsightedness of an advance purchase scheme that could prevent the loss of more than 1 million lives a year because of this dread disease.

    Only £400 million pounds a year is spent on research for a preventative vaccine for HIV/AIDS, despite the fact that 75 million are affected and 25 million have died. And as we examine what can be done to prevent as well as treat HIV/AIDS it is obvious that with proper funds there could be a similar bold initiative on research and development – to internationalise and advance the research and then to provide support for the development of preventive vaccines…once again showing the possibilities for the Global Fund for health and for building health capacity that the International Finance Facility we propose opens up for the world.

    And if what we achieve for health we could also achieve for schools, for debt relief, for the capacity to trade, for anti poverty programmes, for economic development, think of the better world we can achieve.

    So the aim of the International Finance Facility is to bridge the gap between promises and reality.

    Between hopes raised and hopes dashed.

    Between an opportunity seized and an opportunity squandered.

    And in the forthcoming G8 discussions we will ask all countries to join dozens of countries who have already given their backing to support and sign up to the IFF and we will be setting out a framework within which we can implement it.

    2005 is therefore a once in a generation opportunity. And when people ask whether it is possible to make a breakthrough and say our proposals are too difficult, I say:

    people thought the original plans for the World Bank were the work of dreamers;

    people thought that the Marshall Plan unattainable;

    even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet we are wiping out $100 billion of debt;

    people thought no more countries would sign up to a timetable for 0.7 per cent in overseas development aid and yet this year alone five countries have done so.

    Each of us of course have our respective responsibilities, our very different duties, as politicians, aid organisations, individuals.

    But for all of us an even greater measure of the potential is that in 2000 first hundreds, then thousands, then millions of people first in one country then in one continent, then in all countries, and in all continents came together to demand debt relief and in doing so changed the world. And we can do this again.

    Even today that coalition is not just being reformed but growing in strength.

    And I pay tribute to all of you here today – aid workers, supporters, contributors, campaigners – who are fighting for great causes, standing for the highest ideals, often bearing huge burdens and bringing the greatest of hope to those in the greatest of needs.

    A few months ago I quoted a century old phrase saying ‘the arc of the moral universe is long but it does bend towards justice’.

    This was not an appeal to some iron law of history but to remind people in the words of a US President that ‘the history of free peoples is never written by chance but by choice’ – that it is by our own actions that people of compassion and goodwill can and do change the world for good’.

    Of course it is difficult – as we are witnessing in south east Asia – and there are disappointments and set backs in international development when progress is slow but when we are stalled or set back in our development aims I am reminded of the words of the former Head of the UN

    Dag Hammarskjold who said:

    ‘When the morning’s freshness had been replaced by the weariness of midday…
    When the leg muscles quiver under the strain…
    When the climb seems endless…
    And suddenly nothing will go quite as you wish…
    It is then that you must not hesitate’

    And if we do not hesitate but press on, if we do not allow setbacks to discourage us but let them challenge us to do even more on aid and trade and as a result are inspired to work and strive even harder – our determination not diminished but intensified – I believe that:

    with the scale of the challenge revealed in its starkest form this week and this month summoning us to action;

    with the tsunami showing the capacity of people everywhere to unite in response and with the growth, organisation and now clamour of public opinion calling for action now – ‘the passion of compassion’ – resonating here in Britain and reverberating across all countries; and

    with a determination among world leaders to be bold – shown by united global action over the Asian crisis – the arc of the moral universe while indeed long will bend towards justice in the months and years to come.