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Thursday 19 June 2008

Morning press briefing from 19 June 2008

Briefing from the Prime Minister’s Spokesman on: GM foods, Bank of England/economy, Renewable Energy and miscellaneous

GM Foods

Asked if the Prime Minister shared the view that Britain’s GM crops could be vital in staving off a catastrophe regarding world food shortages, the Prime Minister’s Spokesman (PMS) replied that it had always been, and would continue to be, the Government’s position that GM crops could offer a range of benefits over the longer term. However, as Phil Woolas had reiterated, it was also our position that safety was the top priority and that GM crops should be considered on a case-by-case basis, based entirely on science. The PMS went on to remind journalists that the Prime Minister had recently talked about the delays that there had been in the EU approval scheme for GM products, which had caused problems with supply of imports of GM animal feed. The Prime Minister spoke about this subject during his press conference with President Barroso, as part of the 6-point plan to assist with food prices. What people were seeing today was a reiteration of where the Government was on GM products.

Bank of England/Economy

Asked if the Prime Minister had any words of welcome for the new Deputy Governor of the Bank of England, Charles Bean, the PMS said that the Treasury press notice had welcomed the appointment of Charles Bean on behalf of the Government and that this was an appointment which had been approved by the Prime Minister. As the Treasury said, we were delighted that Charles Been had agreed to serve as Deputy Governor for a 5-year term, bringing substantial economic expertise to the role that will be invaluable in the context of economic uncertainty.

Asked if there were any words from the Prime Minister on the departure of Sir John Gieve, the PMS referred journalists again to the Treasury press notice which thanked Sir John Gieve for his work and recognised the fact that he had done an excellent job; we now wanted him to see through the process of reforming the Bank’s financial stability role. The press notice also made clear that, given Sir John Gieve would be well into the second half of his term when the new legislation came into force next year, he had decided that it made sense for someone who was able to commit for a 5-year term to take on the task.

Asked if the Prime Minister agreed with the Governor of the Bank of England that we were facing the most difficult economic circumstances of the last two decades, the PMS said that the Chancellor had spoken on behalf of the Government, at length, during his Mansion House speech last night. As the Chancellor had said, with the UK economy, as elsewhere in the world, we were having to deal with the turbulence in financial markets and the soaring costs of energy, food and commodities. The Chancellor also reiterated the point that the UK economy was well placed to deal with these challenges.

Renewable Energy

Put that there was a report in the Guardian this morning suggesting that even if £100 million was spent on renewable energy we still wouldn’t hit the 15% target and asked if that was something that worried the Prime Minister, the PMS said that the report in the Guardian had been discussing the Gallagher report which was yet to be published and that we would respond to that report once it had been published. It was precisely because we were concerned about ensuring the economic benefit of biofuels and biofuel technology that the Gallagher report had been commissioned in the first place.

Put that there was a separate report to the Gallagher report, the PMS said that it was best to speak to the Department for exact details on targets. With regard to biofuels, the whole point of setting up the review was to ensure that environmental benefits were in place.

Miscellaneous

Put that the letter from the Prime Minister and President Sarkozy to Aung San Suu Kyi sounded like it was from a supreme leader and asked who drafted it, the PMS replied that it was a joint letter from the two leaders, setting out their support but also reiterating our concerns around Aung San Suu Kyi’s treatment from the Burmese political leaders, and the humanitarian issues which had followed Cyclone Nargis; there was no other characterisation that could be put on the letter.

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