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Commons Chamber

Volume 958: debated on Tuesday 14 November 1978

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House Of Commons

Tuesday 14th November 1978

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair]

Private Business

British Railways (Selby) Bill

Order for Third reading read.—[Queen's Consent, on behalf of the Crown, signified.]

To be read tile Third time upon Tuesday next.

Tyne And Wear Passenger Transport Bill

As amended, considered; to be read the Third time.

Oral Answers To Questions

Oral Answers To Questions

Before we start Question Time may I seek the co-operation of the House? Too many right hon. and hon. Members and Ministers are beginning to think that this is debating time. It is not. It is Question Time, and if hon. Members will be as succinct as possible I shall be grateful.

Education And Science

Comprehensive Education (Costs)

1.

asked the Secretary of State for Education and Science if she will publish the extracts of running costs submitted to her by county councils which oppose comprehensive education or which propose alternative unacceptable schemes to her.

Local education authorities have been required to give details of the estimated capital costs of work necessary at each school at each stage of compre- hensive reorganisation when they submit proposals under section 2 of the Education Act 1976. They have not been required to provide comparable information in respect of running costs and I regret, therefore, that it is not possible to meet my hon. Friend's request.

Will my hon. Friend demand information about the running costs? Is she aware that there is a feeling that many Conservative councils are against new schemes simply because they cost too much to run? Is she aware that in my area, for instance, we want a three-tier system, but the Nottingham county council wants a two-tier system and the feeling is that the council wants that system because it means bigger classes and fewer schools and is much cheaper to run?

The information that I have on the scheme submitted for my hon. Friend's area suggests that the county council feels that its proposed system is slightly cheaper to run. Whether my hon. Friend is right in his deduction of the reasons for that, I cannot be sure without studying the proposals with more care.

School Transport

2.

asked the Secretary of State for Education and Science whether she is yet in a position to announce changes in the system of qualification for free school transport.

Not yet. there are genuine problems of administration and finance to which solutions will have to be found before we are able to put forward alternative proposals. Since we cannot assume that additional resources will be made available for home to school transport, we also have to find an acceptable balance between a charge for travel that is at present free and the degree of assistance that can be given to parents who at present get none. We are pressing on as quickly as possible with the examination of these problems.

I am grateful for that reply. Is the hon. Lady aware that her Department has been sitting on this matter, although it has, I agree, been trying to find a solution, for three years? In May, she promised me a statement before the recess, but now says that we are to go on for another one, two or three years. Is she aware that hon. Members on both sides of the House want an answer to the problem, especially on behalf of those in rural areas, and a cure for a system which is a mass of abuses?

I agree with everything that the hon. Gentleman has said and much regret that it has not been possible to give him the answer he seeks, but he knows that any suggestion of change has brought opposition to anything different from the existing proposals and it is with this that we are trying to grapple.

Does not my hon. Friend agree that it is unjust that a child living just inside the three-mile limit has to pay for his journeys or travel on foot up to three miles while a child living just outside the area gets free travel? Will she consider the possibility of introducing a standing charge for everybody and at least make sure that something is done quickly?

We are pursuing the question of a standing charge. I agree that it is unjust that children living just outside the boundary should have to pay and that it is wrong that all parents should have to pay, irrespective of their income. My hon. Friend will be aware that it is already possible for local authorities to assist parents with the cost of travel on a discretionary basis and we regret that many are choosing not to do so.

Will the Minister ensure that in any review of the transport arrangements the special needs of those living in rural areas and those who send their children to denominational schools are catered for?

It is trying to cater for such special needs that is causing the hold-up.

Is my hon. Friend aware of the serious financial burden that the present system places upon parents who live just under three miles from the school? Can she not treat the matter with a little more urgency and stop trying to agree with the indifferent local authorities things that they will not agree? Why does she not come out with a scheme and impose it?

Unfortunately, it is not only the indifferent local authorities that disagree. It is precisely the groups to which my hon. Friend referred that are at present benefiting under the scheme and are reluctant to see any change in it.

Teaching And Research Work

3.

asked the Secretary of State for Education and Science, what further steps she is taking to make teaching and research work in colleges, polytechnics and universities more relevant to industrial and commercial needs.

:Progress is being made towards a greater responsiveness to industrial and commercial needs throughout further and higher education. Industry and commerce are well represented on the Council for National Academic Awards and the technician and business education councils. The research councils are promoting research of industrial relevance in the universities and polytechnics, many of which have strong links with particular firms.

:But does not my hon. Friend accept that, in view of the existing shortage of skill and the need to move into areas of high technology, the progress being made is lamentably slow? Will he discuss with the universities some of their research projects, as the bulk of those projects seem to be of little use to man or beast?

I agree that much more still needs to be done. By the creation of special engineering courses at seven universities, and the industrial scholarship scheme, the Government are trying to ensure that progress is faster in this direction.

With regard to the research at universities, at many universities there are strong links with individual firms whereby the university undertakes research for the firm. I should like to see much more of that as well.

:Is the Minister aware that in West Germany, for example, it is often not possible for an applicant to obtain a teaching post in engineering if he or she does not have industrial experience? What steps is he considering along the lines of setting up industrial units, for example, in individual universities or encouraging teaching companies, to increase this healthy trend?

We have set up industrial units and teaching companies in a number of universities.

The question of a lecturer's being appointed only if he has industrial experience is a matter for the universities.

:Does the Minister accept that there is great benefit in having lecturers and, for that matter, school teachers—particularly careers masters at schools—who have had industrial experience? Does he agree that there should be a facility to encourage that if not to make it compulsory?

I entirely agree that there is enormous benefit. In many of the schemes that the Government have introduced with regard to science and mathematics teachers, we look particularly to those who have been in industry and who might wish to have a career in teaching, because they prove to be of inestimable value as teachers.

:Does my hon. Friend agree that it is a question not only of making courses more relevant to the country's needs but of preventing ludicrous duplication and overlapping of courses between universities and polytechnics? What steps is he taking to bring the universites into a more publicly accountable system?

:The universities are responsible for their own research, but there is quite a degree of consultation between them and polytechnics on courses. As for links between polytechnics and duplication of courses, if the report of the committee of which I was chairman is implemented, much can be done in that direction as well

Secondary Education (North-East Lancashire)

4.

asked the Secretary of State for Education and Science what discussion she has had with representatives of Lancashire county council concerning the reorganization of secondary education in the various districts of north-east Lancashire.

:My right hon. Friend and I have twice met representa- tives of Lancashire county council in recent months to discuss issues related to secondary reorganization in the county, and officials are in regular contact with the education authority on this matter.

:Is my hon. Friend aware that there is great concern in Rossendale about the attitude of the Lancashire county council, particularly in the light of what happened in the neighbouring authority of Burnley? Is she aware that many people think that the Lancashire county council is misrepresenting the position to her Department and misrepresenting the DES position to the people of Rossendale and Burnley? In view of that, will my hon. Friend meet a delegation in order that the matter may be put straight?

I share my hon. Friend's impatience to see reorganisation in Rossendale, and I am pleased that the authority has reconvened the working party with which it is having discussions. I saw a number of delegations, which put to me a case with regard to Burnley, and I am more than willing to see delegations from my hon. Friend's constituency to discuss problems in that area.

:May I express my appreciation to my right hon. Friend the Secretary of State for meeting a delegation from Bolton council and indicating to it that it was high time it went about implementing the scheme that it had submitted to her? Does my hon. Friend the Under-Secretary agree that in future the Department should keep a weather eye open to see that authorities that submit plans also provide the means by which those plans can be carried out, including the appointment of staff in due time?

Student Grants (16- Ti 18-Year-Olds)

5.

asked the Secretary of State for Education and Science what action is being taken to assist more young people to stay at school after 16 years.

12.

asked the Secretary of State for Education and Science whether it is her intention to introduce a system of mandatory educational maintenance allowances.

16.

asked the Secretary of State for Education and Science if she will make a further statement on her plan to introduce grants for 16- to 18-year-olds remaining in full-time education.

The Secretary of State for Education and Science and Paymaster General
(Mrs. Shirley Williams)

:As my hon. Friends know, the Government are committed in principle to introducing a statutory system of awards for students aged 16-18 in full-time education with the aim of encouraging more young people, particularly from less-well-off families, to stay on at school or college. As I told the House on 3rd November in the debate on the Address, it is not a question of whether to do this but of when; and this must be considered in the light of other proposals for major increases in public expenditure. The Government are giving the matter very careful attention.

:Will my right hon. Friend confirm that providing financial help for youngsters, especially working class youngsters, to stay on at school beyond the age of 16 remains one of the highest priorities of her Department? Will she redouble her efforts within the Cabinet to have the scheme introduced at the earliest opportunity, in the knowledge that it has the full support of hon. Members on the Labour Benches?

I thank my hon. Friend for that question. I assure him that I regard the matter as a very high priority for education expenditure. Nearly four in five of the children of professional and managerial families stay on at school past the age of 16 and under one in five of the children of skilled, semi-skilled and unskilled mothers and fathers.

I shall call first those hon. Members whose Questions are being answered.

:Is my right hon. Friend assured that her fellow members of the Cabinet are fully aware of just how deplorable the British position is in the provision of education beyond the age of 16? Will she assure us that she recognises that a discretionary scheme could not possibly meet the need at present?

I acknowledge what my hon. Friend says. It is shocking that the participation rate over the age of 16 in this country is lower than that in any other country in Western Europe, except Spain, Portgual and Italy. I do not regard that as a very attractive record.

I note what my hon. Friend said about discretionary schemes. The Government have that very much in mind.

What advice would my hon. Friend give to my constituents who read the headlines about her announcement back in June or July of a scheme to start from 1979 and decided to go back to school this year, knowing that it would be financially very difficult for them and their families but expecting to receive some grant for next September? Would she now advise them to leave school, draw supplementary benefit and continue their A-level studies on a part-time basis?

I recognise my hon. Friend's feelings, but I cannot be responsible for the interpretation put on my remarks by the newspapers. I have checked back on every remark I made, and have established that what I said was that the scheme could not possibly start before 1979, because legislation was necessary. In fact, I specifically answered —and have the answer on record—a member of the press who inquired about 1978. I made it quite clear that there was no possibility of a scheme starting then. My hon. Friend will discover that I said the same to him in my reply of 12th May, which he will find in Hansard.

:Will the Secretary of State resist the idea of a scheme that is discretionary to local authorities, in particular because such a scheme would tend not to be implemented by quite a number of Conservative-controlled authorities within whose areas some of the children of greatest need are?

:I recognise what the hon. Gentleman says about that. He will know that I very much regret that the local authority associations have altered their views on the whole question of discretionary awards for young people between the ages of 16 and 18. I am sorry that they have found it necessary to change their attitude.

Is not one of the problems that the scheme which the right hon. Lady has proposed is too broad and that the priority now is not to encourage young people to stay in sixth forms, which might not be best suited for the non-academic child, but to use whatever money is available to offer incentives for these young people to go into skill or craft courses in further education colleges?

I accept what the hon. Member said, but he will know that the scheme which I discussed with local authorities was one which would make awards both to young people going into full-time further education as well as to those who stayed in school. It is interesting that where awards are being offered—for example, by Sheffield, Inner London and Wakefield—there is evidence that some young people are staying in full-time further education who might otherwise have found it impossible to remain in college.

:Is my right hon. Friend aware that many local councils are buying places in independent schools and paying people to go there at an estimated cost of£35 million this year? Should not she take steps to divert this money into the provision of financial support for all pupils between the ages of 16 and 18?

Yes, Sir. My hon. Friend will be pleased to know that there has been a 40 per cent. decrease this year in the number of places taken up in independent schools financed by local authorities and that my hon. Friend the Under-Secretary of State and I have made it clear that the only basis upon which new places can be taken up in independent schools is either where there are inadequate places in the existing maintained system—that is a very small number—or where there are denominational schools which are proposing to reorganise in the next couple of years.

:Although it would not have the effect on reducing unemployment which is clearly part of the aim of the Secretary of State, would it not be better to introduce scholarships for bright but needy children? Would not that not only be less expensive but much more easy to implement?

The scheme that we are discussing is not far removed from that. As the hon. Member will appreciate, first, for reasons of resources it would have to be a means-tested scheme and, secondly, it would be for teachers to advise pupils whether they would benefit from staying on in education, so that on both bases I think that this would be a scheme coming close to what the hon. Member has in mind.

:In view of the lack of job opportunities for 16-year olds, does my right hon. Friend agree that her scheme should be brought forward and linked with the youth opportunities programme? Surely it is better for youngsters to stay in further education than to join the dole queues.

I am sure that that is right and, of course, the purpose of the youth opportunities scheme is to offer young people an opportunity in education or in a work experience scheme or in a short industrial course. I am anxious, along with my right hon. Friend the Secretary of State for Employment, to make sure that every unemployed young person is offered one or other of those alternatives.

:Is the right hon. Lady aware that, although I would never accuse her of wickedness, I think that it is not totally unfair to suggest that she has led sixth-formers up the garden path of disappointment in this respect? But since the path has been barred by the Treasury Cerberus, will she use this pause to rationalise the whole provision for the 16- to 19-year olds about which Opposition Members are deeply concerned, as I know the right hon. Lady is herself?

Let me say to the hon. Member first that, as he knows, the Government have announced their intention to produce a White Paper next spring on the position of the 16- to 19-year olds. However, quite frankly, I have resisted the idea of a major inquiry. I regard this matter as so urgent that I do not believe that we can wait the two or three years which the inquiry would take.

Teachers

7.

asked the Secretary of State for Education and Science if she is satisfied that the teaching force in England and Wales has increased by 1½ per cent. during the current year.

The number of teachers employed in England and Wales in January this year, 464,972, is the highest ever recorded, and is about 2,000 higher than the estimate made in the autumn of 1977. Information about the number of teachers employed at the beginning of the current school year should be available within a few weeks.

I am grateful for that information, and I am sure that Government supporters will welcome the improvement. Is is not the case that the improvement is very varied and that in some areas the position is quite unsatisfactory? Does my hon. Friend consider that it would be helpful and perhaps encouraging if the statistics were available rather more frequently than annually, based on the January position?

:I shall consider my hon. Friend's suggestion. However the difficulty is that there is a vast number of teachers involved, and the statistics take some time to compile.

Although the Opposition welcome the increase in numbers, is the Minister aware that we are also concerned about quality? With the easing of teacher numbers, can we hope that the quality of the intake of teachers will be improved and that, with fewer pupil teachers inside the schools, there will be more student-based training in schools so that we can get away from just theoretical training in the colleges?

I want to see a considerable improvement in induction and in-service training. But it is evident from a recent survey carried out by the Department that authorities are not finding it easy to provide increased opportunities for release for induction and in-service training on the scale envisaged. Nevertheless, in each of the past two years between 60 per cent. and 70 per cent. of the teaching force have engaged in in-service activity of some kind.

Can my hon. Friend assure the House that, where local education authorities such as Liverpool are carrying out a policy of school closures, the teachers will not be affected by such decisions—in other words, that we shall not have further unemployment amongst teachers and that the temporary surplus will be absorbed in general education schemes?

That is a matter for the individual local education authority. In the rate support grant settlement for this year, the Government included provision for the employment of 11,300 teachers over and above those who would have been needed to maintain the previous pupil-teacher ratios.

16-Plus Examinations

8.

asked the Secretary of State for Education and Science what representations she has received in support of the indefinite retention of separate GCE O-level and CSE examinations.

14.

asked the Secretary of State for Education and Science what further representations she has received from the GCE examining boards about proposals to introduce anew system of examinations.

15.

asked the Secretary of State for Education and Science if she will make a statement about her proposals for a common examination system at 16-plus.

20.

asked the Secretary of State for Education and Science what representations she has so far received in connection with her proposals to merge the GCE O-level examination with the CSE examination.

21.

asked the Secretary of State for Education and Science what reaction she has had to the proposed reform of the General Certificate of Education examinations.

The White Paper of 23rd October announced the Government's decision that a single system of examinations leading to the award of a General Certificate of Secondary Education should replace the present GCE O-level and CSE examinations from the mid-1980s. The White Paper was preceded by and generally endorses the findings of the report of Sir James Waddell's steering committee—Cmnd. 7281. Interested parties were invited to comment on that report during the summer and reactions showed there to be widespread support in principle for the introduction of a single system of examining. No major organisation contended then or since that as a matter of principle two separate systems of examining at 16 should be retained indefinitely. Many bodies have expressed their concern about the need to maintain standards in the new system. The Government share this concern and are satisfied that standards can be fully maintained and indeed improved under the new system.

Does not the right hon. Lady regard the Conservative Front Bench as a major organisation, or is she taking account of the fact that after their very sharp initial reaction, they came to the conclusion that it really was not acceptable that these two exams should continue indefinitely to be separate, however much they prevaricated? Does the right hon. Lady accept that the way to proceed is to ensure that clearly recognisable O-level standards are maintained in the new system and that it is clearly accepted that mixed ability teaching does not have to be an accompaniment of this reform?

I have found it impossible to discover what the Conservative Party, which I accept is a major organisation, actually thinks. I know that the hon. Member for Chelmsford (Mr. St. John-Stevas) has supported a seven-graded system, which is implicit, has supported an eventual single examination system, which is implicit, has supported the idea of grades which reflect the standards in O-level and in CSE, which indeed is part of the Government's policy, has supported the idea of a national co-ordinating body, which is the Government's policy—[HON. MEMBERS: "Too long."] The Opposition may not like to hear this, but I intend that they shall hear it. Therefore, it is almost impossible to discover to what the hon. Member for Chelmsford objects.

In response to the second supplementary question asked by the hon. Member for Berwick-upon-Tweed (Mr. Beith), I may say that we are satisfied that the level of achievement between different O-level boards, of which there are now 22 together with CSE boards, will be guaranteed by a national co-ordinating body in a way that has not been the case up until now.

I shall call first those whose Questions are being answered. I must remind the House that this is not debating time.

On the specifics of Question No. 14, since the White Paper states that the Department will be entering into discussions with the examining boards about the composition and functioning of the proposed central co-ordinating body, will the right hon. Lady confirm that when the GCE and CSE boards are reconstituted, there will be no attempt by the Department to reduce or interfere in their present autonomy?

The boards will, of course, retain their present autonomous setting of standards, but will be subject to a new national co-ordinating body which has the responsibility of monitoring standards throughout the examination system. Because of this body, we shall for the first time have a national system of monitoring standards which we do not now have.

Will the right hon. Lady admit that there are many in the teaching profession who strongly oppose her proposals because of concern about the maintenance of standards? Could not this step be a forward march to mediocrity? What representations has she received from the Association of British Correspondence Colleges, because there is no mention in the White Paper of the private student?

As the hon. Gentleman appeared rather unwilling to listen to my last answer, I am not sure how anxious he is to have information about the examination. There are now 64,000 boys and girls who are doubly entered for CSE and GCE, who take two syllabuses and undergo two different sets of studies instead of one, and who are harming their own opportunities to achieve high grades by this dual system. I profoundly believe that a single system equated at each point with the standards and grades currently offered—again the hon. Gentleman is indicating dissent without even listening to the reply—will go a long way to maintain standards in our system.

With regard to the hon. Gentleman's first point, I must tell him that my broad observation is that the teaching profession is strongly in favour of such a change and that every official representation made to me on its behalf has favoured this alteration.

Does my right hon. Friend accept that there is a great deal of support on the Labour Benches for this report, which will mean that children are no longer faced with unnecessarily rigid categories at such an early stage in their career? Therefore, will she ignore the nit-pickers on the Tory Benches and press ahead with reform as quickly as possible?

I thank my hon. Friend, and I propose to do what he asks. Conservative Members are always talking about parents. One of the greatest concerns to parents lies in their being unsure whether to enter their children for the CSE or GCE. We shall now remove that painful choice from them and let the child achieve what he is capable of achieving.

Does the right hon. Lady agree that the argument between CSE and O-level should not be about examinations but about syllabuses? I believe that the CSE is a very much better syllabus in a number of subjects for intellects in the middle of the range than has been given credit for in talking the whole time about examinations.

The hon. Gentleman makes a fair point. I wish to emphasise, because this is a matter of central concern in education, that at a time when we have more than 60 syllabuses in mathematics alone between O-level and CSE, we must, whatever are our views about the single system, do something to clarify and rationalise what is becoming a chaotic situation.

Irrespective of any merits or the form of the future proposed examination, will my right hon. Friend confirm that notionally it is designed for 60 per cent. of school leavers? What effects is it likely to have on the 40 per cent. who are likely not to take the examination, and can she say what studies she has initiated in this respect?

We have at present a system that is supposed to cover the spectrum of 60 per cent. of our school- children at 16, but 86 per cent. take an examination and 84 per cent. get one or more passes in it. Therefore, my concern is especially with the 20 per cent. who do not enter such examinations. We are studying the subject of school profiles and reports to give an assessment of every child in our education system whether or not he or she takes an examination.

Is there not the other side of the coin, which must be emphasised this afternoon? It may be a minority view, but there is a view among secondary modern school teachers that, although the right hon. Lady says that standards can be maintained and even improved, this may be to the disadvantage of those who value the CSE certificate now.

I understand that point. There are many aspects of the CSE syllabus, especially the devotion to practicalities and vocational slants, which we could usefully embrace in the joint common system, Indeed, my hope for the common system is that we can take the best of both worlds and make a better examination system than either of the current bifurcated systems.

Is the right hon. Lady aware that the local education authority associations and the CBI, in common with the Opposition, are in favour of the retention of O-levels or O-level-type examinations? Since that is the point of difference between herself and these organisations and ourselves, would it not be in the best interests of all the children concerned, since we are all agreed on the merits of a common examination system, for the right hon. Lady to call a round table conference of all the parties interested in this subject to see whether we can reach an agreed approach on this vital matter?

I am always happy to engage in consultations; indeed, there have been further consultations recently. However, the hon. Gentleman will see that we are talking essentially about semantics. It has already been made clear that the first three grades in the common system will be equivalent to A, B and C at O-level. Therefore, the question is not a question of whether one wants to retain the wording. The boards will have to be reorganised, because nobody wants to see 22 boards. The serious point to which the hon. Gentleman should address himself is that we should not force children into having to make a choice which, because the syllabuses are all so different, means that, however fast a youngster develops, he or she cannot easily move from CSE to GCE, or vice versa, at any age after the age of 14.

Nursery Education

9.

asked the Secretary of State for Education and Science if she will give the latest figure which indicates what proportion of local education authorities has requested increased financial support currently available from central Government for the provision of nursery education facilities.

The final total of English local education authorities making bids on the 1978–79 nursery education building programme was 53 out of 97. Bids on the 1979–80 programme are still being received, but numbers bidding have already exceeded the previous year's total. My right hon. Friend is considering whether additional resources can be made available.

What further action does the Minister intend to take to make more local Tory councils take advantage of the Government money that is available? Will she respond to the point which has been made by the Avon authority and others that this is a matter not of capital provision, but of lack of revenue resources to appoint the necessary teachers in nursery education.

The only action that it is open to us to take is to remind local education authorities that this year, as last year, we have made available to them through rate support grant an increase in money which we hope will provide for an increased number of children in nursery schools. There is nothing we can do to make local authorities take up this provision. It covers revenue costs. It should be made plain that this money is available.

As an interim measure, have the Government considered making finance available for the rising 5s? If so, can the Minister say how much such a scheme will cost in a full year?

Money is already available through the same process through the rate support grant for the admission of rising 5s. To a large extent it is in the discretion of individual authorities how much money is spent and how it is used.

Although my hon. Friend says that there is nothing she can do about Tory authorities which refuse to use the money that is available, except to remind them of that fact, does she not agree that if the money is available and authorities are not using it, the Government could change the law to compel local authorities throughout the country at least to make minimum provision? If that were the case, the maldistribution of nursery school facilities would not have occurred.

I take my hon. Friend's point. The difficulty, as she will know, is that if we make this provision statutory, even at a minimum level, it will be necessary to provide resources to cope with it and in many authorities, as many of my hon. Friends know—they have raised the matter often in the House—provision is so low at present that this would be very costly.

Schools (Parental Choice)

10.

asked the Secretary of State for Education and Science what new plans she has to strengthen the rights of parents to choose the school their children will attend.

I hope very soon to be able to introduce a Bill which will include provisions relating to the expression of parental wishes in the admission of children to schools and the duty of local education authorities to take them into account.

I thank the right hon. Lady for that reply, but will she bear in mind the fact that parental choice is a precious right of most parents at the moment? It is enshrined in the Education Act 1944. Will she bear in mind the fact that anything she produces must be seen to be manifestly better?

I have not the slightest doubt that what we are proposing will be a manifest improvement on the 1944 Act in at least two ways. First, it will for the first time require local authorities to provide detailed information about schools in the maintained system, which has never been the case before. Secondly, it will provide for a local system of appeals, which is also not required at present. In my view, both will be a substantial improvement on the present arrangements.

Is my right hon. Friend aware that the Conservative Opposition have for many years talked a lot of rubbish about parental choice? Is she aware, for example, that my father would dearly have loved me to go to Eton, Harrow, Haileybury College, Winchester or some other great public school but that he was unable to arrange for me to do so for one simple reason—that he did not have any money to send me there? is it not true, even in relation to local authorities, that 90 per cent. of ordinary working people under Conservative local authorities have never had parental choice in the past and that for the first time we are presenting them with that?

On the first part of my hon. Friend s question, I do not believe that he would have been either more articulate or more eloquent if he had gone to Eton, Winchester or any other public school. On the second part, I assure the House that it is our intention that all parents' wishes shall be taken into account, and not only those of the tiny minority whose children went to grammar schools in the past.

Will the Secretary of State stop advising education authorities to close schools in rural areas, since this deprives parents of choice and is also a shattering blow to community life in villages?

The hon. Member perhaps does not fully appreciate that the law says quite clearly that the initiative for a closure shall be taken by the local authority. It is not in my power to initiate any school closures. The suggestion must come from the local education authority. As the Conservative Party controls almost all rural education authorities, the matter seems to lie very much in its hands.

Is it not a fact that the Labour Government have been steadily working for a considerable time for the maximum parental choice for all parents and that a Bill is shortly to be published which will expand parental choice? Is it not also a fact that the Conservative Party has been using the terms "parental choice" and "parents' charter" as demagogic slogans? Is it not true that for countless years the Conservatives have had the chance to democratise education but that they have sent over 80 per cent. of ordinary children to the secondary modern schools and want parental choice for themselves and their children?

For whatever reason, this is the first Government to propose that there should be information, by law, that there should be parent representation on governing boards, by law, that there should be local appeals, by law, and that parents should be able to express their wishes in all situations, by law. Thus, people should look at the fruits and not at the promises.

Is the Secretary of State aware that, although we welcome the publishing of information and the local appeals system—indeed, we on this side pressed for it for years—we are concerned that the new education Bill will contain clauses which will allow local authorities rigidly to control the intake each September—the number going to each school—which means rigid zoning, which in turn means the end of parental choice, whatever appeals system she may set up?

The hon. Gentleman will know that if he has been pressing for it for years it is strange that it has not happened. Second—yes, we have to look at the planning of the future of our education system, but we intend to do that without sweeping away either section 13 or section 68, both of which enshrine the right of local consultation and local objections under the 1944 Act. We are not proposing to repeal either of those provisions.

Commonwealth Heads Of Government Meeting

Q1.

asked the Prime Minister when he expects to reply to the letter from the hon. Member for Havant and Waterloo setting out reasons why Her Majesty The Queen should not attend the Commonwealth Heads of Government meeting in Zambia.

I replied to the hon. Member on 3rd November.

Since the Prime Minister in that reply—for which I thank him—said that all relevant factors would be taken into consideration, will he give the House a categorical assurance that Her Majesty will not be advised to visit Zambia unless, first, her personal safety can be completely assured and, second, that if she should visit Zambia that will in no way be taken to imply approval by the British people for the terrorism that that country has so regrettably and hospitably fostered within its boundaries?

On the first question, of course the personal safety of Her Majesty would be the prime consideration of those who advise her. As the hon. Member will understand, that advice would come not only from Her Majesty's Ministers here, who take a principal role in it; it could also come from other members of the Commonwealth where she is Queen. As regards the second part of the question, I do not accept what the hon. Gentleman said about the nature of the Zambian Government. President Kaunda has made his position quite clear on these matters. I do wish sometimes that the hon. Member would try to support his efforts in those directions and not attack them.

The Prime Minister will know that the Commonwealth Secretariat expressed some concern about the findings of the Bingham report. Since this matter may come up at the meeting, whether it is held in Zambia or not, when will the right hon. Gentleman be able to tell the House about the Government's decisions, following the debates in the two Houses last week?

I hope, in the near future. I read the report of the debate in another place, which I found very valuable too, and the Cabinet had a preliminary consideration last Thursday. I trust that we shall have further consideration this coming week, and perhaps we can announce a decision soon after that But if we cannot, it will be only because we still have problems to sort out.

As some members of the Opposition seem to suport the activities of Smith in attacking Zambia, is it not they who endanger the Queen's safety when she visits that country?

There is no prospect yet that Her Majesty is in any personal danger at all and any decision that has to be taken will be taken well before next August, if that is the date, as seems likely, when the Commonwealth conference is to be held. As regards those who are responsible for the present situation in Zambia, that will be a matter of continuing debate, but I have no doubt that if the six principles which have been laid down for bringing Rhodesia to majority rule were accepted by all concerned and elections held, there would be no difficulty about anybody visiting Zambia, whoever they may be.

Prime Minister (Engagements)

Q2.

asked the Prime Minister if he will list his public engagements for 14th November.

This morning I accompanied Her Majesty The Queen when she greeted President Eanes of Portugal at the beginning of his State visit to this country.

In addition to my duties in this House, I shall be holding meetings with ministerial colleagues and others, including one with the leader of the opposition in the Lok Sabha. Mr. C. M. Stephen, and the former Prime Minister of India, Mrs. Gandhi.

This evening I hope to attend a dinner given by The Queen in honour of President Eanes.

I am glad that my right hon. Friend was able to meet the President of Portugal, because Portugal is one of the countries which has a current application to join the Common Market. Perhaps he would make to the President of Portugal the ponts that he made in his Guildhall speech last night about the shortcomings of the financial structure of the Common Market, and particularly its system of agricultural suppor.

Yes, Sir. I dare-say that the President will wish to discuss with me the prospects for his application, which I believe is now proceeding satisfactorily. As I said at the Guildhall last night, it is clear that what is needed is a broad balance between all the interests of the members of the Community if its long-term objectives are to be fulfilled, and not the unbalance that exists today.

Will the Prime Minister today take time to explain to the typical home buyer, who is faced with a bill of£16a month for mortgage rate increases, why the Prime Minister's own Government have a worse record for mortgage rates than any previous British Government?

I think that the increase is£16 before tax deductions, so the figure is lower than that suggested by the right hon. Lady. The Leader of the Opposition is taking the first opportunity that she has had to claim that the mortgage rate today is higher than it was when she left office in 1974. I am not surprised that she has taken that opportunity.

The plain truth is that the British people would prefer to see inflation conquered whatever short-term steps are necessary. This is one of the steps that we intend to take in order to achieve that.

Has the Prime Minister forgotten that under one of his own previous rulings the mortgage rate went up to 12½ per cent. in 1976? Therefore, he has held the worst record on two occasions. Will he explain how an increase of nearly£16 a month less tax helps the home buyer in his personal battle against inflation?

It does not help the personal home buyer at all. But, as the right hon. Lady might acknowledge at some time, all of us are part of the national interest. It is in the national interest that these rates are increased so that inflation is kept under control. Perhaps the Leader of the Opposition will explain to the country how she would keep inflation under control if she did not adopt these methods.

Will my right hon. Friend agree to consider what he said in the City of London last night with a view to appointing a Minister for Europe, not only to co-ordinate the activities of Ministers and officials in Brussels but to explain to the British people some of the advantages and some of the disadvantages of our membership of the Common Market?

My hon. Friend has always taken an enlightened view of these matters.

My hon. Friend the Member for Bolsover (Mr. Skinner) certainly knows about regretting things that are said.

As I said in my speech at the Guildhall last night, there is no doubt that there is a balance of advantage to be drawn from membership of the Common Market. This balance is certainly on the plus side in respect of political co-operation and certain of the decisions that have been taken on steel, textiles and other matters. I doubt whether we could have taken them on our own. However—and I do not wish to be used by the antimarketeers on this matter—that does not destroy the need for getting a proper balance in the financial contributions that we are making.

Is it not clear from the answer that the Prime Minister gave to my right hon. Friend the Leader of the Opposition that the increase in the mortgage rate is due exclusively to the excessive borrowing by this Government? Should not the Prime Minister admit frankly that his Government's borrowing policies have led to the increase in the mortgage rate?

No. That is certainly untrue. The borrowing requirement of this Government is not out of line with the borrowing requirement of other similar Governments and is, indeed, far lower than that of a number of comparable countries. The borrowing requirement is not doing this. There are a number of factors which the Chancellor of the Exchequer enunciated at great length last week. This was to the satisfaction of the House because we had a majority at the end of the day on the Queen's Speech.

Cbi

Q3.

asked the Prime Minister when he last met representatives of the CBI.

I meet representatives of the CBI from time to time, at NEDC and on other occasions. Further meetings will be arranged as necessary.

As it is now clear that the Opposition's statements are designed to encourage employers and industry generally to sabotage the Government's economic policy, can the Prime Minister make it clear what he expects from the CBI, industrialists and employers in order to support the incomes policy?

I certainly agree that the CBI in its public statements on this matter have been much more responsible than some sections of the Opposition. I hope that the CBI will take the White Paper on incomes policy "Winning the Battle Against Inflation" fully into account when advising its members.

When the Prime Minister meets the CBI will he ask exactly how it proposes to increase production with the 12½ per cent. minimum lending rate? Will he say exactly what is the difference between his addiction to the nonsense of monetarism and that of the Leader of the Opposition? Is not the 12½ per cent. the price that we are all having to pay for the failure of successive Conservative and Labour Governments to arrive at a sensible wage bargaining system?

The present Government at least can be exonerated from that charge. We are doing our best to arrive at a sensible wage bargaining system. I trust that the statement that the TUC, in conjunction with the Government, will be issuing later today will demonstrate that.

I accept that the Prime Minister's comments last night on the Common Market enjoyed widespread support, but will he take this opportunity to tell the CBI and others that Britain's involvement with the European monetary system is now a dead duck? Will he also say that, unless there is radical and substantial reform of the Common Market, Britain's departure from the Common Market must be a real possibility?

It is far better that we should try to make the necessary reforms in the European Community than that we should talk about leaving it at this stage. There are substantial disadvantages in leaving.

As the House knows, I raised the matter at Bremen on 6th July. As a result of that the paper has been prepared and certain deductions are now being made. It will be considered by the Finance Ministers of the Community on 20th November. I shall, of course, carry the matter forward as far as I can at the next meeting of Heads of Government early in December.

Does the Prime Minister recall that the CBI, among other things, called for the Government to consider legislating on the creation of a system of balloting before strikes? In view of the recent situation at Vauxhall, and as the bread workers' strike is taking place at a time when between 65 per cent. and 70 per cent. of supplies are at a normal level, does he agree that there is a widespread consensus for the view? Is he aware that if he gave serious consideration to that suggestion he would almost certainly have the approval of the House and the grateful thanks of the nation?

I answered questions on this matter last week. I have nothing further to add today.

Is my right hon. Friend aware that the only way to achieve genuine reforms in the Common Market is to say that we shall leave it unless we achieve them?

I would not regard my right hon. Friend as the best adviser on that matter. I do not think that he has ever wanted to be a member of the Common Market, at any price.

Prime Minister (Engagements)

Q4.

asked the Prime Minister if he will list his official engagements for 14th November.

Irefer the hon. Member to the reply which I gave earlier today to my hon. Friend the Member for Kingswood (Mr. Walker).

Is the Prime Minister aware that during this year mortgage repayments have risen by a record 37 per cent.? Will he confirm to hard-pressed housebuyers and owners that this is almost entirely due to his Government's incompetent handling of the economy?

I do not think that the country takes that view because, as the hon. Gentleman may know from his own personal experience, more building society loans are being made today than ever before. They are at a record level. That seems to show that many people are still in the field for buying houses.

When my right hon. Friend meets the President of Portugal today, will he inform him that those of us who warned about the Common Market have been proved right, both by the general experience of our people and now by the figures—and I am including among us my right hon. Friend the Member for Battersea, North (Mr. Jay)? On the analogy of a previous Government, who appointed a Minister for disarmament who later ended up selling armaments, may I recommend to my right hon. Friend that he appoint a Minister for Europe who might end up by getting us out of Europe?

I do not accept what my hon. Friend has said on this matter. The necessity for Europe is a closer combination and not to split up. It would undoubtedly create a tremendous furore among the European nations if a major member were possibly to consider leaving. I do not believe that we should do that. We have had a referendum on the subject with a positive result, and some of my right hon. and hon. Friends would be helping more if they would apply some constructive criticism towards getting a proper balance between payments that are made and the receipts that are given to each individual member country.

Early-Day Motions And Amendments

On a point of order, Mr. Speaker. Early-day motion No. 46 reads:

"That this House deplores the suggestion of the Opposition Front Bench during the Second Reading of the Pensioners Payments Bill that the pensioners' Christmas bonus should be means-tested."
This issue was raised in the House last night, and the early-day motion was tabled at 9.45 p.m. Is it in order for that motion to appear with an amendment the first time it appears on the Order Paper, since this clearly means that the hon. Member for Northampton, South (Mr. Morris) went to the Table Office last night after I had been there and submitted an amendment to the motion before it had been published?

I am much obliged to the hon. Member for Birmingham, Perry Barr (Mr. Rooker) for giving me prior notice of this point of order, which enabled me to inquire into the matter. As soon as a motion is handed in to the Table Office, it becomes the property of the House and is open to inspection by other Members. From that moment, amendments to the motion may be submitted in the ordinary way, and that is what occurred in the case of the hon. Gentleman's motion and the amendment thereto.

Questions To Ministers

On a point of order, Mr. Speaker. As there has been no opportunity to apply to you for a motion under Standing Order No. 9, may I ask whether it is in order for the Government at a later opportunity to make a statement on the very serious bombings in Northern Ireland? Five towns have been blitzed and there has been considerable loss of life.

The hon. Gentleman's statement will have been heard. If the House desires it, on previous occasions such things have been found possible, but on very rare occasions.

Statutory Instruments, &C

Ordered,

That the draft Hovercraft (Application of Enactments) (Amendment) Order 1978 be referred to a Standing Committee on Statutory Instruments, &c.—[Mr. Foot.]

European Community (Enlargement)

3.34 p.m.

I beg to move

That this House takes note of Commission Documents Nos. S/763/78 and Addenda 1 and 2, and S/911/78 and Addendum 1 on enlargement of the Community.
The two documents are the Commission's overview of enlargement—the so-called fresco—and the Commission's opinion on Portugal's application to join the Community. Enlargement, as I think we all recognise, is the most serious single issue facing the Community, and it is also a momentous political and economic issue for the three applicant countries, Greece, Portugal and Spain.

As the Prime Minister said in answer to Questions, President Eanes of Portugal arrived on a State visit to this country this morning, and the House will, I know, join me in extending a warm welcome to him, representing as he does both our oldest ally and a future partner in the European Community.

This House has demonstrated in a number of debates a strong commitment to enlargement of the Community, and it is one of the areas in the development of the European Community in which the United Kingdom can fairly claim to be amongst the leaders of opinion. Yet there is still insufficient awareness in this country and in the Community of the vitally important adaptation for the Community which enlargement will entail and which we need to discuss more openly.

The accession negotiations are being undertaken on the basis that the applicants agree to accept the Community's rules, subject only to the various derogations and transitional arrangements which have to be negotiated. This is a similar pattern to the one which the House approved of in the British application.

The Greek negotiations have made considerable progress over the last year. Broad agreement has been reached on Greece's integration into the industrial customs union, the European Coal and Steel Community and Euratom, as well on the principles of Greece's entry into the pattern of the Community's relations with third countries. Recently, the Com- munity agreed on how Greece is to be incorporated into the institutions of the Community.

The main outstanding subjects are agriculture, free movement of labour and the length of the transitional period. These are difficult questions since other member States have major interests at stake. However, it remains the hope and the expectation of the Government that the main subjects of the negotiations will be tackled by the end of the year, which has been the objective of both the Community and the Greek Government.

Work on certain areas will still no doubt have to be completed in the first half of next year, but the Community should aim to sign an accession treaty with Greece by July. Allowing at least a year for ratification, that would mean probably formal entry on or before 1st January 1981.

Member States endorsed the Commission's conclusion in its opinion on Portugal that the political arguments for starting negotiations were overwhelming, and negotiations were opened last month. While we hope that the lessons learned in the Greek negotiations will make it possible to proceed with the Portuguese negotiations fairly briskly, there are difficult economic problems which will have to be dealt with and the negotiations seem likely to take around two years. This would point to Portuguese entry perhaps in 1982. That date may slip, but I hope not.

I am glad to say that the Commission's opinion on Spain is now expected before the end of this year—something for which the Government have been pressing hard. Assuming that it is ready in time, we should like a decision on the opening of negotiations with Spain to be taken by the Council of Ministers at its meeting in December. The negotiations will, again, take about two years, but we hope that Spain nevertheless will be ready to join at the same time as Portugal.

The hon. Gentleman raises an interesting point. It would be the first Communist country to join the EEC. Relations with Albania have been rather low for quite some time, but we welcome any encouragement from the hon. Gentleman to improve relations with any countries, particularly Communist countries.

My right hon. Friend says that we are rather keen to have Portugal, Spain and Greece in the EEC. I am not opposed to that—indeed, I am very much in favour of it. But, in view of the Prime Minister's statement last night and of the reports coming out that these countries are not efficient in their agriculture, so that we should be paying increasing amounts in order to subsidise the inefficiency of their agricultural policies, are these factors being taken into consideration when we talk about these countries joining the EEC? Within two years we are likely to be paying£15 per head of population in this country towards the common agricultural policy, and clearly that amount would increase further if Greece, Portugal and Spain came in with their present agricultural systems.

I shall deal with that later and in some detail, but there is a difference in that a large proportion of the agricultural cost to the Community comes out of northern agricultural products. One of the challenges for the Community is to develop better training in agricultural policy without having additional costs on top of the existing budget, but I will deal with this later.

I am glad to say that the Commission's opinion on Spain is now expected before the end of this year, assuming that it is ready in time.

Will the right hon. Gentleman concede that it is a strong point in favour of the admission of Spain that this formerly rigidly centralist, Fascist country has now democratised itself to the extent of allowing the Basque and the Catalan nations their own forms of government?

There is a strong tradition of decentralisation in European countries and in European Socialism, and I happen strongly to support decentralised Socialism. The Proudhonist tradition is very well represented in Spanish Socialist purport. But I think that this is not related to the Spanish application. If we are able to make progress on Spain's application, it will mean that all three applications will be under negotiations.

It is clear that a series of three accessions staggered over a long period would be deeply disruptive for the Community, and the delay could also lead to a wobbling in the Community's collective commitment, which still firmly exists, to enlargement. So if the House and the country want a Community of 12 I believe it is extremely important that the momentum to 12 must be maintained.

The driving force behind enlargement to 12, as it was indeed with enlargement to nine, is political. I will deal with the economic issues later. The most obvious political imperative, one which we have all supported, is that enlargement should help to consolidate democratic systems in the three applicant countries with the immense political benefit that that would bring of greater stability in Southern Europe.

Each of the three applicant countries sees membership of the Community as part of its return to the free, open, democratic European tradition. In Portugal's case in particular, membership of the Community is seen as essential in order to give that country the focus of stability which it needs after the loss of its colonies and the trauma of revolution.

The political implications of enlargement of the Community as a whole will, however, be considerable. A Community of 12, provided it maintains cohesion, is bound to have more influence in the world than a Community of nine. Closer links with Latin America are likely to follow because of the close ties between Spain and Portugal and the countries of that continent.

The Spanish-speaking world numbers 239 million and the Portuguese-speaking world numbers 136 million. Portugal and Spain both have an African tradition. That applies to Portugal in particular because of her former colonies in Mozambique and Angola. The meeting in June in Guinea-Bissau between President Eanes and President Neto of Angola was an important development greatly easing relations between the two countries, and this has been followed by a marked improvement in relations between Angola, Zaire and Zambia. We now have an ambassador in Luanda and look forward ourselves to greatly improved relations.

But there could be less welcome political consequences. Involvement in Mediterranean affairs must not mean that the Community is dragged into the Aegean dispute.

Will the right hon. Gentleman explain how it is possible to have the advantages of a closer relationship with the Mediterranean countries while dissociating ourselves from the problems?

I am openly putting before the House one of the problems. It is the danger of becoming involved in the Aegean dispute. I was going on to explain why I thought it may be possible to avoid that.

One problem will be to take care to ensure that Turkey does not become alienated from the Community. We have proposed ways in which Turkey can be kept closely in touch with the Community's work in political co-operation, and we shall be working hard for the success of the current efforts to reinvigorate the Community's association agreement with Turkey. We must reassure Turkey, whose democratic system also deserves and requires support. It must not feel threatened by enlargement. I do not believe it will if we handle the issue carefully. It would also be of benefit to all of us if the Cyprus dispute could be resolved before 1981.

The economic implications of enlargement will, in general, impact more on the applicants than on the present Community. The applicant countries together will, for example, add only 10 per cent. to the Community's gross domestic product. But, while overall the economic consequences for the Community should be limited and acceptable, there will undoubtedly be problems for particular sectors and for certain Community structures. Perhaps the most obvious consequence for the United Kingdom will be the possibility of increased competition from low-cost industrial exports, especially textiles and steel, which are already sensitive areas for the United Kingdom.

Although we intend to negotiate safeguard measures to minimise disruption during the transition period, we must recognise that some of our sensitive industries will inevitably face problems. We must, however, bear in mind that in general our industrial exports stand to benefit from enlargement because of the easier access to the applicants' markets which enlargement will bring. Honourable Members may laugh at that, but we have been able to extend our industrial exports into the European Community, not sufficiently maybe, but there has been a steady growth of exporting into the European countries.

Will my right hon. Friend accept that, in so far as we drive a hard bargain in respect of our national economic interests in steel and low-cost textiles, we deprive the applicant countries of the political benefits on which they now base their case? Is there not an inherent contradiction between the so-called political and economic cases? How large a price economically are we prepared to pay for what may be not very substantial political gains?

That is a question of balance. I think my hon. Friend is referring, for example, to the extreme sensitivity in Portugal over textiles, but there is no use balking the fact that one has only to visit Lancashire, where I was at the weekend, to see that its textile industry has lost about 100,000 jobs already. It is an extremely sensitive problem, and the pace of adaptation of older industries facing this kind of competition has to be handled with great care. But it involves not only Portugal. There are many other poorer countries which will inevitably become involved in textile manufacture. They produce the cotton and they will want to be involved as an industrial country. We have to face this problem of the adaptation of our industries if we seriously intend to help the underdeveloped world. So it is a question we face with Portugal as we face it with Bangladesh, Sri Lanka and many other countries.

The question is at what pace our industry can adapt in order to provide alternative jobs. The answer is that we have to find a balance between the perfectly legitimate national interest of safeguarding jobs in one's own country and the difficulties faced by other countries with a much more difficult unemployment problem. These include Portugal and Third world countries. This is an issue which a number of Select Committees have been looking at recently and which the Government have been closely examining. There is no easy answer. It is a question of trying to balance the different claims.

Does not the Foreign Secretary understand that the British people, quite apart from a few anti-Marketeers on these Benches, take the view that what is really happening as a result of our entry into the Common Market—and we have had five years in which to examine it—is that British taxpayers are seen to carry on their backs not only all the underdeveloped countries but also, it seems, the West Germans and all the others as a result of the recent report? Would not it make sense, even political and economic sense, even for Euro-fanatics, to delay direct elections while the other three countries joined the EEC?

I am not certain that great changes would be made in the economic balance between ourselves and the existing Community by delaying elections to the European Assembly. I know my hon. Friend's views on that. He has had ample time to argue his case. He opposed the Act through all its stages, but he was unable to succeed—

I do not believe that it will be for the benefit of this House or our country for us to debate the issue of enlargement without facing up to the blunt economic facts. One of them is that the three applicants, especially Greece and Portugal, are likely to receive more from the Community budget than they put in, and this will mean an increase in our contribution.

My hon. Friend must not be too surprised if every now and then a Minister speaking from this Box agrees with him. That is perfectly possible.

I hold strongly that the House should not enter blind into this commitment to enlargement. We should not make these decisions on the basis of trying to hood- wink the House of Commons. There was a lot of legitimate complaint in 1972 and before when people felt—rightly or wrongly—that they were not being given the full facts. It is extremely important that we should have these facts now. The question is, how do we make the calculation?

It is difficult to make anything more than speculative calculations of the amount, but, on the basis of various arbitrary assumptions, including no change in Community policies or in the levels of agricultural production in the three applicant countries—and that is a fairly major assumption—the extra budgetary cost to the United Kingdom would be of the order of£90 million to£115 million a year at 1977 prices. This cost has to be seen against the net£660 million which is the current estimate of our contribution to this year's budget. Those figures give some idea of the proportions.

As my right hon. Friend the Prime Minister made clear last night at the Guildhall, the United Kingdom has the third lowest per capita gross domestic product in the Community and yet we are the second highest contributor to the Community budget. This cannot be good for the Community any more than it is for the United Kingdom. There are other anomalies, for example in the case of Italy as a net contributor on the one hand and Denmark and the Netherlands as substantial net recipients on the other.

Some would argue that the figures we quote of our net contribution leave out of account the monetary compensatory amounts paid on the food we import from Europe. But these are not a resource transfer to the importing countries. It makes more sense to see them as a benefit to the exporting countries since they allow producers there to export at higher prices than would be obtained in an uncontrolled market. But even if all MCAs on our imports were added to our receipts, we should remain among the highest net contributors. For instance, if the calculations were done on the 1976 figures we should fall only from second largest to third largest contributor. We shall be working to achieve a better balance, especially in relation to agricultural expenditure, to curb the excessive United Kingdom net contribution. It is now a serious problem to us, irrespective of enlargement.

The budget generally is likely to come under strain after enlargement. More calls will be made on the Regional and Social Funds. The United Kingdom's share of these funds may therefore diminish. The integration into the Community of three economies each with an important agriculture sector will lead to more CAP expenditure, unless by negotiation we have already reduced CAP expenditure. In particular, we are trying to do that by reducing current surpluses.

My right hon. Friend has told us, as did the Prime Minister last night, that our budget contribution is excessive and that it will rise even further if these additional countries join the EEC. Will my right hon. Friend say, therefore, whether the Government will now be putting forward to the EEC concrete proposals for remedying this situation?

We have already done so. We are in almost continuous negotiation over this whole issue. There is, first, the question of the price level, which comes up annually in the negotiations. Second, there is the question of the application of MCAs. Third, there is the whole question of the way in which one examines the budget. The Commission is at present considering the distribution of the budget and the way that it is financed, and it is coming up with some interesting proposals. There is also the question of the size of the Regional Fund, the size of the Social Fund and the value of them to the individual member States. This is being examined as part of the discussions on the European monetary system, with which I shall deal later, as part of the concurrent studies promised in the European Council at Bonn. The Commission is due to put forward proposals at the Brussels meeting in December. We shall then have some idea of whether it is prepared to advocate radical changes in these areas.

Since my right hon. Friend the Prime Minister wrote to the general secretary of the Labour Party in September 1977, when he made a commitment to put as one of the Government's highest piorities a fundamental change in the distribution and the effects of some of the financing of the CAP, we have been actively pursuing the matter. My right hon. Friend the Minister of Agriculture in particular has had some notable successes on the question of price.

Will my right hon. Friend indicate, if we are not successful—it is a year since my right hon. Friend the Prime Minister wrote that letter—in getting some fundamental change which will benefit the British people, what we are to do? Is it not time that we said to the other EEC countries that, if we are unsuccessful and fail to secure the fundamental changes we seek, we shall renegotiate ourselves out of the Common Market at the earliest possible moment?

I do not think that that is the way to achieve the negotiating objectives that we have set. There are ways of achieving them within the Community. The first way is to make more of the other member States aware of the arithmetic. Until about a year ago, very few of the member States were aware of the disproportionate effect of the existing Community budget. We shall have to try to persuade them. If we find that we cannot, we shall have to use our negotiating strength in the many different forums in which it is possible to exercise it so that we see substantial changes. That is how the Community works. But I do not believe that we shall achieve success by threatening to come out of the Community.

Does not the Foreign Secretary realise that for the past 11 years attempts have been made to reform the CAP and that nothing fundamental has been reformed? We therefore want to know, should that state of affairs continue, as it is likely to because of the vested economic and political interests in the Common Market, what the Government will do. Surely, to state now what they would do would fortify their negotiating position.

I do not agree that it would fortify the negotiating position if we did that. One of the factor emerge is that some of the assumpt that were made it 1972 have been shown to be false. For example, it was said at the time that the proportion of the total budget devoted to agriculture would steadily fall, whereas it has steadily risen

There will also be the stimulus of enlargement to make the Community rethink the consequences of the CAP. The integration into the Community of the three economies of the applicant States, each with an important agricultural sector, will lead to more CAP expenditure unless we make changes, and those changes will have to come by negotiation.

We shall also have to try to reduce current surpluses. It is important, too, that surplus production by the applicant States is discouraged now, and it would be unrealistic and wrong to expect the expanded South of the Community to accept indefinitely the predominance in the budget of expenditure on support for northern agricultural products. Even in the existing Community it is noticeable that the Italian Government are becoming much more openly critical of the impact of the current CAP.

The House must understand, therefore, that it is not only Britain that is beginning to realise that there will have to be structural and fundamental changes in the impact of the CAP. It would carry very little support in the Community to argue that the CAP has to be scrapped. That is not the Government's position. We are arguing that its impact on the individual member States needs to be changed radically and the balance altered.

We must try to ensure that the disproportionate spending on northern agriculture is reduced. We simply cannot afford to increase expenditure on Mediterranean products in addition to the existing percentage devoted to northern agriculture. CAP expenditure already distorts the whole budget. It now accounts for 70 per cent. of spending. It is unacceptable to us for the distortion to be made worse. On the other hand, it is far to make economies, savings and reductions in subsidies to rich, prosperous sections of the agriculture industry.

The House must recognise—with respect, some of my hon. Friends must recognise—that the agricultural sector in the Community contains some of the lowest paid workers in the whole of the Community. It is unrealistic and unsocialistic to expect them to make all these changes overnight without any adaptation machinery. It is of fundamental importance that the changes are made in a way that especially protects the poorer peasant farmers. They should be given a period of transition and adaptation. We would expect that for our own agricultural workers were they to need it, but they do not, and our own industry were it to need it. We must enable the peasant farmers in the Community to have a period of adaptation. We must act generally in a Community spirit in the way that we deal with agricultural change, but change there must be.

My right hon. Friend has been extremely patient, but he does not seem to appreciate that what is at issue is not prices or subsidies but the fundamental principle of intervention—the commitment to buy even if there is no market. Until that system is scrapped, my right hon. Friend and all the members of the Community may fiddle with prices and subsidies until they are blue in the face and they will make no difference. It is that fundamental fault that has to be overcome. The applicant countries will be trapped in exactly the same way as we are by that principle.

There is a difference of systems. We used to have the whole deficiency payments system. We preferred it. Very few people, whether on the pro or anti side of the Community argument, have denied that it would have been better to retain the old deficiency payments system. At least, that applies to many of us. I know that I do not take some Opposition Members with me. However, it was a fact of life that we could not get the deficiency payments system.

The existing system of agriculture in the Community is not all at fault. The problem is that its application has allowed large surpluses to occur. It is not inherent in the CAP.

I do not believe that to be so. In agricultural production we shall never achieve a perfect match between supply and demand. That is a fact of life. There will always be troughs and peaks. We must direct our attention to flattening them out and achieving a fairly even spread of production that is met by demand. It is unacceptable to any reasonable, rational man, of whatever country or member State, that we should be increasing the prices of commodities that arc already in surplus.

Yes, and production. That is an obvious fault in the existing CAP system, apart from the more fundamental issue raised by my hon. Friend the Member for Sheffield, Heeley (Mr. Hooley).

Is my right hon. Friend aware that many British people who voted to enter the Community did so on the understanding that the advice they were given on the CAP was correct? We were told that if we were inside we could change it from the inside. The basic economies of Spain and Portugal are based upon agriculture. Is it fair for the rest of the Community to tell Spain and Portugal that before they enter the Community they must change the basis of their economies? What are they to do?

That is a potential problem. That is why the House has devoted much attention to it.

The support for Mediterranean products is at present extremely small. In entering the Community, Spain and Portugal will not be adding a very heavy commitment to the existing CAP. However, it is an open secret that they will wish to argue for a more generous support system.

The question that we have to face is whether that is necessarily against our interests. Many of the products concerned are products that we import. If they can be produced efficiently and at low cost, that may be in Britain's interest. We should not believe that an efficient Mediterranean agricultural section, as part of a more balanced form of Community agricultural production that would come from the Community of 12, is necessarily against our interests. I do not believe that it should be. What is dangerous is that we shall carry into the Community a commitment greatly to increase expenditure on southern, Mediterranean products and no reform of northern agricultural products. If we do so, before we know where we are 80 per cent. of the Community budget will be devoted to agriculture. That will be in no one's interests.

There are ways in which we can use our negotiating strength to prevent that.

The threat to withdraw is one of the worst negotiating weapons to use. There are many other weapons. There are many aspects of the negotiating procedure where one member State can hold up progress in the Community. I do not advocate adopting a veto system. However, if it becomes of national importance that a change is made, we may have to consider taking that position. Other countries have acted similarly in the past.

At present, we hope to be able to make progress by rational debate and discussion on the basis of a Community effort. I believe that we are making some progress. I am not claiming that progress is dramatic. All I am saying is that over the past few years the Government have made more progress on this issue than was made for a decade or more. It we hold to our approach, there is a good prospect of making change.

Another problem will be the economic impact of enlargement on the Community's trading partners in the developing countries, especially in the Mediterranean. The latter will inevitably find the relative advantages that they enjoy under the overall Mediterranean approach eroded—for example, Maghreb and Mashraq countries. There is a need for the Community to work out with the countries most affected a strategy to overcome the difficulties that this will cause.

It is necessary that the Commission recognises that we cannot continue making commitments all round the world and raising expectations, only to find that we are unable to fulfil them. That creates a serious problem. It is easy to start new policy initiatives, to open up new prospects that carry with them the belief that dramatic Community benefits will come to the countries concerned, only to find that they cannot be delivered. That is a recipe for frustration. It often damages our relationships with other countries. Commitments lightly entered into have a tendency to swing back on those who enter into them. As it is often the Commission that is involved, it is often the member States that feel the backlash.

It is difficult to say at this stage what will be the impact of enlargement on the Community's policy towards the developing countries generally. I know that that is a subject of concern to many hon. Members. However, opposition to the Community's generally liberal outlook may grow since the three newcomers have been traditionally more protectionist than the Community. In addition, they may see themselves as having a claim on aid funds. We have seen that in the discussion over textiles. They may see themselves as having a claim at least comparable with that of some present recipients. The new Lome arrangements that are being negotiated and decisions that we are seeking to increase aid to non-associates should ensure that no harm is done to the Community's development policy over the next few years at least, but the picture in the long term is less clear.

The institutions of the Community will also need to be examined to improve their efficiency. I do not personally believe that that will be resolved simply by increased use of majority voting, which has often been claimed by some other member States as a magic cure for all the problems of the Community. Effectively, there is already a system of informal majority voting. Member States in a clear minority have to have regard to the interests of others. The Community in fact functions by a complex series of implicit trade-offs. Eroding this by putting issues to the vote on frequent occasions could lead to much more widespread invocation of the Luxembourg compromise. Much more important, it could lead to an erosion of the spirit to seek compromise, which is one of the cements of the existing Community.

The real need is for the Community to be able to work out decisions informally, with proper regard to the political realities of the Community. Decisions cannot be forced through mechanically. We shall be sceptical about making any formal changes in the institutions, particularly as regards majority voting.

I do not in any way dissent from what the right hon. Gentleman has just been saying, but will he admit that the Commission has a valuable role to play in initiat- ing a constructive compromise that would take better account of the long-term interests of the Community than a mere process of horse trading? Does the right hon. Gentleman recognise the distinct role of the Community in that area?

Yes, I said that I did not think that we should change the balance of the institutions, and. I am going on to describe this. But I see the role of the Commission as the guardian of the treaties, so to speak. The Commission holds an overall responsibility, and by its very nature it has to be somewhat legalistic in its interpretation of Community obligations and to hold the Community close to the treaties. That is a Commission obligation. But there is satisfaction about the efficiency of the Community, and the French proposal for a committee of three to look at the efficiency of the Community could be valuable, particularly if the people chosen are practical, political realists and not theologians.

The institutions need streamlining. We made several suggestions for improvement during our presidency. Most of the Community's problems are already there and need solving anyway, irrespective of enlargement—the budget. which is top-heavy with agricultural spending, the inadequate regional policies, the traditional industries already in difficulties, relations with the Mediterranean countries already under strain, and the decision-making process, which is at times slow and cumbersome.

It might save time if the Foreign Secretary, before he leaves this point, could tell us exactly what is the state of play on the French President's proposal for the "three wise men".

The Council of Foreign Ministers will be discussing it at the next Council meeting, and it will come to the European Council. We had an informal discussion about it at a private weekend at Schloss Gymnich, in. Germany. I think that we shall probably reach agreement, but several different suggestions are being put around. One is that the representation should be from the members of the existing institutions. I do not think that that really meets the objective of the French, which was that they should be people who, although experienced in the Community, could take a more detached look at the workings of the Community, rather than people who are deeply involved in it at the moment. A lot depends on having the right people.

One has only to see what happened to the Tindemans report to be a little sceptical about what may happen when suddenly we have the production of a report from three people. Incidentally, I think that women could be included, and therefore I dislike the term "three wise men". The question is whether they will hold the confidence particularly of the Heads of Government of the nine member States. Will there be a response to their suggestions in a way which will lead to some reform? I think, therefore, that the key question is the people who are to be entrusted with this task.

I said that I do not think that all these problems will come only with enlargement. Enlargement may exacerbate these problems and make it more urgent to solve them, but it will not of itself have created them. I hope that in practice we may find—as, indeed, to some extent we are already seeing—that enlargement may act as a stimulant. I believe that the Community functions better than most of its critics recognise. I have always held the view—and I hold it ever more strongly —that we endure in the Community a surfeit of apolitical comment, based on an unreal dream, totally devoid of reality, of how member States should act, instead of taking account of how member States are likely to act.

The actual performance of the Community, judged by any other international institution which I know or have worked with, is very good. Despite all the problems of economic recession and all the difficulties that we have faced over the last four or five years, the Community has held together and is making effective decisions. I do not hold the belief that it is in collapse, and we would do a lot better if we had a little less Euro-crisis talk coming out of Brussels.

The role of the presidency is increasing and will, in my view, inevitably increase. It has a key influence, for better or worse, on the handling of EEC business, both within the Community framework and in political co-operation. The Minister, or the permanent representative in the chair at any given time, has a special responsibility to assess the development of all States' attitudes and to identify the political scope for compromise or for new solutions. That is a slightly different role from the role of the Commission.

Some ideas have already been put forward, such as using the preceding and following presidencies to support the current one in a "troika" system. That is encouraging and certainly needs to be looked at carefully. It would probably help most in political co-operation, where some measures of continuity and some buttressing of an incoming presidency could be particularly helpful, because there is not the usual Community institutional framework for support and one has to rely entirely on the support of the member State.

The Council Secretariat is at present a body of permanent officials serving the presidency in controlling the administrative machinery of the Council. I believe that we need some additional means of support for the presidency in a much more political way, helping with the formulation of compromises and stimulating initiatives at both Council and at Coreper level. This could be done by a small group, to keep the Council secretariat more closely in touch with the political realities in capitals. The group should be chosen partly from people who have served closely with Ministers. Such a group could make a contribution for which no part of the existing machinery, including the Commission, is precisely fitted at present.

We made a start during our presidency on developing the role of the secretariat in working out presidency compromises. Properly developed, such a group could, in my view, be a factor for continuity, and it could also overcome some of the disadvantages which undoubtedly exist with a six-months rotating presidency, without affecting the need for all member States to have a term as president. I do not see any way in which that can be changed. Every member State will want to hold the presidency in its turn. I believe that this would be a natural development and that it could powerfully reinforce the presidency, without challenging the role of the Commission. It would provide an essential element of continuity in the exercise of the presidency.

It is extraordinary that in recent months in Community discussions and negotiations, which are still in progress, the implications for the Community of 12—as opposed to the Community of nine—of a European monetary system have been virtually ignored. It would be a great mistake to limit the current consideration of EMS to the present members of the Community. We must look at wider needs and wider concerns, including those of the candidate members. In the EMS discussions, the British Government have throughout insisted on the need to avoid putting the weaker currencies at risk from major speculative attack or of laying the burden of adjustment only on the weaker members.

This applies to those EEC countries which are not currently members of the snake. It will apply even more to the three candidate members, of whom the Greek Government have already made clear that they would like to include the drachma in any European monetary system. All that our Government have said about the need to make the EMS truly durable and comprehensive applies with equal force to the new members.

We wish to see a scheme which would be capable of accommodating weaker currencies without self-defeating obligations on them and which would be accompanied by a general improvement in the Community's budgetary arrangements, so that they contribute to convergence in the economic performance of all the members. If it does not do that, it cannot be good for the Community. If it contributed to convergence and produced currency stability, we should welcome it. The issue of a European monetary system is not, in my view, an issue of Euro-principle but is one to be judged on practical, technical grounds. There is at present too much politics in its presentation. A scheme does not become viable merely by adding a dressing of Euro-terminology—EMS, EMF and ECU.

The most important underlying problem facing any EMS is the fact that the economies of the existing member countries diverge, especially in their inflation and growth rates, and the working of the Community budget does nothing to promote convergence of economic perform- ance. Indeed, it is a factor for divergence in that it transfers resources from some of the poorer to some of the wealthier member States. In the light of existing disparities of economic performance, excessive rigidity of exchange rates, which could have a deflationary impact on the weaker economies, could make it harder to achieve the convergence of performance at the highest possible level of activity which is essential for the long-term future of the Community.

There is a requirement for adequate flexibility in exchange rate management within the system to guard against this danger. There is also a requirement for positive resource transfers to contribute to convergence. Currency stability is a desirable objective. Some argue that this can come only from full-scale monetary union, backed by large resource transfers. We have to ensure that a European monetary system does not fall between two stools, on the one hand imposing undue rigidity on exchange rates, with deflationary effects on the weaker economies, while on the other hand failing to grasp the nettle of resource transfers adequate to overcome any such adverse impact.

In trying to establish the necessary balance between exchange rate rigidity and action to compensate the weaker economies, we have to look at the actual situation in existing member States and, I believe, look at the three applicant countries. In the past year Portugal has devalued its currency by about 30 per cent., Spain by nearly 25 per cent. and Greece by nearly 10 per cent. against the European unit of account. Germany has revalued by 2·9 per cent. That gives some idea of the market pressure for changes in cross-European exchange rates. The likely need for future changes is indicated by the differing inflation rates: Portugal 8·9 per cent., Spain 21·3 per cent. and Greece 13·4 per cent.—and Germany currently 2·7 per cent.

These facts reinforce the conclusion that a narrow, rigid European monetary system modelled on the existing snake will not be in the interests of a Community of 12. The overall effects of all Community policies must increasingly be to promote convergence of economic performance between the member countries in contrast with present policies, such as the CAP, which are not designed to work for convergence.

I am trying to follow the Secretary of State's argument as closely as I can. In so far as differing inflation rates are a major factor working against the convergence, which we all want to see in the European Community, and in so far as many Governments in Europe, including Her Majesty's Government, are now using good old-fashioned deflationary techniques and credit squeezes in an endeavour to combat inflation, why is it not sensible to have a European monetary system which puts some emphasis at least on deflationary mechanisms to bring about that convergence?

I am not saying that it is impossible to bring down inflation within a European monetary system. I do not hold that view. Properly constructed, I think that if we have the flexibility which I have suggested we will need on exchange rates and the resources available, it could add to the ability to bring down inflation. I think that a measure of currency stability is helpful. For instance, when our exchange rate was under considerable pressure we saw that it was not long before the consequences of the pound falling fed through under inflationary pressures. I think that dramatic, rapid falls in the exchange rate can have a very severe impact on inflation.

We have tried to approach these negotiations on a strictly practical basis. I think I can claim that my right hon. Friend the Chancellor of the Exchequer, in the way that he has negotiated and developed his argument in the Finance Council and elsewhere, has found an increasing amount of sympathy for the factual basis of his argument. I think that is also reflected in the division of opinion which is beginning to be clear amongst economists and bankers in this country.

The EMS is a highly complicated, technical and economic issue. I think that from the way the Government have approached it, it is clear that this is how we see the issue. We have strongly resisted judging it in terms of whether one is or is not a believer in the European Community. Within the European Community the seriousness of our negotiating position is becoming more apparent. I think that people must also take account of the fact that very few things would do more harm to the European Community in this country than if Britain were to enter into a badly worked out monetary system which was not viable and did not last and we then had to withdraw, as happened on previous occasions with the snake.

In order to go in, in the debates in this House we would indulge in a tremendous amount of oversell. That is always the case when a controversial issue comes in. The resultant feeling of let-down in a failure would work strongly against the European Community and those who support it. I hope that those who look at these issues will do so not from a polarised European view but from an objective evaluation of whether it is in the interests not only of this country—that is obviously very important—but of the Community. I think that one of the factors—I say only one—is whether the construction of a monetary system takes enough account of the three applicant members, all of whom have considerable problems and a wide spread of inflation.

I do not wish that to be construed as arguing that it is impossible to bring down inflation within the European monetary system. The Prime Minister for a long time—even before the European monetary system was advocated—argued for currency stability. Britain has always said that currency stability should come in a wider framework. It may be that the European monetary system is a start, but there is also a danger that it could close off a wider arrangement for currency stability. The more we look at the EMS, the more we believe that the arguments of the last decade or more for fundamental reform grow ever stronger.

I think it is important that policy changes should be made to contribute to convengency before enlargement takes place. All the requirements which we have argued an EMS must meet in order to be lasting and effective are reinforced when considered in the context of enlargement and the needs of the candidate countries.

Lastly I turn to the particular case of Portugal, since one of the two documents before the House is the Commission's opinion on Portugal's application. The Portuguese economy is still fragile. The Community must be careful in negotiating the terms of Portugal's entry not to overstrain the Portuguese political and economic system. Too rapid an opening up of the Portuguese market to Community exports could damage agricultural production, blight developing industries, aggravate the balance of payments problem and give an upward twist to inflation. The member States must, of course, safeguard their own interests. We shall want to be particularly careful not to aggravate our own problems with textiles, which we have already discussed, and fisheries. But in the negotiations with Portugal the Community must at all times bear in mind political factors. Political and economic decision-making must not run on separate tracks.

I am confident that the economic problems of integration can be overcome given sufficient awareness of Portugal's needs. One essential will be an appropriate transition period, and we shall have to bear in mind Portugal's financial needs. The members of the Community are already helping Portugal through both the two financial agreements signed since 1974 and the IMF. Portugal will also benefit through the Community budget. With the other member States, however, we shall remain ready to study ways in which the Community might complement Portugal's own efforts to rehabilitate its economy.

My right hon. Friend mentioned Portugal and, earlier, the importance of peasant economies. About 28 per cent. of the working population of Portugal are in agriculture, and there are even more—35 per cent.—in Greece. But in none of the documents before us is there any examination of the differences in agricultural prices of those commodities which are grown both north and south of the EEC. Will my right hon. Friend undertake that there will be a study of the differences in prices so that the transitional period, to which he has just referred and which is of particular importance to Portugal, can be looked at in a realistic way which will not impose social strains on the peasant economies to which he has referred?

I should like to look at that matter. I should like to meet my hon. Friend's point, but I should like to consider whether it is more appropriate that we should argue that it be done by the Commission so that it would be in an overall Community document. However, I am prepared to look at that matter, and I undertake to write to my hon. Friend about it.

While we recognise that Portugal's entry will create special problems, our support for Portugal's application is firm. We admire Portugal's courageous efforts to break with the past and her success in sticking to the democratic path, despite some heavy buffeting. I urge hon. Members to remember that that past was not so long ago.

The Community must hold out a welcoming and steadying hand. For Britain, that will be merely the continuation, in a new guise, of our historic relationship with Portugal. I look forward very much to discussing the prospects for future cooperation with President Eanes and his advisers.

With the opening of negotiations with Portugal and with the crux of the Greek negotiations soon to be reached, the Community is now being obliged to face the practical consequences of its political decision to accept enlargement. There is a danger of having too much rhetoric. That must pass. We now need to look at the detail of the enlargement and its implications for this country and the Community in general. We in this country have examined our stance on enlargement dispassionately and, after the first flush of enthusiasm, we still believe that, despite the cost to us, enlargement is historically inevitable and politically desirable.

To what extent has that consideration taken account of regional problems within the United Kingdom? It seemed inherent in my right hon. Friend's earlier remarks that he felt that the Regional Fund within the Community was inadequate. Therefore, with the addition of the three candidate members, will there not be a far greater need in future for the development of an adequate regional policy?

It is very important to safeguard our existing share of the Regional Fund, which would argue therefore for an expansion of the Regional Fund at the time of the three applicant States joining. Also, we can look at alternative ways of using both the Regional Fund and the Social Fund. Britain has been pretty successful in using these. However, I do not want to overstress the role of the Community in regional policy. Essentially, this will always be a matter primarily for national Governments. If one looks at the overall percentage of the budget that we spend on regional aid, one finds that by far the largest amount comes from the national budget. But this is a factor which we have to take into account.

In conclusion, I say that it is important that we should discuss this issue openly. I have given way to a lot of hon. Members because I know that there are genuine concerns about this matter. We should not enter blindly into a commitment on enlargement. We should not take only political factors into account. We should take account of the economic consequences for this country and for the Community as a whole.

But behind this matter is a fundamental fact. Is the European Community to be open to any democratic State in Europe which wishes to join? By making the decision to go for a Community of 12, we are saying that the old arguments of a narrow, small, tightly knit Community are over and that we are accepting that there is a historic obligation on the Community to allow the entry of any democratic applicant State which wishes to join the Community.

That is a major decision. It will have an impact on the development of the Community. It will change it. I believe that it will not weaken the Community. There are some of my hon. Friends who argue at times that this is one of the advantages of enlargement. I think that it will not weaken the Community and I do not believe that it should weaken it. However, it will be a different Community.

I apologise for missing part of the right hon. Gentleman's speech. From his remarks on the European monetary system, the House recognises that the Government are being rightly cautious about the particular course they will take, with the advantages and disadvantages it will have to Britain. However, will the right hon. Gentleman say whether any particular consideration has yet been given to the special situation of the £ sterling in relation to the Irish pound, and what research and what investigations are being conducted now into the consequences, for instance, from 1st January of Britain staying without the EMS and the Republic of Ireland going in?

I am trying to confine this debate to the enlargement and the Commission papers which we have in front of us. The Lord President has already promised the House a debate on the EMS—I know that it is hoped to have that fairly soon—in which an important element obviously would be a discussion of the effects of the EMS on existing member States, rather than on the forward projection to the Community of 12. In that, the impact on Italy and, in particular, Ireland—because of our special relationship in the currency—will be discussed. I know that my right hon. Friend the Chancellor of the Exchequer would be very happy to deal with this subject. However, if the hon. Gentleman will excuse me, perhaps I may say that it is a subject which we are discussing at the moment but it is not something on which I would like to prejudge whatever the Chancellor might wish to say.

No. In the interests of the House, I think that I have given way enough. I wish to conclude what I have to say.

I think I have said enough to ensure that this debate will concentrate—I hope that it will—on the issues of enlargement. I want to make it clear that I have considered all the factors, and I still remain of the unshakable view, and the Government's view is unwavering, that we should support the enlargement of the Community and that we should plan now to move from a Community of nine to a Community of 12.

Before the right hon. Gentleman sits down, perhaps I may ask him a question.

4.34 p.m.

It is timely that we should have two major debates on Community matters in this week.

The Foreign Secretary ranged very widely this afternoon, although he tried to draw himself in again towards the end of his speech. I make no complaint about that, because much of what he had to say was very interesting. In our view, however, tomorrow will be the occasion, during the debate on the six-monthly report, when it will be more in order to analyse at length the question of the Government's pledge in the Prime Minister's speech last night and the story in The Guardian. When that opportunity arrives tomorrow we shall make full use of it.

On enlargement, first, I join the Foreign Secretary, on behalf of the Opposition, in extending the welcome that he gave to the President of Portugal. Thinking of recent history, it is a great thing that a president of a democratic Portugal should be here on a State visit.

Before going into the questions posed by enlargement, perhaps I may voice a general question about the present burden of taking and making of decisions inside the Community. For some time there was a cliché, current among critics and, indeed, some friends of the Community, that it spent its time fiddling about with little issues and never concentrated on the big ones. At the moment, however, an enormous number of negotiations and decisions are on the boil, and they are of great consequence.

There are the three sets of negotiations which we are discussing today, and the documents show how complicated and difficult they are. There is the EMS proposal; there is the renegotiation of Lome; there are the continuing trade and tariff negotiations in which the Community negotiates: there are also the efforts by the Commission to make sense of the common agricultural policy. There are many other things going on, and they are all major enterprises of the Community.

I am just wondering whether something needs to be done to make sure that this all happens in an orderly process. The Commision, contrary to what we are often led to suppose, is not an enormous organisation. It is about the size of a county council, and I cannot think of many county councils which are at the moment exposed to such a burden of decision making.

I am certainly not suggesting that the Commission should be expanded, but there is, perhaps, a case for its being more flexible regarding the use of its manpower and resources, and occasionally shifting people into more important sectors and away from some of the fiddly little things that they are obviously continuing to do.

On a subject which is, perhaps, more within the purview of the Foreign Secretary, I ask a similar question about the Council of Ministers. Does the Foreign Secretary feel that in the coming weeks and months Ministers will make the best use of the time which they have available? I was a little disturbed by a report of a remark by the present President of the Council of Agricultural Ministers—the German Minister, Herr Ertl—who said that there was no time for his Council to discuss what struck me as a highly important subject, namely, the reduction of dairy surpluses, because there was so much going on. Will the Minister who replies to the debate please comment on that? Will he give an assurance that the Council of Ministers, in examining its work load over the next few months and with all these major enterprises in hand at the same time, is setting about its work in an orderly way and is leaving aside some of the smaller matters that could clearly wait—if, indeed, they are necessary at all—and concentrating on making a success of the massive agenda of big matters which it has before it?

I wonder whether the hon. Gentleman would spell out in a little more detail his remarks about the Commission? My right hon. Friend described it as the custodian of the Treaty of Rome and said that inevitably some of its decisions were legalistic. How does the hon. Gentleman see the future role of the Commission? I think that it ought to be a little more than the description given by my right hon. Friend.

I was on a rather narrower point. I am sorry if I have misled the hon. Gentleman. I just have the impression, from visiting the Commission and listening to Ministers, that it is rather inflexible in its use of the people it has and that it is extraordinarily difficult, even for the Commission as a whole, to switch people to a department which is under pressure and away from something which they have been doing for years.

We know of Government Departments in this country which are not famous for flexibility in this respect. However, I believe that this is something which may be for the three wise men. Perhaps it is part of a wider examination such as the hon. Gentleman suggests. My point was rather more limited. It was about the next few months and the importance of the Commission concentrating on what is important.

I turn to the question of enlargement. do not intend to make a long speech because, unlike the Foreign Secretary—who I think was away at the time—I took part in the debate which we had last May on this same subject. The principles of our attitude have certainly not changed in the last few months. Therefore, I intend to be very brief indeed. In Madrid the other day my right hon. Friend the Leader of the Opposition made it clear that we support strongly and warmly the applications for membership from Greece, Portugal and Spain. We support them because we accept the political arguments which led those three countries to put their applications forward.

If anyone had come to this House five or six years ago and told us that those three countries would have thrown off Right-wing dictatorships and at the same time rebuffed the effort to impose Left-wing dictatorships, we would have said that such a person was hopelessly optimistic and that the world was not like that at all. Yet that is what they have done. When, after that achievement, they tell us that in order to maintain their own democracy and achievements they need to join this institution, which they regard as the nucleus of democracy in Europe, I do not think we really can say that they do not know what they are talking about in terms of their own countries' interests or that we are so busy and uncertain about our own affairs inside the Community that we simply cannot take them on. That would be an entirely wrong and cowardly attitude to take.

I was, therefore, much encouraged by the news which the Foreign Secretary gave about the pace of negotiations, particularly with regard to Spain, because there was a report that the Commission's opinion might not be ready until next year. That would have been disappointing to the Spaniards. It is, therefore, good news that it is now expected. I hope that the Government will maintain the impetus in securing that opinion and thereafter will ensure that the Council of Ministers takes the decision fairly early.

I am sure that we all join the hon. Gentleman in wishing to encourage the three countries in the development of democratic institutions. I wonder what his views would be should any of the applicant countries subsequently err and fall from democratic grace. Would the hon. Gentleman envisage a system similar to the Council of Europe, where the member country lapsing into dictatorship would subsequently be excluded from membership of the Community?

That is a point that has been discussed in the House. Indeed, we pressed the Foreign Secretary on it during the early part of this year. I think it was in Copenhagen that the European Council adopted a declaration that bore on this point and made it clear that, whether one was talking about existing members or about the new members, it would be inconceivable that a member State which fell into dictatorship, either of the Right or the Left, could in practice continue as a member of the Community. The actual mechanics of what one would do would obviously be difficult, but what has been made clear—it was important to make it clear this year, before the new arrivals—is that one cannot imagine that a State practising either Fascist or Communist policies could be at home, or could remain, in the Community.

I should like to follow what the Foreign Secretary said about Turkey. This is a matter that we raised in the May debate. The Minister of State, who opened that debate, talked about his desire that there should be greater and more effective political links between the Community and the Turks. Today the Foreign Secretary spelt that out a little more in terms of political co-operation. This is absolutely crucial, and I hope that when winding up the Minister will say a little more about it.

It is really very important that the application of Greece, which we support, should not have the effect of bringing Turco-Greek disputes of various kinds into the Community or alienating and turning the Turks away from Europe and, indeed, from the West. It is not just Cyprus. There is a whole range of problems, which the Foreign Secretary summed up as Aegean problems. There is also the fact that Turkey's association agreement has lost some of its importance, as the Community has gone on making agreements around the Mediterranean with other countries that produce goods that Turkey also produces.

I feel that there is a danger that the Community will not pay enough attention to Turkish sensibilities. "Sensibilities" is a weak word, because one is talking about a perfectly reasonable concern by the Turks about their own interests and their place in the world. It is doubtful whether the Community by itself, however wise it is, can really answer the Turkish questions to the satisfaction of the Turks. There is a very strong case for a Western initiative and an attempt to work out with the Turks, across the whole range of the West's dealings with Turkey—economic, military and political—what kind of place Turkey wants in the Western world over the next two or three decades. This is a problem that we may neglect in this country, but it is one that we neglect very much to our own peril if it goes wrong.

The economic aspects of enlargement were dealt with fully by the Foreign Secretary and there will be much to chew over in what he said. Obviously, for the applicant countries the adjusting of their economies to life inside the Community will be very complicated and difficult. Likewise for us—this has perhaps become even clearer since May—the call on resources that enlargement brings is again a major problem. I very much hope that the Foreign Secretary is right in saying that in the case of Mediterranean products we shall not repeat some of the follies that are still embarrassing us and making the Community's life extraordinarily difficult with regard to northern products.

Although the economic side is difficult both for the applicant countries and for the Community, what is urgently required is not the economic answer but the political gain and assurance. It was, therefore, encouraging to find from the information that the Foreign Secretary gave that fairly early dates now seem in sight for membership of the Community by the three applicant States. I should be grateful if the Minister would confirm that by that the Foreign Secretary means membership with full political rights, in the same way as we and Denmark became members with full political rights at the beginning, and not at the end, of our transitional periods. This is obviously a very important point for the applicant countries. It would then be entirely reasonable and, I suppose, inevitable—although the Foreign Secretary did not spell this out—to have rather long transitional periods to cope with the economic problems.

There could, perhaps, be transitional periods without absolutely fixed dates. We had a rigid series of dates by which we moved to A, to B, to C. There may be a case for having a more flexible arrangement by which dates can be altered by agreement if need be. I see the dangers of that, but I should be grateful if the Minister would touch on the matter when he replies.

Some of my hon. Friends, some people in the Community and perhaps some in the Commission itself are worried that enlargement to 12 will slow down the impetus of the Community of nine. of course it will. There is no point in being mealy-mouthed about this. But it is encouraging to find that the applicant States are obviously keen to make a go of it. They themselves do not want to slow down the impetus. As the Foreign Secretary said, it is simply that the Community will have to change. To some extent this will mean thinking afresh about problems to which we have not already found satisfactory answers. Therefore, it will not be entirely new thinking. It will be thinking which we would have had to do anyway, because some of the ways in which the Community institutions are at present functioning are not satisfactory.

Since my right hon. Friend the Foreign Secretary did not give any specific proposals for amending the CAP, will the hon. Gentleman—who speaks on behalf of the Conservative Opposition—say what a Conservative Government would do by way of specific amendments to the CAP?

Not today because it would not be in order for me or the Secretary of State to do so, but I hope to touch on that aspect tomorrow. I was expressing the hope, with which I think the hon. Gentleman will agree, that it could not be sensible to repeat, with Mediterranean products, the full panoply of intervention and relatively high prices, fixed year by year, which has caused so much difficulty for dairy products.

Whatever side of the argument we are on, we on the Opposition Benches, and the House as a whole, have pressed throughout these European debates that the Community has to live in a world wider than its own boundaries. From time to time tests present themselves, propositions arise and there are moments when that conviction, which we all express in terms of rhetoric, has to be tested in terms of practice. It is a test of energy and imagination, and it is a little difficult for this country to summon up those virtues in respect of Europe at the moment. The applications and the proposal for enlargement are such a test, and the passing of that test by the Community should be high among the priorities of Europe.

On a point of order, Mr. Deputy Speaker. I am in some difficulty in relation to a document that we are considering. It is a letter dated 19th May 1978 from the Commission of the European Communities, signed by Mr. Natali. It is document no. S/911/78. I wish to draw your attention to the fact that nearly half the document—about 30 pages—is in French. The section is headed "Liste des tableaux" which, I presume, is a list of tables. The verbiage used in the list is most complex and difficult to understand.

I should like you to consider this important point, Mr. Deputy Speaker. I fail to see how the House can properly consider the matter unless the document is translated, as it should be under the terms of an earlier instruction of the House.

I heard what the hon. Gentleman said, but I must tell him that the presentation of the documents to the House was properly moved. The subject matter is no concern of the Chair.

Further to that point of order, Mr. Deputy Speaker. Does your ruling mean that if we are to consider French documents we may speak French in the Chamber? That is the logic of your ruling. Si c'est possible, je vais le faire.

Order. That may appear to be the logic, but making a speech in French is not in order.

4.55 p.m.

It might be a good idea if, before speaking French, some hon. Members spoke English. That would help us considerably.

I am not opposing the applications of Portugal, Greece and Spain. We have to look at developments in those countries with gratification. Only a short while ago, they were under Right-wing, Fascist dictatorships with no free trade unions or political parties. I wish that Conservative Members would understand that I am as opposed to the dictatorship of the Soviet Union as I am to Fascist countries. We are talking about three countries which were under Right-wing, Fascist-type dictatorships. That does not mean that one automatically supports the type of anti-democratic dictatorial regime that exists in so-called Left-wing dictatorships in Eastern Europe and elsewhere. If some Conservative Members would express their detestation of Right-wing dictatorships as strongly as some of my hon. Friends express their opposition to so-called Left-wing dictatorships, it would be good for democracy in this country. There can be no double standards on dictatorship versus democracy. It is regrettable that we have to say this so often before it penetrates the minds of certain Conservative Members.

It is important that we should recognise the tremendous changes that have taken place in the three countries with which we are concerned, particularly in Spain and Portugal. It is also gratifying that the dictatorships in Spain and Portugal were removed without violent revolution. There was physical violence in the colonial countries of Portugal, but, while the military brought about a fundamental change in Portugal itself, there was little violence other than that which is inevitable when such fundamental changes take place.

As a democratic country with a democratic Socialist Government, we have to concern ourselves with the maintenance and development of democracy in those countries in order to sustain them against anti-democratic forces of the Right or the Left. It is important that we should declare our support in principle for the applications of those countries.

That does not mean that I am now a Common Marketeer, but I believe in democracy and it is right for us to help those countries in every possible way. The point has been clearly underlined by an old associate of mine from many years back, Antonio Giolitti, who says in his report to the President of the Council of the European Communities:
"The Community will find itself less homogeneous as a result of the different political, economic and social structures of the new members, and this will make it more difficult to reach joint decisions and apply them properly."
I welcome that because it is much in line with the concept of the Labour Party conference of a looser type of Common Market rather than the bureaucratic structure which was designed for six countries and was changed only slightly when the Community grew to nine members. Obviously it will have to change much more when it has 12 members and, since that will be in line with the thinking of my party, I welcome that development and favour enlargement for the reasons spelt out by Antonio Giolitti.

It is clear that there are major problems to be faced by the Common Market. In the very long document submitted by Mr. Giolitti, the section on agriculture says:
"The Mediterranean area is by no means homogeneous as regards physical characteristics but in addition to its characteristic climate it does have a number of common structural problems. In general, cultivation methods are labour-intensive, productivity per worker is low, average farm size is very small in comparison with the average size of northern European farms and underemployment is widespread. Lack of irrigation is also a problem in many areas.
Enlargement would bring into the Community three countries where agricultural accounts for a very important part of total economic activity. The number of persons engaged in agriculture in an enlarged Community context would, in fact, be more than doubled".
Let us see precisely where we stand. I might well have reservations about some parts of the speech made by my right hon. Friend the Prime Minister at the Guildhall last night, but the parts dealing with the common agricultural policy were first-class. It is nice to find the Prime Minister and my Front Bench catching up with what some of us have been saying for a long time. I always think that there is room for conversion on the road to Rome and that any sinner that repenteth is worth taking to one's bosom. It is nice to think that my right hon. Friend and others of my right hon. and hon. Friends are coming round to a view that some of us have held very strongly.

I should like to make an aside—I almost said "snide comment"—on this matter: what price our renegotiation of the CAP when we were coming up to the referendum? We were told then that the CAP had been renegotiated. Some of us said at the time that it was very difficult for us to see where it had been renegotiated. We know now that the renegotiation of the CAP was in the main a con.

I have said that we must welcome the three new countries into the Common Market for the political reasons that I have advanced. But their entry will intensify our agricultural problems. Where will our contribution end unless there is a fundamental change in the renegotiated terms?

My hon. Friend says that he is arguing the political case for enlargement, which I fully support. Are he and his friends therefore prepared to accept the economic logic of their position?

I was coming to that. I have never argued that I am opposed to European unity. I think that my hon. Friend will grant me that. I have never been opposed to the Common Market on the grounds that we have to associate with Frenchmen, Germans, Italians, Belgians, Dutch, Danes and so on. I have always been in favour of an integrated, Socialist Europe, and I still am. I believe that Europe's future must be along the lines of a Socialist Europe big enough to counteract the unmitigatedly disastrous free market economy in the United States, on the one hand, and the bureaucratically controlled economy in the Soviet Union and Eastern Europe, on the other.

I have always argued that. What I argued when we came to enter the Common Market—for me this was the determining factor—was that the terms of our entry into a market dominated by the Treaty of Rome involved, first, an acceptance of a free market economy based upon that Treaty and, secondly, and I think more important, that the terms were such that our people would suffer tremendous burdens because of entry.

Would not my hon. Friend agree that there is a distinct link between the needs of peasant and subsistence agriculture in the Mediterranean and the policy apparently involved in the CAP? Does he agree that there is not an agricultural policy worthy of the name, because article 64 of the Treaty is really an agricultural produce prices policy, which will do little to sustain the human fabric of those rural areas in the South? Does my hon. Friend accept that unless that policy is changed it could well, instead of aiding their democracy, fuel social discontent if article 64 remains unamended?

I think that my hon. Friend has put the point better than I would have. I do not disagree at all.

The CAP is not a genuine agricultural policy. That is the whole point. What are we to do? The Labour Party conference this year and last year, and certainly the Labour Party itself, based on the letter from my right hon. Friend the Prime Minister to Ron Hayward, have made it clear that there should be a fundamental renegotiation of the CAP. What I am concerned about is that we said that more than a year ago, and it is true.

I accept what my right hon. Friend the Foreign Secretary said, that a stand has been made by my right hon. Friend the Minister of Agriculture, Fisheries and Food—up to a point. But what happens is that one is pressurised by Common Market colleagues. One makes a stand up to a point, and then the bargaining begins. One gives way on this in order to gain on that. One gains a little and loses a lot. That is what has been happening.

The time has come to stop that kind of bargaining. We must bluntly tell the Common Market countries, our partners, that we shall adopt the type of policy that was adopted by General de Gaulle and the French. We can learn from what some of our Common Market colleagues did in the past.

I was on the Council of Europe when the French had what they called the vacant chair policy. I believed that when we were carrying through our renegotiation we should have had a vacant chair policy instead of participating. I hope that I am not giving away official secrets if I say that I sent a memorandum to the Prime Minister at the time urging that policy. My suggestion was not adopted. One does not always win, but a few years later one finds that people think that one's idea might have been good.

If we had adopted that suggestion we should not have been in the position that the Prime Minister described last night at the Guildhall. But it is not too late. We can adopt that policy now. We can say to our colleagues in the Common Market "We shall not participate in the work of the market until there are fundamental changes along the lines that we propose."

That brings me to my final point. If we do not have those fundamental changes, what shall we do? My right hon. Friend the Foreign Secretary says that it would be wrong to threaten to leave the Common Market. I remember a trade union official who once told me before going into some wage negotiations "I have both hands tied behind my back. The ground has been cut away from beneath my feet, and I feel like a blindfolded man." I said "Then there is not much point in going in, is there? You do not have much to negotiate on if you are in that condition."

To some extent, we have been in that condition in our discussion with the Common Market. In such a case as that and in this present case, one has only one strength. In the case of the trade union, it is to say "If you do not negotiate within reasonable limits for what we want, we shall have to consider withdrawing our labour." In the present case, all that we can say is "If you are not prepared to change the agricultural system fundamentally and in the process help the countries in the Mediterranean area because they need assistance with their agriculture, we shall consider negotiating ourselves out of the Common Market and withdrawing."

That is what we have to say quite clearly, and, although I support the applications in principle, I think that we are at the crossroads. It was highlighted last night by my right hon. Friend the Prime Minister. On that basis, we have to be clear about where we go from now.

5.10 p.m.

If the Foreign Secretary had still been here I would have apologised for missing the beginning of his speech. In any event, I did not intend to speak on this subject today and in view of that I shall not detain the House for very long. However, I wanted to ask the- Foreign Secretary two questions.

I am sure that we are all delighted at the stance that the right hon. Gentleman has taken about the enlargement of the Community, not just on political grounds but on much wider ones. We must encourage the growth of democratic societies. The democratic countries are in a small minority in the world. Of 170 nations, about 25 are democratic. This is the Western ideal of good government, and anything that we can do to encourage the growth of democratic, pluralistic, parliamentary Governments should be done. One of the greatest ways to encourage that is to enlarge the Community, bearing in mind especially that although we talk about the European Economic Community, Europe is a much bigger entity than just the Nine, the 12, the 14, or whatever it may be, and that we should look much wider than that to embracing eventually the whole of Europe in it.

If the Foreign Secretary had been present, I should have liked to ask him to explain the criteria used in selecting the timetable for the admittance of the various countries. As I understand it, the timetable is that Greece comes in first, Portugal second, and Spain third. I do not know the criteria that have been used to make Spain come last in that admittance.

I want also to support what my hon. Friend the Member for Mid-Oxon (Mr. Hurd) said a moment ago, that in talking about the admittance of those three countries we should never forget the claim of Turkey eventually to be admitted to the Common Market on defence, political and all sorts of other grounds. We should not make a false step by appearing to be pro-Greece and anti-Turkey, or pro-Turkey and anti-Greece. It is very important that we should understand that. I know from talks that I have had with Turks that they do not think that they are yet in a position even to apply for membership. However, they very much want us to extend a hand of friendship to them and to hold out the idea that they will be admitted as soon as their economy can stand the strain of coming in.

The much more pertinent question that I wanted to ask the Foreign Secretary is somewhat on the lines of what the hon. Member for Liverpool, Walton (Mr. Heffer) said. The Foreign Secretary made a very constructive speech, which will not have displeased either side of the House. However, he dodged some of the major issues, one of which concerns the position of the European Economic Community after direct elections. I agree with the hon. Member for Walton that the common agricultural policy simply cannot be allowed to continue along the lines which it has followed to date, giving two or three countries enormous aid. I do not blame the constituent Six of the Common Market for it; I blame this country for being slow to get into the Common Market. I cannot conceive that had we joined the talks—

The hon. Member criticises this country for not joining the Common Market at the date of its inception, but is he aware that when Britain made application, to join General de Gaulle vetoed our application until, of course, the French people had obtained a common agricultural policy? Then France gave the word to allow Britain to enter. But that was too late.

I agree with the hon. Member. However, if I may go back a little in history, in.1955 I was one of the signatories to a motion on the Order Paper of this House urging the then Prime Minister, Mr. Harold Macmillan, to join the talks that led to the Treaty of Rome. Had he done so, and had we been present at the formation of the EEC, I think that the common agricultural policy would not have been framed as it has been, which undoubtedly has been to the advantage of French and German agriculture. I do not disagree with the hon. Member for St. Helens (Mr. Spriggs); my point is that having formed it themselves they formed it for their own interests, and it is our fault that we were not there to form it in another way.

I hope that we shall soon have another chance. Next year we shall have direct elections. It would have been interesting to hear from the Foreign Secretary whether he felt that the role of the three bodies was likely to change drastically. We have the European Parliament, with very few powers at the moment. We have the Council of Ministers, which makes the final decisions. The initiation of all policies comes from the Commissioners. This is tantamount to saying that in this country the Treasury and the Civil Service get out the policy for the Government, it is discussed without any powers by this House, and then the Ministers have the right of veto or the right to suggest changes. That is exactly the present position in Europe.

In my view, we should make it clear that when we hold direct elections, we ourselves have the right to go to the basis of the EEC and question these three institutions and the powers that have been given to them. It may not be popular with the EEC to think that from the word "go" we shall be trying to change some of its institutions and their powers. However, I do not think that the questions that the hon. Member for Walton asked can be raised, because in my view we should never threaten to get out if we do not get what we want.

We are just as good at bargaining as is anyone else. Once we have direct elections to the European Parliament, we can make our voice heard and, we hope, get others to see our point of view and in a democratic way progress along these lines. But to threaten to leave the EEC just because it does not do exactly what we tell it is not the right approach. It would be very counter-productive in Europe if we took that stance. We are already accused of beginning to take that stance. I do not think that we should do that in an international organisation of this kind.

Those are the two matters about which I should like to hear more. In my view, the question of the powers of the Corn-mission and what are to be the powers of the new democratically elected Parliament in Europe form the basis of getting the policy right.

5.19 p.m.

Like my hon. Friend the Member for Mid-Oxon (Mr. Hurd), I welcome the proposals to enlarge the Community.

One of the interesting features of the debate so far is that, although individual hon. Members have spoken about some of the problems and challenges facing the Community and this country as one of its individual members, in political terms, regardless of our attitude to the Community generally, any enlargement and greater formal co-operation between the countries of Europe is to be welcomed. Equally, in political terms, as my hon. Friend the Member for Mid-Oxon and the Foreign Secretary both said, the more mutual support that we give the emerging democracies in Europe, the better it will be for the cause of democracy, not only in Europe but in the Western world as a whole. In that sense, I would very much welcome enlargement of the Community.

However, many of us have our reservations about enlargement because of the difficulties faced by the Community and because of its inability to tackle and solve them. We wonder whether enlargement will mean that solution of the problems will be delayed or made more difficult, and therefore we need to know what are the implications of enlargement.

From that point of view, it is perhaps easy to say that perhaps we should delay enlargement until some of the internal problems in the Community can be resolved, or at least until we are able to reach a wider agreement upon them. The common agricultural policy is one such problem, and the European monetary system is another. I have my doubts whether it is right to go ahead with enlargement while these great problems are still unresolved.

I reach a somewhat different conclusion from that arrived at by the hon. Member for Liverpool, Walton (Mr. Helfer) and others. We should not merely regard these difficulties as an obstacle to enlargement but should set as our higher objective the enlargement of the Community. I hope that the mere fact of enlargement will help to stimulate a much speedier and more thorough approach to problems such as the CAP and the EMS in an effort to reach solutions. Therefore, we should seek to use enlargement in that sense rather than as an excuse for delaying such moves.

As somebody who has taken a great interest in the workings of the Common Market from the point of view of the common agricultural policy, I am somewhat sceptical about the effectiveness of the introduction of a European monetary system, because we all know that in the one area in which a common currency has been tried, in agriculture, it has led to the greatest number of artificialities. As a person who has consistently supported Europe, I am uneasy, because of my experience with the CAP, about how effective the introduction of the EMS will be.

Is not one difficulty with the green currencies the fact that, even when one begins to remove problems by realigning currencies, one finds that the basic currencies have varied as against one another and that all one's good work has been undone? That happened only last year. Would not the situation be somewhat improved if the basic currencies were more stable against one another?

I agree, but one of the prerequisites to enlargement must be the resolution of some of these problems. Equally, it is important to carry out a reform of the green pound before we advance to a wider area of activity. If we could advance in that wider way in respect of the EMS, I believe some of the problems would be solved. We are to some extent in a chicken and egg situation. If we wish to see broader acceptance in this country of the EMS, it is important that we should try to remove some of the artificial elements in the agricultural system, because the present artificialities make nonsense of any form of common policy.

I wish now to deal with the possible accession of Spain, Portugal and Greece and to consider what the effect of that would be on the CAP. Too often on these occasions we embark on unlimited criticism of the CAP. I admit that the policy has its faults, but let us not forget that it has had its successes. Since the policy came into being, we have seen a considerable increase in output and in the prosperity of those involved in agriculture. I agree that there are problems of surpluses because output has gone too far, but there is no doubt that in many areas of agriculture in Europe there has been an improvement in the standard of living. At the same time, we have seen an increase in trade in agricultural products. It is most significant that this great increase in output has been achieved by using roughly half the number of people who were involved in agricultural production when the Common Market was set up.

Because we may dislike certain aspects of the CAP, let us not simply hark back to the old deficiency payments system. Any farmer will underline the fact that certain aspects of the policy are good. I should like to see operating the best aspects of both systems. Perhaps intervention buying and deficiency payments could be merged, because that might be the best system of all.

Let us not forget that the deficiency payments system also led to surpluses. We have only to remember the period from 1962 to 1964 when standard quantities had to be introduced in this country to hold back our agricultural production. They were introduced not only because agricultural production was increased to a level higher than that which the Government thought right but because the cost to the Exchequer of the deficiency payments was thought to be too high when weighed against the resources available or the support of the economy generally. Therefore, the deficiency payments system threw up the same stresses, strains and surpluses as we now experience with the CAP system.

We must try to deal with the fundamental problem of surpluses within the CAP. Because of the climatic factors which affect agriculture, there are bound to be surpluses. Indeed, surpluses are inevitable in any agricultural system. What matters is how we deal with them when they arise.

I am concerned that, despite all the problems of the CAP, that system is still running. We now propose to enlarge the Community by bringing in three countries in which proportionately agriculture has a far greater part to play when compared with the other Community nations. The CAP is undoubtedly creaking. If we merely seek to enlarge the Community without carrying out a reform of the CAP, the system itself may break up. For that reason, we must use the fact of enlargement as a stimulant in trying to bring about reform of the CAP.

What is basically wrong with the CAP, as was underlined by the Foreign Secretary, is that its pricing policy deals not only with economic matters, such as the amount of production that is needed in Europe, but with social and regional problems. As a result, the more efficient sectors of agriculture in Europe are getting higher prices than is absolutely necessary in order that those in poorer areas and in less efficient sectors get a living as well. One thing we have to do before enlargement takes place is to carry through reform of the CAP to make sure that we distinguish much more clearly than at the moment the objectives of the policy. The prices policy that is agreed every year must be used in relation to the food needs, in relation to the Community generally and in relation to what is needed to sustain a healthy agricultural industry throughout the Community.

We have to deal separately with, and distinguish, the social and regional problems, the problems of small farmers and of backward areas of the Community. If we do this before these other countries come in—the Foreign Secretary acknowledged that many of the agricultural problems of these countries are more appropriate to be dealt with through the Social Fund or the Regional Fund—we simply must make sure, before those countries came in, that we reform the CAP to the extent that we make this distinction not only in the general policy but also in the way we devote resources to agricultural purposes. I think that where local social problems or regional problems are concerned we need much more flexibility so that national Governments can provide their own answers within the Community for particular local problems. We must look for much more variety and flexibility within the CAP to deal with specific local problems which do not happen to be of a Community nature.

I turn now to the question of fisheries. The hon. Member for Walton made passing reference to this, but I think that the Foreign Secretary did not mention it at all. I hope that when the Minister of State replies he will deal with the question. I should like to put a direct question to him. Precisely what effect does he expect enlargement of the Community to have upon fisheries? We see from the Commission documents that, with the enlargement of the Community by the three countries, the EEC fishing fleet would double in size. That would be a dramatic increase. We also have to remember—it is far too often overlooked —that Spain, one of the applicant countries, has the third largest fishing fleet in the world, behind the USSR and Japan. We have to realise that, so far as the common fisheries policy is concerned, we are greatly increasing the size of the fleet and the size of the problem facing us.

I should like to ask the Minister of State directly what consideration the British Government are giving to the common fisheries policy, which is being hammered out at the present time, and what consideration the Council of Ministers is giving to the fisheries question.

We have to make sure that whatever solution is thrashed out takes some account of what may happen when these other three countries join the Community. We do not only double the size of the Community fishing fleet if these three nations become involved. We do not only bring in the third biggest fishing fleet in the world. In the accession of Spain we bring in a country that already has a big interest in fishing in United Kingdom waters. I know that fishermen in Scotland and elsewhere in the United Kingdom are asking—I have had the point put to me—what effect this will have. I hope we get an answer in this debate.

As one who was involved in the original negotiations, I think that we have to remind ourselves that when we entered the Community in the early 1970s—particularly in relation to fisheries, which has proved an intransigent and difficult problem since—the Community cobbled together its fisheries policy at the eleventh hour immediately before Britain's formal application to join. That was a very short-sighted and stupid thing to do because Britain, Denmark and Norway introduced a completely new dimension to fisheries so far as the Common Market is concerned.

We have an analogy now with Spain, Portugal and Greece applying to enter Europe. We have again a completely new dimension coming into Common Market affairs in agricultural policy and fisheries policy. All I would ask is that in preparing for this enlarged Community we make sure that, in the reform of policies, whether in relation to the CAP or in thrashing out a new policy for fisheries, we do not make the original mistake of the Community in cobbling together a policy at the last minute. We should use this opportunity to make sure that the new policy for fisheries and reform of the common agricultural policy take account of what enlargement means for the future.

5.37 p.m.

I want to refer to what my hon. Friend the Member for North Angus and Mearns (Mr. Buchanan-Smith) has said, but I should like first to refer to an intervention I made a moment ago on a point of order and formally call the attention of the House to the fact that a large part of one of the documents that we are considering is not in English. I would not say that it is a contempt of the House but it is very inconvenient, and a certain amount of inefficiency is involved. The document I am querying, document S/911/78, is headed "Translation", yet the last 21 foolscap pages are not in English. It is very irritating because there are many references in it to "Royaume-Uni", which I understand is the United Kingdom, but I do not know what on earth these references are. There are many technical headings to many of the tables in this document, of the meaning of which, again, I am ignorant. Indeed, the second half of table 13 is entirely addressed to us in French. We are supposed to be approving this document today, but I would not mind betting that probably nobody in the Chamber has appreciated the full meaning of the second half of table 13. Perhaps the Minister, when he replies, will have a ready translation immediately in mind, but most of us are not blessed with his linguistic gift.

I should like to draw your attention, Mr. Deputy Speaker, to this matter, which I think is most improper. I hope that never again will we have to consider a significant document which is not, in its entirety, translated.

The pity of this lack of translation is that the document deals entirely with Portugal's application to join the EEC. All the tables on the 21 pages to which I have referred deal with various important points relating to Portugal's capacity and performance as a nation. Indeed, they are all facts that we ought to know about and appreciate properly before we can come to a meaningful solution.

Luckily, however, I am not entirely reliant upon these tables because, until January this year, with my hon. Friend the Member for Sevenoaks (Sir J. Rodgers), I was a member of the Council of Europe. He and I were at Strasbourg at the time of Portugal's transition from a dictatorship, in the difficult year or so before she was persuaded, thanks entirely initially to the efforts of the Council of Europe negotiators, to see the benefits of a parliamentary form of democracy.

To begin with, rather tenatively, Portugal toyed with the idea of joining the Council of Europe and sent delegates to Strasbourg to see what went on and how a parliamentary democracy worked, because that had never been appreciated before in the country's history. Later, I am glad to see, Portugal became a fully-fledged member of the Council of Europe. Like my hon. Friend the Member for Sevenoaks, I was lucky enough to make many good friends among the Portuguese Members of Parliament.

The Council of Europe has played an important role. Portugal, Spain and Greece each ended one form or another of non-parliamentary government but had not decided which way to go. They have been nursed by delegates from the Council of Europe who have explained the full benefits of a parliamentary democracy and those countries have gradually come to appreciate it themselves and become full members of the Council.

An hon. Member asked the Foreign Secretary what would happen if a member of the EEC were to become a dictatorship. I know that a country cannot belong to the Council of Europe unless it is a parliamentary democracy and that any country which evolved into a dictatorship would have its membership automatically suspended until it returned to parliamentary ways. I am not an expert on the Treaty of Rome, but I thought that the same applied to the EEC.

As I have said, I particularly welcome Portugal's application for membership of the EEC because its people have a great affinity with this country. It is appropriate that we should be debating this matter on the day when the President of our oldest ally—the treaty stretches back 603 years—is visiting London. From what I know of the Portuguese, I warmly, endorse the proposal to add them to the Community.

I have equally warm recollections of Members of Parliament from both Greece and Spain, who played and are playing a useful and constructive part in the Council of Europe. When they come to join the EEC, as I think they will, I believe that they will play an equally invaluable and constructive part.

Yesterday, the Prime Minister made a speech about the need to reform the common agricultural policy. My hon. Friend the Member for North Angus and Mearns thought that a slight tinkering with the CAP before enlargement might do the job. It is at the moment so hopelessly lopsided and disadvantageous to Britain that, before we can consider enlarging the Community, we shall have to restructure the CAP almost entirely.

In this connection, we must have two significant and important aims in mind. First, it is important that we maximise our own, and indeed European, food production. That must be the first aim of the CAP. The second aim is linked to the first, because maximising production must not be diverted, as it is now, into building up fantastic surpluses, the disposal of which is creating tremendous cash burdens for the Community.

Most sensible Members of this House would fully endorse the Prime Minister's statement yesterday that it would be intolerable for Britain to remain in the EEC with the CAP in its present form, since it means that by 1980 we shall be the biggest single net contributor. I welcome enlargement, but before it takes place the CAP must be entirely restruc- tured. Expensive surpluses must not be allowed to accumulate, but at the same time the maximising of agricultural and food production in Europe should be encouraged, particularly in our own national interests.

At the same time, of course, one must remember the needs of emerging countries in the Third world. We must be careful when the Community is enlarged that it does not take up any of our market for semi-tropical foodstuffs which at the moment is supplied by exports from Third world countries which need the foreign exchange. I am thinking not so much of sugar cane, which is not produced in Europe, but of the many other commodities produced in Mediterranean countries. There is a risk that our imports from the Third world would be diminished as a result of the enlargement.

The Foreign Secretary also referred to European monetary union. I am glad that we are to have a debate on this important matter in a week or two. When considering enlargement, we should also consider the performance of the Community to date. It is no secret that many people are not pleased by it. We should also remember the effects of the Community's future performance—that is, the probability that on 1st January next year some members of the Community will form a European monetary union.

I am sorry to interrupt, but it is important, on this essential issue, that we do not confuse our phraseology. The discussion is about a European monetary system, which is rather different from European monetary union.

I am grateful to the Minister and, of course, I appreciate my mistake. I shall refer to a European monetary system instead of European monetary union.

That system is likely to come into effect on 1st January. At the moment, I understand, the Government are making up their minds whether Britain should go in and we on this side appear to be making up our minds whether we are in favour. With all these considerations—no doubt all this will be aired in the coming debate—we must remember that in one part of the United Kingdom, Northern Ireland, any decision nct to enter will have a significant impact.

If the Republic of Ireland joins the EMS while the United Kingdom stays out, it will be the first time in monetary history that the Irish pound is no longer in parallel with the£ sterling. I believe that, a few months after 1st January, the Irish pound will stand at about£1·30 instead of£1 sterling, at par. We must debate the implications of such a change.

This is just one side effect of our not joining the EMS. It will probably be disadvantageous to Northern Ireland. Those of us who basically do not favour an EMS and hope that Britain stays out must also take into account the real effect of such a radical and historic change, which will take place whether we like it or not.

Like my hon. Friend the Member for North Angus and Mearns, I am sorry that the Foreign Secretary did not refer to fishing policy. As my hon. Friend said, it is significant that Spain has the third largest fishing fleet in the world.

The Minister has been robust in protecting Britain's view of fishery policies. The hon. Member for Sheffield, Heeley (Mr. Hooley) is laughing; I do not know why. Perhaps he does not agree with me, but I believe that the Minister has been robust. He has been doing a necessary job by protecting the rights of Britain, which has the largest coastline in the Community. After enlargement, Greece will have a larger coastline and the size of our fishing fleet will be approached, if not equalled, by that of Spain.

On balance, I hope that enlargement takes place. We must assume that a future Minister of Agriculture, from whichever side of the House, is equally robust in looking after Britain's interests. Unfair demands have been made on Britain and our fishermen as a result of our membership of the EEC. Any Minister must resist such demands as vigorously and strongly as possible. Whatever side of the House the Minister represents, if he adopts that robust attitude most hon. Members will support him.

I support enlargement. On balance, I was against Britain joining the EEC. I advised my constituents to vote "No" in the referendum. I accepted wholeheartedly the result of the referendum. My view now is that I should not mind it another three or four nations joined tomorrow. The more that we enlarge the Community, the more opaque the monster becomes, the less grasping its tentacles and the more chance there is of common sense prevailing.

5.52 p.m.

If enlargement from nine to 12 takes place, it will represent another stage in a historical cycle. In the immediate postwar period, from 1945 to 1951, the Labour Government worked with great success towards diplomatic, political, economic and military co-operation in Western Europe. This was done through OECD, the European Payments Union, the Western European Union, the Council of Europe, the Treaty of Dunkirk and eventually NATO. We built success fully a highly sophisticated system of co-operation among Western European nations. We should have embraced Eastern Europe also but for the obstinacy of Stalin and Stalinist Russia.

That co-operation grew successfully on a pragmatic basis without the ideology of supranational institutions. Unfortunately, between 1951 and 1966, when the Conservatives had charge of our affairs, what had been achieved was thrown away. The Conservatives ignored the views and trends of opinion which were developing in Germany and France in particular and to some extent in Italy. They allowed a chasm to develop between the Six and what eventually became known as the seven in EFTA on economic affairs in particular and to a lesser extent on political lines. Instead of adopting a vigorous diplomacy designed to reconcile the supranational notion with our own more pragmatic intergovernmental approach to international co-operation, they simply allowed the two sides to drift apart. Consequently there was a diversion between the Six and the Seven.

Even among the Six the supranational idea created serious strains. It was the idea of an international bureaucracy, of international laws and regulations dominating purely national institutions and the idea that a centralised bureaucracy could legislate on every fiddling detail of social, political and economic life. At one time France boycotted the Council of Ministers for six months so that she could get her own way or block whatever her fellow members wanted.

The Six co-operated with considerable success in those spheres which were of special interest to them—for instance, in economic matters. In political matters France was inclined to go her own way. No doubt she will do that in future. On economic matters there was a fair degree of common ground between the dominant partners—Germany, France and Italy. The lesser members fitted in reasonably successfully.

However, stresses and strains arose. They caused crises from time to time even within the Six. Today the supranational concept is causing even more serious strains. It is giving rise to even greater stress within the Community now that there are nine members instead of six.

My view is that if we admit another three members the system will, by its nature, become unworkable. I do not see how anyone can argue that there will be a convergence in 50 or 100 years between the economies of Portugal and West Germany. The proposition is not on.

We have seen how far the economy of an advanced sophisticated country such as the United Kingdom can diverge fairly drastically from the economy of West Germany or Holland. I cannot see that there will be convergence between the economies of Portugal and Greece, on the one hand, and Holland and West Germany, on the other. The idea of convergence, which is part of the Common Market philosophy, is an essential and practical part of the system. In order to achieve a common agriculture policy, even in name, all sorts of weird monetary devices had to be used. The green pound, monetary compensatory amounts and so on are necessary to make the system even look as if it is working. I do not see how one can achieve an effective single economic unit for countries which are as widely disparate as Holland, Belgium and Denmark on one side and Portugal and Greece on the other. Spain falls somewhere in between.

I cannot see that the principle of harmonisation, which seems to be the basis of central bureaucracy in Brussels, will be effective among 12 countries which are so widely divergent in their economic structures and their political and social backgrounds as the 12 which are to come together in the next few years.

This does not mean that I am opposed to enlargement. On the contrary, I should like to see enlargement. It will demonstrate the total impracticality of the structure. This is being demonstrated now with the Nine and will become staringly self-evident once a serious attempt is made to integrate the three Mediterranean countries.

The problem that will confront the United Kingdom and the other major partners in the EEC is whether they will push their structural arrangements, their ideas of harmonisation, the power of the central bureaucracy and the notion of the convergence of economies to a length which eventually will lead the countries which have joined latterly to walk out, or whether they will modify, if not totally abandon, this supranational element in their thinking and move back towards the concept of intergovernmental co-operation on which the great international institutions—the genuine international institutions—are based. I refer, of course, to the United Nations and the vast apparatus of agencies under its auspices which work perfectly happily on the principle of intergovernmental co-operation without the obsession of supranational regulations, harmonisation at every end and turn, and, of course, any view about convergence of economies, which would be totally impracticable, in the world.

I believe that this dilemma is facing the United Kingdom already and in a sense has come to a crunch with the issue of the proposed European monetary system, because there is no doubt that such a system cannot possibly work if we have economies which are as divergent as those, say, of Italy and Ireland, on the one hand, and West Germany and Holland, on the other. The stresses and strains will defeat it. If anyone doubts that, he need only look at the history of snake 1 or snake 2—I forget how many snakes we have had—which were built up and abandoned over a period of months, if not years.

I cannot see how any European monetary system will work unless we accept the political impossibilities of paying an enormous price in deflation, unemployment and other social disasters in order to remain within the European ideology of a single monetary union and a single economic unit.

Therefore, although I welcome the expansion of the Nine into the 12, I do so candidly on the ground that it must destroy the present narrow structure to the Community as it is now conceived. Those who think that they can retain that structure and expand successfully to 12 are either being dishonest—which think that they are not being—or are making an error of judgment as massive as that made by this country when we joined the Six.

There are one or two specific problems to which I am not entirely satisfied that the Government are giving sufficient attention. There is the problem of steel. The city part of which I have the honour to represent is world famous for steel—not for millions of tons of bulk steel, but for high quality, high alloy special steels. Within the past two years, we have been and are suffering considerable difficulties because of dumping, not from Japan, although that has been a problem, and elsewhere, such as Sweden, but mainly from West Germany and partly also from Spain.

Ministers in the Departments of Trade and Industry have been vigorous and careful in the matter of dumping from Spain, Japan and Sweden and have taken action to restrain it, but they are helpless about dumping from West Germany. They are now in the depressing position of having to go begging to Mr. Davignon and saying "Please help us. We are in a dilemma. Our industry is being undermined by the very partners in the Community who are supposed to be part of our economic strength."

If we have to cope not only with West Germany and France, and partly with Italy, but also with Spain in relation to steel production and dumping, the situation will be very serious. It poses an immediate dilemma. One cannot honestly say to the Spaniards "Come in. We want democratic Spain as part of this great Europe" but add in the same breath "If you come in and try to sell steel to us, we will not allow you to do so. You will have to make up your minds which minor markets you take."

Then there is the problem of wine. Hon. Members have talked about the agricultural problems of the Mediterranean countries. The most formidable problem is that we shall be admitting to the Community two of the greatest wine producers in the world, Spain and Portugal. We already have in the Community two of the other greatest wine producers in the world, France and Italy, not to mention West Germany, whose wine production is by no means small. Simply to admit these countries on the basis of the present arrangements will put an intolerable strain on the wine-producing industry unless something drastic is done.

Hon. Members have referred to the problem of the fishing industry. There again, there will be serious problems because of the size of the Spanish fishing fleet and its importance to the economy of Spain, and because Portugal and Greece are themselves not insignificant in fishing. I am not convinced that Her Majesty's Government have sufficiently taken on board, if I may put it that way, the problems which will arise in achieving a fishing policy which will satisfy all the interests not only of the Nine, which has been difficult enough already—it is still not resolved—but of the two other great maritime countries, Spain and Portugal.

Then there is the question of relations with the Third world. There is no doubt that some of the products of Portugal, Spain and Greece will compete quite severely with products from the Maghreb countries of North Africa, and that we shall find demands within the 12 for discrimination against certain Third world products on the ground that partners in the 12 can produce them more efficiently and in greater quantities, or to an extent which means that Third world countries' produce will no longer be required.

An example of this problem arose when we joined the EEC and wanted to protect our former Empire sugar producers against the pressures of the EEC's internal producers such a France and Belgium. We shall run into more formidable difficulties and stresses with citrus and other products of Spain, Portugal and Greece in competition with the products of Third world countries with which at present we have reasonable economic and trade arrangements.

Although no one should assume that enlarging the Community will not make not only quantitative but also qualitative differences in its future development, if we are honest we should make clear to our partners that the kind of stresses, strains and problems that we have encountered through our membership in the expansion of the Community from the Six to the Nine will be multiplied many times if the Community insists on retaining its present structure and ideology and tries to fit into that structure 12 countries as diverse as Greece, Ireland, Portugal, Holland and the rest.

I believe that we should put it honestly to our partners either that they must contemplate a drastic revision of the provisions of the Treaty of Rome, a drastic overhaul of the structure and ideology and even of the obsessive "Community spirit" about which they are always talking, or that they should face up to the fact that, while a Community of six worked with difficulty but with reasonable success, and a Community of nine is working with much greater difficulty and even less success, a Community of 12 will not work at all on the basis of the present structure.

6.11 p.m.

For diametrically opposite reasons to those given by the hon. Member for Sheffield, Heeley (Mr. Hooley), I support the admission of Spain, Greece and Portugal to the Community. But I do so with an uneasy feeling that the hon. Member could conceivably be right. If I had to choose between maintaining an effective Community and enlarging it, I regret that I should have to choose the former. I do not believe that the choice is as stark as that, however.

The hon. Member for Liverpool, Walton (Mr. Heller) made an interesting contribution. It is always a pleasure to agree with him, and there have been strange occasions when I have done so. I remember one occasion on which he was almost alone in denouncing the hysteria that was being whipped up about our attitude to the fishing dispute with Iceland. The hon. Member took a highly courageous stand on that matter, and I very much admired his courage at that time.

I wish to agree with the hon. Gentleman strongly, without seeking to make political points, that we were conned over the renegotiation. I strongly agree with him, too, that the issues should have been put much more fairly than they were at the time of the referendum. I believe that it should have been made plain to the people that the decision to remain in the EEC was not based solely upon economic advantage. At the time much unscrupulous play was made with the figures of our contribution, which at that time looked highly beneficial

The political advantages of being a member of this group should have been very firmly and fairly explained to the British people. In the same way I believe that at present, in view of the furore which is proceeding over the price of our membership of the EEC, it should be pointed out that£15 per person per year—that is the price of 30 cigarettes a week —may be a lot of money, but it is not an extravagant price to pay if, as I firmly believe, membership of the Community is vital not just to our economic well being but to our future political security.

The hon. Member for Walton is one to whom such arguments can be addressed, even though he may not accept them. I believe that it is possible to argue the issue with him in these terms and not purely in terms of the cash cost of being in or out. It is pretty clear from the massive documents with which we have been presented for this debate that enlargement of the Community will damage the short-term economic interests of the existing members. Nowhere is this clearer than with textiles for the United Kingdom and Mediterranean products—wine, fruit, olive oil, and so on—for other existing members.

It is little wonder that the campaign in France against enlargement has assumed a particular virulence, or that the French Communist Party should be conducting a hysterical campaign against enlargement, with posters all over the country saying that not one vine shall be torn up in France in order to accommodate the massive inpouring of wine from Portugal and Spain.

In these circumstances I believe that all the more credit is due to the French President, who, for no direct political advantage to himself or economic gain for his country, still senses the political advantages of enlargement so acutely that he is prepared to press ahead in favour of it.

The economic price for all existing members of the Community will be high. It therefore follows that if the political advantages are to outweigh that they must be great. The Foreign Secretary talked about closer ties which enlargement of the Community would bring with countries of Latin America and with some countries in Africa which have hitherto been outside the Community's sphere of influence. These advantages are real, but the basic advantage, surely, is that of enlarging the area of freedom in Europe. I am referring not just to an enlargement of the base of anti-Communism in Europe. The issue goes much wider than that. In an age when the two great Communist Powers are at each other's throats it would be most unwise to base the whole of our future security purely on erecting a strong anti-Communist alliance, although that must play a part.

We are compelled to do what we ought to do anyway, which is to think more positively, although not just in terms of erecting an anti-Communist alliance. We should think also in terms of giving freedom a more secure base. On these grounds it is of great importance that Europe as a whole, beginning with Western Europe and ultimately leading, one hopes, to Eastern Europe, should be the home of economic and political freedom.

Freedom is in danger, not only from Communist external pressure and Communist internal subversion but from the advance of technology. We have had held before us the prospect that within as little as 30 years, according to an expert who spoke recently, some 90 per cent. of our population will have no useful work to do. The rapidity of this transition could pose a formidable threat to our democratic institutions. If we are to survive such events without disaster, I believe that we need a strong and solid base upon which to stand political freedom.

The question which therefore arises is whether an enlarged Community will increase the chances of economic and poli- tical freedom surviving the threats of Communist pressure and of technological change. I believe that it will do so provided that it does not water down too much the capacity of the Community to take decisions. I do not think that that necessarily entails more supranationalism. A wider role for the Commission will be important, I believe, and perhaps even vital in enabling the Community as a whole to take effective decisions.

I accept, however, that there are other answers. I was a little disappointed at the hesitant reply I received from the Foreign Secretary when I put to him the question that the hon. Member for Horn-church (Mr. Williams) also put, namely, supranationalism or not, does he envisage a more constructive role for the Commission as the initiator of compromises which are more far-seeing and less short-term than the kind of compromises that emerge from the horse trading that goes on around the conference table? That is an argument that my right hon. Friend the Member for Sidcup (Mr. Heath) always used to put forward most strongly. The concept of the Commission is that it is the initiator of long-term European policies. The Commission proposes and it is for the Council of Ministers to dispose. Without the role of the Commission, I believe that that forward motion would become extremely difficult.

From the more narrow British point of view, it seems that enlargement of the Community necessarily entails a shakeup of the Community. Therefore, it is a chance to rearrange the pieces, and to rearrange them more to our national advantage. If we are not seen to be too greedy, we can use the shake-up to gain long-term advantages for ourselves. If so, we must be prepared to put something into the pool as well as always being ready, apparently, to grab something out of it.

Above all, we must he prepared to put into the pool our immense resources of energy. For that reason it is disturbing that the present Secretary of State for Energy should adopt so totally negative an approach to the idea of a Community energy policy. A constructive, forward-looking energy policy could bring benefits to Britain in the very short term provided that we did not, as it were, sit in our manger refusing to allow anybody to come near it and growling when he did.

We must not persist in the idea of maintaining our vital national interests—no one would suggest for one moment that we should surrender those—and refusing to make any changes whatsoever. For example, it is disturbing to see the Secretary of State for Transport—there is no better European than the right hon. Gentleman—being put in the position of having to defend a refusal to accept the decision of the Community over the installation of tachographs. That is an alarming experience. No one can conceivably maintain that tachographs represent a threat to the British way of life, or that to keep them out of cabs is a vital British national interest. It is merely the demand of one trade union that wants to continue practices that even from the narrow safety point of view are totally indefensible.

It seems that there is a totally ludicrous disproportion between such objections to closer co-operation with our European partners and the prize that is now nearly within our grasp, that of a European Community extending to cover the whole of free Europe and a base on which political and economic freedom may ride out the storms of the rest of the century.

6.23 p.m.

It is a pleasure to follow the hon. Member for Flint, West (Sir A. Meyer), if only to say that I disagree with almost everything that he said. I found myself waiting anxiously for him to spell out exactly what he meant about making a greater contribution to the Community, being prepared to put more into it. Surely one of the major problems at the moment is that we are putting far too much into it and enjoying far too small a return. If by putting in more of our energy resources the hon. Gentleman meant losing such control as we have over our energy policy, that would be an interesting proposition to develop. I think that it would find little support among those who are concerned about long-term British interests.

I suppose that the hon. Gentleman and I are in agreement—it is a curious feature of the debate—on our general position of support for the enlargement of the Community. However, my position is very much that of my hon. Friend the Member for Sheffield, Heeley (Mr. Hooley), who made it plain, if I may para- phrase his argument, that he supports enlargement because he thinks that with a bit of luck the enlarged Community will break up.

Why is it that those who are in favour of the Community are so strongly in favour of its enlargement? It seems that at least two subconscious factors are at work of which some may be aware but of which most are not. The first factor is the assumption that size means success and that larger means being more successful. There is mindless support for that notion. It probably exists among industrialists, local authority managers and supporters of the EEC. The view is taken that there must be something successful about the organisation because countries keep applying to join it and because it is demonstrably covering a larger area now than when it started.

There is a more sinister reason for those in favour of the Community supporting its enlargement. It is one that hinges on the oldest foreign policy trick in the book, which is to deflect attention from one's own vast internal problems by concentrating attention on a foreign adventure. To a large extent the preoccupation of those in the Commission and elsewhere with the enlargement of the Community is precisely for that reason. They hope that attention will be deflected from the pressing internal problems of the Community.

The internal problems will not go away. The Prime Minister's speech last night, which spelt out the effects of the internal problems on Britain, is only the beginning of what will be a developing argument. That is so to the extent that even British pro-Marketeers seem to be adopting a basically Gaullist position. A Gaullist position would have been considered pretty dangerous from the point of view of the future and success of the Market only a few years ago.

My hon. Friend has made the charge that many pro-Marketeers are now adopting a Gaullist position. Out of courtesy, will he spell out his charge? I am not following that part of his argument.

The position now is very much as de Gaulle and his party would have described it about 10 years ago. Even those strongly in favour of the European Community are no longer emphasising any federalist element in Europe. They are no longer emphasising the unimportance of national or self-interest. They are playing down the communautaire arguments that were always advanced by pro-Marketeers and Europeans.

I suggest that that is a growing spirit within Britain, within the House and within the Labour Party. The Prime Minister's letter to the NEC would have been unthinkable three or four years ago. It clearly represents a Gaullist position.

I draw the attention of the House to three problems brought about by enlargement. These are problems to which pro-Marketeers, and those in favour of enlargement should direct their attention, bearing in mind that they think that enlargement will strengthen the Community and that it is part of the Community's objectives.

The first problem will be to cope with the increased language difficulties brought about by enlargement. Language has proved to be more of a problem for the Nine than for the Six. The problem of language will make for difficulties in negotiations and in the mechanics of meetings such as the Council of Ministers and the Commission, not to mention the European Parliament.

The second problem— in my view it is much more important—is that of accountability in a larger European organisation. I am thinking especially of the accountability of politicians to electorates, of Members of a European Assembly to the constituents that they represent. I can claim a certain qualification in speaking on this topic because I represent the fourth largest parliamentary constituency in this country, including Northern Ireland. I understand that it is proposed, because of the onerous duties involved in being a Northern Ireland Member, to make conditions easier for them by making their constituencies smaller. I sometimes wish that more thought were given to other Members.

I notice that on the Government Front Bench there are two Ministers with a very similar problem. Mine is the fourth biggest constituency in this country, and I represent about 130,000 people, with an electorate of about 100,000. As my hon. Friend the Under-Secretary of State remarks, it is done very efficiently. But my mind is overwhelmed by the problems that the new Members of the European Parliament will have, even given the Community's present size, in trying to represent 500,000 people. We may use the same words, when we talk of representing people's interest or of speaking for them in an Assembly or a Parliament, but the words cease to have any real meaning in relation to numbers of this sort. They can have whatever meaning the so-called representative wishes to attribute to them.

We all claim to speak on behalf of our electorate, even when we are not quite clear what our electorate feels on a particular issue, but the larger the base gets, the greater is the freedom for the representative to claim exactly what he wants to claim on behalf of the people whom he is supposed to represent. Any kind of link between the representative and the people who elect him is, in my view, very thin with an electorate such as I have. Much as we may do our best for our constituents, it is pretty difficult to sustain or maintain any personal contact with 130,000 people. When we talk of a figure of 500,000, I think that any such concept of representation is really meaningless.

It is a fairly well-established philosophical argument that democracy can operate successfully only at a certain level of population. There are many reputable names associated with that argument, including people such as Rousseau and Plato. Beyond a certain size, is it manageable at all, and does representation really mean anything? With the prospect of the enlargement of the Community, one can envisage a day when Members will have 750,000 constituents, or perhaps 1 million constituents. It will require a re-writing of the language if we are not profoundly to abuse the terms that we customarily use. It is almost a contempt of the language to use the same term, "representing", when talking of 1 million people, as when talking of 60,000 people, the size of the average constituency.

A further problem associated with enlargement is that of decision-making within the Council of Ministers and within the Community. Those who are in favour of enlargement and who are also supporters of the concept of the Common Market are not being very honest about this matter. They know well enough, surely, that the present decision-making system, particularly within the Council of Ministers, hardly works at all. The fact of having a system under which there are vetoes over essential national interests—a principle which I entirely support—makes it extremely difficult to reach decisions on many of the matters which come before the Council of Ministers in its present state. If we want a larger Community which will work—and I do not, as I have made plain—it seems to me to be absolutely inevitable that we shall have to resort to a system of decision-making which has nothing like the same safeguards for member States as exist in the present system.

I appeal to those on the other side in this argument to be absolutely clear en their position, because this question is absolutely crucial to the long-term interests of Britain. To fudge the issue, to accept enlargement and then later to say that we might as well have majority voting, or some other system, just to get the ball rolling—even if it is rolling in a direction which is damaging to Britain—would seem to me to be inconsistent with honesty in politics. Those who are in favour of the Community and of its enlargement should, therefore, make their position plain now.

There are many unanswered questions about enlargement. At the beginning of his speech my right hon. Friend the Foreign Secretary said that this was a momentous issue for the Community. Judging by the interest shown in the debate, it would not appear to be a momentous issue for the House of Commons, and the House of Commons, in my judgment, has a far bigger and more unhealthy interest in the Common Market than my electorate has. If this is indeed a momentous decision, that fact has not yet permeated through to our consciousness. But, if it is a momentous decision, it is up to those who are in favour of the Community to spell out clearly, particularly on the issues of accountability and decision-making, exactly how the system will work. The onus is on them.

6.35 p.m.

I apologise to the House, Mr. Deputy Speaker, for coming in late, but I was delayed. Hon. Members may laugh, but I have a very great interest in this question, being a member of the Scrutiny Committee and having recommended it for debate. I do not see any need for hon. Members to laugh. This was, I believe, one of the most important questions to come before the Scrutiny Committee, of which I have the privilege to be a member, for a very long time. As we on the Scrutiny Committee have to deal with very many instruments, Mr. Deputy Speaker, I can assure you that I mean very sincerely the words that Ihave just said.

I want to deal with the effect that enlargement will have on food and on agriculture. My hon. Friend the Member for North Angus and Mearns (Mr. Buchanan-Smith) has, I understand, covered this aspect— he and I have had the privilege of working together on many of these matters—but I want to emphasise them once again, because they are very important.

I welcome the enlargement of the Community because of the political implications involved, certainly from a defence point of view, although I am not very skilled in matters of that sort. I believe that enlargement will present many very real challenges and problems to us in this country, particularly in relation to agriculture and food production. These problems are emerging now, and with two or three more countries in the Community, the situation will, I believe, get worse. It is necessary to make really radical changes now in the common agricultural policy. Even without enlargement, I do not believe that the Community can carry on in the way that it is going at present. I speak very much as a pro-European, but I believe that for a variety of reasons changes are needed, and needed desperately, as has been shown in practice.

When the CAP means so much and is of such importance to the politicians in France, in Germany and in other countries, it is very difficult to get them off the hook, so to speak, but it is necessary to do this. If there are to be changes, there must be some fundamental excuse for them. I believe that we have that excuse now, for with enlargement the CAP just will not work. The mind boggles. for example, at the idea of having a milk regime which stretches from the Baltic to Gibraltar. One has only to think of the tremendous variation in the types of farms.

Although I think that there is a very real need to have this outward protection and control of farming, I believe that it will be very difficult—in fact, almost impossible—to get common regimes throughout the whole of the Community. If the proposed enlargement takes place, it will give the politicians the opportunity to make the decisions that they ought to be making. I hope that there will be very real preparation for this, so that we do not make any further mistakes such as we have made in the past, and so that we do not get into even more difficulties than we have at present with the common agricultural policy. It will give the politicians the excuse needed to make radical changes. There is no point in going through the list. Prices are obviously important, as are surpluses. The structure problem is clearly mentioned in the consultative document:
"Structure problems of agriculture in the enlarged Community will at the same time make it necessary to continue and strengthen the effort begun in the Community of Nine and to apply wide ranging measures in the applicant countries."
I believe there are real structural problems, and surpluses developing from them, which need to be dealt with.

I repeat, it is important that these matters are looked into with the will to change and to learn from our mistakes in the past on the CAP so that they are not extended and made worse in future.

The consultative document states:
"It will inevitably lead to a significant reduction in the number of people employed in agriculture or rather unemployed and make it necessary for them to be absorbed in other sectors of the economy."
It is about time that the Community started to spend more time and money on dealing with alternative work. The Regional Fund should be strengthened and activated far more than it is now.

I usually make a tour of farms within the Community in the summer. During the summer I saw a French farmer and his wife cutting grass with a hook, putting it on to a horse-drawn cart, taking it back and feeding it to the cows in the cowshed. That man can get a living out of doing that only because of the price of milk. Compare that with the modern methods on our farms. It should not be done. Therefore, many such people will not be able to continue in agriculture. That means that we must make a real effort to find alternative work for them. I do not think that the sons of those farmers will 20 on in the same way. That would be true of Spain, Greece or any other country within the Community. Therefore, it is about time that we put a real effort into finding alternative work where possible.

I do not know whether hon. Members have read the article by Herr Ertl in which he sought to defend agriculture and the prosperity of farmers in Germany. However, he touched on an important point—namely, the maintenance of the rural scene. We cannot disregard it. We cannot allow it to weaken. We cannot allow farmers to go out of business. The Community as a whole—in particular the urban members—looks upon the rural scene as not only important but as part of the heritage. People travel to the rural countryside when they take their holidays. Therefore, we cannot abandon the rural scene. Herr Ertl said that, while it may sometimes be costly to retain that rural scene, it was important for the rural areas as a whole and for the urban areas. I suggest that even those who are violently opposed to the Community and perhaps somewhat opposed to farmers—a lot of nonsense is talked about wealthy farmers —would agree that the rural scene must be preserved, because it has advantages for the community as a whole.

I believe that we must proceed with the enlargement of the Community. It will present enormous problems. However, I hope that those concerned with these matters—the Ministers in Brussels —will have the courage to start to make the radical changes and improvements which are necessary in the CAP. Some of us have been putting forward these views for a long time. It is about time that we had the courage to make these changes. I hope that this will be the excuse for getting many European politicians off the hook and enabling them to make the necessary changes. The CAP must and can be more realistic and not so expensive to the community at large. This may be the opportunity for which we are looking

6.45 p.m.

I was not aware that the hon. Member for Devon, West (Mr. Mills) was a member of the Scrutiny Committee of this House. Perhaps he will forgive me if I refer to another Scrutiny Committee—the Sub-Committee in the other place which took evidence and looked at the documents, particularly on social policy, emanating from the EEC. That Sub-Committee heard a good deal of evidence relating to the enlargement of the Community.

There was evidence from a number of groups—particularly the trade union movement, which produced a great deal of important evidence. All the groups expressed concern at the effects that enlargement would have on our already fragile and vulnerable domestic problems. But, despite the many anxieties which were bluntly expressed, out of that Committee's report came a strong recognition of the need for enlargement. The trade unions particularly made clear that, in the interests of strengthening the democratic institutions of Europe, they had the will to overcome the many real problems which the entry of countries from the Mediterranean region would present.

I want to refer to two or three issues concerning social and economic policy which worry many of us.

The countries which are now seeking to join us admittedly have lower standards of living for the great majority of their people than have the rest of us in Northern Europe. Therefore, it follows that the three applicant countries would, in the first place, have strong claims on the Social Fund of the EEC.

I am sure that the Minister who will be winding up the debate tonight will correct me if I am wrong, but I believe that the total of all loans and grants from the EEC to the United Kingdom is about£2,000 million. Of course, there are those who believe that the demands on the Social Fund from these new member countries would greatly diminish the money which is available for those who feel that we should have greater drawing rights on those resources. The same attitude can be said to exist towards the Regional Fund.

There is a considerable economic gulf between the three candidates for member- ship. Though I look upon Spain as being to some extent the odd man out because it has a degree of industrialisation which the others do not have, nevertheless all three will be entitled to draw heavily on the Regional Fund.

I do not think that there is any simple answer to this problem. Indeed, I do not pretend to come here today with a foolproof answer to it. However, I suggest that we must seek changes which go towards improving the living standards and the quality of life of other people in our hemisphere. We cannot and should not turn our backs upon them. It is right that such countries should be able to make adequate requests for these resources. It can only mean that the Community as a whole must look again at the resources that it allocates to the various funds. We must examine the budget and there must be a rebalancing.

I do not accept the attitude of many hon. Members who say "Let us renegotiate and, if we do not get what we want, let us come out." That is the stance not of a negotiator but of a bully. Therefore, I say that we should look at the various funds and go on working towards seeing not only that our own people get a fair crack of the whip but that others do. Surely we are in this world to ensure that others are also given assistance when it is needed.

When it comes to enlargement, therefore, we should ensure that resources are available to assist newcomers, so that it will not mean that demands from this country are met with a negative response. I hope that I am not misquoting the Secretary of State. He said that we have to make other members of the Community aware of the arithmetic too.

However, one of the real fears of many of us is that the labour costs of those in the Mediteranean region are much lower than those that exist in Britain. The end result, of course, could be a very considerable threat of further job losses in the United Kingdom. It is a threat that we take very seriously. I certainly view it with genuine concern.

There is a natural desire in most of us, therefore, to safeguard the very fragile employment situation with respect to imports from new member States. Whether or not that fear that I have expressed is well founded, I think that it means that the hostility which already exists—I suppose that it is natural that it exists—will increase if it is seen that unemployment becomes greater in Britain as a result of the accession of low-cost countries.

Again, there is no simple one-line answer to all this. But I think that there are two ingredients involved in aiming at a solution. First, a very frank statement on the part of those who are negotiating for the Community is essential. It is very important that those who are negotiating for the Commission are totally honest in their negotiations with the three applicants.

It must be said that there is already considerable difficulty over such items as consumer durables, such as textiles and footwear, over surplus production of these products, that there is no room for surpluses within the Community, that industries producing these types of durables and consumer goods cannot continue to be subsidised, and that the rules of competition must be looked at much more closely in the context of negotiations.

In other words, honesty must be paramount in the whole context of negotiations and all member States must be aware that the rules of competition need to be very closely scrutinised and constantly monitored.

There is a second ingredient, too. That is the challenge that enlargement presents to us in Britain—an admission, it seems to me, that some of our industries might not, even at this stage, be competitive, and that we, too, have to face the inevitable facts of life. Therefore, there is a responsibility on us also to be selective and to develop those of our own industries which can hold their own and will continue to do so in spite of severe competition from others.

I think that we also have a duty to move with even greater urgency and speed to develop new opportunities, to train for higher techniques, to move into new processes and to adapt our industries to meet the needs of a rapidly changing world. That, too, is essential. We must do the things that we can do best with skill and technology.

Throughout the years there have been calls in this House daily for reappraisal of the common agricultural policy. Never has the time been more ripe, I think, than it is now. Perhaps the past 48 hours have made that abundantly clear.

We were not in membership, of course, when the CAP was formulated. Too bad. But the other member States did not join us. We joined them. We had to accept what was there. But I do not think that that means that the CAP is necessarily a static thing. It is there not to serve one section of the Community but to serve it all. Although it was devised to serve the Six, it leaves a lot to be desired in terms of serving the Nine. How much more vital will the restructuring be when it comes to serving the needs of the 12.

I have taken on board very carefully what my hon. Friend has said about the CAP. I have listened to the comments about what the Prime Minister said last night on the subject. It has been said that the CAP will have to be changed. Nothing is more urgent than that. However, does my hon. Friend believe that the main recipient of benefit from the CAP within the Community will allow Britain or any other nation to change the rules? It has the power of veto.

I put it like this. The Community is a grouping of people. What we have to do is to use powers of persuasion in order to get what we want. Surely we as a nation can hold up our heads and argue with those in the Community. I feel that if we go there with good will and say "We are here. We shall stay here. We want it to work out right ", that will be good will and a much better method of getting changes than being dragged in by our coat tails at the last moment to make it clear time and again that we do not really think that we ought to be in the Community. If we were really internationalists and Europeans, that would go quite a way towards getting the sort of renegotiation that we want.

As I have said, the opportunities for change are greater than they have ever been. That is admitted by all sides of this House.

Finally, to me it is a matter of major political importance that we should welcome people who have moved out of the era of a dictatorship. That is a personal matter for me because some of my family and many friends of an earlier generation, years ago, joined with the Spanish democrats, who made it known that they wished to live in freedom. Two or three years ago, as a member of the European Parliament, I had the opportunity of meeting Social Democrats from Spain who came over the frontier by very unconventional methods to talk to some of us. I do not mean to say that they put their lives at risk, but I think that they put at risk the degree of freedom that they had.

The message of those Social Democrats was fairly clear. They did not come to say "We want to know about the price of butter. What will you do about our wine?" They did not come to say "How much shall we get out of the Social Fund?"—although, perhaps, they had some idea about those matters. The entire wisdom about such matters does not rest with the British Parliament. Others have also looked carefully at the problems with which they would be faced. However. I think that these people came to say, basically, "You know that we are now moving into an era of freedom but that our institutions are very weak and fragile whereas yours are very strong. The greatest contribution that you can make to us is not, perhaps, in regard to wine, cheese or the Social Fund"—although they will have a right to that sort of assistance. "The best type of assistance you can give is to help us to strengthen our institutions and help us to move into a free society in the world and to play our part."

I was very moved by these people. These were not formal meetings. They could not be formal meetings, and I should not have called them meetings. They were gatherings of a handful of Social Democrats from Spain who were at that time very anxious—they still are—to see whether we could give them a helping hand into a free world.

Of course, there are enormous problems, and no doubt some of the solutions may well be painful. I think that we ought to have a combination of two things: speed, on our domestic front, to meet the new challenges, and good will: and we must have thoroughness and determination so to arrange our affairs as to resolve the daunting problems ahead. Most important of all, however, I think that the Labour Party, in particular, should certainly give a warm welcome and a helping hand to those Socialists and democrats who so very much need our assistance at this time.

6.59 p.m.

Without exception, everyone has welcomed enlargement. It is true that very often it has been for totally conflicting reasons, and that was highlighted when my hon. Friend the Member for Flint, West (Sir A. Meyer) followed the hon. Member for Sheffield, Heeley (Mr. Hooley). The hon. Member for Heeley was in favour of enlargement because it would, as it were, show up the impracticability of the EEC. Others have also said that. My hon. Friend the Member for Flint, West treated us to his usual informed, almost lyrical praise of the EEC and saw this great step as a further strengthening of it. I hope that my hon. Friend did not share the criticism of the hon. Member for Lichfield and Tamworth (Mr. Grocott), who thought that there might be a subconscious feeling among pro-Marketeers that biggest is best and that that was the motivation behind some of them.

Apart from the overwhelming political reasons for enlargement, I thought the most interesting reason was the fact that if we were to reject these applications the chances of democracy surviving in the applicant countries were considerably reduced. Another interesting reason was that given by the Foreign Secretary himself. It was very much echoed by my hon. Friend the Member for North Angus and Mearns (Mr. Buchanan-Smith). That was that the CAP, which has very few friends, must be changed as a result of enlargement. Once one presents, at an interface, the present paralysis in the CAP—because of the votes and strength of those interested in the preservation of the system for Northern European agriculture—with the challenge of Mediterranean agriculture, the present system has to alter. There is the sanction, which other people think can be provided only by the threat of British withdrawal from the whole thing.

That argument comes from the Foreign Secretary himself as well as from the great authority of my hon. Friend the Member for North Angus and Mearns. I think that it is a very compelling argument. Of course, we all have fears as well as hopes. My fear is whether the applicant States will be able to keep up with the column. Their present economic position, as set out by Commissioner Giolitti in the document we are discussing, gives some alarming figures of their backwardness.

For example, in 1975 the per capita gross domestic product of Portugal, Greece and Spain was 32 per cent., 44 per cent., and 54 per cent. respectively of the average per capita GDP of the Community. The low level of per capita GDP in the applicant countries is a sign of their development lag. Agriculture accounts for 36 per cent. of total employment in Greece, 28 per cent. in Portugal and 22 per cent. in Spain, compared with an average of 8·7 per cent. in the whole Community. The productivity of this sector is particularly low—45 per cent. of the productivity of the other sectors in Greece, 53 per cent. in Spain and between 30 per cent. and 40 per cent. in Portugal. The same is true throughout the industrial sector. Productivity there is incredibly low, and, as Commissioner Giolitti says:
"These average data in fact conceal the profound duality of the industrial sector in these countries. Alongside modern undertakings there are often subsidiaries of foreign companies. There are innumerable unproductive and mainly artisanal undertakings which are ill-suited for growth and are in great danger of suffering from Community competition. The employment rate of the population is 35·4 per cent. in Spain, 35 per cent. in Greece and approximately 33 can, that is sometimes half the battle.
Those, along with others, are alarming figures. It is difficult to see, even with derogations and with all the apparatus of transitional matters, how some of these, if not all, applicant States can hope to keep up with the column. Perhaps I am wrong and I hope I am. Perhaps they are right in thinking that they can keep up. They all think they can. If one thinks one -can, that is sometimes half the battle.

It is rather like ourselves and EMS, only we do not think we can join the proposed European monetary system. We fear that we cannot keep up with it. Perhaps, having had some experience of the difficulties, we are right to shy away. But these applicant countries, not having had experience of the difficulties, think that they can keep up. All I can say is that I hope they are right.

I do not view with any favour, any more than does the hon. Member for West Bromwich, West (Miss Boothroyd), the idea that the employment situation of this country is to be put at risk by helping them to keep up. I hope that it will not be, although I was rather alarmed by the Foreign Secretary, who, in mentioning textiles, said that we have got to adapt our own industries to the requirements of the new markets in textiles which will be presented to us after enlargement. I do not know what he meant by "adapting our textile industry". It has been adapted until it is one of the most modem in the world. All that it cannot do is to compete with low labour costs. We see that already in the case of Greece, where, in spiite of the close arrangements with Greece, T-shirts and other textiles have already been halted by the Community for the rest of the year. I am alarmed if the Foreign Secretary really thinks that the textile industry of Lancashire can do any more to adapt itself to modern conditions in such a way as to be able to compete with such low-cost products.

As I have said, there will clearly be demands made upon the public purses of all nine existing members. There is no doubt about that. That, too, will have a salutary effect on the matter which exercises all hon. Members today, the effect of a growing burden upon the British and a proportional lack of burden upon other members of the Community. All one can say is that if the universal new burden which will have to be borne for overriding political reasons upon the existing members highlights the inequity of the way this burden is to be distributed among Community members in the future, so much the better.

As the Foreign Secretary said, these are matters which, far from being hindered and frozen by enlargement, will, in fact, be provoked by enlargement. Enlargement will provoke us to consider the monetary system, the CAP and many other things where the shoe is pinching badly upon the British foot and which, therefore, will make it easier for us to solve because they will have to be solved. They have got to be solved fast.

The most important thing which has come out of this debate is the rather surprising announcement that the Foreign Secretary thinks it is possible that all three applicants may be full members of the Community by the end of 1982. That is almost a shock announcement. I am not saying it is wrong and I am not saying it is unwelcome, but it is much earlier than one had thought. That will have various consequences in concentrating people's minds, particularly on the financial aspect and the amount of subvention and sharing of financial burdens. It will also have some interesting side consequences on other institutions of the Community.

My hon. Friend the Member for Harborough (Mr. Farr) raised an interesting point about language. The problem of language is certainly acute among the Nine. It is manageable in the Commission and the Council and just manageable in the Parliament, but it is already almost unmanageable in the European Court. In matters of litigation, the exact and immediate meaning of words, particularly technical words, is important. It is already almost impossible for a judge to ask counsel appearing before him interlocutory questions because of the difficulty of translating the exact nuances—even between well-known languages. If we are to add to that the difficulties of Greek and so on, it will be a tremendous, though not insuperable, burden.

There will also be an enormous burden upon the European Parliament. It is not just a question of another three languages, though that will cause tremendous problems for the translators, who are already overworked, and the interpreters. There will also be accommodation problems and immense problems of expense.

I hope that my next points are not regarded as trivial. I have to mention them. For some reason—I hope that it is only coincidence—these debates seem always to be arranged when my colleagues on both sides of the House are at the European Parliament in Strasbourg or Luxembourg. This is not the first occasion on which this has happened. It seems to be almost a feature. I do not believe it to be deliberate, but it is unfortunate.

I wonder whether my innocence is shared by all other hon. Members, but let us assume that it is an innocent accident. On behalf of the Members of the European Parliament, I have to say that, if these three nations are to become full members, in the political sense, by the end of 1982, considerations about the venue of the European Parliament must take that fact into account.

We already know that after June next year it will not be possible to have meetings in Luxembourg because of the size of the hemicycle there. It will only just be possible to meet in the Palais de 1'Europe in Strasbourg. It is thought that just over 400 Members can sit there, but certainly no more than that. If there are to be another 100 or so Members arriving within three years, it is clear that a new site for the Parliament becomes an urgent matter.

I know that this is a delicate subject, but we must also consider that, although it is difficult for us and others to get to Luxembourg and Strasbourg because there are not many flights to those cities —special arrangements often have to be made—it will be even more difficult for the Greeks, the Portuguese and the Spaniards. Indeed, it will not be possible for the European Parliament to meet anywhere except in a large European capital with sufficient regularity and frequency of communications with the capitals of the three applicant States. Neither of the present sites of the European Parliament can boast those attributes.

I hope that the Minister of State and his colleagues will realise that the desire of the European Parliament to find a permanent resting place, preferably in the same place as the Commission, will be bolstered by the fact that the present two sites are even more inconvenient for the new applicants than for us. In those circumstances, it will not be possible, on grounds of size and location, for the European Parliament to continue as it has been doing.

7.16 p.m.

My right hon. Friend the Foreign Secretary has asked me to apologise to the House for his inability to be with us now. I am sure that hon. Members will appreciate that he is meeting the President of Portugal and talking in practical terms, no doubt, about many of the matters that have occupied us in the debate.

A couple of practical issues were raised by the hon. Member for Harborough (Mr. Farr). I hope that he recognises that the introduction of French, if not directly to our proceedings, at least to the activities surrounding our proceedings, is not an entirely new development. For example, I am assured that a number of official communications between this House and another place are still conducted in Norman French. However, I take the seriousness of the point raised by the hon. Gentleman. I think that the presentation of so much of a document in French was wrong, and I shall draw that fact firmly to the attention of those concerned so that the mistake is not repeated.

This has been an interesting debate. My hon. Friend the Member for Lichfield and Tamworth (Mr. Grocott) suggested that the significance to which the Foreign Secretary referred had not penetrated down to the population as a whole, or even to the House, as well as it might have done. It is an interesting reflection on the processes of democracy that often the significant issues of the future are not those which attract a great deal of attention at the time when we are in a position to influence future events. By contrast, when events have moved forward and we are meeting the consequences of developments, it becomes virtually impossible to find time for all the hon. Members who wish to speak about them to make their views known. That says something about the procedures of the House which many of us would need to think about carefully if we had the opportunity. However, I am trespassing on matters which are not directly my concern.

It has been a wide-ranging debate and has sometimes pushed pretty hard at the edges of what was in order, though it is none the worse for that. I should like to deal with some of the themes that have come out of the debate, though I start by agreeing with the hon. and learned Member for Darwen (Mr. Fletcher-Cooke) that it is important that we should try to arrange our debates so that those who attend the European Parliament can be here. I have listened attentively to what the hon. and learned Gentleman said about the need to face up to some of the practical problems that will confront directly elected Members of the European Assembly.

My right hon. Friend said that we had to realise that, whilst it was fairly easy to talk about the political dimensions of enlargement and our attachment to its political objectives, it was essential that we face up to the detailed practical problems. The range of practical problems was well illustrated in the interesting speech of my hon. Friend the Member for West Bromwich, West (Miss Boothroyd), who, with her first-hand knowledge of European affairs, went over a number of the specific issues with which we must deal.

The hon. and learned Member for Darwen also dealt with some of the practical problems, not only from our standpoint but from the point of view of the applicant countries. He talked about the difficulties that they might encounter in keeping up with the process of enlargement in joining the Community. No one should underestimate the difficulties.

I remember being very struck when I went on an official visit to Portugal last year on discovering how in their priority plans for the future of their economy the Portuguese were laying great stress on the future of their textile industry, shipbuilding, steel and petrochemicals, not to mention agriculture. Each of those areas is already a problem area within the Community. This clearly underlines the need to achieve a rational strategy for the Community as a whole as we move forward.

The hon. and learned Gentleman also mentioned, I think with some apprehension, the problem of adjustment. He spoke tellingly about the difficulties that have confronted the textile industry in this country. I am not one of those who believe that we shall serve the interests of those who work in any of our well-established, traditional industries, let alone of their children or their children's children, by not facing up to the realities of the changing pattern of economic and industrial activity throughout the world. That goes beyond the Community.

It must be evident, even to those who are sceptical, that if we are trying to devise comprehensive international policies that are to be just and fair as widely as possible—not least to our own people whose jobs and livelihood are at stake—it is a definite advantage to be able to work together with a number of other nations, as recently happened in the multilateral trade negotiations. We have a better opportunity to look to the interests of our own people if we are working with others in Europe than if we are a lone voice.

Are not my hon. Friend and some other speakers in the debate forgetting one fact about Portugal—that it has been a member of the European Free Trade Association for at least 10 years and has been very largely, with some qualifications, in an industrial free trade relationship with this country? For the past three or four years, like the other EFTA countries, it has enjoyed, largely, industrial free trade with the rest of the EEC. There are certain qualifications to that. Nevertheless, Portugal is not a new problem. The problem has been with us for some years and has been reasonably well overcome.

My right hon. Friend, who has a great deal of personal, direct experience in this area, has put his finger on a real point. He has emphasised that whether or not Portugal was contemplating membership of the Community we should have the same sort of problem. All that I am saying is that, right or wrong, while the Community exists and tries to work out rational policies for itself in these areas, the difficulties of reconciling the different interests of member countries are well illustrated by that problem, even if it existed in the framework of EFTA in any case.

I listened with my usual interest to my hon. Friend the Member for Liverpool, Walton (Mr. Heller). I hope that he will realise that this is not merely a kind ministerial pronouncement but a genuine observation. I listened with interest to his views about how we achieved our objectives in the Community. My hon. Friend has always been extremely candid about his own thoughts, and even extremely honest and candid with the House about his change of mind in the process of evaluating the significance of the Community. I do not feel the slightest bit sceptical about my hon. Friend's vision of the democratic, Socialist Europe, as he described it, in which everyone would be co-operating in trying to achieve social and economic priorities of significance to all the people of Western Europe as a whole.

Before the referendum, my hon. Friend and I campaigned together. I believed, and still believe, that that referendum was a deciding point in our political history, and that after it the whole nature of the game had changed, because—though we can argue about the fairness of the referendum—the British people had said by a convincing majority that they wished Britain's future to lie within the context of membership of the Community.

I hope that my hon. Friend will respect my conclusion, which is different from his. If one thing seems clear to me, as a practical politician, it is that one cannot run a country of our kind on a basis of indecision, and that once the decision had been made the challenge was to get on with the job, even if some of us might have felt that it might be more difficult in the new situation.

What has struck me, working in this area—my hon. Friend the Member for West Bromwich, West, who had a different attitude and reached a different conclusion, has put the matter very fairly tonight—is that our negotiating influence has been undermined. It has been undermined because of a tendency—not an opportunist tendency, I think, but a real and understandable tendency—for some of our colleagues in the Community to look at us rather anxiously and ask "But have you made up your minds? When you ask us to adjust to what is your priority, how convinced can we be that it is your priority in the context of ongoing membership of the Commuity, or how far is it a priority in the context of having only one foot in the Community?"

What I shall say next is a difficult point, and I do not ask the House to accept that it is necessarily the right conclusion, but the argument is worth considering and has my support. I believe that we should have more self-confidence. For example, I say to my hon. Friend the Member for Walton, with his commitment second to none to the cause of democratic Socialism, that there are many committed democratic Socialists in Western Europe who would be only too anxious to respond to his arguments, priorities and initiatives and to work with him in trying to shape the Community's future.

That is a matter that we must take particularly seriously in the context of enlargement. At this juncture we should be spelling out to the three applicant States that we are not asking them to sign on the dotted line to join a closed society that there is no hope or chance of changing. I know that some people hold that view, but I think that it is absurd. It is a denial of everything that open, democratic society is about. We are saying that if they wish to come into an organisation they have the opportunity to join us in shaping our future destiny and priorities within that organisation.

I have heard many times before this argument, that if we were more communautaire the other eight would be dramatically more likely to accede to our wishes in various matters. Will my hon. Friend tell us what proposal, what further statement or concession he would make or what policy we should adopt in order to convince the other eight that we are more communautaire? We are already paying the second biggest part of the budget. We are paying for our membership card. What further concrete concessions should we make to demonstrate that we are communautaire?

I listened to my hon. Friend with great care, and I have often talked with him privately about these matters as well as in the House. However, with respect to him, he has made a classic mistake, because he swung in his intervention from one position to the other extreme. It would be quite ludicrous to argue that suddenly, if we changed our stance, there would be a dramatic change of attitude in response from our fellow members of the Community and that everything would change overnight. I am not saying that at all. But if my hon. Friend refers to the letter last year from my right hon. Friend the Prime Minister to the secretary of the Labour Party in which he spelt out the priorities for the future of the Community as he saw them, I believe that he will realise that the arguments which we were advancing on each of those fronts would be more persuasive if we could say without hesitation that we were trying to mobilise our colleagues and friends in Europe to share the same priorities.

I do not know whether my hon. Friend is aware that the Labour Party is associated with the Confederation of Socialist Parties in the EEC. Is he aware that we have been trying desperately to get our fellow members of the confederation to come up with some serious Socialist proposals for Europe and that until now we have been handed back some wishy-washy proposals which would be very good for Catholic social teaching, about which I also know quite a lot and which has a certain affinity but is not very close to our concepts as Socialists'? We have tried and we are trying, but until now we have not been very successful.

I know that my hon. Friend never gives up on matters about which he feels strongly. I am sorry if the initial experiences outside the formal political context at governmental, ministerial and parliamentary level have not yet been more productive. However, my hon. Friend, with his tremendous passion and power of persuasion, is only underlying the potential role which he and those who feel like him have to play in giving a political lead in the European Community.

I want now to turn to some of the specific issues which have been raised, and I deal first with fisheries. This was referred to by the hon. Member for North Angus and Mearns (Mr. Buchanan-Smith) and by the hon. Member for Harborough. In our deliberations about the future common fisheries policy—deliberations which we hope we can bring to an end with British interests at heart before very long—we shall have very much in mind the implications for the future and what enlargement will bring.

A great deal of the debate inevitably concentrated on agriculture. We had contributions from the hon. Members for Devon, West (Mr. Mills), Flint, West (Sir A. Meyer), North Angus and Mearns and Harborough, and my hon. Friend the Member for Sheffield, Heeley (Mr. Hooley), amongst others.

We should remember that there has been progress, and the hon. Member for Harborough was right to pay tribute to my right hon. Friend the Minister of Agriculture, Fisheries and Food because the progress is demonstrable in what he has achieved already in price fixing. That again illustrates why to talk of the possibility of shaping the future of the Community is not just theory but can be demonstrated as a goal which is already being achieved. It is not just that my right hon. Friend has managed to make progress in the area of price fixing. It is important that already he is making sure that throughout the Community the voice and the interests of the consumer are being more readily recognised and that the arguments on behalf of the consumer are becoming more respectable than they were previously.

As enlargement takes place, it is clear that there will be some contradictions. Some of them will be quite absurd in character. I do not want to stir up unnecessary trouble by the way in which I put this, but we shall have situations where we are confronted with the tradition of the common agricultural policy in which we are encouraging, quite expensively at times, the production in parts of Northern Europe of horticultural produce when the same produce will be available much more cheaply and readily and equally if not more deliciously from new applicant States. There will be important issues to be resolved in that context.

My hon. Friend the Member for Heeley talked about wine. The hon. Member for North Angus and Mearns talked about how we should approach the process of enlargement. and he made a significant and useful point here because he said it was not as though we looked at the future of the CAP in isolation from the process of enlargement itself but that we used the two realities in the life of the Community to try to reach for the rational solutions which we were all seeking because it would be impossible to continue along the present road once enlargement took place.

I am very glad that the hon. Member for Harborough and my hon. Friend the Member for Heeley spoke about the problems of the developing world. It would not have been a speech for my hon. Friend if he had not made this point. I have seen for myself the anxiety which exists in certain Mediterranean countries and North Africa about this problem. They are worried already about the Mediterranean dimensions of the CAP in the existing Community of nine. Incidentally, we have no intention of repeating in the southern part of the Community the mistakes which have been made in the North. More than 70 per cent. of the Community budget going on the CAP is bad enough. We cannot contemplate its rising any higher.

But if we face up to the difficulties which exist for certain countries in North Africa, to look no further afield, which have in the past geared their economic life in many ways to servicing the market of the countries which are members of the Community, I think that we have a very heavy moral responsibility in the Community to ensure that we work out together with them strategies for their future which mean that we do not benefit at their direct expense. There are some quite traumatic experiences in those countries at the moment, where they find that agricultural techniques and priorities which they thought were secure are suddenly of no value.

The hon. Member for Devon, West gave us an illustrative anecdote about the way of life in France and how the CAP helped to maintain a certain kind of picturesque social existence in rural areas. I had a very happy family holiday in France this summer, and I came to the same conclusion. I saw that the average number of cows per farmer seemed to be about five. It appeared to be a very attractive way of life, although not a very prosperous one. But, when compared with the tensions and hardships of urban existence for many people in other parts of Europe, it seemed to be a very attractive way of life. I compared this in my mind—not that I have any direct knowledge of agricultural matters—with the knowledge that one of the achievements in Britain of which we should be proud is that we have probably the most efficient system of agriculture in the world, with very high productivity. At a time when people like to talk about the imperfections in British society, I wish that this was more generally recognised.

We have a problem as we approach the future of the CAP. We are really saying not that we shall cynically turn our backs on people in other parts of the Community but that there is a need for a relevant social policy, although it is nonsense to finance it directly out of an agricultural policy.

The institutions of the Community have been mentioned at some length. This matter was raised by the hon. Members for Mid-Oxon (Mr. Hurd) and Sevenoaks (Sir J. Rodgers).

Two issues arose. One related to the efficiency of the Commission and the Council of Ministers. The other related to the relative roles of these institutions and also embraced the European Assembly. In regard to the efficiency of the Commission and the Council of Ministers, I am always sceptical about bureaucracies. I do not use that phrase pejoratively. However, it is possible for bureaucracies to become institutionalised and there is a tendency for them to order their affairs in a way that is convenient to them. Therefore, it is important for us to have elections from time to time so that Ministers may challenge those bureaucracies in order to give the younger generation a chance to come into their own, to express their frustrations and to set out their priorities about the existing order.

I am not suggesting that the Commission has always worked in the most effective way possible, but it has shown some flexibility. This issue should be examined in the context of enlargement when we consider how large the Commission should be and whether we should take the opportunity to streamline and rationalise.

On the subject of the role of Ministers, there is one issue that goes to the heart of the problem of democratic control within the Community. On the one hand, it is tempting to argue that we should put more of the work of the Council of Ministers into the hands of the Committee of Permanent Representatives so that Ministers can concentrate on the serious and key political issues. I worry about that matter, if I may be candid with the House. In implementing agreed strategic policy, there appears to be a thin dividing line between policy and administrative technique.

Although it is wrong for Ministers to be preoccupied with matters that are not of the political substance to require their being on the agenda of the crowded meetings of Councils of Ministers, we should, nevertheless, be a little cautious that we do not give officials in that committee more political responsibility than they should have.

This brings me to the point of the relative strength and place of the various institutions in future. I see the future of the European Assembly as falling within strictly defined terms as a consultative review body in terms of political control. I believe, as do Her Majesty's Government, that political accountability must be through the Council of Ministers to the domestic home Assemblies and Parliaments from which they come. I have every confidence that that is how it will be in future.

If that happens, I believe that, although there may he a tendency for the Commission—not maliciously but almost inevitably—to try to play off the European Assembly against the Council of Ministers, and through the Council of Ministers the domestic Parliaments, I do not think that that will happen. I believe that rapidly Ministers will see where their roots lie and where their accountability rests and that the Parliaments and national Assemblies to which they are accountable in their home countries will be clear about the subject of accountability. In that sense, I believe that the continued tendency towards the ascendancy of the Council of Ministers in the Community will continue.

The question of criteria was also mentioned in respect of the order in which we admit candidate nations to the Community. There is nothing very special, highfalutin or sinister about the way in which this is done. It simply reflects the order in which countries have applied for membership. That is the way in which we are proceeding.

On the subject of the transitional period, I do not agree with the hon. Member for Mid-Oxon. I believe that there is value in having an approach which envisages a timetable with target dates. This means that people have to get on with the task. They cannot go on prolonging the agony and try to play for advantage as the date is put off and readjusted.

On the topic of languages, I believe that there are some interesting points to be considered. In a practical sense, we shall face all the difficulties of simultaneous translation, with all the expense involved. But in a genuine community of nations one has to give due weight to the right of any Minister or representative of a member nation to participate fully in his own natural and native language. It is likely that we shall see a practical, pragmatic solution to this problem in which people will have this right and some of them will regularly exercise it However, a great deal of the work carried out in committees and elsewhere will be carried out in a few working languages, thereby achieving the economies that we all want to see.

I wish now to deal with the subject of political co-operation. As soon as any applicant nation becomes a member, it has the full right of membership automatically—just as we had. We look forward to that aspect because we place importance on the subject of co-operation.

The other anxiety mentioned by several hon. Members relates to the worry in respect of Western Europe being larger than the Community and how we should tackle this matter. In my responsibilities, in which I look to our relationships with Western Europe as a whole, not simply connected with the EEC, I have found this anxiety reflected among non-member and non-applicant States. They have put to me a realistic attitude. They have said "We understand that it is inevitable in the process of the life of the Community that Ministers will get used to thinking together and working together and of having automatic recourse to consultation about the wider international issues. However, will that be at the expense of our being able to influence events when they affect us equally strongly?"

It is most important that the Community can reassure others that, however well political co-operation may be going, it must never be at the expense of a good dialogue and co-operation with other members of Western Europe. This is true not only in a wider political sense but even in the context of defence alliances. There are those in NATO who are not members of the Community, and they have every right to influence the policies of NATO, as do those countries which happen to work together in other respects within the EEC. This point needs to be watched carefully.

It is right that Turkey has been particularly mentioned in this context. As realists, we know that there are special problems about Turkey. There are special problems at present between Turkey and Greece, and these centre not only on Cyprus. It would be sad if the problems between Turkey and Greece were to become problems between Turkey and the Community as a whole. From that standpoint, we must work hard to solve these matters. At the same time, we should not overlook the case of Norway, Switzerland, Austria and others.

Will the Minister give the House some vital information about the trading surpluses between the United Kingdom and Community countries with which we are in membership, and will he say whether those surpluses compare with the previous two years?

I think, with great respect, that my hon. Friend's question will be more appropriate to the debate tomorrow, in which he may have the opportunity to speak. We are dealing today specifically with the question of enlargement.

I stress that, as enlargement takes place, the dividing line between the countries in the Community and those outside will in some ways become even more significant than it is at present. We shall have to be even more conscious about the need to find effective political relationships with those not part of the Community. It may be that the Council of Europe has a very important part to play in this respect. I know that the hon. Member for Sevenoaks and others in the House worked very hard in the Council of Europe to achieve just this.

What is this endeavour all about? In this context, the recurring theme throughout our debate has been a general recognition that we are not talking just about economic and social mechanisms. We are talking about the whole concept of free and open democracy, although there are variations in the way that it is applied in individual countries. It is about the quality of democracy that we are concerned, whether we are in favour of the Community or against it or in favour of enlargement or against it.

This brings me back to the point about institutions. I always put it to those who are genuine and sincere federalists, who have a commitment to a closely integrated, centrally governed Community that this is a denial of the different character that makes Western Europe worth living in. It seems to me that it is almost a tendency to want to create in Western Europe, perhaps with a few more human rights and a bit more freedom, a reflection of the society that we all criticise in Eastern Europe, which is run on a highly-centralised, bureaucratic basis.

If we are talking about a society that is worth having, a society which we believe must have the economic strength which is essential to survive, we have to recognise that its inherent qualitative difference is that it cannot operate on a basis of over-centralised bureaucracy. It must operate only on the basis of maximum decentralisation, maximum individual integrity and responsibility for people individually and in groups throughout society.

If we are talking about this redistribution of power in society and within the Community, I think that we in Britain have a message for our colleagues in the Community. It is this. It may at times become very frustrating that the pace of the Community cannot be more rapid. It may become very frustrating for them. There may be a temptation to try to take short cuts. There may be a temptation to try to work out on a piece of paper solutions to all our problems and then to rally support behind those solutions.

That may work well in elitist types of political systems but we are a pluralist, mature democracy, and in our system it is a matter of winning support for our objectives and priorities. The hon. Member for Mid-Oxon was right to talk about the possibility of slowing down as the whole process of enlargement takes place. That is not something to fear. If we are really building a community of individual nations as distinct from trying to impose an authoritarian system on Western Europe, this must take time. It must take enough time to absorb the differences and the creative traditions in the various parts of the European Community.

I believe that what we are talking about and what enlargement gives us an opportunity to strengthen is the building of a community—I emphasise that word once again—and not a homogeneous bloc. A community draws its strength from a variety of traditions and, if it does so, part of its responsibility is to nurture those traditions. In that sense, I think, the process of enlargement will help us forward practically to the fulfilment of the only kind of viable political community in Western Europe that makes sense if we are genuine democrats.

Question put and agreed to.

Resolved,

That this House takes note of Commission Documents Nos. S/763/78 and Addenda 1 and 2, and S/911/78 and Addendum I on enlargement of the Community.

European Community (Foodstuffs)

Before I call the Minister, I should inform the House that Mr. Speaker has selected the amendment in the name of the hon. Member for Gloucester (Mrs. Oppenheim). The amendment in the name of the right hon. Member for Battersea, North (Mr. Jay) —at end add

"but cannot accept proposals which fail to adopt an adequately selective approach to unit pricing, and would entail unjustifiable change in the direction of United Kingdom policy in this field"—
has not been selected, but it may be discussed with the Opposition amendment.

7.55 p.m.

The Under-Secretary of State for Prices and Consumer Protection
(Mr. Robert Maclennan)

I beg to move,

That this House takes note of Commission Documents Nos. R/1277/77 and R/1131/78 on display and pricing of foodstuffs.
The subject matter of this debate is price comparison—the ability of consumers to make value-for-money judgments —and the reasonable steps which Governments can take to assist them to do so. Price is not the only factor which governs consumer choice, but it is an important one. No one, I imagine, would seriously challenge the view that the display of selling prices of goods in shops is beneficial to consumers and an encouragement to healthy competition.

Where goods are sold by quantity—that is, by weight or volume—the selling price obviously has to be related to that quantity, and it is to this limited but important area that this debate is directed.

Before I turn to the proposals from the Commission which are before the House tonight, it may be helpful if I briefly explain the existing consumer protection policies that have been adopted in this country in this field. For weighed-out foodstuffs—fresh meat, fish, cheese, fruit and vegetables—unit pricing, the display of the price per pound, has been introduced. It is clearly right in our view that goods, such as loose potatoes, which are sold by the pound should display that unit price. Equally, in our view, it is not enough for choosing, say, a joint of meat to know simply the weight and the sell- ing price. The consumer needs to know the unit price as well.

Unit pricing is also appropriate, and has been introduced, for what are called "catchweight" pre-packed foodstuffs. These are products where the weight is not predetermined by the packer and where generally speaking the weight is marked after packing. Pieces of cheese are a good example. Without an indication of the unit price, it is extremely difficult for the consumer to compare the prices of such products—at least, without the benefit of a pocket calculator.

However, for another range of goods, pre-packed products other than "catch-weights", a completely different approach has long been adopted in this country. This is the system of "prescribed quantities". Under this approach, which now dates back for 50 years, the consumer need has been met by establishing in statute simple and limited ranges of sizes for the sale of important products. This system is familiar to us all and I am sure that thanks to it no one finds any difficulty in comparing the prices of sugar, butter, tea or cornflakes. There are in fact today over 30 foodstuffs subject to prescribed quantity legislation—legislation which in my view has been of enormous benefit to consumers and to the industries which have been able to rationalise their packaging.

We can see, therefore, that in this field there are two main types of legislation in this country—unit price display regulations covering weighed-out and "catch-weight" foodstuffs, and prescribed quantity legislation for pre-packed products.

Against this background I turn to the Commission's proposals. The two documents which the Scrutiny Committee recommended for debate and which we are discussing have been overtaken by events. [HON. MEMBERS: "Again."] When I explain how events have been overtaken, the House might welcome the situation.

If it had been possible, I should have liked to provide the House with a memorandum setting out the position to date in the discussions in the Council working party. There have been many meetings, and many working drafts have been produced since June. I fear that such a memorandum would have been out of date by the time the debate took place. However, I shall do my best to explain what has happened and where we now stand.

The Commission's proposals date back to 1975, when an agreed preliminary programme for consumer protection and information policy was formed. Included in this programme was the aim of establishing
"common principles of stating price and possibly the price per unit of weight and volume."
I am not among those who consider it wrong in principle for the Community to involve itself in consumer protection matters. Of course individual initiatives have to be examined carefully on their intrinsic merits. But it would be a less than complete Community if it did not have aspirations towards improving the levels of consumer protection throughout the member States.

There are those who argue that the Commission has no business introducing this sort of proposal. I do not agree with that view.

The original proposal from the Commission—contained in document R /1277/77—was, to put it mildly, not well received in this country. Its main proposals were for the unit pricing of not only non-pre-packed foodstuffs but of all pre-packed foodstuffs not made up in Community or national ranges. There was no serious complaint about the proposal relating to non-pre-packed foodstuffs since this, as I have explained, is in line with our own national thinking and legislation. But the proposal to apply unit pricing to all pre-packed foodstuffs met with fierce and virtually unanimous opposition from all the sectors involved—manufacturers, retailers and consumers. This was an impressive and somewhat unusual display of solidarity.

The Commission's approach was based on the present German system which developed from its 1969 weights and measures law. This approach recognises both the need of consumers for appropriate aids to price comparison and the advantages of package standardisation. However, to our eyes the ranges of sizes for many products are not what we would regard as proper prescribed quantities. This is, perhaps, inevitable in an across-the-board approach which catches virtually all pre-packed foodstuffs. The result is that in many cases consumers do not really benefit.

Some of these standards were introduced in response to pressure from the trades to continue their existing practices. Nevertheless, the Commission saw this as a step in the right direction.

The Government carefully considered the merits of unit pricing pre-packed goods as against our traditional prescribed quantity approach but we concluded that unit pricing was a vastly inferior means of consumer protection. This view was based, first, on our long experience of the real benefits of a prescribed quantity system. We have an experience which none of the other member States has had to anything like the same degree.

Secondly, research carried out by consumer organisations shows that consumers here prefer prescribed quantities to unit pricing. Thirdly, there are potentially serious repercussions flowing from the application of unit pricing to fixed weight pre-packed products.

Among these adverse effects are the continuing and significant costs for the retailer, which inevitably would be passed on to the consumer. That point is made in the Opposition's amendment. The burden of unit pricing would hit the small shopkeeper harder than the supermarket. This would make it harder for the corner shop to survive. There would also be pressure by retailers on manufacturers to both price-mark and unit price-mark. This could lead to price rigidity and de facto price fixing by manufacturers. There is the possibility that some products on which profit margins relative to turnover are low might become more difficult to obtain. Unit pricing might well discourage shopkeepers from stocking this type of item.

Finally, there is the difficulty, which should not be underestimated, of framing legislation which would achieve the unit pricing objective but which would not at the same time expose retailers unreasonably to risk of prosecution.

For all these reasons, it was and is the Government's view that unit pricing for pre-packed products should be considered not as the preferred consumer protection approach, as seemed to be envisaged by the Commission, but as the least preferred approach which should be considered only when there is a real need for a basis for price comparison and other possibilities are patently impossible.

The unpopularity of unit pricing among manufacturers and retailers was recognised by the Commission, which probably saw the unit pricing stick, in conjunction with the carrot of exemption for standard sizes contained either in other Community directives or national legislation, as in practice achieving standardisation of package sizes.

Unfortunately, there is, in my view, a fatal flaw in this approach when it is applied across the board. Member State Governments in such a situation would simply be faced with having to introduce voluminous legislation establishing ranges of sizes for virtually every type of product—no matter how unsuitable the product for this type of treatment—simply to avoid the need for unit pricing. In this mad scramble, the needs of the consumer for limited and simple ranges of sizes would inevitably be lost sight of. All that would be achieved at the end of the day would be a great deal more legislation and no real advance in consumer protection. This is a situation which we cannot countenance and in which we refuse to be placed.

We have made it clear that in our view the best solution would be to have a unit pricing directive concentrating on weighed-out foodstuffs and "catch-weights", and to have a prescribed quantities directive which would, at the Community level, establish simple mandatory ranges of sizes for a positive list of important household foodstuffs, using as a basis our own national prescribed quantity legislation.

Whilst this suggested approach is gaining ground both in the Commission and in some other member States, there are nevertheless some member States which still seem to prefer the across-the-board unit pricing approach, at least for the time being. The Commission's amending proposal contained in document R 1131/78 is an attempt to meet both points of view.

I fear that it satisfies neither. What it does on this central issue is to propose that there be a five-year moratorium on the application of unit pricing to pre-packed products. The intention is that this period be used by member States to introduce prescribed quantities or standdardised ranges. This proposal undoubtedly goes some way to meet our objections. But it does not go far enough. There remains the basic objection that after five years there would still be an obligation to unit price those pre-packed products for which, for whatever reason, ranges of sizes had not been fixed. It would also have the highly undesirable effect of creating a further period of uncertainty for manufacturers, retailers and consumers.

However, since the amended proposal was published, there have been further discussions in the Council machinery, and as a result we are confident that these remaining objections will be overcome. Indeed, we have received positive assurances from the Commission that the directive will contain only two modest provisions on fixed weight pre-packs.

These are, first, that until 1st January 1984 no member State will have to make unit pricing mandatory for such foodstuffs; and, secondly, that before 1984 the Council will be called upon to decide under what conditions and for what categories of such foodstuffs unit pricing would be applicable.

What this means is that the directive will, as before, incorporate a five-year moratorium on any possible obligations for unit pricing of pre-packed foodstuffs. However, instead of automatic application of unit pricing thereafter, the directive will simply propose that before the period expires—that is, before 1st January 1984 —the Council will consider under what conditions and for what categories of products the application of unit pricing would be appropriate. In other words, there is to be no precommitment or prejudgment of the issue. The Council will simply be called upon to look at the subject again before 1984.

The effect of all this so far as we are concerned would be that we would accept the unit pricing obligations for weighed-out foodstuffs and "catchweight" pre-packs, in line with our own domestic policy, and for fixed-weight pre-packed products we would be free to pursue and develop our existing policies on prescribed quantities with no obligations or commitments on unit pricing in the background.

Other member States would be encouraged to evolve similar policies but would be free to introduce unit pricing if they so wished. In five years' time, we will all get together to see what, if anything, needs to be done further. I believe that this would amount to a satisfactory outcome to the negotiations that have taken place over the past two years, and I hope that the House will share that view.

The position of fixed-weight pre-packs had been the major preoccupation within the United Kingdom, but concern was also expressed here about other aspects. For example, it was originally feared that restrictive national lists of all foods sold by number, such as eggs, would have had to be compiled in order to benefit from exemption from unit pricing, and that food hampers and sales from vending machines would be caught. These fears, of course, no longer exist.

Another criticism of the original proposals was that the provision relating to the use of the smaller unit of 100 grams was too restrictive. This has now been relaxed, and member States are free to decide in what circumstances this smaller unit may be adopted. Incidentally, I wish to make it clear that, although the directive naturally enough is based on the units of 1 kg and 100 grams, we are free to continue to require imperial unit pricing for so long as these units are legal for trade in this country.

I have, however, one remaining reservation about the directive. As drafted, document R 1277/77 would also require the selling price to be given for all foods. This conflicts with the provisions of the Price Marking (Food) Order 1978, which exempts counter service sales from this requirement. I wish to see this exemption written into the directive. Even the smallest grocer carries several hundred lines. If he had to display prices in such a way that they could be readily seen by the prospective purchaser, the shop would become a veritable forest of price lists or labels in danger of obscuring the stock. It was for these reasons that I decided that it was appropriate to exempt small shopkeepers from this unacceptable burden. It is important that that consideration should be incorporated in the directive.

There have been many notable contributions to what has been a national and international debate on this subject. Our own manufacturing and retailing organisations have presented their case forcefully and persuasively. The prestige and common sense of our own consumer organisations has been an enormous help, and I would also like to thank the BEUC—the European Union of Consumer Organisation—for opening up an informed discussion of the advantages and disadvantages of unit pricing to consumers at a specially convened conference in Brussels.

A special tribute is also due to the House of Lords Select Committee which examined this subject. Its report is a substantial contribution to the subject. Finally, I wish to pay a personal tribute to the Commission. I myself have on several occasions discussed this directive with it, from Commissioner Burke downwards. On all occasions and at all levels, I have found the Commission's attitude wholly constructive and flexible, and it has throughout displayed a readiness to meet the sensible points we advanced. It did so in a spirit of accommodation.

It will, I assume, be clear from my comments and from the document that the Government are ready to accept the amendment standing in the name of the hon. Member for Gloucester (Mrs. Oppenheim), although in broader terms it is somewhat similar to an amendment, which has not been selected, tabled by my right hon. Friend the Member for Battersea, North (Mr. Jay). I hope that the House will be reassured by subsequent developments and will agree that, if the changes I have mentioned are incorporated, the directive will be acceptable.

Although this proposal understandably caused some alarm, particularly when it first appeared, it has, I think, caused many people, both consumers and those engaged in commerce, to think seriously about the issue involved, and it has led in Europe to a thorough and searching appraisal of consumer protection philosophy in this context, in which this country is a leader. The result of the debate has been positive and one that I welcome.

8.17 p.m.

I beg to move, to leave out from 'House' to the end of the Question and to add instead thereof:

in taking note of Commission Documents Nos. R/1277/77 and R/1131/78, considers that the amendments contained in the latter document are not acceptable in that they fail to limit unit pricing to those goods for which it is desirable and as a result would run counter to consumer protection measures in the United Kingdom and would impose extra costs upon the relevant trades as well as upon the consumer.'.
I think that the House will agree that the tale which the Under-Secretary of State has told of what has happened and what has gone on since the document was first published, and since it was examined here originally, gives even more grist to the mill of those who believe that the system under which such proposals are produced needs some major overhaul. I would be churlish to say that the document is a diner de chien, but I suspect that it is nothing more nor less than a dog's dinner in relation to the document that is to be produced in due course in so far as the Minister indicated some major changes.

Touché! The matter of consumer protection harmonisation is worth consideration by the House. The system of a Green Paper discussion about the harmonisation of objectives of consumer protection has been raised before. I think that we last raised it on the question of the doorstep-selling directive. It is becoming even more evident that before proceeding to the difficult stage of drafting community legislative proposals it would be wiser to proceed by a general discussion document to make certain that the parameters of the problems are set and that the Community is not involved in designing legislation inappropriate to the legislative arrangements of member States.

I would argue that the principles that we should seek to establish in defining our harmonisation of consumer protection measures are, first, that it needs to be demonstrated that the consumer requires additional protection and that that is a need that has been demonstrated across the Community, and, secondly, that it has to be demonstrated that intra Community trade requires also that a movement of this kind should be of an intra-Community kind—in other words, that there should be consumer protec- tion for the benefit of the harmonisation of trade. That is where article 100 is so widely used as the basis for most of these changes.

The third point is that any harmonisation proposals that emanate from Brussels should improve existing standards where they occur in member States. The Minister was right to dramatise the extent to which we in the United Kingdom already have in this area of prescribed quantities and unit pricing a widely established system. That is why our amendment draws attention to that fact.

On balance we would agree with the Government's standing as the Minister has outlined it tonight. It is that major amendment is required. He believes that major amendment is on its way, and the House is therefore now considering a document which in a sense is no longer strictly relevant to what will happen.

We consider our amendment to be relevant in discussion of the document. We criticise the draft directive for the following main reasons. First, it is far too widely drawn and fails to distinguish between goods sold loose and at random weights which most often require the application of unit pricing. Secondly, it requires all pre-packed foods to be unit priced except for those for which a fixed range of weights and quantities is available. Thirdly, it clearly runs counter to the general direction of consumer protection legislation on unit pricing and prescribed quantities.

I suspect, however, that it also runs counter to the way in which the Community is now thinking about prescribed quantities. If my information from Brussels, which, as ever, may be late and imperfect, is correct, the prescribed quantities directive is well advanced, is in full discussion and is most likely to overtake unit pricing as the major plank upon which the Community will rest its case. The directive is being prepared.

I think that the House of Lords Select Committee's 49th Report, which was the main source of information on the subject, was quite right to draw attention in its conclusions to the importance of moving towards pre-packed quantities first. The Committee stated on page 10:
"The Committee do not believe that it would be practicable to impose unit pricing until other EEC proposals which logically precede it have been settled—eg those draft Directives which concern the problems of drained weight, container size standards of fill, the quantity of pre-packaged liquids and (in the United Kingdom) the change to the average weights system."
It is clear that one cannot get involved in unit pricingper se without having regard to pre-packed quantities and to the definitions which may be required under our weights and measures system. The case for dealing with prescribed quanties first is overwhelming, and that is why we feel it right to ensure that this directive does not proceed without the directive on prescribed quantities.

In our view, it is most desirable that the Commission comes forward rapidly with its proposal on prescribed quantities so that we may have the whole matter effectively sorted out before any other directive on these matters comes before the House.

I believe that the consumer bodies in the United Kingdom would also endorse this approach of dealing with prescribed quantities first. The Consumer Association, which, as the Minister suggested, has taken a realistic view in this matter, stated to my colleagues in the European Conservative Group last December that
"Our present view is that consumers would be better served if the Commission adopted a programme along the following lines: —
  • (i) adopt the directive on prescribed quantities as soon as possible;
  • (ii) adopt a directive requiring unit pricing for goods sold loose and by catchweight;
  • (iii) the third stage should be to take a critical look at products not covered by (i) and (ii) above and decide, on a product by product basis, what would be the best way of dealing with them in order to help the consumer judge value-for-money."
  • I believe that to be quite consistent with the way in which the Government have outlined their case this evening. It adds further weight from the consumer's point of view to move on the prescribed quantities front first.

    The European Parliament has debated this matter—

    I stand corrected by my hon. Friend the Member for Banbury (Mr. Marten). I am glad to see that he is here, alive and well and raring to go on this matter. The European Assembly debated this matter in February 1978. Frankly, the report which was debated there seems most inadequate, partly because it seems to lack any reference to the draft directive on prescribed quantities, and partly because it fails to reflect the misgivings that were being loudly voiced at that time among several member States of the EEC on this matter.

    In seeking to protect the consumer, the proposed system would surely carry very great risks about confusion and cost. The question of cost was referred to obliquely by the Minister. That subject was certainly raised in evidence before the Lords Select Committee, in particular by Mr. Weir, representing the Retail Consortium. I should like to quote the evidence he gave on 13th July last in which he said, on page 51:
    "I think, my Lord Chairman, that there are a number of people sitting round your side of the table who assume that there are European prescribed quantities over an enormously wide range of products, leaving us with a little bit of ham and a little bit of cheese at the end of the day to worry about in terms of unit prices. That is not the case. It is exactly the opposite way round. There are very few prescribed quantities at the present moment and we are talking about an enormous range of unit pricing. Our objection is to the application of unit pricing proposals over this vast range which is not covered by prescribed quantities. The costing which Mr. Taylor has done shows that if you have to apply unit pricing at the present moment across this very wide range which is not covered by prescribed quantities, it would be very expensive to shopkeepers and this cost would have to be passed on to consumers."
    So the question of confusion about unit pricing policy is more difficult to gauge. We do not have the necessary evidence in this country. In the United States, however, unit pricing has been a matter of great activity by the trade, and although the system varies from state to state there have been examples of supermarket chains seeking to use it.

    Perhaps the most aggressive supermarket chain to do that was the Giant Food chain which operates in Washington D.C., Maryland and Virginia. It set out to use unit pricing as a form of active consumer persuasion. It issued pamphlets to the shoppers coming to its stores. It turned all its stores over to a unit pricing system.

    I have to admit that the advice which was given to American shoppers in the state of Maryland was a little difficult. But it makes it clear that an item price and a unit price per pound have to be compared before one can arrive at sensible purchase. Sample A is quoted at 65 cents and 58 cents per pound. Sample B is quoted at $1·09 and 42 cents per pound. The shopper is asked whether she will decide to take sample A or sample B, If she chooses sample B, the mystery is solved. It so happens that sample B is the Giant Foods' own packed brand, whereas sample A is the national brand of Quaker Oats used for comparison.

    This highlights one of the problems that might arise with unit pricing. It could be used very effectively, I suspect, by stores to promote their own goods to the disadvantage of national brands, which on the whole have to carry most of the heat and burden of developing markets for products and producing new products for the consumer market.

    The experience of the Giant Food Corporation demonstrates that stores which use unit pricing have to put a lot of effort into explaining to consumers how the system works. Unit pricing can prove a positive mark of identification when coupled with other consumer aids such as nutrition information and health and safety warnings.

    Even where unit pricing is compulsory, discrepancies in application will arise. A survey was carried out in one portion of the United States which revealed that in some stores 50 per cent. of the unit prices examined were incorrect. There is a great deal of bureaucratic effort to be put into unit pricing if it is applied right across the board in large stores that carry and handle many hundreds of different lines.

    It may be concluded that unit pricing is not something to be taken in hand lightly. It is something to be carefully considered, or else the consumer could well become confounded by the whole operation. That is why, as our amendment states, we welcome the Government's view that unit pricing should be secondary to the development of prescribed quantities. It is prescribed quantities that are well known. It is prescribed quantities that are simple and understandable. It is prescribed quantities that can usually be applied to the ranges of foodstuffs that are of the greatest importance to the consumer.

    In his concluding remarks in another place, Lord Sainsbury said:
    "There is no case for insisting that all products be subjected to unit pricing. As we state in our concluding paragraph— "—[Official Report, House of Lords, 15th November 1977, Vol.387,c. 541.]
    That is the paragraph—

    Order. Unless the noble Lord is a Minister, the hon. Member for Pudsey (Mr. Shaw) will not read directly from the report.

    I cannot remember, Mr. Deputy Speaker, whether the noble Lord was speaking on behalf of the Government in another place. I shall assume that he was not. However, he was at pains to point out that unit pricing should not be widespread. He strongly established the case that the Commission should create its own priorities and that the first priority should be prescribed quantities before there could be any full development of a unit pricing system. That is why we tabled the amendment. That is why we are glad that the Government will accept our amendment. It seems essential that we deal with quatities first rather than move straight into unit pricing.

    I am glad to think from what the Under-Secretary of State has said that the EEC will examine these matters properly and fully and that when Commissioner Burke comes here on Friday he will be told in no uncertain terms that we want to see the cart put correctly before the horse and the whole matter properly and adequately handled.

    8.31 p.m.

    I do not think that there is any serious disagreement in the House about the substance of the case. However, it makes these debates rather more difficult if the Minister almost invariably starts by saying that the documents before us are entirely out of date and the situation has wholly changed, and proceeds to explain in great detail the facts about the subject that we are supposed to be debating. I hope that an assurance will be given that if the Commission, as it apparently proposes, is to bring forward still further documents, at least we shall have them before us when we debate them in the House.

    If, with some difficulty, I understood what my hon. Friend the Under-Secretary of State said, it amounts to the fact the Commission put forward some detailed proposals and they were opposed by almost everybody in Britain in the trade and in the Government who knew anything about consumer affairs. They have now been almost totally withdrawn. It seems, with some qualifications, that nothing much is to happen for five years. I believe that that is what my hon. Friend said. At the end of that period it seems that we shall have an opportunity again to think it all over.

    That is much more satisfactory than if the proposals had been implemented as they stand. However, I am disposed to ask my hon. Friend whether it would have saved a great deal of time, energy, trouble, cost, confusion and manpower if the Commission had never intruded into this area and had left our legislation and arrangements where they were.

    8.33 p.m.

    There is an immense irony in the debate that occupied the House earlier this afternoon upon the enlargement of the Community of nine nations to 12 nations and the present debate, which is really the important one, that enables us to see in what nonsense the Community is engaging in reality.

    It has been an important debate. I say that without a trace of irony. Important statements have been made from both Dispatch Boxes. Whether those who made them were clear how important they were I was not certain, but they deserve to be emphasised. It would be interesting to know in due course how far they carry the full responsibility of the Government and the Opposition respectively.

    The first thing which strikes one in approaching a proposed directive of this sort is that it is concerned with supply to the ultimate consumer—that is to say, it is concerned with matters which by no stretch of the imagination could have any intra-Community significance. They are in no way concerned with trade between the different parts of the EEC. They in no way arise out of a basic economic conception of the EEC. They are, quite candidly and plainly, legislation upon wholly internal matters.

    On this matter, opposing doctrine came from the two sides of the House.

    I am obliged for the assent, given in advance, by the hon. Member for Pudsey (Mr. Shaw) to what I am about to say. I am sure that, courageous and stout-hearted fellow that he is, he will stand by it whatever the consequences. He said that for any Community legislation such as this to be accepted it would have to be demonstrated —this was in addition to other considerations—that it affects intra-Community trade. No one has so far sought to argue that intra-Community trade is in any way affected by these provisions.

    Pudsey, as the right hon. Member for Down, South (Mr. Powell) will well understand, is a place where people are willing to stand at the crease and face all kinds of bowling, whether it be fast or slow. Concerning the point raised by the right hon. Gentleman, I have made the assertion that in so far as the Community had issued a protection policy based upon article 100, in which intra-Community trade was involved, it followed that any Community recommendation must be so based. I think it could be argued to the right hon. Gentleman's satisfaction that there is sufficient intra-Community trade in prepackaged foodstuffs for this document to be relevant.

    But we are concerned here with the protection of the ultimate consumer in the respective countries. We are concerned with the retail trade. We are not concerned with bulk trade of any kind. Quite candidly and openly—and this was acknowledged by the Minister, speaking from the Dispatch Box—we are concerned with internal consumer protection. The Minister, in his turn, was quite candid about this. He said that, in his view, it was not wrong in principle that the Community should legislate upon matters which were entirely internal and which, in the phraseology introduced into the debate by the hon. Member for Pudsey, had no intra-Community significance. Indeed, the Minister went further and enunciated his view that it would be a less than complete Community unless it covered by its legislation matters which were wholly domestic to the national parts of the Community.

    In the matter of the EEC, the Government are a Government based upon the principle of agreement to differ, so that I cannot really ask the Minister, as I have asked the hon. Member for Pudsey, whether his views represent the views of the Government as a whole. Of course, in presenting the motion, he is naturally speaking with full collective responsibility and on behalf of the Government, but his wider and deeper philosophy in the matter is for himself, as, indeed, it is for the right hon. Gentleman the Lord President of the Council, the right hon. Gentleman the Minister of Agriculture, Fisheries and Food and the rest of them. But at least we know what is the view of the Minister in this case. It is his view that it is not a complete Community unless it legislates upon matters which are exclusively internal to the respective countries, as well as upon other matters, of course.

    I should like the Minister to address his mind to what limit there then is, if that be what makes a Community, upon the scope of Community legislation; and I should like the House also to consider it. Admit that and we admit that we conceive the Community as in reality a full-blown State, or intended to be a full-blown State, with power of legislation in all matters, domestic or intra-Community. That fundamental matter ought properly to be brought out and debated.

    I turn from that more precisely to the wording of the Opposition's amendment which the Government are to accept. The Opposition give as their objection to the documents as they stand—the directives as they are at present proposed or used to be proposed—that they
    "would run counter to consumer protection measures in the United Kingdom."
    Is it the view of Her Majesty's Opposition that we should not accept legislation of the Community which runs
    "counter to…measures in the United Kingdom"?
    If so, that is an important statement of policy, because it means that, in the view of the Opposition, who might one day be the Government, we are under no obligation—indeed, it is not their policy—to accept Community legislation if it runs
    "counter to … measures in the United Kingdom".
    I assure the hon. Member for Pudsey that, if I interpret correctly the implications of the amendment, it will be an inexpressible relief to many Conservative supporters—indeed, if we are to judge by the opinion polls, to a majority of Conservative as well as Labour supporters—to know that, should there be a Conservative Government, that Government will not accept Community legislation which runs
    "counter to…measures in the United Kingdom".
    It is a considerable clearing of the air.

    During the debate it was a joy and delight to those of us who are old familiars in this game—those of us who have survived so many hours of considering these distasteful and even absurd documents from the Community are a kind of club, are we not?—to observe the hon. Member for Farnworth (Mr. Roper), when hardly a sentence had been spoken from either side of the Table, nod his head with approbation with the regularity and emphasis of a cuckoo clock. The idea that these criticisms of the original directive were well founded, were being brought out and were being accepted by his Government gave him profound satisfaction. His delight appeared to reach its climax when the Minister finally informed the House that he anticipated that the entire proposals would be eviscerated almost completely so that they would be meaningless and ineffective.

    I would not wish to begrudge the hon. Member for Farnworth—our constant companion in so many of these debates —any enjoyment that he can get from the contemplation of the evisceration of a proposal of the European Economic Community. But I would point out to the House, and particularly to the official Opposition, where we would be getting to if we were agreeable to Community legislation provided that it either had no effect whatever or agreed exactly with what we were going to do anyhow. That might seem to be a happy way out of our difficulties. That might seem, especially from the attitudinising of the hon. Member for Farnworth, to be the resolution of the great national debate. If that were to be the outcome, it might seem that the right hon. Member for Sidcup (Mr. Heath) and I could join forces again in complete concord and amity, but I fear that we would be injudicious to rush to that conclusion.

    If we accept as valid—as proper—Community legislation because, for the time being, it either has no effect or tells us to do only what we were going to do anyhow, we nevertheless accept its authority and entitlement to legislate in these spheres. Therefore, our complacency and compliance when it happened to be legislating harmlessly or in accordance with the measures in force in the United Kingdom would infallibly, and indeed justly, be cited against us when the time came, when it claimed to exert the right to legislate against as well as in accordance with our policy.

    After all, what is the point of harmonisation? What is the justification of claiming, as the Minister does, that harmonisation of internal law is necessary to a complete Community unless the law which is imposed harmoniously is different from the law which the component parts would otherwise have accepted? If that is not so, there is no such thing as harmonisation. Harmonisation is only real, is only significant, if it makes some people, albeit a minority, legislate domestically or behave differently from the way in which they otherwise would have behaved.

    So it is the intention, the underlying policy of this directive, as well as its stupid contents, which ought to attract our condemnation. When the contents have been removed, we still ought to reject the container. The amendment is all right so far as it goes. Indeed, it probably goes a bit further—I have argued that it does go further—than the requirements of tonight's debate.

    But it is not enough to turn a stupid and impracticable directive into one which can be tolerated. What we need to do is to tell the Community, as long as it is there to be told, that there are much more important things for the Community to do, and for us to do, than to legislate upon this kind of subject of our domestic concerns—in other words, to tell the Community to keep off the grass.

    8.47 p.m.

    I have, in other debates on these subjects, followed the right hon. Member for Down, South (Mr. Powell) and I am glad to have the opportunity of doing so again, parti- cularly in view of the kind words which he addressed to me during his speech. I have some good news for him, the hon. Member for Pudsey (Mr. Shaw) and my hon. Friend the Under-Secretary: there was part of all three of their speeches with which I disagreed and about which I shall try to explain to the House.

    First, I am glad to say to the right hon. Member for Down, South that the directive has not been totally eviscerated. Even though, in the case of the United Kingdom, the objectionable parts have been removed and there will be little change, effectively, as far as United Kingdom legislation is concerned, the right hon. Gentleman would know, if he read the Commission's explanatory memorandum on the document, that there are other countries within the Community where that is not the case and where, by maintaining the provisions for foodstuffs sold in bulk—that is, unpackaged foodstuffs, which were described by my hon. Friend the Under-Secretary—they will apply.

    This directive will introduce an important measure of consumer protection in Italy, for example, and will, I think, also have some effect in the Netherlands and Luxembourg. Therefore, there will be a measure of harmonisation introduced by this directive which I happen to believe is useful.

    But I was concerned about the interchange which my hon. Friend had with the hon. Member for Pudsey, because that again arose from a misconstruction of this directive. This directive is not based upon article 100. Therefore, it is not relying upon the business of the internal market of the Community. The directive is, as is made quite clear in the introductory memorandum from Commissioner Vouel, and, indeed, in paragraph 9 of the explanatory memorandum from the Commission, based on article 235.

    As the right hon. Member for Down, South and, I trust, the hon. Member for Pudsey know, the basis for article 235 goes very much wider than article 100 and can—and this is the point I would make to the right hon. Gentleman—deal with matters which are not involved in intra-Community trade. As paragraph 9 of the explanatory memorandum makes clear, the basis is article 235 as it had been used by the Council of Ministers acting unanimously, including the representative of Her Majesty's Government at the time, on 14th April 1975, when the Council of Ministers adopted the preliminary programme of the EEC for a consumer protection and information policy. As the right hon. Gentleman will agree, article 235 enables the Commission to go very much wider in making proposals, as long as it is attempting to achieve the original objectives of the Community.

    The right hon. Gentleman and I, on other occasions, have disagreed about whether consumer protection should be one of the objectives of the EEC. It is important for the hon. Member for Pudsey to be aware that this concerns not article 100 but article 235, which gives the Community very much wider power than does article 100.

    I turn finally to remarks of my hon. Friend the Under-Secretary. I very much welcome what he has told us. As the right hon. Gentleman said, I have already shown my welcome. My words will now follow my nods and say how much I welcome what my hon. Friend has said about what has happened.

    There was—this has been freely recognised—a naive initial approach by the Commission. As has been made clear in the House previously, this sort of naive approach can only bring the Commission and, by extension, the Community into disrespect in the House and elsewhere. I think that it justifies totally the reference of this document to the House by the Scrutiny Committee.

    I am very glad, of course, that there has been progress. However, even if there could not have been a further supplementary memorandum outlining what my hon Friend was able to tell the House today—I understand that the reason for that is that the Commission's proposals are not yet in a form that would justify submitting a further supplementary memorandum to the House—in similar cases in the future, when there have been such dramatic changes between the time that a document went to the Scrutiny Committee and the time when it was due to come to the House, my hon. Friend should consider writing to the Chairman of the Scrutiny Committee outlining what has occurred.

    The hon. Member for Banbury (Mr. Marten) is not in the Chamber at present, but I think that he would agree with me that if the Scrutiny Committee had received such a letter or such a further supplementary memorandum it would almost certainly have modified its recommendation for debate in the House.

    In view of what the Under-Secretary has been able to tell us tonight, I believe that it it was unnecessary for this amount of time of the House to have been spent on this subject this evening. When there have been such enormous changes, which really lead to the withdrawal of the original concerns of the Scrutiny Committee—and I think, indeed, those of the Opposition as well—I hope that my hon. Friend and other Ministers will in future consider writing to the Scrutiny Committee to make this point clear so that we can make better use of the time of the House.

    8.53 p.m.

    With the leave of the House, Mr. Deputy Speaker, I should like to thank those hon. Members who have participated in the debate.

    I deal first with the point made by my hon. Friend the Member for Farnworth (Mr. Roper) regarding the possibility of bringing to the notice of the Scrutiny Committee significant changes when they occur. In principle, I am wholly at one with him on the desirability of that. But this has been a rapidly moving situation, with telex messages received from Brussels by me within the last few days indicating the direction in which this discussion has been moving. It would have been quite difficult, and possibly even misleading in this particular circumstance, to have given much before tonight the very firm indication that I was able to give. However, in principle, it is right that the Scrutiny Committee should be apprised as quickly as possible of significant changes.

    I would not, however, accept altogether what my hon. Friend said about the unnecessary amount of time that the House has devoted to this subject. It is a subject of some importance. I think that it is of value in the debate about the directive, which is still developing within the Community, that the views of the House should be known, and it should be seen that the concerns which have been expresed by Her Majesty's Government are concerns which are widely shared on both sides of the House.

    The right hon. Member for Down, South (Mr. Powell), with his customary pyrotechnical skill, turned the occasion into a constitutional debate of some importance. Perhaps in his speech he also gave the answer to my hon. Friend the Member for Farnworth about the importance of the occasion. However, I do not share the right hon. Gentleman's view—that was implicit in the remarks I made at the beginning, to which I adhere —that it is inappropriate for the Community to seek to legislate on consumer protection, which of its nature affects more domestic law than transnational or intra-Community law. I think that the propriety of so doing flows from article 235, to which my hon. Friend the Member for Farnworth referred. That is the basis of the proposed directive on unit pricing.

    I adhere to the philosophical point that it is no Community if widely discrepant standards of consumer protection exist and the Community remains indifferent to them. The cross-frontier consequences of some aspects of consumer protection law are, of coursce, real and the prescribed quantities directive is being pursued under article 100. Accepting that the right hon. Gentleman's remarks were confined to the unit pricing directive, and not to the other aspects of consumer protection contained in the prescribed quantities directive, I would simply say that the justification for Community consideration of this subject is both technical in a treaty sense and moral in that consumer protection is in a sense indivisible. If it is appropriate for the Community to consider legislating on prescribed quantities, so it is on unit pricing.

    The objective of the legislation is important. My hon. Friend the Member for Farnworth was right to draw attention to the benefits for other countries which would flow from the adoption of the draft directive which extends unit pricing of weighed-out and cash-weight measures to them. Therefore, I cannot begin to accept the assertion of the right hon. Member for Down, South that this was a stupid directive. It may have been an impractical one, as he suggested, in its application to us, and it may have been unnecessary for us; I accept that that is so. But the standard of consumer protection throughout the Community is, regrettably, not as high in some of these areas as it is in this country, and as members of the Community we have some responsibility to recognise that fact.

    I think that the answer must be the same to my right hon. Friend the Member for Battersea, North (Mr. Jay), that I cannot regard it as a waste of time for the Community to seek to improve the level of consumer protection. It is true that perhaps we have had more to give than to receive on this occasion. That is a reasonable position for this Government to have taken up.

    The hon. Member for Pudsey (Mr. Shaw) raised an important point of principle with his initial suggestion that this was not the most sensible way to develop consumer protection legislation within the Community. I agree with him that it makes sense to proceed by way of a consultative document to enable the ground to be tested and views of member States to be considered before a draft directive is produced. The hon. Gentleman's words will carry weight, and I hope that that will be the way we proceed in future.

    I am grateful for the hon. Gentleman's support, on a broad front, of the Government's approach to these problems and I am happy to assure him that, in our view, it makes sense to proceed by having the prescribed quantities provision in advance of the other draft directive. We expect that that directive will be in final form very soon.

    Amendment agreed to.

    Main Question, as amended, put and agreed to.

    Resolved,

    That this House, in taking note of Commission Documents Nos. R/1277/77 and R/1131/78, considers that the amendments contained in the latter document are not acceptable in that they fail to limit unit pricing to those goods for which it is desirable and as a result would run counter to consumer protection measures in the United Kingdom and would impose extra costs upon the relevant trades as well as upon the consumer.

    European Community (Groundwater Pollution)

    I should inform the House that Mr. Speaker has selected the amendment in the name of the right hon. Member for Battersea, North (Mr. Jay).

    9.2 p.m.

    I beg to move,

    That this House takes note of Commission Document No. R/236/78, the Department of the Environment's Explanatory memorandum of 7th March 1978 and the Department of the Environment's Supplementary memorandum of 12th April 1978 on groundwater pollution.
    Let me say at once that I accept the amendment. Indeed, I could hardly have phrased it better myself. If we were being asked to consider a ban on all types of direct discharge, the Government would be as concerned as the hon. Members who have tabled the amendment, but I hope that I shall be able to explain to the House that the effect of the proposals as they stand is, in many respects, in line with United Kingdom practices and requirements, and that there is certainly no question of any absolute ban.

    Before dealing with the substance of this Commission proposal for a directive and the view taken of it by the Government, I want to say a few words about the status of this document and of other documents relevant to our discussion. I am particularly keen to do so because in the debate which took place on 6th April, when I spoke on the freshwater fish and shellfish proposals, the right hon. Member for Down, South (Mr. Powell) drew my attention to the difficulties which he and other hon. Members had had in obtaining the papers necessary to prepare themselves for that debate.

    During the debate, the right hon. Member raised the point that explanatory memoranda on Community documents should be noted on the Order Paper of the day. I subsequently wrote to him explaining that there is already a procedure for drawing Members' attention to relevant explanatory memoranda, particularly those produced shortly before a debate—namely, to refer to the explanatory memoranda in the motion itself. The Lord President announced this procedure in a Written Answer on 30th March 1977 when he said that motions for debate should draw attention as appropriate not only to the original documents but to the relevant explanatory memoranda on them. Where the Community documents are recent and no updating of the original explanatory memorandum is necessary before a debate, this procedure need not be used.

    The object of our considerations is Commission document No. R/236/78, which was submitted to the Council of the EEC on 27th January of this year. My Department supplied an explanatory memorandum to the Select Committee of this House and of another place on 7th March. A supplementary note on 12th April was also supplied to the two Committees.

    The 35th report of the Select Committee of this House takes account of both notes. Since being submitted to the Council, the groundwater proposal has been discussed by officials in the environment working group on nine separate occasions. It is to be discussed again at a meeting later this week and seems certain to be considered at the Environment Council of Ministers on 19th December. Various amendments to the text are either agreed or in prospect as a result of this intensive discussion, and I hope to explain these developments to the House tonight. I would stress, however, that these amendments are piecemeal rather than fundamental. The broad framework of the proposal is not much changed from document No. R/236/78.

    I now turn to this specific proposal. The intention is to provide for the protection of underground water resources in the Community. This is indeed an important question, though we have had some reservations about the way in which the Community has been tackling it.

    Document No. R/236/78 does not, however, represent the first incursion of Community legislation into groundwater management policy. As the report of the Select Committee of this House points out, there is an existing requirement upon member States of the EEC to prohibit all discharges of so-called List I substances to groundwater and to reduce groundwater pollution caused by the discharge of List II substances. This comes under article 4 of the dangerous substances directive, document No. 76/464/ EEC, which came into force upon notification in May 1976.

    These sweeping requirements are modified only by the provision of exceptions for domestic effluents and for discharges made to deep, saline and unusable strata. However, article 4 of the dangerous substances directive concludes with the statement:
    "The provisions of this Directive relating to groundwater shall no longer apply upon the implementation of a separate Directive on groundwater".
    Those words contain, I think, an implicit recognition of the fact that the complexity of the issue of groundwater protection made it worthy of consideration in its own right. That is why we now have before us a proposal which attempts to legislate for groundwater protection in 15 articles in place of the previous one. But so long as no groundwater directive as such is agreed by the Community the provisions of article 4 of the dangerous substances directive apply.

    I think that it would be correct to say that the main source of unhappiness for the Government in this proposal has been the requirement in article 3.1 that the direct discharge of List I substances to groundwater should be banned altogether. Water management policy in this country has evolved around a system of consents, whereby a person intending to discharge to a controlled water has first to apply to the water authority. The water authority considers the case on its merits and stipulates whatever conditions it thinks are necessary to safeguard the receiving environment. It can, indeed, withhold its consent if it thinks that the discharge should not take place at all. This system corresponds to the process of prior authorisation which article 4 of document No. R/236/78 foresees for other discharges of List I and List II substances to groundwater.

    On the one hand, then, there is our basic dislike of outright banning, which is clearly shared by hon. Members on both sides of the House. On the other hand, there is an awareness of the practical difficulties which an outright ban would cause, by prohibiting certain activities which are known not to prejudice groundwater resources and which may indeed be beneficial to them. I am thinking chiefly of the practice of aquifer recharge, whereby a water authority channels either part of a river's flow or purified effluent from a treatment works under the ground to top up depleted underground resources. Very low levels of at least some List I substances will inevitably be present in recharge waters, if for no other reason than that they occur naturally. The strict application of the proposed ban could mean that this important practice would have to he abandoned. I can inform the House, however, that a new exception to the ban has been agreed specifically to allow aquifer recharge to continue.

    There has also been general agreement on another important new exemption. I have said that it is inevitable that certain substances appearing in the lists will occur in waters discharged to underground at levels so low as to be harmless; in technical language, these are called trace concentrations. It has also been accepted in Brussels that discharges containing no more than trace concentrations of List I substances should not come under the ban, and we can expect the text to be modified accordingly.

    On the subject of trace elements, will my hon. Friend say how he defines a trace?

    Quite honestly, I could not define a trace at the moment. I shall seek advice about that. My view at the moment is that the level is so low as to be harmless and that it will vary with different elements. Whether figures can be put on it, I do not know.

    We live in perilous times and, bearing in mind the economy of scale, these are important matters as more and more sophisticated chemicals come on to the market. I am in no sense attempting to trip up my hon. Friend on this technical subject, but it is important that we know what we are talking about here.

    I quite agree with my hon Friend, and I know about his specific concerns. However, I do not think that they are affected by this directive.

    Other exemptions are provided for as in the Commission document of January, and I do not think it necessary tonight to refer to each individually. I would, however, mention the exemption appearing under article 3.2(a) for discharges to isolated and unusable aquifers. It is true that the wording of this provision is far from ideal, and officials are still attempting to improve upon it, and particularly to clarify the vague concept of the "biosphere". What is important, however, is the general acceptance that the full rigours of the proposal should not apply to groundwater which can clearly not be exploited for any purpose other than disposal of effluent.

    For the moment, that is all I wish to say about the provisions about direct discharges in this proposal.

    Will my hon. Friend say whether he has a definition of what is an unusable aquifer or unusable stratum in the terms which are being proposed?

    My general view is that it is one which is not used for water supply purposes or which is not likely to lead to consumption by humans or animals. However, I shall seek further advice about that and let my hon. Friend have any other information that I obtain.

    Perhaps I may press this a little further. One of the features which concern me very much about these definitions of what is an unusable aquifer is the time for which it is expected to be unusable. Are we legislating for ourselves, for the next 100 years, for the next 1,000 years, or for what period, and how do we contemplate that it will or will not be usable in the future?

    I can only take the scientific advice available to me in my discussions with departmental officials, which have been going on for some time. I shall take note of what my hon. Friend said for when the matter reaches the Environment 'Ministers' meeting in Brussels, perhaps in December.

    I was about to mention a new element which has arisen in discussion in Brussels. Some member States see the need for more stringent controls than the draft directive originally provided. There has been strong pressure to extend the proposed ban not only to indirect discharges of List I substances but also to direct List II discharges. This last element the United Kingdom simply could not accept in any circumstances, and I do not propose to waste time in discussing it tonight.

    But indirect List I discharges are rather different. There are clear indications that some element may need to be included in the text if a directive is going to be agreed. Since, as I shall explain at the end of my remarks, failure to agree may work to the United Kingdom's disadvantage, we need to consider the question seriously. Unfortunately, it is complex. Whereas direct discharges to groundwater are relatively easy to identify, and are known to be comparatively rare in this country, the state of knowledge about indirect discharges is less complete.

    Understandably, the CBI in particular has expressed great concern about the possible effects upon industry of such an extension of the ban, even with the exemptions I have already mentioned. Of course, if an indirect discharge is likely to seep through and affect usable groundwater, we accept that there is a need for control. We have indeed already provided for a control system under Part II of the Control of Pollution Act 1974, which is scheduled to be implemented in full by the end of 1979.

    This kind of case-by-case approach which we have adopted is a very different matter from an extended ban plus exemptions. It is more flexible, and potential damage to industry can be avoided without weakening environmental protection. One particularly important illustration will show what I mean. It seems that at the moment the groundwater proposal is intended to cover also the effect of leachate from solid waste tips—which must be regarded as one of the more likely potential sources of indirect discharges.

    An extended ban would lead to an unacceptable conflict with the established system for the licensing and operation of waste disposal already in force under Part I of the Control of Pollution Act 1974 and, incidentally, to difficulties with the Community's own existing directive on toxic and dangerous waste. A major element of our own system is consideration of any potential danger to groundwater from leachate.

    In order to clarify this point and to avoid the possibility of conflict, we have proposed a new exemption from the entire scope of the groundwater proposal for properly authorised waste disposal sites. The Government see no prospect of agreement to any ban on indirect List I discharges unless the principle of this exemption is generally accepted.

    I do not think, despite the difficulties, that it would be right at this stage to reject the prospect of the extended ban altogether, but we should need to be well satisfied about its practical application and effect before even considering accepting it. Consultations, especially with the CBI, will continue.

    I shall not tax the patience of the House by dwelling too long on other details of this document which did not command the Government's immediate support. I would not pretend that the definitions which appear in the proposal are ideal but, quite frankly, I fear that the search for the perfect definition is in some cases likely to be unrewarding. That said, I would stress that we are particularly concerned about the lack of precision in the definitions of Lists I and II in the annex, and some support has been apparent for the attempt by our officials to introduce the notion of selective criteria.

    I have talked so far about those aspects of document R/236/78 which the Government have considered in need of improvement—points which are also raised in the Select Committee's report. I turn now to doubts raised specifically by the Select Committee. The report mentions concern that adoption of the groundwater proposal might increase the administrative burden bearing upon the water authorities—with the implication, I presume, that any such increase would not be justified by real environmental benefit. This is an entirely legitimate concern; but I think it only right to point out that full implementation of Part II of the Control of Pollution Act 1974, which will provide the basis for implementing any groundwater directive, will extend the powers of control of the water authorities and necessarily, over a period, increase their work of surveillance and administration, whether we have this directive or not.

    By the same token, the Government are anxious to see that any new Community legislation does not either force the pace of these domestic arrangements or indeed extend them needlessly. For this reason we have argued that the authorisation procedures as specified in article 6 must strike the right balance between mandatory and optional specifications. We have met the suggestion which has been raised at official level that groundwater quality should be extensively monitored with the argument that no more monitoring should be required than can reasonably be carried out and that there should be national discretion in this matter.

    I understand that a similar concern has been expressed about article 10 of the proposal, which regulates the supply of information to the Commission. The Government, who will provide the central link in any chain of communication between the Commission and the implementing authorities within this country, see at least two reasons for doubting that article 10 will prove burdensome. First, it is an almost literal repetition of article 13 of the dangerous substances directive. That has been in force for more than two and a half years now. It has not generated a single request for information to be provided by the water authorities. Secondly, the environmental service of the Commission envisages only a selective use of these information provisions. It is as conscious as anyone of the inhibiting influence of finite staff resources.

    I shall sum up the Government's attitude. I hope that the House can see now why we have concluded on balance that we should pursue negotiations on this text. Despite its imperfections—and these are considerably less than they were, thanks to United Kingdom efforts at the negotiating table—it is none the less preferable to the existing article 4 of the dangerous substances directive.

    Of course, the Government are not suggesting that a new text should be accepted merely because it is less unsatisfactory than the old. We shall also need to be satisfied on the key points that I have mentioned tonight if an acceptable directive is to emerge at the Council. But there are real dangers in being driven to apply the article 4 provisions in this country. I hope that all concerned agree that it is worth a considerable effort to avoid that prospect. I look forward to hearing the views of hon. Members. They will be most valuable to the Government in future negotiations.

    9.22 p.m.

    I beg to move, at end the end of the Question, to add:

    'but cannot accept proposals that require a ban on all types of direct discharge, particularly those found unacceptable in the United Kingdom'.
    No one who listened to the Minister will be in any doubt about the complexity of this matter. He finished his speech by saying that it is better to go into this extraordinary detail than to accept the existing powers of article 4. Even with a successful outcome, the increased paperwork, the increased public expenditure and the time of civil servants and others in order to sort out what is on any count a complicated matter must be enormous.

    The chalk aquifer stretches between Kent and France, but our aquifers are physically separate from those of the mainland of the Continent. That shows the degree to which we could manage without all this.

    I shall deal with one or two procedural matters which are important. The Minister mentioned the Scrutiny Committee reports. House of Lords document 253(1) is also relevant. I hope that the Scrutiny Committee and the Government will consider putting documents in italics on the Order Papers when a parliamentary Committee has issued a report or referred to these documents in an officially printed report—which is more than the documents are themselves—so that hon. Members know exactly what has been said.

    The second matter is rather more serious, although that is not unimportant. It concerns the modifications to these documents. My hon. Friend mentioned quite a few. He will no doubt confirm this, but I fancy that this amendment was certainly relevant to the documents but has been made less relevant by subsequent developments of which we were unaware. This has some procedural implications for the House, because we might have disagreed with the developments of which we knew nothing and might have put down a different amendment. That is important and could cause complications for a future document on any subject.

    The second point about modifications, which is equally important, relates to consultation. The Minister said that he would certainly consult the CBI. But the CBI has some vested interest in this, and it is not a public body. I hope that he will confirm that he will certainly consult the National Water Council, which is a public body, which has responsibility as well as the expertise and which represents the interests of all the regional water authorities.

    Have the modifications that my hon. Friend mentioned, both ancient and modern—I understand that some are more recent than others—been communicated to the National Water Council, and has he received its observations? My information is that some of the modifications, perhaps as long ago as those of February and March, have not been communicated to the Council, or that, if they have, its comments have not been taken aboard I hope that that is not so, but perhaps my hon. Friend will deal with the point.

    The third procedural matter is the locus, or the authority, of this draft regulation in terms of the Treaty. The regulation refers to articles 100 and 235. This brings us back to some of the exchanges in the previous debate about the EEC's authority for these matters. I hope that the Minister will explain exactly how the proper working of the Common Market is related to this document.

    I presume that it is in relation to the purification or anti-pollution measures which are required from certain installations or factories and which are a charge on them and are to be harmonised throughout the Community. I assume that that is the justification, but article 100 is not beloved of this House. Still less is article 235 beloved of this House. Article 100 says bluntly that, if the powers for the proposals are not in the Treaty and if the Treaty has not provided the necessary powers, the Council shall, acting unanimously on a proposal from the Commission, and after consulting the Assembly, take the appropriate measures.

    That of course is the "King Henry clause"—or, I would say, the "Emperor Charlemagne clause"—in the Treaty of Rome and it has been the subject of criticism in the 22nd report of their Lordships' House. In a debate in the other place on article 100, on which this is based, on 4th July, Lord Diplock, whom I must not quote, drew attention to the surrender of sovereignty of the House by use of this article and the potential for federal legislation, turning the EEC into a federal State without changing the Treaty.

    I will not suggest that the legislation for groundwater is doing exactly that, but it is well on the way, particularly since this is largely, for us at least, a domestic matter. Thus, has my hon. Friend any information about why this detailed matter is being pressed so far? We hear a great deal about harmonisation for harmonisation's sake, and this seems a strong candidate for that phrase.

    However, there is good reason for, if not harmonisation, at least looking at the pollution of groundwater. If my hon. Friend the Member for Brigg and Scunthorpe (Mr. Ellis) catches your eye, Mr. Deputy Speaker, I think that he will probably address himself to this, because it is a feature of chalk areas, of which his area in Lincolnshire is certainly one—that is, the pollution of groundwater supplies by nitrates.

    Since this regulation does not include what is called "normal" agriculture, this threat is not covered at all, although it will give rise to increasing problems. It is, of course, related to heavy dressings of nitrate which provide particularly good crops of cereals, which are very much to the fore in the Community. Indeed, there needs at some stage to be some concern about the maximum amounts of dressing applied, and that might well be on a Community-wide basis other than the United Kingdom. Therefore, in the very matter where there is possibly a case for some harmonisation, the Community appears not to have covered it in the draft directive.

    I turn to the word "unusable". Unusable for what? The Minister said that it meant unusable for drinking—potable water. But the water taken for drinking is first purified, and a good deal of water taken is not immediately available for drinking but after appropriate processing is available for drinking. Indeed, even if that water is not suitable for drinking it might be suitable for industrial purposes or irrigation, which is becoming even more important in agriculture.

    This again raises problems because, although the water may not be suitable for drinking, it may be suitable for irrigation. But irrigation in agricultural areas, particularly where residues of chemical processes are in the water, may raise its own problems. I hope that this factor will be borne in mind when there is consideration of the great problem of definitions.

    I turn now to some of the comments made by the National Water Council in its evidence to their Lordships' House on the matter. It puts the bureaucracy, or the amount of paperwork involved, in concise terms. It says that there should be changes in the regulation as far as List I substances are concerned, and goes on:
    "If such an arrangement is not made in the directive under consideration, an intolerable burden of sampling and analytical work could be imposed on Member states."
    It may be that that is one of the modifications which have been made—I may have forgotten—among the long list recited by the Under-Secretary of State. Can he confirm whether that is so? If there has not been such a change, we know one of the reasons why water rates are going up—because there will be a great increase in the amount of work that the water authorities will have to do.

    Can by hon. Friend tell us to what extent he would he prepared to see an intolerable burden placed on the water authorities if the net result was to save lives and the health of the public?

    My hon. Friendis raising an entirely different matter. Precautions have to be taken, but they are much better achieved by United Kingdom legislation, which would be entirely appropriate in such matters. As far as I am aware, United Kingdom legislation does just that without the added burdens of the returns which the National Water Council has drawn to our attention.

    Perhaps my hon. Friend would like to deal with this in the course of his own speech.

    I turn now to the amendment and the reasons behind it. The memorandum by the Department of the Environment, dated 7th March, over the signature of my right hon. Friend the Minister of State, states:
    "It is not clear that a complete ban on certain types of direct discharge is necessary in order to achieve this"—
    that is, the object of the draft directive. The memorandum goes on:
    "Furthermore, it is not clear that the wording of the Directive would enable certain acceptable practices in the United Kingdom to continue…"
    That is particularly true in relation to article 5 of the directive.

    There is a useful diagram on page 10 of the explanatory memorandum provided by the Commission. One really has to look at that in order to understand this complicated document. Article 5 makes clear the arrangements in articles 3 and 4. It says:
    "The authorisation referred to in Articles 3(2) and 4 may be granted only after consideration of the hydrogeological conditions of the area concerned and on condition that any significant risk of pollution is eliminated. The authorisations may be amended or withdrawn."
    I read that as meaning amended or withdrawn by the Commission.

    In other words, the exceptions which are written into the directive can be withdrawn or modified by the Commission. It may be—and I think that this is one of the points that my hon. Friend the Minister mentioned—that the possibility of an absolute ban by the Commission in certain circumstances has now been withdrawn. That was the purport of some of my hon. Friend's remarks. So perhaps he will confirm that. He said that subsequent developments have made our amendment unnecessary because the point has already been taken. I hope that my hon. Friend will confirm that article 5 has been changed, because unless it has I maintain that our amendment is still relevant. I am grateful to my hon. Friend for saying that he will accept the amendment as a safeguard.

    The water supplies in this country are taken very much for granted unless problems arise such as we had a year ago. Groundwater supplies are less important in the United Kingdom than they are in other EEC countries, but they are nevertheless very important. My hon. Friend has referred to the recharging of the aquifers particularly in the area of the Thames water authority, and the re-use of effluent. That is part of the well-known water cycle and it is far cheaper to use underground aquifers in their natural state than to build surface reservoirs. The agricultural interests in this country understand that very well.

    This directive, therefore, is very much more important potentially than it may at first appear, and I am glad that my hon. Friend is paying great attention to it. I deplore its production, however, and I deplore the apparent need for the enormous amount of time and bureaucracy that will be needed to avoid the provisions of article 4, which I believe is beyond the scope of the EEC. I would like to see none of this before the House in any case.

    9.37 p.m.

    If we owe the Common Market nothing else, I suppose that we should be grateful to it because the document enables us to discuss some of the problems that arise with our water supply.

    I have been a member of the Select Committee on Nationalised Industries. The terms of reference for one of our recent studies were to examine the new and larger water and sewage authorities that have recently been set up. I for one certainly learnt a great deal. I came to the conclusion that perhaps in this area of sewage disposal—and I do not believe in the economy of scale—although there were good local authorities, there were many more that were bad or indifferent. Modem society needs all the technical expertise it can muster to deal with the great problems and dangers that can arise with the water supply.

    In spite of some problems that have arisen during drought, generally this country has a fairly good record for uncontaminated water. Of course, memories are short. There have perhaps been cholera outbreaks in the London area within living memory. Overall, however, the water authorities have not done too badly in providing a safe and profitable water supply. We now live in the age of economy of scale. It is significant that the measure before us does not seek to tackle agricultural uses—for example, what farmers may spray on their land.

    I do not know whether EEC documents appear before us in a certain sequence. However, bearing in mind our fairly good record in dealing with these matters, why do we not listen to our own experts, study their findings and legislate for Britain instead of becoming involved in standardisation? If there are benefits to be gained from sharing the experiences of other countries, I do not wish to eschew co-operation with those countries. Where the same problems apply, there could be the free flow of knowledge.

    It may be that other countries have expertise from which we could learn. Instead of embracing an exercise that is aimed at standardisation, we should pay more attention to the needs of our own country. So often we find that EEC measures miss the bull point in Britain.

    As a member of the Select Committee, I came to learn of the problems posed by nitrates. Increasingly more chemicals are put on the land. I claim no expertise in these matters. I make it clear that I am not a chemist. I read a document that included the information that one of the Anglian water authority's experts said that contingency plans should be made for water as the nitrate level was rising. It may not have reached a dangerous level, but it must be remembered that babies are the most susceptible. As a result, the authority began to make contingency plans for setting up a bottling plant. Instead of debating these erudite matters in an EEC context, we should be considering our own problems.

    Problems are posed by heavy metals. Production at our chemical companies continues on a more massive scale year by year. They produce effluents and wastages in ever greater quantities. The chemicals that are produced in the effluent are ever more sophisticated.

    A burning issue is what is to be done with sewage sludge. At one time it was a matter of spreading it on the land. In my day it was always said that one of the brightest prospects that a farmer or gardener could behold was a large muck pile, because out of that came fertility. However, many of the trace metals, the heavy metals, have reached the point where they are contaminating. In industrial areas there are large economy-of-scale chemical plants. We do not know whether to burn the sewage sludge or dump it in the sea.

    In the older industrial areas there is a problem of underground dereliction. The Select Committee came across a sewer in the North-West that is handling 10 to 20 times its original planned capacity. The engineer told us that at the treatment plant only half the volume of sewage that was put down the main sewer arrived at the sewage works. The sewage works were in an old mining area. Presumably the sewage pipes were fractured. Half the sewage was seeping through. It might have been seeping through into the aquifers. Goodness knows where it was going; the engineer did not know. In some of the older works, very often the location of the sewers, or the state of them, is not known.

    Some of these problems are not discussed in the context of this document at all, although it is obvious that thousands of manhours have been spent in discussing what should be done. Throughout the ages there have been rubbish tips, rain has fallen on them and drained away, and the results have not been too unpleasant. But now, with increasingly sophisticated chemicals being used, should not we be looking at classifications of waste and where it can be dumped, whether in areas where there are aquifers or in areas where there are no aquifers?

    Naturally the Minister is concerned because we are involved in the Common Market and it is said that we cannot discharge anything into certain areas. It seems to be a very simplistic idea. Our practice in this country is well known. Indeed, it is estimated that in the Greater London area the drinking water, from the time it starts at its source until the time that some people drink it, will have been consumed about five times. On its way it will have gone into the sewage works five times and been processed and drunk again by someone else. This is well known, and there is no great problem involved there. It is in another area that the problems arise.

    I have demonstrated where the problems lie, and I emphasise again that some of these matters have been dealt with in an over-simplistic way. I should like to mention another problem to my hon. Friend the Member for Newham, South (Mr. Spearing). We now live in the age of intensive husbandry. I accept that with a larger and larger world population there are greater demands for food production. I cannot say that I am a very great believer in factory farming—I have some moral reservations about that—but it is important to look at the technical aspects. Gone are the days when it was possible to walk up to pigs in their sties and stroke their backs. Pig production is now a very complicated matter.

    I had an occasion to visit a piggery recently. One of the managers could not come because within the course of a certain number of days he had visited another piggery and could not take the risk of exposing pigs to contamination. Pigs are now kept on a very intensive scale, with various specialised products used in the feeding. The number of viruses from which pigs can suffer today is getting greater and greater, with the intensification of the methods of production. As the methods get more complex, so do the diseases which strike the pigs. I sometimes wonder what must be getting into our sewers and into our land courses.

    If the debate has served any purpose at all, it has certainly enabled me to vouchsafe some of my fears and to pay tribute to the water authorities, which, without sufficient encouragement from the powers-that-be, are battling with all these problems. I should have been happier if we had not been involved so much with the bureaucracy of the Common Market but had been discussing how we can improve the position in our own country and how we can deal with the problems. That would have been better than getting into a bureaucratic tangle such as there is on this subject within the Common Market. There is certainly a case for the scientists and the people who know about these matters, whether in this country, in the other member States of the Common Market or in any other advanced countries, to come together to discuss them. That would have been more productive than considering the kinds of bureaucratic decisions which apparently need to be taken at this time.

    9.50 p.m.

    I apologise to the Minister for the fact that I was not present to hear his opening remarks. However, I understand that he did not touch in any depth on agriculture.

    Therefore, I should like to put two or three simple questions to the Minister. I wholeheartedly agree with what I gather he said about British standards being much higher than these required standards. Therefore, the whole matter is possibly a waste of time.

    In agriculture, particularly in my part of the country, which is a fruit-growing area, various exotic sprays are used. I assure the Minister that the chemical companies supplying our fruit growers undertake extensive tests of those sprays. In my constituency there is the ICI plant protection works and in the adjacent constituency there is the Shell agricultural chemical works. The research stations set up by the agricultural chemical industry undertake extensive and thorough tests. Members of the public often say that tests should not be carried out on animals. However, it is essential that certain safeguards be undertaken before chemicals are loosed upon plants and upon the soil and in due course are ingested by humans.

    I should like to try to reassure the House from the point of view of the agricultural chemical industry. I speak as a fruit grower in a small way. My fellow fruit growers, in a much bigger way of business than I, use massive quantities of chemicals, but they are so thoroughly proven and tested that there is no cause for concern.

    The hon. Member for Brigg and Scunthorpe (Mr. Ellis) touched on the subject of agriculture but not on the horticultural aspect of fruit growing. I do not want to follow him into the piggy digression that he made, because that is rather far from the subject of the proposed directive.

    I ask the Minister to echo my words of assurance that British standards in these matters are already very high. I question whether the proposed directive is in any way needed. It will merely cost money and do very little good.

    9.53 p.m.

    I agree with my hon. Friend the Member for Brigg and Scunthorpe (Mr. Ellis) that this is one of the few opportunities that we have had to discuss what is becoming an important topic. This has been borne out by news in the newspapers recently. In The Guardian today there was a long article about the dumping of toxic waste by a firm in Essex. There has been a report in the newspapers this month of hydrocarbons leaking into aquifers. In the West Midlands there has been a lengthy appeal, which is currently awaiting decision of the Minister, against the dumping of toxic waste in an old coalmine. These matters, as my hon. Friend said, should properly be discussed in the House.

    I am disappointed with what the Minister said this evening. I do not believe that the proposed directive goes far enough. Indeed, I do not believe that our own controls are sufficient. I say that not because I am taking a classical pro-Market stand as this is an EEC directive but because, as the House knows, I am a geologist by profession and much of my professional life has been concerned with matters of the sub-surface. It is to the sub-surface to which I should like to address most of my initial remarks before considering the importance of a unified European approach to these problems.

    A number of hon. Members have said how important it is for us to listen to our experts, that we have a lot of expertise, that within this country we do not, perhaps, take enough notice of the experts and that if we did everything would come right. As a member of the profession which would be giving that advice, I am bound to tell the House that I do not feel competent or confident enough to give the kind of advice which the House appears to be seeking in such matters as the dumping of toxic waste in the sub-surface and certainly, when we come to it, the dumping of nuclear waste in the sub-surface. This is not because I do not think that I am a very competent geologist by today's standards but because I lack perhaps the confidence to be able to predict the future.

    If one looks at what has happened in the past as a model for the future, one is presented with a very worrying picture. The fact is that had the Romans been busily dumping toxic wastes in the subsurface we would not have the faintest idea where they had been dumped and it is very probable that sooner or later we would have come across them, even had they been relatively sealed in the sub- surface, to the great damage of the population or of life in general.

    It is probable that there is no society which really knows much about its past beyond perhaps 100 years. It is one of the incredible arrogances of today that we seem to be prepared to believe that we know that what we do today will be recorded for ever. We believe that it will always be known that where we have dumped this stuff is "Right there" and that this will be known 10 years, 100 years, 1,000 years and 10,000 years hence.

    We are talking about materials that will still be toxic in those time scales. This is not just rank arrogance; it is rank stupidity. History demonstrates without doubt that there is no way by which we shall know these things. In my constituency, during the great drought of 1976, umpteen old mine shafts that were dug last century opened up. One lady opened her back door one morning, stepped out and looked 500 feet straight down, because the dry weather had caused the packing that had been put into the hole to dry out and it had collapsed. In the middle of the Dudley to Wolverhampton road a large shaft opened, some 600 feet deep, straight down. Nobody knew it was there.

    These are matters of the last century, not matters of 500 years or 1,000 years ago. How are we to say that we shall have such a stable society that our records will always exist? I am told that in Cambodia the people of Phnom Penh no longer know where their sewers and electricity cables are. In that case we are talking in the context of political upheavals of only two or three years ago.

    These are events that can happen in every country, and historically always have happened. The onus is upon us to demonstrate that we shall know these things in 50, 100 or 1,000 years. There is no historical precedent which can demonstrate that these things have been known. Therefore, any assumption on our part that what we are doing is safe for the future has no foundation in historical fact. In no way can we demonstrate that our successors will know what has happened.

    In these directives we talk about dumping material into unusable strata and saline bodies. "Saline bodies", in this instance, I presume, means salt domes. Salt domes have been widely proposed as places to dump not merely toxic waste but, for the future, nuclear waste. Again, had our friends the Romans, our predecessors, dumped things into some of the salt domes in Germany and Britain, which we now mine for salt—in fact, not only do we mine them, but we inject water into them so that it may come back up as brine and we can then get the salt out of it—where would we have been? The same is as true for our successors as it is for us now looking back at the past, when things happened about which we know nothing at all.

    My concern is that the directives, particularly directive 4, could go even further and insist that there is a complete ban on all kinds of sub-surface dumping. There is no way that any geologist, no matter how eminent, can put his hand on his heart and tell either a water board or this House that what he says is safe today will be safe even tomorrow.

    Let me consider what seems to me the most important aspect of the intervention of the EEC. My hon. Friends have said that they see no connection between our problems and the problems of the EEC countries in general. My hon. Friend the Member for Newham, South (Mr. Spearing) referred to it as a domestic matter. There are two vital aspects in which this is not a domestic matter. One has already been touched on by my hon. Friend the Member for Brigg and Scunthorpe—the increasing use of nitrates and the pollution which this is causing in the groundwater.

    One of the great difficulties of treating this as a domestic matter is that if we pass legislation to the effect that we will use not high nitrate concentrates but low nitrate concentrates, and in consequence have lower yields than the EEC countries which are using high nitrate concentrates, that immediately puts the British farmer at a disadvantage compared with his Continental colleague. Uniform legislation over the whole of the EEC is required to insist that low nitrate concentrates are used. If we do not have that, we shall have increasing nitrate concentrates because we have competing farmers.

    How much more true and dangerous is it of the industrial scene? In the Black Country, in the West Midlands, where my constituency is, we produce enormous quantities of toxic waste. Over many millions of years geologically we have produced ores of various kinds in the sub-surface. In a very few years we have mined these ores, and when we have mined them we concentrate them. When we take iron or tin ore out of the ground, we concentrate what is a relatively low percentage of the metal to make a pure form of the metal. But as a by-product of that process we concentrate the dangerous toxic materials into concentrations much greater than those which occur naturally.

    What do we do with those materials? We dump them in very high concentrations, much higher concentrations than we would normally find naturally anywhere. The argument for doing that is that if we treat them and dispose of them in some totally inert and harmless manner, it is so expensive that it will make the industry of the West Midlands uncompetitive compared with the industry of the Ruhr or Dusseldorf or Milan. What does the industrialist of Milan or Dusseldorf say about it? Exactly the same thing. He says "Unless I am allowed to dump this cheaply, it will put up my prices and make me uncompetitive compared with the industry of the West Midlands".

    Of all the reasons for having a uniform EEC approach to any problem, this is one of the soundest. Only by having a Market-wide directive which applies equally to the industries of all these different industrial areas are we likely to have our toxic wastes properly treated and have the expense properly shared throughout the EEC. Without that, we shall continue, as we are at the moment, getting increasingly larger amounts of very dangerous materials which we shall place in large dumps, many of them in the sub-surface, which future generations—

    What my hon. Friend says would be true if this was what we are about. But all the directives we are discussing do not take this kind of question on board. I am willing to use any expertise, whether in the Common Market, America or Timbuktu, to get to the root of these problems. Once sensible people realise the problem involved, they will deal with it whether they are in the Common Market or not.

    My hon. Friend is reiterating a point which I have already made. I do not believe that the directive goes far enough. I am not saying that we should not seek expertise wherever we can, but legislation has to be on a European scale in order to be effective. If it is not on that scale, we shall never get our Government insisting on expensive treatment of industrial waste when our competitors in other parts of the Community do not have to face the same expense.

    My hon. Friend will agree that I singled out the nitrate problem on an EEC level. When I referred to the domestic matter, I was referring to the form and detail of legislation. I accept what my hon. Friend has said about the international aspects of competition, but does he not agree that his argument is even more powerful on a world scale because industrialists are going to less-developed parts of the world, such as Brazil and Malaya, which want industry? Does he not agree that there should be worldwide standards but domestic enforcement by national legislation?

    The tendency of my whole argument has been towards international control eventually. The slightly narrower point that I am making in the realm of what I hope is possible is that it might be done on a European scale. At present it is not done even on a United Kingdom scale. Our controls are wholly inadequate. I believe that sub-surface dumping should not be allowed, because I cannot see how in future we shall know what we have done. We are a long way from European legislation and from the sort of British legislation that I should like to see.

    In this area, legislation on an EEC scale is of the greatest importance to us all. It is only through the EEC directives being used by national Governments that we shall take away the competitive element which prohibits and precludes the proper treatment of industrial waste.

    10.8 p.m.

    I intervene briefly to support my hon. Friend the Member for Dudley, West (Dr. Phipps). I was disturbed earlier when the Minister seemed to be adopting, if not a smug attitude, at least the atti tude that our position was beyond challenge. It certainly is not.

    There is a danger in using antagonism to what may be regarded as the over-fixed form of the EEC proposals as a means of allowing undesirable freedom in this country. We must be careful to ensure that we do not do that.

    I am concerned that we are not proceeding as rapidly as I wish with our own legislation. I support what my hon. Friend the Member for Dudley, West said, because I believe that our legislation will not be enough and that we need to expand it to a European level and, eventually, to wider circles. I am glad that reference has been made to the situation pinpointed in The Guardian today. But that is only one of many cases that has been brought to notice that makes clear that our own provisions are far from adequate.

    My hon. Friend the Member for Newham, South (Mr. Spearing) quoted the attitude of the CBI and industry generally as justifying our rejection of EEC proposals. I ask him to have some caution about accepting the embrace of the CBI and the industrial lobby on this basis.

    I firmly believe that this is an area in which we need to act with more vigour. I support my hon. Friend in saying that we want to press our friends in Europe to move further and in no way to give the impression that we are trying to hold back on provisions that I am sure are needed. There are many areas, of which I believe this is one, where we can, if we wish, gain a great deal by imposing more severe restrictions that require new technology that we can then provide not only for ourselves but for industry much more widely in Europe and elsewhere.

    We have the opportunity to do that if we maintain the leadership in our campaign against pollution. I fear that in the present circumstances of restriction on expenditure, and so on, it is all too easy to use those circumstances as an excuse for not moving as fast as we should. I appeal to my hon. Friend the Minister not to accept that easy way out.

    10.11 p.m.

    I take on board what the hon. Member for South Shields (Mr. Blenkinsop) said about what the United Kingdom is trying to do about pollution, with particular regard to underground water. He advocated further measures that should be taken by the Government, although he did not identify them, but he recognised the leadership that the United Kingdom has given with regard to protection against pollution of the environment. I think that there is general recognition of the positive steps that the United Kingdom has taken in this regard.

    The proposals of the European Economic Community on the question of the pollution of groundwater are outlined in the draft directive, document no. R/236/78, published last January. Publication followed extensive consideration of the subject, with recognition of its long-term importance and significance, including the vital necessity of purity of water supplies and considerations that arise from the time scale of changes in strata conditions and the percolation of substances into the aquifers, substances both toxic and non-toxic in character.

    I make the following point particularly in the context of what the hon. Member for Dudley, West (Dr. Phipps) said. If pollution occurs, it could well be irreversible in many instances. The hon. Gentleman took us far back to the Romans and said that we might well be suffering today from measures and steps that they took. I entirely agree that pollution may be indeterminate in origin and unpredictable in the course of its infiltration and in its effect.

    Within the context of the EEC proposals and this debate, we are looking for ways and means of protecting the environment. That is the central point to which we are all directing ourselves.

    The increasing pace of change in the character of material involved in disposal adds importance to a subject whose origins were recognised in the United Kingdom in legislation as long ago as 1847, in the Cemeteries Clauses Act of that year, section 20 of which states that
    "If the company"
    —that is presumably a reference to the cemetery companies—
    "at any time cause or suffer to be brought or to flow into any stream, canal, reservoir, aqueduct, pond, or watering place, any offensive matter from the cemetery, whereby the water therein shall be fouled, they shall forfeit for every such offence the sum of fifty pounds."
    In other words, those who have gone before us have been cognisant of the problems and perhaps the dangers.

    The matter is of varying import to hon. Members, and that is illustrated by the fact that the percentage of drinking water taken from underground sources throughout the Community averages about 70 per cent. in Italy it is as high as 93 per cent., in Germany and Belgium it is 71 per cent. In Italy it is as high as 93 per cent., in France it is 50 per cent., and here in Great Britain it is about 31 per cent.

    The filtering properties of the soil protect ground water reservoirs to a significant extent against certain forms of pollution, and water from these sources has as a general rule a greater purity than that taken from surface sources.

    The proceedings of the Lords Select Committee on the European Communities comprise minutes of evidence taken on 25th April last and the 41st report, printed on 25th July. These set cut the factors in some detail, evidence having been taken from representatives of the Department of the Environment, the National Water Council and the director of scientific researches of the Thames water authority.

    The proposals of the Commission are couched in general terms both in their scope and when referring to a possible recommendation. The term "groundwater", for example, includes all water below ground level, which cannot be the purpose of the directive. To be more definitive, it is suggested that the phrase "saturated zone" would enable water-holding strata to be identified on ground containing water. Alternatively, a definition which might be found more satisfactory reads:
    "Water filling all void spaces to the level of saturation below the water table."
    The subject is about water that is usable or potentially usable. This could exclude pockets of water or water which in some way was not extractable from the ground. Long-term environmental considerations are of the utmost importance. The human race must not, through its carelessness or irresponsibility, affect adversely or destroy the human habitat, and each nation will wish to play its part in ensuring the minimum adverse effects arising from present and future use of materials and their disposal.

    I see as a less justifiable basis of the Commission's proposal the ground that the differing provisions for controlling discharges to groundwater in the member States are likely to produce a distortion of the conditions of competition, although I accept what the hon. Member for Dudley, West said in this regard when he was considering the differing costs to industry in terms of the interests which he represents and those in the United Kingdom generally, and the reference which he made to industry in the Ruhr. I accept that, but I think that essentially at this stage in the matter we are considering the wish to set aside this aspect and consider the recommendations on their merits in environmental terms representative of the quality of life. The industrial considerations must flow later on.

    An important question is whether uniform minimum legal standards should be introduced or whether control should be by way of quality objectives. In the latter respect, the principal objection to the draft proposals by the Confederation of British Industry, concerns the zero discharge approach. It is maintained that control should always rely on quality objectives established for the receiving environment having regard to local circumstances, a likelihood of creating environmental hazards or of endangering public health and, as the hon. Member for Dudley, West said, to the costs involved in installing additional or alternative treatment facilities.

    The CBI accepts the proposition that all discharges to groundwater should be controlled and that this should be effected by consent control and not on the basis of zero emission standards. It will be interesting to hear what the Minister has to say in that regard.

    There has been considerable research in this country, and any proposals must have regard to the almost infinite variety of place and circumstance in which access to aquifers may arise. No doubt most of our European colleagues are aware that our controls are already more demanding than is proposed in the documents before us.

    Let me take as an example the Thames water authority, which, with its predecessors, has for over a decade exerted a strict control of groundwater pollution. There is no doubt that the major effort in this direction must relate to the control of land tip filling. This is the general position throughout England and Wales.

    In the area of the Thames water authority there are no fewer than 468 landfill sites, of which 34 receive toxic or other noxious wastes in addition to domestic solid waste. I am informed that no serious groundwater pollution problems arise from these sites, with the proviso only that in two cases some contamination arises, but not of toxic material. That is a remarkably fine record on the part of the authority, and I am obliged to it for providing me with a great deal of information.

    Has the hon. Gentleman's attention been drawn to the serious problem that arises on a site very near the Thames? Apparently, the permitted levels are being grossly exceeded, as admitted by the company concerned, far beyond what has been authorised by the local authority, and I believe that it is not an exceptional example.

    Abuses may take place, but I am repeating the facts that have been submitted to me, which are available for general information. If they are to be challenged, the challenge must be substantiated. I have not seen the article in The Guardian to which reference has been made on a number of occasions.

    Surely we are confusing two issues which it is important to distinguish. The directive concerns discharges, which I take as planned discharges, known discharges and licensed discharges. The point raised by my hon. Friends the Members for Dudley, West (Dr. Phipps) and South Shields (Mr. Blenkinsop) relates to the dumping of toxic wastes from which there is a risk of infiltration into groundwater. I hope that the hon. Gentlemen's remarks about the Thames water authority are correct, but I suggest that the issues, although connected, are distinct and separate, as this directive is concerned with discharge.

    Before I answer the hon. Member for Newham, South (Mr. Spearing), I give way to the hon. Member for Brigg and Scunthorpe (Mr. Ellis).

    It has been said that the water companies have a good record in treating their own domestic sewage so that such water is eventually again made potable. The hon. Gentleman mentioned zero emission. These matters are incredibly expensive, but chemical changes can change innocuous substances into potent materials. There is surely something to be said for the situation to be changed so that the material is rendered innocuous.

    I shall be dealing with these points in the remainder of my contribution. There will always be some leachate from landfill sites reaching groundwater, if only in minute traces, despite the diluting effect of the landfill itself. Groundwater modelling undertaken by the Water Research Centre has investigated the movement of mine drainage discharged through the chalk in Kent. A number of aquifer dispersivity measurements have been undertaken in the chalk aquifers, a rapid method of analysis, has been developed, and the interaction between fissure water and pore water in chalk has been investigated in laboratory and field studies.

    With the assistance of the Thames water authority, the centre has shown that at one site bacteria and viruses from a domestic effluent penetrate 15 metres of unsaturated chalk but are absent from groundwater 100 metres down the flow gradient. These are the technical points that can be established only by careful scientific research. I take the points made by the hon. Members for Newham, South (Mr. Spearing) and Brigg and Scunthorpe (Mr. Ellis). There is a need for the greatest possible care to be taken. I hope that that will be taken.

    There is another aspect of landfill sites that we must consider. It is the question not only of materials escaping from the landfill sites which might contaminate groundwater but the character of the landfill site itself and what might happen to it in the future.

    The fact that a landfill site is impermeable to the outside means that it retains its concentration of toxic materials. I do not possess chapter and verse, but early in October there was a news item about a landfill site in the Niagara Falls area of the United States. The area was characteristic of such sites. It involved a site on which toxic wastes had been deposited. Either the knowledge of such use had long gone or the information was never revealed, but the site was turned into a housing estate which is now totally poisonous.

    When the area was evacuated, an official said that the land was dead for ever. That is the type of thing that could happen in the future to landfill sites, no matter how impermeable they are to groundwater.

    I accept what the hon. Member says. I hope to deal later with the way in which those sites, even when they are protected, remain a danger.

    In proposing a ban on direct discharges to groundwater of substances in List I of the annex, and the introduction of a system for authorising in advance indirect discharges of such substances and of both direct and indirect discharges of substances in List II the proposals exclude domestic effluents from isolated buildings and those arising from normal agricultural activities.

    Authoritative opinion says that more adequate definitions in these and other respect are a prerequisite to further consideration of these proposals. The Minister referred to them, and this indicates the course which the Government are likely to take.

    The hon. Member for Newham, South mentioned the recharging of aquifers with treated sewage effluent. This is practised in certain areas. In the Southern water authority area it is effective now. There is an indication that the practice should continue provided that the effluent is treated to the necessary high standard. The Minister said that it has been permitted and that we should ensure that such permission is forthcoming in the future.

    The discharge of treated water is also used as a means of replenishing aquifers in chalk by discharging into boreholes and wells. This decision clearly need to be reserved, and we are considering definitions. Scientifically and technically, it is impossible completely to ban the presence of List I and List II chemicals in discharges. Usually there are minute traces of some of such substances in the percolation of residues from tips which contain only domestic refuse. These residues are harmless, but they are caught by the EEC intentions.

    The hon. Member for Dudley, West questioned whether such substances were harmless. I agree that it is a question for scientific determination. We are dealing not with absolutes but with assessed risks and with the question whether minute traces will be harmful in the long term.

    The most widespread quality change in recent years has been the progressive increase in nitrate concentrations. Coupled with mounting concern about the public health implications of nitrates in potable water supplies, these changes represent a serious problem. Evidence suggests that most of the nitrate is derived from agricultural land and, in particular, arable land. As normal agricultural activities are excluded from the proposal, this leaves a wide area unprovided for, and I know that the Government recognise that position.

    It is suggested that considerable research is required, which would cover the use of nitrates, their effectiveness in the pursuit of agricultural objectives, and the important financial implications involved in terms of food production.

    The Department of the Environment, in press notice No. 590, issued on 9th November, referred to the new legislative controls for existing unconsented discharges and the need to prevent "an unmanageable deluge"—there must be a wag in the Department—of consent applitions. A flood of words and administrative requirements can appropriately be visualised in that phrase.

    The Anglian water authority refers to the fact that the most dramatic instances of groundwater pollution in its region in recent years have involved spillages of oil and related substances gaining access to the aquifers. Incidents have occurred where thousands or even tens of thousands of gallons have been lost from bulk storage installations, and subsequent attempts to recover these materials from the aquifer by sinking boreholes and trying to pump out the pollutant have met with only limited success.

    This is a special problem, and consideration will need to be given to storage sites with a view to considering the extent to which they should be made impervious in order to protect the underlying aquifers. Arrangements already exist for the base sealing of landfill sites. One-metre thick clay linings have been used, and I understand that resin-based materials have been used for this purpose in the United States. What this does, of course, is to contain the material. Clearly, this is necessary in terms of oil storage facilities. But of course it may not be appropriate in all circumstances to contain the toxic or non-toxic material, which perhaps could be diffused into the earth surface.

    In this country new proposals for the protection of groundwater sources were introduced in the Control of Pollution Act 1974, and when part II of the Act comes into force it will greatly strengthen the hand of the water authorities in controlling the discharge of polluting substances to underground strata. However, a full understanding of the source of pollution, the extent to which a pollutant may decay or be diluted as it moves from the underground strata, and the best means of pollution control present an extensive field for inquiry and research

    Clearly, there is need for a more detailed understanding of the causes and effects of groundwater pollution and the development of methods of control and rehabilitation if these vital resources are to be protected. In these documents there appear to be a number of terminological inaccuracies, which may lead to ambiguities of interpretation, and I note that the European Parliament is debating this subject in Strasbourg today. An interesting draft report dated 10th October is being considered, and clearly further discussion and inquiry are required before definitive proposals cart be made. This has been emphasised by the Minister and is the opinion, I consider, of both sides of the House.

    10.34 p.m.

    I am grateful to hon. Members who have taken part for the quality of the debate. I have listened to debates which have gone on for much longer with far less being said. The debate may have ranged beyond the draft directive, but it has been very much worth while. My hon. Friend the Member for Dudley, West (Dr. Phipps) has given the House a great deal of food for thought, with his expertise and his rather long-term considerations of the future and the past. He gave his view on the European consideration of environmental matters.

    Earlier the constitutional question was raised whether the EEC should deal with this subject and whether we should participate with the rest of the EEC in that direction. My view, as an Environment Minister, is that an environment programme was endorsed as an important part of Community policy as long ago as 1972. An environmental action programme was adopted by the Council in November 1973, by which time we were a member. That was renewed by resolution of the full Council in May last year.

    That resolution said that improvements in the quality of life and the protection of the natural environment were among the fundamental tasks of the Community. Under that programme, we have considered in Brussels the subjects of lead in petrol, oil pollution of beaches, the protection of birds, surface water, and freshwater fish.

    The right hon. Member for Down, South (Mr. Powell) referred to one point in the previous debate. I must point out to him that we are not completely isolated. We are concerned at what happens in other countries. Millions of our people visit the other Common Market countries, as their citizens visit ours. They do so for both pleasure and work.

    The point made by the report from the other place about articles 100 and 235 was raised in the last paragraph of the report of the House of Commons. The question of the vires provided by the Treaty of Rome is of considerable importance and, as I, as a non-lawyer, have realised, of very great complexity. It was explored in considerable depth in the debate in another place on 4th July. On that occasion the Lord Chancellor underlined the Government's intention to take full account of the serious doubts that have been expressed about the development of Community legislation.

    He also suggested, and I agree, that it would be more productive to resist indivi- dual proposals on substantive grounds—for example, on their lack of merit in terms of policy—rather than by making vires the main ground of objection. In considering the groundwater proposal I think that that is the best approach.

    As a member of the Committee which reported on this matter in the House of Commons, I can tell the Minister that we were worried about the question of jurisdiction. Does the Minister not think that the Lord Chancellor proposed a very dangerous doctrine, that one should ignore the jurisdictional point and always concentrate on the substance? Does the Minister not feel that by allowing the matter to grow from precedent to precedent we appear by acquiescence to confer upon the organs of the Community a jurisdiction that the Treaty certainly did not?

    That is a very complex matter. As one who is involved in environmental rather than legal matters, I should have thought that this subject could be included in tomorrow's debate, when the House will be considering the work of the European Community over the past six months, rather than in a debate of this kind. However, I take the hon. and learned Gentleman's point that the whole thing can grow.

    My hon. Friend the Member for Brigg and Scunthorpe (Mr. Ellis) was worried about the pollution caused by agricultural fertilisers. That has been omitted completely from this directive for good reasons from both a European and a United Kingdom point of view. The Royal Commission on environmental pollution is making this subject its main examination this year and we hope during 1979 to receive its report. The Royal Commission's reports have been extremely valuable and very lengthy, and I do not think that we would be wise to go ahead with further legislation or directives without considering what the reports have to say.

    The European Commission, too, is carrying out an investigation with a view to introducing a directive concerning pollution by the chemical industry.

    As for nitrates, the Secretary of State has quite strong powers to halt the use of certain fertilisers. There is careful monitoring. Water authorities, local authorities, health authorities and my Department examine these matters carefully. My right hon. Friend has powers to control the use of fertilisers should he need to do so.

    My hon. Friend the Member for Brigg and Scunthorpe spoke of the need for new sewage plants and sewerage systems. I wholeheartedly agree. When water rates are examined by consumers, they should bear in mind that there is a great deal of work to be done, and that the money has to be found to pay for it.

    My hon. Friend referred to the need to consult experts. That consultation takes place. I have mentioned the Royal Commission on environmental pollution. My Department's central unit on pollution comments and reports on the various issues brought out by the commission.

    The hon. Member for Maidstone (Mr. Wells) referred to horticulture. That, too, is not part of the directive. As the hon. Gentleman said, extensive tests take place. Action is taken under the pesticides safety precautions scheme before marketing takes place.

    I read the article in The Guardian this morning about waste disposal at Pitsea. I am in some difficulty, as six enforcement notices have been served on the operators by the local authority. All six notices are the subject of appeals to the Secretary of State by the company. That means that my lips are sealed. I am not sure whether I should have read The Guardian or listened to the debate on Pitsea.

    I, too, read the article in The Guardian. I was aware that enforcement orders had been served. Is not that an example of the abuse of the appeals procedure, whereby such matters can be extended to a stage when a site is completely exhausted for dumping purposes a long time before the appeal is even considered?

    I can only say that I hope that we shall deal with the appeal as rapidly as possible. The enforcement notices cannot apply until the appeal has been heard. I assure my hon. Friend that the EEC has addressed itself to the problem of the disposal of toxic and dangerous waste. A directive was agreed earlier this year.

    The controls already available to the waste disposal authorities under part I of the Control of Pollution Act 1974 go a long way towards meeting the requirements of the directive. Incidentally, we shall be consulting interested parties on additional controls. We hope to introduce them under section 17 of the 1974 Act.

    On the whole, I think that our commitments under the directive will be fully discharged under the 1974 Act and other Acts.

    My hon. Friend the Member for Newham, South (Mr. Spearing) mentioned 'consultation with the National Water Council. There is close consultation, and the council knows of all the changes at once. The council gives information to the Select Committees in both Houses. I do not think that we could carry on with all the negotiations in Brussels unless the council was actively aware of what was going on.

    Definitions have been a particularly tricky part of the whole negotiation. Sometimes our officials wonder whether they should have started it, because they get into such difficulty when amendments are made.

    I do not think that I said that we were concerned with water for drinking only. If I did, I apologise. I thought that I mentioned water supply, by which I meant water supply not only for drinking but for agricultural uses and, indeed, for industrial uses.

    I think I dealt fairly fully with the matter of increased paper work. I do not think that the Community will give us much trouble about making demands on our information services. Indeed, it is probable that our own legislation on the control of pollution, as we implement it during this year and next year, will mean additional work for local authorities, for water authorities and for Government Departments. I am sure that my hon. Friend will welcome that legislation. Indeed, many of the campaigns in which he takes part so actively and so effectively would themselves mean less pollution and less waste of natural resources but perhaps more paper work and more checking.

    The hon. Member for Daventry (Mr. Jones) mentioned the importance of the long-term consideration. We all know, as my hon. Friend the Member for Dudley, West pointed out, that there are considerable difficulties. We have to look as far ahead as we can, and I know that even that is not far enough ahead for my hon. Friend the Member for Newham, South. We have to make allowances.

    I think that my original speech dealt with many of the points that have been raised. I assure the House that full consideration will be given to the opinions expressed tonight when the officials meet in Brussels and when the Ministers have their December meeting.

    Amendment agreed to.

    Main Question, as amended, put and agreed to.

    Resolved,

    That this House takes note of Commission Document No. R/236/78, the Department of the Environment's Explanatory memorandum of 7th March 1978 and the Department of the Environment's Supplementary memorandum of 12th April 1978 on groundwater pollution but cannot accept proposals that require a ban on all types of direct discharge, particularly those found acceptable in the United Kingdom.

    Sound Broadcasting

    Ordered,

    That Miss Betty Boothroyd, Mr. Robert Cooke, Mr. Clement Freud, Mr. Robert Mellish, Sir Anthony Royle and Mr. Nigel Spearing be Members of the Select Committee on Sound Broadcasting.—[Mr. Tinn.]

    Maternity Services

    Motion made, and Question proposed, That this House do now adjourn. [ Mr. Tinn.]

    10.47 p.m.

    I wish to raise tonight the question of the provision of maternity services in the South Buckinghamshire and East Berkshire areas. Although the name of my constituency suggests an entirely Buckinghamshire interest, in fact, owing to the unfortunate change of local government boundaries which occurred some time ago, the southern parishes of my constituency are in Berkshire and, in the case of two districts, in the borough of Slough.

    The matter which I raise has a fairly long history, in the sense that it began in July 1975, when the East Berkshire area health authority was directed by the Oxford regional health authority to discuss rationalisation of maternity services. Two months later the community health council announced a proposal to close the Cliveden maternity unit and to concentrate services for Maidenhead, and the whole area with which I am concerned, upon Upton hospital in Slough and Heatherwood hospital in Ascot.

    Needless to say, intense opposition was aroused in my own constituency at the suggestion to close Cliveden. There was much controversy about it. It had been agreed to by a majority of only nine votes to seven. As a result of the public agitation, the area health authority reversed its decision and decided to close Upton and retain Cliveden. What it was proposing to do when it reached that decision—and, indeed, when it reached the earlier decision—was to provide the maternity services in my area, as I will call it, although the hon. Member for Eton and Slough (Miss Lestor) is sitting here and it is also her area. We are equally interested in this from different sides.

    The authority proposed to provide the maternity services from two centres instead of three. Whereas in the past the services had been provided from the Cliveden hospital at Taplow, the Upton hospital in the middle of Slough and Heatherwood hospital at Ascot, giving a total of 170 maternity beds, the proposal was, and currently is, that the service should be provided from two hospitals only, namely, Cliveden and Heatherwood, giving between them a total of 119 beds. The justification offered was the decline in the birth rate, and economy. I need not go beyond those two reasons, which often seem enough.

    At the moment, Upton has been closed and Cliveden and Heatherwood are taking the load. That was done in the teeth of opposition from the obstetric consultants in the area, who disagreed entirely. I do not know precisely upon what grounds they disagreed. I suspect that it was upon such grounds as that any temporary solution was probably not very good—this was a temporary solution—and that Cliveden, Heatherwood and Wexham Park, which is the ultimate solution, are not easily accessible for patients, nurses or medical staff.

    The present arrangement agreed upon by the area health authority is that Cliveden and Heatherwood should provide the services. The intention is to close Cliveden in the early 1980s and its place being taken by a new maternity wing, centre of provision at Wexham Park which, it is hoped, will be opened in 1983. Of course, dates always slip, and it might be 1984 or 1985.

    Cliveden is being treated as a temporary provision ostensibly for five years, or it might be a little more. That is not a satisfactory arrangement, because its temporary nature tends to dominate any decisions about the provision of equipment or anything else.

    Of course, the birth rate has not continued to decline. It was always a slightly improbable assumption in my area, because it includes the borough of Slough, which has a large immigrant population, and the immigrant birth rate has not gone down in the way that the indigenous birth rate has. But the indigenous and, I dare say, the immigrant birth rates have recovered, and the solid fact which accounts for this debate is that the 119 beds available are not carrying the load.

    The result has been that a number of pregnant women have had to be told that they cannot book in advance at either Cliveden or Heatherwood. They will not be told until they go into labour where they will be able to go. When a woman goes into labour, either she or someone on her behalf has to ring the hospital and ask where she is to go. It could be anywhere from Reading in the west to Hillingdon in the east. That remarkable situation is further complicated by the fact that Reading and Hillingdon are objecting to the arrangement because they, too, have stresses. Therefore, no pregnant woman any longer knows, even with that degree of vagueness, where she will have to go.

    As far as I can see, this situation could continue almost indefinitely, because the Wexham unit, if it is ever continued with —I rather think that it should not be continued with—is at least five years away. The question therefore arises: what will happen in the meantime? There has been a tremendous lot of feeling about this matter. The consult- ants say one thing and the health authorities say another. The consultants have objected that they are being asked to take, in their 119 beds, a number of patients who will inevitably get a lower standard of attention than they should get. Under great pressure and with reluctance, the consultants at Cliveden have yielded to the insistence of the area health authority and said that they will take more in order to try to help. The consultants at Heatherwood have dug their toes in and said that they will not take more because they consider that it would reduce the level of services below what is acceptable.

    That is an attitude which I do not feel competent to judge. I shall merely read to the Minister a couple of extracts from a letter which I received yesterday morning, which will show him the unlikelihood of this matter being solved without assistance from his Department. The letter is from the chairman of the East Berkshire community health council. He describes the attitude of the consultants at Heatherwood as "bloody-minded nonsense". He sets out as follows the reasons why this problem of inadequate services has arisen:
    "1. the failure to get the planning off the ground at the beginning because the consultant obstetricians refused to join in."
    That is true. They said that they did not approve of the plan and that they would not plan it. The chairman continues:
    "2. the resulting 'collision' in the capital programme with other projects requiring the attention of the planners.
    3. staffing problems at Oxford regional health authority because of the management costs reduction "—
    not enough bureaucrats; great trouble there.
    "4. the subsequent decision to expand pathology services at Wexham. This added to the problems of establishing back-up requirements like boiler capacity and drains."
    I thought that we had got rid of the drains at the end of the previous debate, but obviously we have not. Then the chairman says:
    "The district has also run into trouble with the supply of midwives. This is primarily attributable to the suspension of pupil midwifery training."
    I think that he must mean that the suspension might have been shortened had the decision on closure been taken very much earlier. I do not quite know exactly what that means, but the fact is that Upton hospital was closed in implementation of this plan. Therefore, the Upton midwife training course was discontinued, and now there is a shortage of midwives.

    We are told that a course at Cliveden will be ending soon and that this may mitigate the problem. Indeed, when I wrote to the Minister of State, he suggested that it would do so. However, I am told that there are only 10 on that course. Half of them are expected to go back to their own countries when they are trained. That leaves only five, and I am told that two of those five are expected to take employment elsewhere. Therefore, I cannot see the situation being transformed by the emergence of midwives at the end of this course.

    I have read extracts from that letter because the Minister will see from it that this problem will not be solved locally—I think—unless some assistance is given. The real trouble, of course, is shortage of money. I manage to have a bit of sympathy with both sides here, because the fact is that the AHA must try to save money somewhere. It is trying to do that here. The consultants have their standards and they do not want to lower them.

    As to whether those standards would be unacceptably lowered at Heatherwood, I should like to read a few extracts from a letter which reached me from a constituent—whom I shall not name—which was totally unsolicited and obviously connected with neither side. She is a pregnant mother. She says that she went to Heatherwood hospital for prenatal examination. She had an appointment at 9.30 a.m. and left at 12.30 p.m.
    "I had managed to see a very rushed Doctor for about two minutes. The staff I realise are rushed off their feet. Over one hundred pregnant mums in one morning. I was also told that as the local maternity hospitals are so full, when I go into labour I must ring the hospital to find out if I am to go to Heatherwood, Ascot; Cliveden, Maidenhead or the Reading Hospital. What worries me most are the following. 1. I am an SRN"—
    she has had children already, so she is not a new mother—
    "so hospitals do not frighten me and I have given birth before. I am English".
    That is getting to be a little unusual in that area. She has a car. She and her husband both drive. She is educated and articulate. They are on the telephone.

    As that lady rightly asks, what is going to be the situation of those who lack any of those things? Perhaps they do not have a telephone or a motor car of their own. Perhaps they are first-time mothers, who are a little frightened by the whole business. Someone will have to go out to a telephone kiosk, which has probably been destroyed by a vandal, and find out in some way or other which hospital they must get to in the middle of the night. These are the problems. I am concerned not to allocate blame but to hope that there can be a solution. That is where I want the Minister to help.

    Heatherwood says that it will take more patients if it can have 25 more beds. I have read about the treatment at Heather-wood and I put these points to the consultant at Heatherwood today. He said that all these complaints are justified and that what that lady says is true. That is how pregnant mothers are treated. The consultant said that it cannot be helped because, as my constituent said, the staff are rushed off their feet. As a result, that is the kind of treatment they have to give. Heatherwood has 57 beds. If it is asked to take even more in those beds, what kind of conditions will pregnant mothers encounter? That is the question. A practical answer must be found for the next 12 or 24 months.

    I must leave a couple of minutes for the hon. Member for Eton and Slough, but it seems to me that access to hospitals is terribly important. It is all very well having green-field hospitals, but we cannot get the nurses to stay in them, the patients and their relatives cannot get there and the medical staff itself even has problems.

    Wexham has always had problems. It is in my constituency. It is a beautiful, new district general hospital, but it is always having staff problems and it has never had a maternity unit. To shut down Upton in the centre of Slough and build a brand new maternity unit at Wexham seems to me to be crazy. I do not see the saving in money and I certainly see great inconvenience to all those who in 1983 will have to use that facility.

    11.3 p.m.

    I am grateful to the hon. and learned Member for Beaconsfield (Mr. Bell) for allowing me a couple of moments. I really want to underline what he has said about the facilities in the area which we both share. I should also like to remind my hon. Friend the Minister that two years ago I raised this very problem and foresaw some of the difficulties which we are now encountering.

    I know that my hon. Friend then said that this was something that was only being considered and that he could not comment on the plan. The fact remains that the potential problems that the hon. and learned Gentleman outlined have developed, so much so that I have already arranged for a deputation of both sides politically, as it were, to come and see the Minister's right hon. Friend later this month.

    The situation in Slough and the surrounding area is now reaching one of panic among young mothers. The links and plans which were supposed to cover and accompany the closure of the facilities at Upton hospital in Slough just have not taken place. Even if they had, we would still be in difficulties. I urge the Minister to take this matter very seriously. He looked surprised and shocked when the hon. and learned Member for Beaconsfield said that mothers had to telephone when they were in labour to inquire where their child would be born. That is not an exaggeration. That is the advice that they are being given. I am worried about women who may have a quick labour and give birth before knowing which hospital they have to go to.

    Unless there is a rapid improvement in East Berkshire generally, I can foresee many tragedies and a deterioration in the present situation.

    11.5 p.m.

    I am grateful to the hon. and learned Member for Beaconsfield (Mr. Bell) for providing me with this opportunity to speak about the maternity services in East Berkshire and South Buckinghamshire, and I am pleased to see my hon. Friend the Member for Eton and Slough (Miss Lestor) here. I know that many people in that part of the country have recently been expressing concern about the problems associated with these services, and this concern has recently been reflected both in local newspapers, which I have read with interest, and correspondence with the Department.

    Concern was first expressed about the level of hospital maternity services in this area when the Berkshire area health authority's plans for the rationalisation and development of East Berkshire's hospital services were widely circulated for comment in June 1976. At that time, the district had an excess of acute beds and a deficiency of beds in particular for the elderly, mentally ill and elderly severely mentally infirm. The House will be aware that the Government have asked health authorities to give priority on the development of these services. The way in which we wish to see the health and personal social services developed has been set out in our consultative document "Priorities for Health and Personal Social Services", which was published in 1976, and the follow-up document "The Way Forward", which was published in September 1977. The objectives of the area health authorities' rationalisation and development programme were, thus, broadly in line with national policy.

    As for the maternity services, prior to the implementation of the rationalisation programme hospital facilities were provided at the Canadian Red Cross memorial hospital at Taplow, the Upton hospital at Slough, and the Heatherwood hospital, Ascot. The proposal finally adopted by the area health authority in April 1977, after a great deal of discussion and consultation, was that in the short and medium term maternity facilities would be provided at the Canadian Red Cross memorial hospital, Taplow, for mothers living in the north of the district, including South Buckinghamshire, and the Heatherwood hospital, Ascot for the southern part of the district. Most of the accommodation becoming vacant at the Upton hospital would be developed to provide additional geriatric in-patient beds and a day hospital for geriatric patients, but specialist out-patient maternity clinics providing modern antenatal care were nevertheless to be retained at Upton hospital. In the longer term, the area health authority planned to transfer the maternity work from the Canadian Red Cross memorial hospital, which is eventually to close, to a new purpose-built maternity unit at Wexham Park hospital, Slough.

    The plans, which are now being implemented by the Berkshire area health authority, were accepted by the East Berkshire community health council, whose function it is to represent to the health authorities the views of the general public in East Berkshire and South Bucks. If the council had opposed the AHA's plans, and the AHA and Oxford regional health authority had wished to proceed with their implementation, my right hon. Friend the Secretary of State for Social Services, under procedures laid down by my Department for the closure and change of use of Health Service buildings, would have had to take the final decision.

    However, my right hon. Friend was not called upon to act as arbiter and, as I have said, the plans are now being implemented. The in-patient maternity facilities formerly at the Upton hospital were transferred to the Canadian Red Cross memorial hospital and Heather-wood hospital about 16 months ago. Work on adapting the vacated space at Upton for the provision of geriatric facilities has now been in progress for more than a year. The AHA has informed me that two of the adapted wards are now in use, one since October 1977 and the other from September of this year. Extensive alterations to convert accommodation to provide the clay hospital facilities for geriatric patients are still in progress.

    Perhaps I can now deal with the suggestion that there is a shortage of maternity facilities and that this has been exacerbated by the change of use of the Upton maternity unit.

    The services at the Canadian Red Cross memorial hospital and Heatherwood hospital are undoubtedly under pressure at present, but not because there is a shortage of beds. The pressure has arisen because of a shortage of trained midwives. A couple of years ago the Central Midwives Board introduced revised midwifery training courses and advised the Berkshire area health authority that it would be unable in future to recognise the midwife training programme in East Berk- shire because it was spread over three units—Canadian Red Cross, Heather-wood and Upton. This decision by the board served to reinforce the area health authority's decision to reduce the number of maternity units in the district from three to two by changing the use of the Upton unit, but in the meantime it also unfortunately led to the temporary closure of the midwife training programme, the final group of pupils qualifying in March 1977.

    Following the change of use of Upton and the concentration of maternity services in two centres at Canadian Red Cross and Heatherwood, the Central Midwives Board has, I am glad to say, accorded recognition to the district's revised midwife training programme, which restarted at Canadian Red Cross and Heatherwood in January this year with an intake of 11 pupils to be trained over a period of one year. The first midwives to qualify since the reorganisation should therefore start taking up posts in February 1979 and this should ease the pressure on the two hospitals, even if not all the output take up posts, as the hon. and learned Gentleman suggested. The future output cannot be guaranteed in advance, but four intakes per annum are authorised, with up to 12 pupils per set.

    In the meantime, however—and this is what has indirectly given rise to the public concern and possibly to some confusion and misunderstanding—because of the shortage of trained midwives, the consultant obstetrician at Canadian Red Cross and Heatherwood imposed a booking limit in October on each hospital of 170 admissions each month. This effectively reduced the number of women who could be admitted, and general practitioners had to make arrangements for some of their expectant mothers to be confined in hospitals outside the health district. Some mothers from the district were booked at the Royal Berkshire in Reading, others at Frimley Park in Camberley, and a few at the Hillingdon hospital, Uxbridge.

    This has undoubtedly been a difficult time, but I am pleased to be able to say that the position has now changed considerably for the better, even in advance of the pending qualification of the first set of pupil midwives currently in the reorganised midwives' training programme. On 31st October—just over two weeks ago—the district community physician, Dr. Jeremy Cobb, wrote to every general practitioner in East Berkshire to announce that arrangements have now been made to enable the Canadian Red Cross hospital to try to accommodate all the deliveries within its catchment area, both in East Berkshire and South Buckinghamshire. This is being achieved by the co-operation of the present consultants and midwives and by the area health authority's making available additional supporting staff, equipment and appropriate administrative assistance. General practitioners have been told that the limit of 170 bookings per month at Canadian Red Cross has been lifted, and it should be possible now for all new bookings within the usual catchment area of this hospital to be accepted. Credit is due to all concerned.

    The position in the south at Heather-wood is more complex. The district community physician has advised general practitioners that when Heatherwood is overloaded the Royal Berkshire hospital at Reading will provide as much support as possible. On the whole, general practitioners who are not able to obtain bookings at Heatherwood will be able to book patients into the Royal Berkshire, whilst an alternative is available in the extreme south of the district in the form of Frimley hospital. Furthermore, I am able to say that the regional health authority has assured me that enough additional cover can be made available at the John Radcliffe hospital, Oxford—with the co-operation of the Oxfordshire health authority—to prevent the Royal Berkshire hospital at Reading being over-pressed.

    Hon. Members will no doubt be glad to know that the area health authority has informed me that, as a result of these measures, so far as is known appropriate bookings have in fact been arranged—or can now be arranged—for every patient in the district up to March and April 1979. As the newly trained midwives take up their posts next year, I hope that all the problems will be resolved, although it may be some little while before Heatherwood unaided can cope with the entire work load of the south of the district. There may be a need for some continuing reliance for some time to come on the Royal Berkshire in the case of patients living in the Bracknell area. Such a reliance is, of course, no new development. A number of general practitioners in this area have traditionally referred their obstetric patients to the Royal Berkshire hospital at Reading.

    The health authorities and I are acutely aware of the misunderstandings and confusion which have arisen in consequence of this complex pattern of events and necessary changes. We very much regret any distress which may have been caused to individual families who have feared—even though the fear was unfounded—that appropriate facilties might not have been available for their confinement. I assure the hon. and learned Gentleman and my hon. Friend that I have taken careful note of the points they made about transport, telephone bookings and so on. I shall draw them to the attention of the area health authority concerned.

    I am sure that the hon. and learned Gentleman is relieved to hear of the progress that has been made. I pay tribute to the good will and patience of those who have evolved satisfactory interim solutions.

    Looking now to the future, I turn to the much-debated decision of the area health authority and regional health authority to build a new maternity unit at Wexham Park hospital. The plan is to transfer the maternity unit from the Canadian Red Cross memorial hospital. When the new maternity unit opens, maternity services will be provided at Wexham Park, Slough, for mothers living in the northern part of the East Berkshire health district, including South Buckinghamshire, and at Heatherwood for the southern part of the district. It has been suggested and widely canvassed by the obstetricians in the district that a better solution would have been for a single unit to be built at the King Edward VII hospital, Windsor, for the whole district, and it is argued by some that a single unit for the whole district would make better use of staffing and financial resources. Furthermore, it is argued that a single unit at Windsor would be both central and readily accessible to all mothers in the district.

    These matters are debatable, and indeed have been vigorously debated, not least in the local press. The essential fact is, however, that the area health authority and regional health authority have calculated that the additional capital cost of siting one single maternity unit for the whole district at Windsor could be as much as£2 million more than that for building the second unit at Wexham Park. This is not, I understand, because of the size of the proposed single unit—the "conveyor-belt baby-factory" as it was dubbed by local reporters—but because the site at Windsor is extremely restricted both in extent and in terms of planning constraints. There would also be consequential changes if a single maternity department were created at Windsor in that certain departments, notably paediatrics, are normally considered necessarily to be associated with obstetrics and at present these departments are all currently established not at Windsor Park, at Wexham Park or Heatherwood. To establish a large, new isolated maternity unit at Windsor would run counter not only to departmental policy but to current medical thinking.

    Moreover, there will be considerable pressure on the RHA's capital funds in the foreseeable future because further major developments are planned elsewhere in the Oxford region, notably for Milton Keynes, Northampton and Oxford. Their urgency will be appreciated when I explain that the Oxford health region, comprising the counties of Berkshire, Buckinghamshire, Oxfordshire and Northamptonshire, is one of the most rapidly expanding health regions in the country and the towns of Milton Keynes and Northampton are likewise two of the most rapidly growing urban areas. Priorities in other parts of the region have to be balanced against the needs of East Berkshire, and they simply do not allow for making available an additional£2 million to develop the Windsor site even if this were desirable. In fact, I am told that even if there were no financial constraints whatsoever, the RHA and the AHA are convinced that to centralise maternity services in Windsor would not be the correct solution when the overall needs and probable pattern of future services for the district as a whole are taken into account.

    So there are overwhelming financial disincentives and major service planning objections to locating a single maternity unit for the whole district at Windsor. Nor should it be forgotten that preparatory planning work on the new Wexham Park maternity unit is well under way, with the present programme envisaging work starting on site in either 1980 or 1981 and being completed in either 1984 or 1985. Any change from Wexham Park at this relatively late stage—even if the very heavy additional costs could be justified and the service planning objections could be ignored—would entail significant delays and would impede rather than advance the development of the comprehensive maternity service which the hon. and learned Member, my hon. Friend and I earnestly wish to see provided for the whole of the East Berkshire and South Buckinghamshire health district as soon as is reasonably practicable.

    To summarise, I have reviewed the general strategy and background to the rationalisation of health services as a whole in East Berkshire so far as they have a bearing on the maternity services in particular. I have set in context the admitted recent difficulties caused by a shortage not of beds but of midwives, which has arisen in consequence—

    The Question having been proposed after Ten o'clock and the debate having continued for half an hour, Mr. DEPUTY SPEAKER adjourned the House without Question put, pursuant to the Standing Order.

    Adjourned at seventeen minutes past Eleven o'clock