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TUESDAY, AUGUST 4, 1992
IT ITS
BECAUSE
FIRST OF ALL, WE SHOULD STICK TO POLICIES THAT HAVE WORKED. WE SHOULD, FOR EXAMPLE, CONTINUE TO BE A LOW-TAX COMMUNITY, AND THAT MEANS LOW TAX ON INDIVIDUALS AND LOW TAX ON BUSINESS. FAIR TAXES AND THAT'S A POINT I'M SURE WE'LL WANT TO DEBATE FROM TIME TO TIME BUT LOW TAXES. IN ORDER TO REMAIN A LOW-TAX HIGH-GROWTH ECONOMY IS IMPERATIVE THAT, WE REMAIN PRUDENT ABOUT PUBLIC EXPENDITURE AND CONTROL.
WE HAVE A VERY CLEAR CRITERION WHICH I INTEND THAT WE SHOULD STICK TO, AND THAT IS THAT PUBLIC SPENDING SHOULD NOT GROW BY MORE THAN THE TREND GROWTH RATE IN THE ECONOMY AS A WHOLE. THE TREND GROWTH RATE IS ABOUT 5% A YEAR, THAT GIVES US ENORMOUS ADDITIONAL RESOURCES YEAR AFTER YEAR TO UNDERTAKE THE SOCIAL AND EDUCATIONAL PROGRAMMES THAT WE WANT. THE PARADOX IS THAT IF WE WERE TO LOSE CONTROL OF PUBLIC EXPENDITURE, WE COULD EASILY FIND OURSELVES GROWING LESS FAST AND THEREFORE HAVING LESS MONEY IN THE LONG RUN ΤΟ SPEND ON THE OBJECTIVES THAT WE ALL SHARE. WE ALSO HAVE TO REMAIN COMMITTED ΤΟ THE PRINCIPLES OF A MARKET ECONOMY, WITH A GOVERNMENT DEDICATED TO MINIMUM INTERVENTION BUT MAXIMUM SUPPORT FOR COMMERCE AND INDUSTRY. BUT WITH A GOVERNMENT AS WELL, DETERMINED TO ENSURE - AS ADAM SMITH WOULD HAVE LIKED US TO THAT WE HAVE AN ECONOMY WHICH OPEN AND COMPETITIVE IN ALL ASPECTS. AND I'M SURE THAT COMPETITION. IS AN ISSUE THAT WE'LL WANT TO DEBATE BOTH INSIDE THE CHAMBER AND OUTSIDE OVER THE NEXT FEW YEARS.
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SECONDLY, THE SECOND PRINCIPLE WE HAVE TO FOLLOW IS TO HAVE THE SELF-CONFIDENCE TO GO ON BUILDING FOR THE FUTURE. THAT DOESN'T JUST MEAN BUILDING OUR INFRASTRUCTURE, THOUGH I'LL RETURN TO THAT IN A MOMENT, IT ALSO MEANS BUILDING OUR SOCIAL AND INTELLECTUAL, AND IN EDUCATIONAL INSTITUTIONS AS WELL AS OUR PHYSICAL FABRIC. I'VE GOT NO DOUBT AT ALL THAT THERE WILL BE AN INCREASINGLY CLOSE RELATIONSHIP IN THE FUTURE BETWEEN THE EDUCATIONAL ATTAINMENT OF COMMUNITIES AND THEIR ECONOMIC PERFORMANCE, AND WE THEREFORE HAVE A CLEAR AGENDA FOR IMPROVING. THE QUALITY OF EDUCATION AND FOR INCREASING ACCESS TO HIGHER EDUCATION, BUT WE ALSO NEED - AND HERE I COME TO A SUBJECT ALREADY FAMILIAR IN EVERY SOUND-BITE WHICH I'M REQUIRED TO GIVE WE ALSO HAVE TO MAKE SURE THAT WE BUILD THE PHYSICAL INFRASTRUCTURE THAT WE NEED. I KEEP ON READING IN THE NEWSPAPERS SPECULATIVE ARTICLES ABOUT MY VIEWS ON THE NEW AIRPORT AND IT MIGHT BE SIMPLE IF I SET THEM OUT TODAY AS PUBLICLY AND COGENTLY AS I CAN. MY VIEWS ARE SIMPLE THEY ARE THREEFOLD.
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