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Mr. Robert N. Wareing (Liverpool, West Derby): Will the Prime Minister give way?

The Prime Minister: I should like to make a little progress now, and I trust that the hon. Gentleman will permit me to do so.

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I have set out the platform for prosperity that we now have, but it is not a platform that the country can afford to take for granted. Getting there has not been easy. The policies that picked Britain up from its knees were fought tooth and nail by the Labour party, and those who fought them are not the people to build on them in future.

As the Leader of the Opposition said, we still face many challenges--harsher competition from all over the world threatening jobs and security, a growing elderly population in need of care, tidal changes in technology and rapid social change.

Conservatives are clear about how to deal with those problems. First, we have an unswerving commitment to an enterprise economy. That means low taxes, for the economic benefits they bring. It means incentives to encourage investment and create wealth, policies to increase personal prosperity and choice, and Government accepting that they should not always interfere. There are times when Governments do damage by interfering. In short, ours are policies to make Britain the enterprise centre of Europe.

Mrs. Alice Mahon (Halifax) rose--

The Prime Minister: I shall not give way to the hon. Lady now, but perhaps I shall a little later.

Opposition Members will hate our policies, because they hate choice. In their hearts, they hate the private sector, and believe that our great public services can be built only by higher taxation. As usual, they are wrong. People do not want, and in the 1990s they do not need, every choice to be taken for them by the Government or by some other central bureaucracy.

Of course, there will always be a role for the state. I do not favour a totally laissez-faire attitude in society, any more than I want a nanny state. Conservatives have always accepted the social obligation to care; so do the Government, and so will Conservative Governments after the next election. But we need those who can do so to care for themselves. For those who cannot, there must be the help that only an enterprise economy can pay for.

We care for our public services--schools, hospitals and welfare. I grew up dependent on those, just as people do today--and unlike some Opposition Members, I do not intend to kick away the ladder that I climbed as a boy. But to build our public services, we need growth, not high taxes. Growth is built on policies for enterprise, not on the policies of envy and spite that ignite Opposition Members.

We must also win the war against crime, protect the stability of the United Kingdom and stand up for our sovereign interests abroad. In the future, as in the past, that will mean tough action to deliver safety and security.

Mrs. Mahon: As the Prime Minister was talking about public services and choice, is he aware of the serious problem facing people in Calderdale and Kirklees, who face having their water cut off in a few days? Why was there no provision in the Queen's Speech to try to prevent that from ever happening again? This is a first-world country, so why is the greedy, incompetent privatised Yorkshire Water allowed to run that company? When will the Prime Minister take responsibility for the delivery of free clean water to the people of my constituency?

The Prime Minister: In addition to everything else, the Opposition have a policy to make it rain when it is

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convenient. We have just heard from the hon. Lady the absolute instinct of the Labour party to oppose the private sector whenever it can. Were there never problems in the old nationalised water industry? Of course there were.

A year ago, I spoke about the changing situation in Northern Ireland. Since then, the ceasefire has held, and there is a new atmosphere in Northern Ireland. There is a new situation: a growing economy, more jobs, policemen patrolling without armed soldiers in tow; in a word, Madam Speaker, peace. For weeks--and for, I believe, negotiating purposes--Sinn Fein has been declaring a state of crisis. It has warned--but it tells us that it is not a threat--that violence could return unless the other parties come rapidly to the negotiating table. But violence does not return of its own accord, like the daffodils in spring.

If Sinn Fein is committed to exclusively peaceful methods--as its leaders claim it to be--there can be no question of violence returning. Let Sinn Fein say that unequivocally. If its commitment is real, threats and thuggery should stop. The killing has stopped, but much else has not. A 16-year-old girl is dragged from her home in west Belfast by masked men, tied to a lamp post and assaulted. Her hair is cropped, and paint is poured over her. A 67-year-old woman from Londonderry is taken to hospital in shock when seven self-proclaimed provisionals with baseball bats break in and smash her house.

That may not be murder, but it is not peace, and it is not behaviour which merits Sinn Fein's entry to talks. I want Sinn Fein to denounce such behaviour and to stop it. I have given Mr. Adams and Mr. McGuinness the freedom to appear face to face on the media and express their views. Let them do so, and express their opposition to the punishment beatings which go on day after day after day in Northern Ireland.

Almost every day brings a fresh atrocity--there have been 250 since the ceasefire. Each assault, each threat, each so-called warning puts a question mark in the minds of reasonable people. I wish to move forward to negotiations involving all parties, including Sinn Fein. I believe that we can, and I shall work for that, but it will need good will and trust. We cannot move forward at any price, and we cannot move forward with a gun held to our head. The road to peace will be open if those erecting road blocks remove them, and I hope they will.

Rev. Martin Smyth (Belfast, South): I agree with the Prime Minister. There was a recent case in Londonderry when individuals took refuge in the cathedral. Martin McGuinness--who had directed people involved in the stoning of houses--also directed those who wanted to put pressure on the bishop to remove those individuals from the cathedral. When a ship is decommissioned, it is not only put out of service but its crew is scattered. Until the IRA battalions are scattered, there can be no lasting peace.

On the 10th anniversary of the signing of the Anglo-Irish Agreement, may I point out that the methodology of the agreement still denies people the right to equal citizenship which is at the heart of the Gracious Speech? I yearn for the day when the people of Northern Ireland will be able to put forward an elected representative to negotiate a way forward.

The Prime Minister: We all look forward to the day when the road is open, not just for the preliminary talks

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we are looking at currently, but beyond them to the round table talks between all the constitutional parties which can find a proper settlement in Northern Ireland. I look forward to that day, and I pledge to the House that I will continue to work for that day--but not, as I indicated a moment ago, at any price.

Dr. Joe Hendron (Belfast, West): I totally agree with the Prime Minister's comments on the punishment beatings by both sets of paramilitaries. But on a slightly different aspect, bearing in mind the fact that the promotion of jobs in Northern Ireland is mentioned in the Gracious Speech, that the Prime Minister has played a noble role in the peace process in Northern Ireland and that he is aware that the Republic of Ireland has a 10 per cent. corporate tax which helps the Irish Government and the business people in the Republic of Ireland to attract investment from the United States and elsewhere, will the Government consider introducing a 10 per cent. corporate tax in the north of Ireland, in order to treat both parts of Ireland equally and to help to attract inward investment? I bear in mind the Prime Minister's conference in November, when I had the pleasure of hearing him, and I congratulate him once again on that. Surely the introduction of a 10 per cent. corporate tax in Northern Ireland would be a big step forward.

The Prime Minister: I congratulate the hon. Gentleman on his special pleading--a special pleading with which I am familiar from my visits to Northern Ireland. Northern Ireland enjoys a number of other advantages not enjoyed in the south or elsewhere. One must consider the position in the round. Not only would the hon. Gentleman be surprised, but the House would be astonished beyond belief, if I were to deal with such tax measures on this occasion. [Interruption.] I fear that, despite the tempting invitation from the shadow Home Secretary, I have no intention of doing so.

Our commonsense, practical programme of traditional Conservative values is set out in the Gracious Speech. The centrepiece of our economic strategy will be unveiled later this month in the Budget. It will show our determination to turn Britain into the enterprise centre of Europe. As I said a moment ago, I do not intend to anticipate its contents, but it will be consistent with sound public finance and our resolve to move further towards a more enterprising economy. We have brought public spending under control. We will reduce it further, and, when prudent, we will cut taxes on companies and individuals.

For Britain to compete in tomorrow's world, more of our young people will need to be taught and trained in the skills and knowledge of the new century. Already, our education reforms offer parents more choice and pupils more opportunity. Up and down the country, parents are choosing grant-maintained schools for their children. That is excellent news. We will ensure that those highly popular schools can grow to reflect parents' choice in the future, as I believe they will.

I have given a commitment to make a nursery place available for every four-year-old in the country.


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