Why governments' attempts to pick winners produce more losers than winners.
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I am delighted to have the opportunity to make this contribution to your conference, and I wanted to accept the invitation - not so much to discuss day to day policies, but to take the chance to explore the broader themes that underpin the new UK government's approach to the challenges ahead, an approach that I believe has lessons beyond our own borders.
Indeed, I am sure that from wherever in the world you do business or report the news, recent weeks will again have demonstrated what we all know - that the size the speed and sheer ingenuity of global markets make them more dynamic and more volatile than their old national counterparts.
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Mr Lord Mayor, Mr Governor, My Lords, Ministers, Aldermen, Mr Recorder, Sheriffs, ladies and gentlemen
I am delighted to be here at the Mansion house, to thank you Lord Mayor for your kind introduction to me and to thank you also for your toast to the prosperity of the public purse and to my health.
This Lord Mayor's dinner to the bankers and merchants of the City of London has been an event that has prospered for 120 years.
And over this time the bankers and merchants of the city have had to continuously adapt to a fast changing and now global marketplace.
London is a city that is creative and responds to change. It has excelled because of the hard work and skills of its workforce and these are the essential British qualities - creativity, adaptability, a belief in hard work, fair play and openness.
And the city is open and outward looking: London is home to more foreign banks and financial organisations than any other city worldwide; there is more international equity trading on the London stock exchange than any other exchange.
And London's role as an international financial centre is reflected in the guest list for tonight's dinner which includes people from across the globe and I welcome you all here tonight.
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To be here in Belfast at this historic moment of opportunity for the people of Northern Ireland is a privilege in itself.
And I am honoured to be able to pay tribute to all those who, not just by their participation in the peace negotiations of recent weeks, but in their everyday actions over many years have brought us closer to peace.
From a country that has not known a single year, a single month, a single week, in which mothers have not wept for their sons or daughters, we now have, in our grasp, an opportunity that a few years ago only poets could dream of and church leaders could pray for-a lasting peace.
The greatest honour history can bestow is that of peacemaker.
And we owe a debt of gratitude to all those who have played their part in working towards peace. And I am particularly pleased to be here today alongside someone who, with Tony Blair, has done more than anyone else over twelve long and difficult months - Mo Mowlam. And I am pleased to be here with her and also with Adam Ingram who is working closely with her.
And hopefully - when the decision is completed - some years from now we can look back and say in the words of Robert Frost, the American poet:
I can say somewhere ages and ages hence two roads diverged in a wood and I took the one less travelled by and that has made all the difference
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I am delighted to be here at the park lane hotel today at this the first conference of the British American business council to be held in the United Kingdom.
I am pleased that so many distinguished businesses are represented here today and indeed also the American ambassador to London, Philip Lader, whose work here is much valued.
And as someone who already knows a great deal of your work, not least from addressing the British American chamber of commerce in new York in December, I want to congratulate all of you, from the 27 member organisations representing 3,000 companies and billions in trade between our two countries who are making the British American business council one of the strongest voices for transatlantic cooperation. And at the start of a week that will be decisive for European economic history, as we prepare to inaugurate a single currency, I want, in the context of a new Europe, to talk not just about relations between Britain and America but about the development of relations between Europe and America.
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I am delighted to be with Donald Dewar at the launch of Scotland's new business forum.
The creation of the new Scottish business forum brings in the biggest change in the government's approach to business consultation since the introduction of the Scottish economic council in 1971 and it reflects the new challenges for Scotland of a changing global economy.
In the 1960s when the old Scottish economic planning council, later known as the Scottish economic council, was formed, Scotland led the way in a new generation of regional policy, whose central objective was to raise the level of incentives for capital investment. Today I believe Scotland can lead the way again, to a new understanding of how there can be better relations between public and private sectors and to a new generation of regional policy.
In fact for far too long political arguments about our economy have focussed on how here in Scotland we divide the cake, about how we spend money, about the relative shares between public and private sectors rather than what we have to do to increase our wealth and our productive capacity as a country, and how public and private sectors can work far more effectively together
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I am grateful for the opportunity to address this CBI Dinner tonight, to be able to thank you as business Leaders of Britain for the contribution you and your companies make to the success of Britain at home and Abroad.
When I spoke to your conference in Harrogate in the Final months before the general election of the need to modernise government's relations with business we Agreed that we needed as our building blocks:
And the government has already mad a start:
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Since I took over as Chancellor I have always said that a commitment to stability and prudence as well as work and enterprise will be the watchwords of this Government.
That is why we have set in place a long-term framework for interest rate decisions to keep inflation low as the platform for jobs, growth and prosperity.
That is why we are committed to the golden rule for prudence in public spending and why I have set out a tough five year deficit reduction plan to which this Government will rigorously adhere.
We will not make the mistakes of previous Labour Governments who failed to control spending and then had to cut back.
And we will learn the lessons of the late eighties where the public finances and the economy's ability to sustain growth were misjudged, plunging us into the longest recession since the war.
So the Budget on 17 March will not be a Budget with quick fixes for the short term. The Budget will be an investment Budget for the long-term, laying the foundations to build a more dynamic and successful economy.
We will not sacrifice our spending discipline and commitment to prudence - instead there will be consistency to ensure long-term prosperity.
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Today marks the start of a new deal for Britain's young. A new beginning in the war against poverty, and the first step in the modernisation of the welfare state in Britain.
It's the labour government's 1998 new year's resolution for Britain - to help our long-term unemployed back to work and to give them the skills they need.
Here today from Dundee and Tayside we launch the first of twelve pilot programmes offering jobs and training to every young person six months out of work.
From April, every long term unemployed young man or woman under 25 will be offered the new deal options of work or training.
A total of 3 billion pounds is being invested in jobs.
It is not just the young who will benefit from the new deal.
From June, employers will be offered a 75 pounds a week subsidy to take on the long-term unemployed.
During 1998 lone parents with their youngest child at school will be offered help to find work.
And from this year too disabled men and women, denied the right to work for too long - will be given new opportunities to work.
The old deal - of paying people a few pounds in benefit and then forgetting about them - failed the unemployed and failed Britain.
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It is a pleasure to be here this evening at the CBI dinner to give my first speech outside Westminster since I became Chancellor.
You are the leaders of British business and industry and through your dynamism, creativity and hard work - and that of your employees - you hold the key to the future success of our country. So I could not have chosen a more appropriate audience with whom to share tonight, my vision for the long- term future of Britain, and the practical steps the Government will take to equip us for that future.
Every successful business man or woman has always planned for the long term. And in our modern global economy, of massive international trade and capital flows and rapid technological change, long-term vision is now more important than ever before.
This is as true for governments as it is for business. Too often in the past, British business has been let down by the short-termism of governments. This Government will match the long-term commitments British industry makes to long-term British success.
So under this Government there will be no unsustainable dashes for growth, no out-of-control booms no risk-taking with inflation, no quick fixes, and no short-term manipulation of the economy for political ends. Our commitment is to the long term .
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1. I am pleased to attend the Lord Mayor's dinner here at the Mansion House.
2. An annual dinner that has been going since mid-Victorian times, celebrating an institution, the Corporation of London, that has lasted since the 11th century.
3. Tonight a third of our guests are from overseas, including from Frankfurt, New York, Japan and Hong Kong.
4. A clear example of the internationalism, the openness and global reach of the City today and an illustration of how the City has changed in response to changes in the economy around it.
5. And I am pleased to speak alongside, not only the Lord Mayor, whom I thank for his invitation, but also the Governor of the Bank of England.
6. The City of London has established itself as one of the world's greatest financial centres for over three hundred years.
7. At each stage the City has continued to respond imaginatively to the need for change: from the days in the 17th century when Edward Lloyd discovered the post office had become a better source of shipping information than the waterfront and moved his coffee house from the docks to Lombard Street; to today, when face to face contact, telephones, and ledgers have been replaced by computer screens and electronic information.
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We need an informed national debate about the economic issues facing Britain in Europe. And today I want to present the case for Britain taking a leading role in Europe and to argue for policies that will enhance Britain's economic interests.
There are three future roles possible for Britain in Europe:
And I believe that the case for being in and playing our full part in Europe reflects our history and the reality of our position in the new world. For as I will suggest, Britain has been and will remain a European power; our distinctive British qualities have much to offer Europe in our national interest and in Europe's interests; and we have a concrete, practical British agenda to do so.
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First, let me thank the Mauritian Government and, in particular, our Chairman today, Dr Bunwaree, for the warmth of their welcome and their kind hospitality.
The Commonwealth is a unique asset. It brings together countries from all over the world and at all stages of development. We learn from each other: we do not lecture each other. This is my first meeting and I have the privilege of speaking early. Let me spell out my thoughts. Then I can look forward to hearing your ideas and resolving how best to achieve our Commonwealth objectives.
The timing of these meetings is as fortuitous as is the location. Many of us will move on from here to Hong Kong for the annual meetings of the IMF and the World Bank, where we will consider a range of issues, including debt relief.
Yesterday my colleague from Botswana called on me to say how we could take forward work on debt relief for highly indebted poor countries. I am happy today to rise to that challenge.
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Today's launch is the most significant development that London markets have experienced since "Big Bang" 11 years ago.
"Big Bang" brought electronic share price information which enabled telephones and computers to replace face-to-face trading. Today's event is a further step, perhaps an even more significant step - a fully-automated way of trading shares, first for FTSE 100 companies, but destined to expand.
It demonstrates the Stock Exchange's commitment to the continuing technological evolution that is essential to maintaining London's position as one of the world's top three equity markets.
Staying ahead in today's financial markets means constantly harnessing and adapting the power of rapidly advancing technology.
And today's launch of the Stock Exchange's electronic order book is about applying new technology.
But it is about something much more than that - it is about City firms and institutions working together to remain competitive and to help ensure that the UK economy remains competitive.
The City and the UK financial services industry require three other crucial ingredients:
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With permission, Madam Speaker, I want to make a statement on Economic and Monetary Union.
Since the end of the Second World War Britain has faced no question more important and more contentious than that of our relationship with Europe.
Divisions within governments of both parties, and hence indecision, have made British policy towards Europe, over many years, inconsistent and unclear.
The economic consequences of these weaknesses have been a loss of international initiative and influence, recurrent instability and continuing questioning of our long-term economic direction.
To break with this legacy, and to establish clear national purpose, which has eluded us for decades, economic leadership is essential, and Britain must now make the difficult decisions on Europe, however hard.
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I am grateful for the opportunity to address the CBI conference, to be able to thank you as business leaders of Britain for the contribution you and your companies make to the success of Britain at home and abroad, and to be able to agree with the CBI that to equip ourselves for the future, and to build the national economic purpose this country longs for, we need as our building blocks for prosperity:
Now when I spoke to you last year we were agreed on the need for a credible framework for monetary stability for the long term.
Our decision on our first Tuesday of government to make the Bank of England independent, and to set in place a more open and accountable system of monetary decision-making, not only implemented one of the CBI's own proposals, but it has in my view already given consistency confidence and credibility to monetary policy making.
I believe we are agreed it is right to take these decisions out of politics, and to free them from short term political pressures. Our aim, business' aim: in place of stop go long- term stability.
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Let me say what a privilege it is to be at this annual general meeting, to be here to discuss with you some of the great social and economic challenges we face together in Britain today.
And I want to start by congratulating you, the staff and supporters of Centrepoint, on this the twenty eighth anniversary of Centrepoint - on all the work you do, the service you offer, the time and hours you give up and the dedication and commitment you show.
If ever there was a confirmation that community involvement and social commitment is alive and well and thriving in London and in Britain, it is the work of Centrepoint and all its sister projects to combat not only homelessness, but hopelessness.
This year, tragically, Centrepoint has lost a loved, respected and deeply committed patron - Diana, Princess of Wales.
And I want to assure you that the committee to commemorate and continue her work that we are setting in being today and the charity advisory group that will be announced later will have a membership that reflects her life and her work as the people's Princess.
And our task will not only be to provide a lasting memorial to her work. It will also be to look at how, in very practical ways, we can help the work that she started continue and flourish.
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My Lord Mayor, Mr Governor, my Lords, Aldermen, Mr Recorder, Sheriffs, ladies and gentlemen.
Over the ten years that I have had the privilege of addressing you as Chancellor, I have been able year by year to record how the City of London has risen by your efforts, ingenuity and creativity to become a new world leader.
Now today over 40 per cent of the world's foreign equities are traded here, more than New York:
So I congratulate you Lord Mayor and the City of London on these remarkable achievements, an era that history will record as the beginning of a new golden age for the City of London.
And I believe the lesson we learn from the success of the City has ramifications far beyond the City itself - that we are leading because we are first in putting to work exactly that set of qualities that is needed for global success:
http://www.guardian.co.uk/politics/2008/sep/23/gordonbrown.labour1
I want to talk with you today about who I am, what I believe, what I am determined to lead this party and this great country to achieve.
As we gather here today I know people have real concerns about the future of the country, the future of the economy and people in this hall have concerns about the future of our party too.
And so I want to answer your questions directly, to talk with you about how amidst all the present difficulties we should be more confident than ever that we can build what I want to talk to you about today. A new settlement for new times. A fair Britain for the new age.
But let me start with something I hope you know already.
I didn't come into politics to be a celebrity or thinking I'd always be popular. Perhaps, that's just as well. No, 25 years ago I asked the people of Fife to send me to parliament to serve the country I love.
And I didn't come to London because I wanted to join the establishment, but because I wanted and want to change it.
So I'm not going to try to be something I'm not.
And if people say I'm too serious, quite honestly there's a lot to be serious about - I'm serious about doing a serious job for all the people of this country.
What angers me and inspires me to act is when people are treated unfairly.
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President Kufuor, President Kagame, distinguished guests.
Today the most dynamic and far-sighted of the world’s business leaders have come together to lead the world in change.
We are agreed that the worst of injustices demand the most strenuous of our efforts.
And that the greatest of wrongs require nothing less than the united endeavours of the whole global community — business, governments, faith groups and non-governmental organisations all working as one.
And that is the reason for this historic meeting today - for business and government to join the Call to Action and for us to dedicate ourselves to work together to eliminate, in our time and in the poorest of countries, the worst of deprivation and poverty.
Our aim: to meet the world’s Millennium Development Goals.
So great is the distance we still have to travel to achieve them that they can only be met by each of us playing our part.
For we know that, without an extraordinary effort, we will fail.
Our Millennium Development Goal is to reduce infant mortality by two-thirds, but so far do we still have to go that, unless we act now, it will not be met by 2015, not even by 2030 - not, in fact, until 2050.
Our Millennium Development Goal is primary education for every child, but unless we act now it will not be met by 2015, not even by 2050, but by 2100 at best.
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It is a pleasure to be here in New York today.
Coming here six years after September 11th I recall the resilience and bravery shown in this city in the face of tragedy.
Indeed, America has shown by the actions of all its people that while buildings can be destroyed, values are indestructible; and while lives have been put at risk, the cause of liberty never dies.
And let me begin by thanking the UN Secretary General warmly for the work he is undertaking to bring peace to the troubled region of Darfur.
For today is an important decision day for Darfur - and for change.
The situation in Darfur is the greatest humanitarian disaster the world faces today.
Over 200,000 dead, 2 million displaced and 4 million on food aid.
Following my meeting with President Bush, and I thank him for his leadership on Darfur, the UK and the French have now, with US support, agreed and tabled a UN Security Council resolution that will mandate the deployment of the world's largest peacekeeping operation to protect the citizens of Darfur.
And I hope this plan - for a 19,000 African Union-UN force - will be adopted later today.
"I certainly do assume that official decisions do not gain in honesty and moderation by being arrived at collectively; for apart from the fact that, in the case of voting by majority, arithmetic and chance take the place of logical reasoning, that feeling of personal responsibility, in which lies the essential guarantee for the conscientiousness of the decision, is lost directly it comes about by means of anonymous majorities", Reflections and Reminiscences (1898)