Maiden speech (Lord Monks)

London, 11/11/2010

My Lords, it is a pleasure to follow Lord Hannay in debate on diplomatic questions because of his immense knowledge and impressive experience of the world of diplomacy; but it is daunting too in that he is a hard act to follow.

I myself lay claim to some experience, if not expertise, in this field. I work currently in Brussels as General Secretary of the European TUC. And the UK Representation there, inelegantly called UKREP, is generally admired as the classiest operation around town, even by the French!

I do not always agree with what UKREP does on behalf of Her Majesty’s Government. It has blocked progress on some important social issues dear to my heart;
- insisting on maintaining the working time opt out (why is it that UK workers have to work on average the longest hours in Europe?);
- on posted, migrant workers (why is it that only minimum rates need apply in the UK, not the rate for the job, a factor which generates anti migrant feeling);
- and on a social clause in the single market law (why is it that successive UK Governments continue to oppose this and to downplay the need for the single market to have a social dimension, without which, I warn, hostility will surge against the single market and encourage the kind of protectionism we saw in last week’s American elections?).

Most other countries have little trouble with the social dimension – for example, Germany is coming through the recession better than any other major European country, helped by its short-time working scheme and worker participation and social partnership arrangements. Why does the UK not learn rather better from the successes of others?

These are questions on which I battle weekly with the UK Representation. But, ruefully, I have to suscribe to the chorus of admiration for the skilful way that it plays its cards! It is a powerful agent for UK Government policy. And as I travel through Europe and beyond, the skills of our diplomats almost invariably impress and deserve support. Diplomacy is an area of British excellence.

I am conscious that I am very privileged to join this House. I hope to bring some insights, especially into economic and employment policy, and European affairs.

18 years, as General Secretary , first of the TUC, and then of the European TUC, have strengthened a deep commitment to trade unionism as a force for good in our society.

18 years, as General Secretary , first of the TUC, and then of the European TUC, have strengthened a deep commitment to trade unionism as a force for good in our society.

I hope that in the economic crisis, people in difficulty will turn again to the union Movement – as they did in the 1930s – and it will take its full and proper place in the national life of the country – not just as an awkward squad, but as a force for constructive engagement, especially on promoting greater equality, skills and productivity; and, crucially, higher standards of performance and governance in our companies.

I was addressing a City audience not long ago making the case for more long-termist perspectives from investors and entrepreneurs. One financial executive smirked – "I do have some long-term investments – they were short-term investments that have gone wrong which I can’t get rid of."

Short-termism is a British problem. It is a major reason why so many of our private sector companies, not just Manchester United and Liverpool, are carrying so much debt, why our manufacturing sector has shrunk to worrying levels, and why foreign companies are able to pick up household names at bargain prices.

I don’t knock foreign companies generally – some are exemplary long term players and show up the weaknesses in too many of our own firms. But we need more home grown companies who can hold their own in the world, and not sell out at the first whiff of a big cheque for shareholders and top executives.

How company boards run themselves, which interests are included on the board, whether shareholder value should be the sole goal of companies, how to organise takeovers, and, if necessary, block them, and what to do about the often excessive levels of boardroom pay, which risk directors being regarded in Richard Lambert’s memorable phrase as "aliens" – in my words, the "Bourbons of our age" – all these questions are ripe for powerful scrutiny and for new thinking.

I am watching carefully the Rt Hon Vincent Cable who has expressed himself strongly on these issues to see if he will maintain his interest, and not get swamped by urgent, but not more important, questions.

Today is Armistice Day, and we remember all those who made – and make – the ultimate sacrifice for the country. The European Union was born out of the wreckage of the Second World War, and has been a major part of ensuring that any repeat now seems a remote prospect. That is a huge achievement in a continent scarred by too many bloody battlefields and haunting cemeteries.

Britain’s place is in Europe, not just for reasons of the past, but for the future too, as new, major, formidable economies emerge to take a prominent place in the world. It is not just aircraft carriers that will need sharing in our corner of this world if European influence is to be sustained. There are many other areas where sharing in Europe will be important, for example on the environment, energy and trade. A strong, united, European influence on the G20 will also be important.

Indeed the European External Action Service, under the capable leadership of the distinguished former leader of this House, the Baroness, Baroness Ashton, is a recognition too that diplomatic efforts can usefully be shared in many parts of the world. I hope that British diplomats will also flourish on this particular European stage.

I also hope in my time ahead here to persuade a few more of you to feel the same way as I do on Europe, this most controversial of subjects in our country.

I also hope in my time ahead here to persuade a few more of you to feel the same way as I do on Europe, this most controversial of subjects in our country.

I finish by thanking noble Lords, and the Clerks and, indeed, all the staff of the House for the friendly welcome that has been extended to me from all sides. I am very much looking forward to making my contribution to your work.