Introduction

With permission, Mr Speaker, I would like to make a Statement on the G8 and NATO Summits which I attended in America last weekend.

The common theme across both summits was economic stability and international security.

At the G8 we reached important conclusions on dealing with our debts, growing our economies and dealing with the risks in the Eurozone.

Let me take each in turn.

Fiscal consolidation 

Mr Speaker, deficit reduction and growth are not alternatives.

You need the first to deliver the second.

There was absolutely no debate about this.

It was my view.

It was Chancellor Merkel’s view.

It was President Obama’s view.

And it was President Hollande’s view. Indeed, France will balance its budget at a faster rate than Britain.

In Britain, in two years, we have cut the deficit we inherited from the last government by more than a quarter.

And our approach has been endorsed again by the IMF this week – and by the OECD.

Growing our economies 

At a time of tight budgets, a proper growth plan requires – not just a credible fiscal policy which secures low interest rates but also structural reforms to make our economies more competitive with an active monetary policy and innovative use of our hard won credibility to ensure investment in long term infrastructure.

We are taking all these steps in the UK and promoting them in Europe as well and in every area we need to do more.

Prime Minister Monti and I have gathered 10 other EU leaders to call for the completion of the single market in digital and services.

President Hollande is coming forward with creative proposals such as project bonds.

And, as the House knows, in recent months the ECB has helped supply liquidity to European banks.

I will be pursuing all of these elements at the Informal European Council tonight – and at the formal council in June, after which I will of course be making a statement.

Growing our economies also means doing everything we can to get trade moving.

At the end of the G8 meeting there was a serious and substantive discussion about the potential for an EU-US trade deal.

The EU and US together make up over half of the world’s GDP.

There is a huge amount of work to be done – and a further effort will be made around the G20 next month – but this could have a positive impact on both sides of the Atlantic.

 Risks in the Eurozone

Mr Speaker, the greatest risk facing the Eurozone is the situation in Greece.

The future of Greece is for the Greek people to determine.

It is for them to decide what is best for their country.

But we can’t afford to allow this issue to be endlessly fudged and put off.

The Greek election should in effect be a straightforward choice between staying in the Eurozone – with the responsibilities that entails or taking a different path.

The Eurozone – and Europe as a whole – needs to have contingency plans in place for both eventualities.

This should involve strengthening banks, protecting financial systems and ensuring decisive action by European institutions to prevent contagion.

Mr Speaker, I can tell the House that whatever the outcome, this government will do whatever is necessary to protect this country and secure our economy and financial system.

Other G8 issues
 
Alongside the discussion on the economy, I had two further priorities for this G8 to continue the good work of the G8 on development and to support the Arab Spring and the promotion of democracy and freedom.

Development

On development, the New Alliance for Food Security and Nutrition is an important initiative that aims to help 50 million people lift themselves out of poverty over ten years.
 
For countries to receive help they need to show a real commitment to transparency and good governance.

And in return they get substantial support to generate private sector investment in food production.

This is a great combination of promoting good governance and helping Africa to feed its people.

And I’ll be building on this with a major event on food security during the Olympics.

Encouraging the private sector to create jobs is one of the best routes to sustainable, equitable growth in poorer countries.

But aid still has a vital role to play.

Mr Speaker, for the first time in a decade the amount of aid given by the world’s richest countries to the world’s poorest countries has fallen back.

Promises are being broken.

This is wrong.

Britain continues to honour its commitments. Other nations should do likewise – and in our G8 next year we will once again produce the report which shows who has and who hasn’t.

Freedom

The G8 also reached important conclusions on Libya, Iran and Syria.

Specifically on Syria, there was backing for the Annan Plan – and for further UN measures if Assad doesn’t change course.

And it was significant that the Russians agreed to this.

I raised Burma and the need to support the foundations of a lasting and irreversible transition to democracy.

I’ll be making this a feature of our G8 next year.

And I’m sure the whole House will look forward to welcoming Aung San Suu Kyi when she addresses Parliament next month.

NATO

Mr Speaker, let me turn to the NATO Summit.

Some people write off NATO as a relic of the past.

I believe it is vital to our future security.

The threats NATO countries face largely come from beyond our borders.

Failed states. Terrorism. Nuclear proliferation.

Because of this, it makes sense for NATO to be prepared to link up with partners around the world to act out of area and to spend less on the weapons of past conflicts like battle tanks and more on the technology needed for tomorrow.

All of these things were agreed at the Summit.

That’s not to say NATO shouldn’t take steps to defend Europe and North America.

It should. And we declared that the interim Ballistic Missile Defence capability that will protect Europe is operational.

It was particularly good to have a special session with the partners who work with NATO around the world and in particular the 50 countries who make up the NATO-led alliance in Afghanistan.

Afghanistan

NATO’s military commanders set out the progress in the campaign.

Attacks by insurgents are down.

Transition to Afghan control is on track.

Over the next few weeks, we will reach the point where 75 per cent of the population will be living in areas where Afghan forces are in the lead for security.

The vital next steps are to deliver the final stages of transition continue to build up the Afghan National Security Forces and to ensure they are funded properly.

Britain is pledging £70 million a year.

But it is right that other countries should step up and contribute to the future of Afghanistan, irrespective of the role they have played so far.

This Summit marked a turning point in these contributions – with almost $1 billion being pledged to support the Afghan National Security Forces.

Conclusion

Mr Speaker, Britain has played a leading role in this Alliance for reasons of our own security.

Three years ago some three quarters of the most serious terrorist plots against Britain had links to Afghanistan and Pakistan.

Now I am advised that figure has fallen to about half.

Our aim is an Afghanistan that is able to take care of its own security without the need for foreign troops.

An Afghanistan that can prevent Al Qaeda returning and posing a threat to us and to our allies around the world.

The tremendous hard work of our courageous service men and women is making this possible.

And after ten long years, our service men and women will finally be coming home.

I pay tribute to them.

Their service and sacrifice is beyond measure.

And we remember in particular all those who have given their lives in this vital task to keep our country safe.

And I commend this Statement to the House.

“The Prime Minister had a constructive discussion ahead of the G8 Summit in Camp David this weekend. “He discussed with the others their priorities for G8; the Eurozone – including Greece, growth, and the importance of expanding trade relations between the US and the EU.

“On the Eurozone, the Prime Minister emphasised the importance of Greece and the Eurozone taking decisive action to ensure financial stability and prevent contagion. He repeated what he had said in his speech earlier today; that there is a need for monetary action to stimulate growth; for structural reform to increase competitiveness in the EU; that the right governance arrangements had to be in place; and that countries throughout the Eurozone should take the necessary action to tackle unsustainable deficits.”

Mr Cameron said:

“This is excellent news for Ellesmere Port and for UK manufacturing.

“Once again we have seen the success of the UK automotive industry and the crucial role it plays in growing and rebalancing our economy.

 

“This has been a real team effort with the government, the company, unions and workers all focused on keeping production in the UK.

 

“And the workforce at Ellesmere Port should take great pride in their skill, hard work and commitment which has proved vital to ensuring this great result today.”

 

2. The two Prime Ministers noted that since its launch in 2011 the dialogue between the UK and Pakistan has become deeper and broader. At the Summit, the two Prime Ministers reviewed the practical co-operation on shared interests which has intensified across the five areas covered by the Enhanced Strategic Dialogue, including trade, economic growth and development, cultural co-operation, security and education.

Trade and Investment

3. Today Prime Minister Gilani and Prime Minister Cameron launched a Trade and Investment Roadmap, setting out the steps both governments will take to promote investment, support business and achieve the target of increasing bilateral trade to £2.5 billion by 2015.  Both Prime Ministers challenged UK companies to look at the opportunities the Pakistan market presents and build on the success of the over 100 UK-based companies already doing business in Pakistan.  Prime Minister Gilani pledged his government’s full support in ensuring an enabling business environment to attract and sustain UK trade with, and investment in, Pakistan.

4. Prime Minister Gilani expressed appreciation for the UK’s consistent support to Pakistan for enhanced market access to the European Union. He hoped that the UK would continue to support Pakistan’s request for GSP+ and early finalization of Autonomous Trade Preferences package. Prime Minister Cameron assured UK’s continued support in this regard, and also encouraged Pakistani businesses to look at the opportunities the UK offers and its role as a gateway to Europe.

Economics and Development

5. The two Prime Ministers also noted that the global economic crisis requires both countries to make tough decisions in order to deliver future growth and prosperity.  They agreed to continue the regular dialogue between their governments on economic reform recognising that economic stability and setting the conditions for enduring growth are key priorities to ensure prosperity for future generations.  Both Prime Ministers agreed to a continued close partnership to help lift millions of people out of poverty and build a stable, prosperous and democratic future for Pakistan. Prime Minister Gilani reiterated his personal commitment to improving the quality of education in Pakistan and welcomed UK support in this regard.

6. Prime Minister Cameron reaffirmed that the UK is open for genuine migrants who are coming to the UK to do a legitimate job or study at a genuine institution. Both Prime Ministers committed to preventing illegal migration as it harms people both in Pakistan and the UK.  They agreed to continue to work closely under existing agreements on returning to Pakistan individuals who have no legal right to remain in the UK.

Security and Defence

7. Pakistan and the UK have an unwavering commitment to work together to combat the menace of terrorism and extremism which threatens the people of both countries.  Prime Minister Cameron recognised the huge sacrifices being made by the people of Pakistan.  Both Prime Ministers committed to enhance the already strong co-operation on countering improvised explosive devices, which cause so many of the needless deaths in Pakistan.

8. The two Prime Ministers held in-depth discussions on regional and international issues of mutual interest. They underscored the importance of peace, stability and security in Afghanistan and reaffirmed their support for an Afghan-led and Afghan-owned reconciliation process. They discussed the remaining challenges and agreed to continue working closely on Afghanistan. Prime Minister Gilani briefed Prime Minister Cameron on the recommendations approved by the Parliament regarding reengagement with the US and also briefed him on the ongoing Pakistan-India Peace process.  

9. Prime Minister Cameron pledged his support for a return to international cricket being played in Pakistan and offered to share the UK’s experience in protecting large sporting events.  The visiting delegation was briefed on the UK’s preparations for the Olympics on a tour of the UK’s Crisis Response Centre, the Cabinet Office Briefing Rooms (COBR).

Democracy

10. This is an important time for Pakistan.  The current government is the longest serving civilian government in Pakistan’s history.  Prime Minister Gilani stated that his Government was committed to holding free and fair elections in accordance with the constitution.

Cultural Co-operation

11. The UK and Pakistan enjoy uniquely rich people-to-people links and growing cultural exchange.  British Pakistanis continue to make a positive and active contribution to life in the UK. As part of celebrating the connections between the two countries the Prime Ministers welcomed the Cultural Roadmap that would further intensify the vibrant links between school children, students, young professionals, cultural institutions and higher education sectors. 

12. The close personal connections between the citizens of the two countries are just one of the many distinctive characteristics in UK – Pakistan relations.  Pakistan’s future matters greatly to the UK and the UK will be an enduring friend to the government and people of Pakistan.  Both countries are committed to working together as equals to create the conditions for greater prosperity and security in Pakistan and the UK.

To mark Prime Minister Gilani’s visit to the UK at the invitation of Prime Minister Cameron, the governments of the UK and Pakistan have detailed the vibrant links between school children, students, young professionals, cultural institutions and higher education sectors.  These activities and many more, contribute to the unbreakable partnership between the UK and Pakistan.  This visit provides an opportunity to celebrate those connections.

The governments of the UK and Pakistan are committed to supporting growing people-to-people links and cultural exchange through the Enhanced Strategic Dialogue which has been in operation for 12 months.

Bringing children together

The British Council is bringing school children in the UK and Pakistan together through its Connecting Classrooms project.  150 schools in Pakistan are linked with 90 schools in the UK.  These partnerships bring an international dimension to young people’s learning, improve their knowledge and understanding of other cultures, and prepare them for life and work as global citizens.  The programme creates a more connected world for the future and better understanding. Internationalism and dialogue between cultures are at the heart of all activities. It also develops leadership skills for education professionals and training for teachers to enhance their classroom skills.

Children in Pakistan are also benefiting from the UK’s commitment to create an international sports legacy in the year it hosts the Olympic and Paralympic Games.  The International Inspirations programme in Pakistan: creates partnerships between schools; supports a national curriculum for physical education (PE); and provides protective environments to encourage sports participation for girls and for young people living with disabilities. The aspiration is for at least one million children and young people in Pakistan to have access to high-quality and inclusive PE and sport. There are links between 38 Pakistani schools and 20 specialist sports-schools in the UK.

Looking ahead

Connecting Classrooms, International Inspirations and the Global School Partnership are programmes with a long-term vision. Plans are in place to sustain and develop the work that they do.

The Connecting Classrooms programme will grow in 2012-15, as a partnership between the British Council and DFID.  Some 90 school links have been built between Pakistan and the UK through the DFID Global School Partnership, focussing on development education.

Pakistan endorses the DFID/British Council school programme 2012-15 which will build school-to-school partnerships and extend school leaders’ & teachers’ skills.

As part of the International Inspirations programme, a 14 year old Karachi schoolgirl will be one of the people carrying the Olympic Flame on its 70-day journey around the UK this summer. Two more young people (from Multan and Karachi) will volunteer in the UK School Games in London as ‘young leaders of tomorrow’.

Bringing higher education and students together

“Pakistan’s transition to a middle income economy is critically dependent on the scale and performance of its tertiary education sector.  Institutions of higher learning must play a leadership role in this transition” (Pakistan’s Higher Education Commission). The British Council’s INSPIRE  ‘leadership programme’ has trained 87% of Pakistan’s Vice Chancellors and Rectors, drawing on the UK’s considerable strengths in higher-education leadership skills. The Knowledge Exchange programme has developed universities’ new roles in economic and social development in Pakistan.

The British Council has worked with 128 of Pakistan’s 132 universities over the last few years, initiating research and capacity-building links between Pakistani and UK universities, and built almost 100 university links:

• HEC and British Council: 50 research and capacity-building links between universities (HEC £3.5m, 4 years); 27 INSPIRE strategic university partnerships (BC £0.9m, HEC £1.2m, 6 years)
• UK Prime Minister’s Initiative: 10 university-to-university links (£0.9m, 2 years)
• DFID: 7 Delphe south-south and UK university partnerships that contribute to development and 3 health-research & advocacy links

Some 11,000 Pakistanis studied in the UK in 2010-11 and a further 35,000 studied in Pakistan for degrees or professional awards with UK higher education providers.  Each year, some 200,000 young Pakistanis present for 400,000 UK examinations.

The Chevening Scholarship programme has sent over 1,000 Pakistani students to study in the UK, since its launch in 1983.  The Charles Wallace Trust Fellowship and similar schemes made 52 Fellowship awards for 2011 and 2012.

Senior Pakistani journalists are currently in the UK on a special programme with the University of Westminster.

Looking ahead

In the immediate future, the INSPIRE programme will continue into mentoring partnerships between Vice Chancellors in the UK and Pakistan.  A next-generation leadership programme will extend training to the second tier of management at universities.

Pakistan’s Higher Education Commission and the British Council will jointly invest £1.3m in an 18 month programme to continue developing strategic university partnerships.
Pakistan endorses the Higher Education Commission and British Council joint investment in Pakistan-UK higher education links and university leadership training.

The number of Pakistani students studying with the UK continues to grow.   The UK is now a preferred choice for university linkages and research programmes. Faculty members of Pakistani universities are doing PhDs under split-site arrangements and joint research publications are increasing. There are to be 22 new Chevening scholarships awarded in 2012.

Bringing young professionals together

The British Pakistan Foundation has formed a network of young professionals in the UK who are all committed to supporting Pakistan’s development.

The British Council helps connect Pakistani students with UK universities and with employers in Pakistan. The Corporate Initiative attracted 17 Pakistani employers to careers fairs at UK universities in 2012 to recruit top talent for Pakistani jobs.  The UK alumni networks in Pakistan keep long-term links with graduates and make new connections.

Helping enterprising young people succeed

Pakistan wants to improve the employability of its young people.  The British Council Enterprise Awards develop the entrepreneurial skills of young people in Pakistan’s vocational sector, putting innovative ideas into action. The shortlisted teams get mentoring by Peter Jones Academy students and other UK-based enterprise academies.  Training material was created by Enterprise UK.

To increase relevance, UK expertise assisted the formation of new industry advisory groups (IAG) in Pakistan, similar to the UK Sector Skills Councils. The Pakistan National Vocational & Technical Training Commission has now expanded these to more industry sectors. The British Council hosted the first ever international conference on Employer Engagement and Entrepreneurship for the TVET Sector in Pakistan, this year.  The British Council has invested in 5 college-to-college capacity building partnerships between Pakistan and the UK, resulting in 55 new TVET modules and 40 exchanges.

Looking ahead

The IAG’s have created 23 trade standards, an aim of which is raising the quality and relevance of vocational training for young Pakistanis. The longer term aim here is to provide support and skills for the future workforce of Pakistan, to enable them to compete globally.
 

Bringing our cultural institutions together

New partnerships between cultural institutions are being formed, including with the British Museum and Victoria and Albert Museum.

Looking ahead

The Edinburgh Culture Summit will be attended by Ministers for culture from more than 30 countries, following their attendance at the 2012 Olympics. The summit’s objective is to use ‘culture as an international dialogue’. Pakistan intends to attend the summit.

Celebrating our cultures

The UK has been celebrating traditional Pakistani truck art.  Students in Luton were able to learn from Pakistani artists to paint a truck which has been on tour around the UK.  National College of Art Students in Pakistan painted their school bus to celebrate the London 2012 Olympic and Paralympic Games.

The British Council facilitated Pakistan school pupils and artists at the Alchemy Festival of UK and South Asian cultures in the South Bank, London in 2012.

Looking ahead

Pakistan will be represented in the UK Cultural Olympiad.  Lahore-based Wallay Theatre is bringing an Urdu production of Shakespeare’s Taming of the Shrew to London’s Globe Theatre in May 2012.  On the same weekend, London will welcome Pakistan’s top fashion designers for Pakistan Fashion Week.

This road map builds on the Bilateral Investment Treaty signed in 1994 by Prime Minister John Major and late Prime Minister Benazir Bhutto and the Enhanced Strategic Dialogue (ESD) signed by the Prime Ministers of Pakistan and the United Kingdom in Islamabad on 5 April 2011 where the two sides decided to further cement bilateral relations, including increasing cooperation in trade and investment.

Following the bi-annual review of the ESD in February 2012, the Foreign Minister of Pakistan and the UK Minister for Trade and Investment agreed to implement a jointly-owned Pakistan-UK Trade and Investment Roadmap.  The Roadmap envisages actively pursuing joint activities on trade and investment promotion and improving Government-to-Government and Business-to-Business interaction.

Objectives

This Roadmap has the following objectives:

1. To achieve the target set by the two Prime Ministers of increasing bilateral trade to £2.5 billion by 2015.

2. To make for a more competitive trade and investment regime in Pakistan with UK assistance.

3. To improve the economic management of and business environment in both countries.

4. To provide for enhanced interaction between the business communities of both countries.

5. To increase the level of UK investment in Pakistan by building up confidence of existing and potential investors in the investment climate and policies of Pakistan.

Business Strand

1. The UK and Pakistan will encourage the creation of a UK Pakistan Chamber of Commerce in Pakistan to complement existing trade bodies in the UK and to develop business ties with such entities especially along sectoral lines including textile, R&D, energy, pharmaceuticals, retail & services.

2. The UK and Pakistan will support the Pakistan Britain Trade and Investment Forum (PBTIF) as the premier Pakistan focused business membership organisation in the UK, which will maximise links with business organisations in Pakistan including the UK Business Group in Pakistan. 

3. The UK will aim to host an annual event in the UK to promote trade and investment opportunities in Pakistan, and raise awareness about these opportunities with UK business leaders through various media, publications and websites.

4. The UK will aim to send at least one trade delegation a year from the UK to Pakistan.

5. The UK will aim to commission a report that maps UK expertise to opportunities in Pakistan.

6. The UK and Pakistan aim to work with the London Stock Exchange to support events with an extractive industries and investment focus.

Government Strand

Under the auspices of the ESD, the UK and Pakistan agree to a regular Government to Government Dialogue to be established and co-chaired by the Commerce Minister/Secretary of Pakistan and the Trade Minister of the UK which shall comprise senior level representatives from the respective governments.  The UK and Pakistan governments will take the following actions that will be reviewed as part of the ESD annual summit:

1. The UK shall continue efforts to ensure Pakistan’s market access through inclusion in the preferential trading arrangement of the European Union and also initiate the Free Trade Agreement (FTA) negotiations between Pakistan and the European Union.

2. The UK will work with the government of Pakistan to explore how it can help to maximise Pakistan’s gains from trade preferences, including the provision of technical advice and assistance.

3. The UK shall continue to work with Pakistan, including through development assistance, to support the implementation of key reforms that may encourage export promotion, foreign investment, labour productivity and efficiency, human capital development, overcoming energy shortage and achieving sustained economic growth.

4. The UK and Pakistan will both encourage the positive perception of Pakistan as a place for doing business.

5. Pakistan will deliver on the existing action plan to engage the EU on trade issues.

6. Pakistan will ensure a stable and predictable economic environment that encourages greater trade and investment.

7. Pakistan will support doing business in an open and transparent way to promote the UK as the gateway to Europe for Pakistani business.

8. Pakistan will create an attractive business environment for trade and investment, for instance by continuing to: improve efficiency and reliability of the energy sector; increase skills in labour force and investment in human capital.

9. Both sides shall address commercial issues raised by their respective businesses relating to trade and investment in the UK and Pakistan.

10.  Both countries shall exchange information regarding their trade and investment policies.

 Validity

The Roadmap shall be valid for three years after which it shall be automatically renewed unless one of the countries requests that it may be terminated.

“We are delighted to have been asked by the UN Secretary-General to co-chair the High Level Panel on the post-MDG framework on development. The Millennium Development Goals have shaped the world’s approach to international development for a generation, helping to put millions of children into school and save countless lives. We still have some way to go, but we also want to build on what has been achieved so far.

In the years since the MDGs were agreed, we have made significant progress and learned many lessons on how to reduce poverty. We now know more about the critical role that economic growth, trade, tackling corruption, effective government and open societies play in creating wealth and unlocking the potential of the poorest countries. We look forward to working together to ensure the full realization of the MDGs, and to listening to many more voices to set out an ambitious, new agenda for ending poverty in the years beyond 2015″.

The Prime Minister said:

“I found meeting Lillian Groves’s family in Downing Street late last year incredibly moving. As they said at the time, it simply can’t be right that a schoolgirl like Lillian can lose her life and then we discover we don’t have the laws or the technology to punish drug drivers properly.

“We want to do for drug driving what drink driving laws have done for driving under the influence of alcohol. That’s why we’re doing what we can to get drugalysers rolled out more quickly. And this week we’ll publish a new drug driving offence so that driving under the influence of drugs itself is a crime, just like it is for drink driving.

 

“Lillian Groves’s family should be congratulated for their brave campaign. I hope now that something good can come out of their tragic loss.”

 

“The Prime Minister called President-Elect Hollande this evening and congratulated him on his victory.

“They both look forward to working very closely together in the future and building on the very close relationship that already exists between the UK and France.”

 

“The Prime Minister hosted the NATO Secretary General, Anders Fogh Rasmussen, in Downing Street this morning where they discussed a range of topics in the run up to the NATO Summit in Chicago later this month.

“The Prime Minister said he was enthusiastic about progress at the upcoming Summit and made the point that recent NATO operations in Libya were a good example of what NATO members could achieve together.

 

“They discussed the ongoing operation in Afghanistan and the Secretary General paid tribute to British troops in the Helmand Province where he said there had been significant improvement on the ground.

 

“Looking ahead to Chicago, the Prime Minister and Secretary General also discussed the process of transition and support for the Afghan Government post-2014. The Prime Minister reiterated the UK’s commitment to providing training support for Afghan Security Forces through the Afghan National Army Officer Academy.

 

“They also discussed NATO capability in challenging economic times and where bilateral and multilateral cooperation could play a role.”