20 June 2003
Prime Minister Tony Blair has said those issues to do with tax, foreign and defence policy will remain the prerogative of the UK Government and Parliament.
Mr Blair made his comments at the European Council meeting in Greece, where discussions took place on the work of the Convention on the Future of Europe.
Read the transcript of the press conference after the meeting
Prime Minister
First of all let me say a few words about the European Council. First of all I would like to welcome very much the Strategy Paper on Defence and Security Policy which is very much in line with British thinking, emphasises the importance of the transatlantic alliance, emphasises the importance of dealing with the issues of weapons of mass destruction, and the need to take tough action against international terrorism.
Secondly, in relation to issues to do with asylum and immigration, gives us a greater opportunity to take the action that we need, not just in our own countries but also the European Union, to try and make sure that we doubt those asylum claims that are not genuine asylum claims, and also that we can return people to their countries of origin should their claims fail in an easier manner.
And thirdly in relation to the European Convention where I think the document that has now come out of the work that has been done by the European Convention gives us a good basis for the Inter-Governmental Conference that is now going to discuss it in detail. And I have to say that of particular importance to us is the recognition expressly, as was repeated by the President of the Convention again, that what we want is a Europe of Nations, not a federal super state, and that issues to do with taxation, foreign policy, defence policy, our own British borders will remain the prerogative of our national government and national Parliament. I think that’s immensely important. So although there are still issues that need to be decided in that Inter-Governmental Conference, I think this gives us a very good basis for the discussions.
Question and Answer Session
Question
Prime Minister, could I just ask you about one area of policy you want to keep sacrosanct, tax and what Peter Hain has said today. Do you agree with him that too many middle-income people are paying too much tax and that it is time to shift the burden to higher income people?
Prime Minister
Well I think from what I’ve seen, and obviously I’ve just been reading some of the press cuttings on it, I think people are getting somewhat over-excited about this. Tax policy is not going to change, we are not going to be raising the top rate of tax. It’s important to realise that tax rates have actually fallen - basic income tax rates - over the last few years and the one percent National Insurance rise that we’ve put in, which applies right up the income scale, is a very, very specific tax rise to fund the National Health Service and those plans are adequate to fund the National Health Service in the way that we have described and also, contrary to what I was reported as saying earlier in the week, I was not talking about raising tax either.
Question
Is he right to raise this now and say that we need a debate, need to think about it?
Prime Minister
Well I’m sure there will always be a debate about these things but the government’s policy is clear. We are not raising the top rate of tax. The tax rise that we have put in, the National Insurance rise of one percent, is for the National Health Service, is adequate for that task in order to fund the Health Service properly, stop people being forced to take out private medical insurance and the tax policy will be announced in the normal way by the Chancellor in his Budget.
Question
Peter Hain’s a new Cabinet Minister, been promoted in the Cabinet by you, and he is clearly going against what you have just said. Should he go ahead and cancel his speech this evening?
Prime Minister
Well you say that, and all I’ve seen is some of the press cuttings out of it, but it seems to me that what I’ve just said to you is very, very clear and as far as I can make out from, as I say, what I’ve seen in the press, he’s making it clear too that tax policy is a matter for the Chancellor in the Budget, and I’m sure there will be a debate about lots of these things, but I’ve set out the position for you I think very clearly.
Question
You can’t be too pleased with him though, can you?
Prime Minister
Well, you know, what I think is actually important is to make sure that we have a policy that is clear, which I’ve just stated to you, and also that we recognise of course there will be debates, and people are perfectly entitled to have debates, but in the end for the government, the government has got to decide its position, and the government’s position is clear, and we took the decision a long time ago on top rates of tax for a very simple reason.
If you look right round the world it’s very important now for countries like ours to maintain our competitive position. Now the fact is we are, as Peter Hain was saying, we are increasing the support we are giving to lower income families. The Working Families Tax Credit has been a massive boost for many, many families. One of the reasons why we have got I think the lowest unemployment rate now in the whole of the western world in terms of the major industrialised countries is precisely because we’ve been boosting the incomes of lower income families and making it worthwhile for them to work.
Question
Could I ask you a question on the Convention. Is it quite clear that this is a starting point and what are the things that are in there that you would like to get out, or weren’t allowed to go through?
Prime Minister
Well, there are certain issues that we need just to be very, very clear on, because let me make one thing plain to people, because there’s so much misinformation in certain parts of the media. There is no way Britain is going to give up our independent sovereign right to determine our tax policy, our foreign policy, our defence policy, our own borders. So there’s nothing that we would agree to that would put at risk any of that. What I think on the other hand we have got to recognise however is that this Convention is basically come out from most of the British position, and therefore it would be truly bizarre if we were in the position of disagreeing with the Convention as a basis for the Inter-Governmental Conference, indeed most of the criticism of the Convention was criticism being levelled by countries that wanted far more of a federalist solution, or want more qualified majority voting. So I just think it is important to recognise that we have our red lines, they are very well established, but we are actually succeeding in maintaining them.
Question
I wonder if I could ask you about Aids. You and President Chirac were both clear that you wanted the EU to pledge that billion a year to the Aids Fund. Now Data - the group founded by Bono and Bob Geldorf - are saying that the language in the draft communiqué falls far short of that, saying that merely up to a billion for 2004 wouldn’t be enough and they are also saying that Britain’s commitment is much, much lower than France’s.
Prime Minister
Firstly, I totally agree. I would like us to commit to matching a billion dollars, but we’ve got 25 countries sitting round the table, and decisions have got to be unanimous and I think that we may find that some countries, because of their budget problems, aren’t prepared to commit to that. Britain’s commitment to the Global Health Fund has been increased significantly and also obviously we have got our own Aids programmes, bilateral Aids programmes, that amount to hundreds of millions of pounds a year and as you know Britain has raised its contribution to Africa specifically, virtually trebling it now, or it will be trebled in a couple of years’ time, so I think our own commitment from Britain is very, very clear and Britain and France would like the European Union here to commit to matching the US completely - to the billion dollars, but I know there are some countries sitting round the table who in all likelihood won’t agree to that. So I think at least if we keep the door open by saying up to a billion dollars, then it is a significant advance on which we might have expected but if we can achieve more we will achieve more and obviously that’s what we will be arguing for.
Question
Prime Minister, could I just ask you one final question on the Convention. I understand the position on a Referendum, but if you were to hold a Referendum on the terms that you think you will get out of this Convention, are you confident that you would actually win it?
Prime Minister
Well, it’s a sort of hypothesis built on a hypothesis. We do not require to have a Referendum because it does not alter the fundamental constitutional relationship between the nation state and the European Union, so there’s not much point in speculating on what might happen if we did.
Question
But do you think it would get the backing of the majority of British people. Because at the moment if you see the Opinion Polls, they say no.
Prime Minister
I think I’ve just answered that one. I think what is important however on the Convention and on the European debate - and this is your responsibility as well as my responsibility frankly - is that we at least have a debate on the basis of fact. When I read in certain papers that the effect of the Convention is to give away Britain’s right to conduct its own defence or foreign policy, of course if people read that and believe it, they would be very worried about it, but it doesn’t, and those that wanted to make foreign and defence policy the prerogative of the Brussels Commission were defeated, and I think it is quite important that we in Britain, when we enter into these European debates and win them, that we recognise that we have won them rather than looking for reasons to cavil at a result we should actually be very, very pleased at. And I think again what has been interesting here, and this is just a broader reflection, is that with the 25 countries this is the first time we have come to a Council and the 25 countries have been there right from the very beginning, there is no way that Europe can work efficiently at 25 unless we make changes. Absolutely no way at all, and that’s why it is important to realise that if we want an enlarged Europe to be a success, some changes are necessary, and provided those changes don’t touch our essential red lines to do with effectively our ability to be an independent sovereign nation state, we should be willingly entering into this debate in Europe, not holding back from it, and I think particularly following the announcement we made on the single currency there is a far greater sense within government and I hope out in the country too, that we are going to take this debate out to people, I’m confident that we will win it, I believe that when the British people really reflect upon Europe they will realise that for Britain to marginalise itself in Europe would be a huge mistake, and a betrayal of the proper British national interest.
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