House Of Commons
Monday 18 January 1993
The House met at half-past Two o'clock
Prayers
[MADAM SPEAKER in the Chair]
Oral Answers To Questions
Social Security
Students
1.
To ask the Secretary of State for Social Security what plans he has to reform the benefits available to students.
Income support, housing benefit and, from next April, council tax benefit are available to particularly vulnerable students such as lone parents and those who are disabled. However, in general it is the educational maintenance system which is designed to provide support for students and we have no plans to change this.
Is the Minister aware that hundreds of students in Wales are living in abject poverty and that others are graduating with debts of more than £3,000? Their parents are being hit, too. One of my constituents lost almost £50 a week in child benefit, income support and single parent benefit. Why do the Government not restore the vacation hardship allowance, housing benefit entitlement and income support entitlement to students —or do they want all students to be yuppies?
I note the hon. Gentleman's concern. The changes in benefit did not take place in isolation, but at a time when the total support for students was increased by £100 million. There is no evidence of any deterrent effect on students. Full-time and part-time student numbers have risen throughout the past decade; since the change in benefits and student loans, they have increased by 20 per cent.
Would my hon. Friend be interested to know that at the last count at my university there were 10 applicants for every place available? The students there work very well and those eligible have taken out student loans. The system is now working smoothly. We should like the hardship fund to be a little larger, but that is all.
My hon. Friend is right. The total package of support available for students has increased since 1988–89, when the changes in the benefit system took place. I meant what I said about the fact that there has been no deterrent to students going to university. That is evidence that this country provides generously for its students. Some heed should sometimes be paid to those who are paying for the system as well as to those claiming on it.
It is clear that the Minister has no understanding of the financial hardship inflicted on students by Government policies. Has he read the survey undertaken by the north-western students unions, which showed that 61 per cent. of students were in debt, of whom 15 per cent. had debts of more than £500 and 6 per cent. had debts of more than £1,000? The survey showed that the main reason for the debts was the withdrawal of the right to housing benefit and the withdrawal of the right to claim income support during the vacation, when there are no jobs for students to take up. Will the Minister immediately review the financial support for students, especially for students from low-income families, for those with children, and for mature students, so that they do not fall into further debt and hardship inflicted on them by the Government?
It is sometimes suggested by the Opposition that all students used to claim benefit. That is just not true. Only a minority of students ever claimed benefit. Some 15 per cent. used to claim housing benefit during term time and only 2 per cent. claimed it in the vacation. Some 20 per cent. claimed income support during the summer. When the student loans were introduced, a calculation was done of the average amount of benefit that students took. At the time, the figure was about £327. The top-up loan was set at £420, so on average more money went to students than they had ever claimed in benefit. These matters are constantly kept under review. The evidence in this country compared with the evidence in many other countries in the western, developed world is that we have a generous system for our students. That should be appreciated by students. Society does not mind paying, but it is nice to hear about society for a change instead of always about those who are receiving the benefit.
Mobility Allowance
3.
To ask the Secretary of State for Social Security how many people received mobility allowance in 1979; and how many receive it currently.
In 1979, 95,000 people received mobility allowance. By 1992, this figure had risen to 660,000—nearly a sevenfold increase. The introduction of disability living allowance will extend help with mobility costs even further.
Does my right hon. Friend agree that the introduction of the lower rate of the mobility component has helped enormously those people who can work but who, because they have learning difficulties, have difficulty in getting about? Does that not further our aim of providing them with fulfilled lives in the community?
I believe that the lower rates of disability living allowance, both for mobility and care, have been an immense success. Some 170,000 awards have already been made.
The Minister has been very frank about the hardship inflicted on disabled people by the chaos in administering the mobility allowance and other disability allowances. As the author of the mobility allowance—the first of its kind in the world and the introduction of which was strongly opposed by many Conservative Members—may I press the Minister to tell us from his briefing folder in how many cases, in each of the past seven months, claims from entitled applicants were not processed before they died? In particular, does the Minister recall the very disturbing case of my late constituent Mr. Ken Vince?
I remember the right hon. Gentleman mentioning that case at the last Social Security Question Time. I cannot give the right hon. Gentleman the figure for the number of people who have been in that particularly sad situation, but the Benefits Agency has been increasing its performance steadily in dealing with claims for disability living allowance and attendance allowance. The figure of 95,000 that I mentioned in my original reply was achieved for mobility allowance after four years' phasing in. We have now reached six times that number in one year.
Is not one of the advantages of the way in which the matter has been handled the fact that the disability living allowance has not had to be phased in, as was the case with the mobility allowance about which much has just been said? Nevertheless, it has been quite a load. Will my right hon. Friend assure us that all the applications now being handled will be properly backdated?
I can certainly give my hon. Friend that assurance. As a result of the work of the Benefits Agency, any claim received now or in the future should be dealt with within the targets announced by the Benefits Agency.
Will the Minister not be too self-satisfied, as several of my constituents have been waiting well over a year for their cases to be processed? In some cases, I have had to wait three months for a reply from the Benefits Agency. Will the Minister examine the matter closely and provide new resources to ensure that claims for mobility allowance and attendance allowance are processed quickly, speedily, and with sympathy and compassion?
The hon. Gentleman will already have heard me express my regret at the distress caused during the introduction of the benefit. I still believe with all my heart that it was right to go ahead and introduce the benefit without the phasing that the Labour Government found necessary. We are now at the point where any new claims will be dealt with within the targets that the Benefits Agency has been set. I shall be meeting the chief executive of the Benefits Agency tomorrow to discuss those matters further.
Water Charges
4.
To ask the Secretary of State for Social Security what is the total amount paid out by his Department's regional offices direct to water companies on behalf of claimants for the last year for which figures are available; and if he will make a statement.
In the year ending November 1992, over £27 million was paid to water companies by the Benefits Agency on behalf of claimants. This represents a great deal of welcome protection for many people who might otherwise have faced the risk of disconnection of water supplies.
I thank my hon. Friend for that helpful and welcome reply. Can he confirm that direct payments will be made to water companies in precisely the same way as they are paid to the electricity and gas companies? Will he further confirm that all Department of Social Security area offices are empowered to do that? Can he say whether water has equal priority with gas and electricity in the direct payments list?
I can confirm that arrangements for the deduction of direct payments for water are applicable nationwide and are similar for water as they would be for fuel. The latest figures show that there were about 160,000 deductions as at November 1992, which is about 3 per cent. of all income support claimants. The figures for my hon. Friend's constituency are about comparable. Although for historical reasons water ranks behind fuel in terms of priority, there is no evidence to suggest that that is responsible for any refusal to make deductions. As the number of deductions shows, the system works.
Since the companies were privatised, the cost of water has risen astronomically. Is the Minister aware that that represents a tax on pensioners and on people with low incomes and does the image of politicians no good whatever when his hon. Friends are receiving large sums of money as consultants to the privatised industries? Is that not bordering on corruption and taxing the poor?
The hon. Lady's substantive point was about the adequacy of income support and the way in which payments are paid to water companies. Since water companies took on more responsibilities for collecting debts from lower-income people, it has been made clear by the Office of Water Services, for one, that the companies could develop better methods—frequent payment methods—to collect money from lower-income people. The fuel companies have done this rather more successfully than the water companies. We urge the water companies to look carefully at their low-income customers to try to make sure that they do not get into debt.
Pensioners' Incomes
5.
To ask the Secretary of State for Social Security if he will make a statement on the trend in pensioners' real income since 1979.
The trend in pensioners' income in real terms between 1979 and 1988 has been upwards.
Does my hon. Friend agree that it is to be welcomed that even the chairman of Pensioners Voice recently said that our public sector provision compares well with that provided in Europe? Does my hon. Friend welcome the fact that real income from savings has more than doubled since 1979—it actually fell by 16 per cent. between 1974 and 1979—and that Opposition Members will never ever understand that?
I am pleased to confirm both points. Pensioners' incomes from all sources have increased by about a third in real terms since 1979, which is a tribute to our policies for looking after pensioners. In contrast with what happened under Labour, when income from all sources rose less year by year, we have a proud record indeed in comparison with the rest of Europe. It is confirmed by independent actuaries that for those on low earnings—that is, half average earnings—we come out among the best countries in Europe.
Why cannot complacent Ministers understand that literally millions of pensioners—single and married—in this country are living in poverty or near poverty? Even in the reply that I received from the hon. Lady herself last week, it was admitted that 61 per cent. of single pensioners have an income of less than £5,000 a year. How many Ministers would like to try to live on the incomes that many pensioners in our constituencies are forced to live on? How would they like to live in such poverty?
It is precisely because we are concerned for those who depend entirely or almost entirely on the state pension that, for the past three years, we have directed immense extra resources towards raising pensioner premium and income support so that we can bring many more pensioners into the safety net. When they come into that safety net on income support, with up to 100 per cent. of rent, maximum local taxation rebate and access to cold weather payments, the value of the state pension can sometimes double just through that measure alone.
Benefit Expenditure
6.
To ask the Secretary of State for Social Security what was the total expenditure on social security benefits in 1979, 1983, 1987 and 1992, at constant prices.
At 1992–93 prices, expenditure for the years in question was £47.1 billion, £57.7 billion, £68.4 billion and £71.6 billion respectively. Benefit expenditure between 1979 and 1992 increased by 52 per cent. in real terms.
Does my right hon. Friend agree that the figures show the Government's commitment to improving the position of the less well-off members of society? Does he also accept, however, that the lot of the less well off provides no grounds for complacency?
I entirely agree with my hon. Friend. That is why in this year's public expenditure round I announced not just that we had kept our pledges to uprate all benefits, particularly those for the elderly and for families, and that we had protected those most affected by the recession from its effects, but that we could channel an extra £1 billion of resources to those in the greatest need. I am sure that my hon. Friend, like all Conservative Members, welcomes that.
As the Government's own figures show that under the Government's stewardship the number of people on half average earnings has risen from 5 million to a staggering 12 million, will the Secretary of State tell the House whether his Department has any working parties—formal or informal—to look at ways of spending the £80 billion budget more effectively?
That is the substance of all that we do. Our priority is to ensure that the money spent on social security is well focused on those in need with a genuine entitlement. I know that the hon. Gentleman has contributed to that process. We seek to achieve those ends, and always will. We are waiting to discover the Opposition's intention. Apparently, they have had to commission a search for policies and principles on the issue.
Does my right hon. Friend agree that in considering the value of benefits one must also take account of the rate of inflation, as benefit recipients under the last Labour Government knew only too well when in one year the level of benefits was eroded by 25 per cent. as a result of inflation?
My hon. Friend makes an important point. Anyone who is a friend of inflation is an enemy of the poor. The Labour party always has been, still is and always will be a friend of inflation.
Notwithstanding the global increases in the social security budget in recent years, does the Secretary of State share my concern that the take-up of those benefits cannot be objectively analysed as there was a different system before 1988? Is it not a matter of concern that the statistical review recently published by the Department could not reach conclusions on take-up, but concluded—among other things—that 1.3 million people who were entitled to social security income support payments did not receive them?
The hon. Member is right: take-up is important. If we are to get the policy on take-up right, it is important to be able to measure it. That is why I announced some time ago the introduction of a new survey to provide us with better and targeted information on household income—in place of the family expenditure survey used in the past, which was geared to establishing expenditure and not income. We shall be in a better position in future to measure income. In the meantime, we can take comfort from the fact that the measures suggested that more than 90 per cent. of benefit money is claimed by those entitled to it. By and large, those who do not take up their benefits tend to be those with the lowest entitlement in cash terms.
The Secretary of State has been talking about the figures with some complacency, but has not the total expenditure risen because of the frightening increase in the number of people forced to claim benefit? What possible satisfaction can be taken from the fact that 4.3 million people were dependent on supplementary benefit inn 1979 but that by 1991 7.7 million were relying on income support? Shamefully, the latest figure included 2.4 million children. Is that not the bitter harvest of the Government's economic failure? Would not the best way to take the strain off the DSS benefit budget and help those on income support be to tackle the problems of unemployment with considerably more energy and imagination than the Government have shown?
The hon. Member implicitly uses as a measure of poverty the amount of help given to those in need. Such an attitude was recently debunked by the Select Committee, which showed that if we take the number receiving benefit, as the levels of benefits have risen, the number of those on that level of income and below has increased. But the number on incomes below the supplementary benefit that the last Labour Government thought was sufficient has fallen. We must recognise that, through the social security system, the people of this country make a considerable contribution to the needy, the elderly and the sick. The average contribution from every working person every working day through the social security system is £10—a considerable sum, which shows the generosity of the British people as channelled by this Government.
Does my right hon. Friend agree that one of the more effective ways of helping poorer families even more would be taxing child benefit and using part of the proceeds to increase family credit?
Logically, that is one of the measures which would achieve that end. As my hon. Friend will know, it has been looked at by a number of Ministers. It is essentially a matter for my right hon. Friend the Chancellor and for the Financial Secretary—the latter being a post which I held. It would be much more difficult to do in a world of independent taxation than it might have been in the past when man and wife were not independently taxed.
State Pension
7.
To ask the Secretary of State for Social Security what representations during the last six months he has received from pensioners' organisations about the level of the basic state pension; and if he will make a statement.
My ministerial colleagues and I receive many representations from pensioners' organisations. During the past six months my colleagues and I have met seven delegations to discuss issues of general concern to pensioners, many of which included the level of basic state pension.
Does the Minister accept that those delegations and the very large number of representations that she and her colleagues have received are a sign of the difficulties that people on basic state pensions with no other income face in coping with fixed costs and standing charges—fuel costs, water costs, television licences and so on? Can the Government not find more resources to give greater priority to those with no income besides the basic state pension, especially single pensioners, who are suffering so much?
If a pensioner has nothing besides the basic state pension and only minimal savings, that pensioner is entitled to income support, with all the fringe benefits that I enumerated earlier. What I do hear when pensioners' organisations come to see me is that they value the fact that their savings are now safe and not being wiped out by the sort of inflation that occurred in the 1970s under Labour. They tell me that they are proud of the fact that we maintain one of the best safety nets in Europe and that we give extra help, particularly to the less well-off pensioners. Although there are obviously still improvements that they want, I never hear from them any suggestion that they would like to return to the dark days of the 1970s and the Labour Government.
Does my hon. Friend agree that since 1989 £700 million in extra help has been made available to the poorer pensioners, and that that is impressive evidence that the Government are fully committed to providing assistance to the most needy pensioners? Will she confirm that the only threat of means-testing the basic pension has come from the right hon. and learned Member for Monklands, East (Mr. Smith)?
Yes, indeed. Not only has that been the only source from which the threat has come, but it is combined with a threat to private occupational pensions and personal pensions. Those threats, taken in conjunction, would mean a severe diminution of pensioners' overall incomes.
On the subject of pensioners' incomes, perhaps one of the most telling points that my hon. Friend might like to consider is the considerable rise in the percentage of pensioner households owning large durable goods. Since 1979, the number owning a telephone has increased by 37 per cent., the number with central heating has risen by 24 per cent., and so on. That is a clear sign that pensioner households are sharing in the prosperity of the nation—as is the fact that fewer pensioners are in the bottom decile of income distribution and that half of all pensioners are now in the top half of income distribution.As the Minister well knows, the Labour party has no plans for means testing. That is a scare being put out by the Government, and we frequently deny it. Is the Minister aware that Pensioners Voice is still concerned that the basic pension is now below subsistence level as defined by the level of income support? That causes great distress to those who have retired on small occupational pensions which make them just ineligible for the additional benefit of income support. What plans, if any, do the Government have to do anything about this poverty trap faced by people on small occupational pensions?
In terms of the first part of the hon. Lady's remarks, she should ask her right hon. and learned Friend the Leader of the Opposition to inform the Commission on Social Justice that it should no longer consider the future of universal benefits. When we hear that the right hon. and learned Gentleman has issued that guidance, perhaps we will believe the hon. Lady. She asked about people who are managing on small occupational pensions. Not only do nearly 70 per cent. of those retiring have occupational pensions, but the average value is now nearly on a par with the state pension. We shall continue to encourage the occupational pension sector so that the value of those pensions continues to grow and forms a major part of retirement income.
Fraud
9.
To ask the Secretary of State for Social Security what action his Department is taking to reduce fraud.
I am consulting local authority associations about the new initiative to combat housing benefit and council tax benefit fraud. The Benefits Agency is deploying more specially trained investigators and making greater use of new technology to weed out false claims. I am allocating an additional £10 million a year of resources to fight fraud.
Does my right hon. Friend accept that the vast majority of state benefit recipients are not welfare scroungers and are not seeking fraudulently to abuse the system? Does he also agree that every £1 lost means that there is less money for those in genuine need? Does he accept that the Government have a moral commitment to track down all fraud as efficiently as possible to ensure that the maximum amount goes to those that the system is designed to help—the people who are most in need?
I wholeheartedly agree with my hon. Friend. The vast majority of social security claimants are as honest as the day is long. There is no similarity at all between the ordinary, honest, genuine claimant and the fraudster. It is the Labour party which identifies the two when it criticises any attack on fraud as an attack on the poor. We believe that an attack on fraud is right because every £1 wasted on fraud means that £1 less is available to those who are in real need.
Is the Secretary of State aware that the report of non-receipt of a Giro is now considered fraudulent and that benefit claimants have to wait between seven and 11 weeks for replacement? Consequently, they approach the DSS for a crisis loan and single people are offered £2 a day. What does he think about that?
It is not automatically assumed that anyone in that position is a fraudster, but we have to tackle the problem of false claims. About £230 million worth of orders of the type about which the hon. Gentleman speaks are reported missing every year and about £85 million worth of them are subsequently claimed. By working closely with the Post Office, we are trying to improve our work to prevent the illegal encashment of such orders. That must be for the benefit, and in the interests, of most people. We also want to stop theft, which is often wholesale when the encashment is organised not by ordinary claimants but by criminal gangs. We want to stop that and we have had some success in doing so.
Long-Term Sick And Disabled People
11.
To ask the Secretary of State for Social Security what is the most recent figure for the increase in spending on benefits for long-term sick and disabled people since 1979.
Spending on benefits for long-term sick and disabled people for 1992–93 is £13.7 billion—an increase of £8.7 billion or 173 per cent. in real terms over spending in 1978–79.
I am delighted with those figures, as will be those who receive the benefits. Will my right hon. Friend confirm that extra resources have been made available for the telephone service for those who are claiming disability living allowance and wish to telephone, and for the hotline telephone service made available to Members of Parliament? Will he further confirm that those who have awards payments made to them late will have them fully backdated?
I can confirm the last point. Members of Parliament on both sides of the House have complimented those who have been running the hotline for Members of Parliament on the efforts that they have put into speedily resolving some of the difficult cases with which they have been presented. The benefits inquiry line has dealt with 720,000 calls, 85 per cent. of which are getting through the first time that people call. Minicom and tape facilities are also available to speed up the preparation of application forms and the dealing with claims.
Is not the truth of the matter that hundreds and thousands of people have claimed disability benefit in almost every constituency in Britain but have not been able to get their benefits because the computer is stuck? Is it not remarkable that the computer that the Inland Revenue uses always works, so it can get its money quickly? However, with the computer that pays out benefits, people have been waiting for two years for their benefits to be paid out. Is it not a scandal that the Government have a system that operates on behalf of those whom it likes and a hotline that works for the Chancellor of the Exchequer and all those others who get payment for libel cases when nobody else can get one?
The hon. Gentleman performs to form. I do not know whether he was here earlier when I reminded the right hon. Member for Manchester, Wythenshawe (Mr. Morris) that his party had to phase in mobility allowance while we have been able to do it at a stroke. Some 710,000 claims for disability living allowance have been dealt with, which is an improvement of 71 per cent. over last year's performance of attendance allowance and mobility allowance. Immense efforts have been made by the staff of the Benefits Agency and Ministers to ensure that people get the benefits to which they are entitled under the Government.
Social Fund
12.
To ask the Secretary of State for Social Security what plans he has to change the balance between grants and loans in the operation of the social fund.
The social fund discretionary budget for 1993–94 will be around £340 million, an increase of over 12 per cent. over April 1992. No final decision has yet been made on the split between grants and loans.
I am also pleased to announce, in addition to the increase of £8 million announced by my right hon. Friend on 2 November, that I have today authorised the allocation of a further £7 million to the discretionary social fund loans budget for this year. Details of individual district allocations will be placed in the Library shortly.Is the Minister able to give us the proportion of grant applications that is successful? Will he accept that, at a time of rocketing unemployment and when people are coming back into the community under community care schemes, the pressure on grants is such that only the most needy of cases can be met? Furthermore, at a time of increasing personal indebtedness, does it not make much more sense to give priority to grants rather than loans?
We have not neglected the grants aspect, because we increased allocations for grants by 30 per cent. between April 1991 and April 1992. We shall be looking carefully at grants when we come to decide the split of the discretionary budget for the coming year. The success of the loans system has meant that many more people have been helped as a result of the recycling of loan money and that is the primary reason for the new allocation that I announced today.
Does my right hon. Friend agree that not only is there a benefit from recycling money and thereby helping many more people, but that we were confronted with rackets and frauds set up by people who opened what they called antique shops but which were really house clearing shops? Those people gave out shopping lists of 105 or more items that one could get from social security. Someone had to have the common sense to stop those rackets, and we have done so by ensuring that people make proper applications, and prove their need. They are then given help and they slowly repay the loans so that the money can help someone else. The taxpayers are not a soft touch.
I understand my hon. Friend's strength of feeling on the matter. I do not agree with every word that he uttered, but I think that we all know that the old single payments scheme was entirely out of any sort of financial control and that it was subject to widespread abuse in various parts of the country. It was right to bring the scheme under proper budgetary control, which the social fund has achieved. The magic of the recycling of loans has enabled many more people to be helped than we were able to help before.
Disability Living Allowance
13.
To ask the Secretary of State for Social Security what representations he has received regarding delays in dealing with disability living allowance cases.
I have received many representations about delays in dealing with disability living allowance claims. I have already expressed my personal regret that disabled people have not received the standard of service that they are entitled to expect. The Benefits Agency took urgent action to deal with the problem and it has now made around 300,000 new awards.
I am sure that everyone will be glad that the Minister has expressed his personal regret that, as a result of the changeover, many people had to wait an unacceptable time to have their allowances dealt with. It should never have been necessary to have a hotline to enable Members to expedite cases.
Is the Minister able to assure us that when we have the standard format this year we shall not have the delays that were so common in the payment of attendance and mobility allowances? Will he confirm that the aim is to handle these matters much more quickly?I said in answer to an earlier question that any new claims will be dealt with within the targets that the Benefits Agency has set. We anticipate that new targets will shortly be set for the coming year. We are determined to keep to those targets and ensure—as I said in response to an earlier question—that claimants get the benefits to which they are entitled on time.
Attorney-General
Racial Violence
30.
To ask the Attorney-General what recent representations he has received on prosecutions relating to racial violence.
The most recent representations that I have received were questions asked by the hon. Member for Woolwich (Mr. Walker). I refer the hon. Member for Walsall, North (Mr. Winnick) to the answers given by the Solicitor-General on 7 December 1992 at columns 587–88.
Is there not some conflict at least between existing legislation on incitement to race hatred and the way in which various organisations—fascist in the main—do their utmost in certain parts of the country to promote race hatred? Is the Attorney-General taking all that on board?
The Crown prosecution service and the police are certainly astute respectively to investigate and, where the evidence is available, to prosecute incitement to racial hatred. I read carefully the speech that the hon. Gentleman made when introducing his ten-minute Bill. Racial motive is expressly a factor to be considered by the prosecution under the "Code for Crown Prosecutors". Is is also a factor which judges can and will take into account when sentencing. To make it an added and separate ingredient for an offence would be likely to make it more difficult to obtain convictions and could, therefore, hamper its proper consideration when it came to sentencing.
Police Officers (Criminal Misconduct)
31.
To ask the Attorney-General how many cases involving allegations of criminal misconduct against police officers were considered by his Department in each of the last three years; and how many of these resulted in prosecutions being brought.
The number of such cases referred to Crown prosecution service headquarters in the three years to 1992 were respectively 4,011, 4,012 and 3,696. Proceedings were instituted in 1990 in 187 cases, in 1991 in 186, and to date 108 in respect of 1992.
Does the Attorney-General accept that the discrepancy between the number of referrals and the number of prosecutions may possibly give cause for concern? Will he comment on the impact of the procedure whereby an 80 per cent. prospect of success is normally required by the CPS in such instances, whereas a lower margin of about 50 per cent. would be required in cases involving allegations against other members of the public?
I do not think that the hon. Gentleman's last evaluation is correct. There are two important points to bear in mind. First, under the Police and Criminal Evidence Act 1984, the police are required to report all cases involving police officers, other than minor motoring offences. Consequently, a large number of such cases are reported to the Crown prosecution service headquarters, many of which would never be reported if they involved ordinary citizens. Therefore, the weeding out is done from a much wider band.
Secondly, it is important to remember that the same standard of proof applies to all prosecutions. A factor might arise that would cast sufficient doubt on the reliability of evidence to render a conviction unsafe, without necessarily providing sufficient reliable evidence to justify the prosecution and conviction of someone else.Does my right hon. and learned Friend agree that concern about the rises in the number and the type of offences committed by people other than police officers arc the matters which especially concern members of the public? In their minds, it is quite inappropriate that Labour Members should concentrate almost exclusively on allegations about police officers.
The point is that whoever is involved, the prosecution process must be—and it is—carried out without fear or favour, affection or The wider questions to which my hon. Friend rightly referred are being carefully considered by the royal commission.
Will the Attorney-General underline the assurance that I think he has given to the House, which is that the same standards prevail in deciding whether to prosecute a police officer, and that the chances of conviction are considered in exactly the same way as for any other citizen?
I am grateful to the right hon. and learned Gentleman for giving me the opportunity to confirm that there is no difference in the standard applied, whether it be to a police officer or to any other member of the public.
Crown Prosecution Service
32.
To ask the Attorney-General if he will make a statement about the staffing of the Crown prosecution service.
In the last year, recruitment in the Crown prosecution service has resulted in an extra 202 lawyers in post, bringing the total complement to 2,141. The number of administrative staff in post is 4,225.
Does my hon. and learned Friend accept that, welcome though those increases are, there are still cases that take 18 months or two years for the court finally to determine the guilt or innocence of an accused person? Such delay is the cause of great financial, physical and psychological hardship. Will my hon. and learned Friend try to reduce the delays to a minimum?
The problem is being tackled on two fronts—first, by increased staff and, secondly, by increased financial resources. Over the past three years, the number of lawyers in post in the Crown prosecution service has risen by 694. In the year 1991–92, expenditure was £226 million, up 13.8 per cent. on the previous year. In the year 1992–93, it is estimated that expenditure will be £263 million, an increase on the previous year of 16.4 per cent. If we add together those two increases over two years, that makes an increase of more than 30 per cent.
In addition, the national operation practice setting out improved standards of service, which the CPS provides to others in the criminal justice system, will be in operation by the summer of this year. My hon. Friend may be interested to know that last week Judge Denison, at the Central Criminal Court, observed that the backlog of cases had sunk from 1,260 to 400.Will the Solicitor-General direct the attention of the Crown prosecution service to a recent television programme on HTV Wales that alleged that the firm of Ring and Brymer has been involved in fraud in my constituency? As the parent company of that firm contributed £86,000 to the Conservative party this year, is not it a serious matter that the Conservative party might be living on the proceeds of social security fraud and that some members of the Government might have their legal aid financed by the proceeds of fraud?
If the hon. Gentleman has any evidence of a criminal offence, he is duty bound as a citizen to put it before the police. The police will then investigate and the Crown prosecution service will decide whether to bring proceedings. It will make that decision in just the same way as it does in every other case, following the rules laid down in the "Code for Crown Prosecutors".
Prosecution Policy
33.
To ask the Attorney-General if he will make a statement on prosecution policy.
The principles governing the prosecution policy of the Crown prosecution service are set out in the "Code for Crown Prosecutors", which is issued under section 10 of the Prosecution of Offences Act 1985. A copy of the code is in the Library.
What is the policy on prosecuting for phone tapping, particularly in the light of Camillagate, where it seems likely that a fixed telephone in a private house was tapped by an individual phone tapper? Does not that appear to constitute an offence? Why has not the DPP asked the police to investigate, to see whether it is possible to establish who was that person?
They know that it was MI5 or GCHQ.
The hon. Gentleman will be familiar with the observations of my right hon. and learned Friend the Home Secretary over the weekend. He said that there is absolutely no evidence that the security services were involved. To answer the hon. Gentleman's question directly, if there is prima facie evidence that a criminal offence has been committed, it will be dealt with in exactly the same way as all other cases; that is, if there is evidence of an offence that affords a reasonable prospect of conviction and if it is in the public interest to institute proceedings.
Overseas Development
Yugoslavia
40.
To ask the Secretary of State for Foreign and Commonwealth Affairs what is the latest report he has received on the arrangements for delivering relief to former Yugoslavia.
The area of greatest need is Bosnia and we are concentrating our effort there. We estimate that about two thirds of the needy there are getting the essential supplies that they need, but, in Sarajevo and other besieged enclaves in eastern Bosnia, increased fighting and the winter have greatly increased the difficulties faced by all those delivering relief supplies. Since they were first deployed, British troops have, up to 12 January, escorted about 150 relief convoys, which have carried into Bosnia a total of about 12,000 tonnes of relief supplies. British civilian lorries delivered 3,342 tonnes of supplies into Sarajevo during December alone—just over half of the supplies reaching that city.
Of course we congratulate British aid workers and service men on their achievements in Bosnia, but does my right hon. Friend agree that they went in because of Serbian aggression, yet the young British soldier who was killed the other day died not from Serbian bullets but from bullets fired between Muslim and Croatian forces? Will my right hon. Friend ensure that British forces do not become part of a four-way civil war and, to that end, that United Nations figures, which are released locally on a daily basis, on the locations from which guns are firing at Sarajevo and at British aid workers and service men are published, so that the British public can be aware of them?
It is often extremely difficult, particularly in Sarajevo, to establish who is firing and for what reason. However, I entirely agree with my hon. Friend that where such information is reasonably reliable, it should be made available so that the public can understand the sheer complexity of the situation and the reason why we do not intend to allow British troops to become involved in civil fighting. Of course one can imagine circumstances in which the risks are so great that we will have to pull them out—but in that case, many more people would die.
Is the Secretary of State aware that we in Cheshire are very proud of our regiment's involvement in helping those most in need? However, that does not mean that it is understood why a regiment that is being badly treated in the reorganisation should be at the sharp end. There is also the question whether there is the same understanding by the Foreign Office of the need to protect British soldiers if the situation becomes even more dangerous. It would be wrong to allow British citizens to be caught in a web that is not of their own making, and which they cannot affect, without the right to defend themselves, just because the British Government are not prepared to accept that the situation has now gone beyond their control.
Of course British citizens have the right to defend themselves: that is essential. I do not think that any hon. Member disagrees with that, doubts the value of the work that the Cheshires are doing or questions the possibility of circumstances in which it might be too risky to ask them to continue that work. Meanwhile, as the hon. Lady has said, they are doing an excellent job. I hope that the details—the facts and figures—of that job, and the job done by the Overseas Development Administration's British civil workers, will become more widely known.
Are medical supplies now being included in the aid of convoys? Will my right hon. Friend ensure that there is no repetition of the occasion on which convoys arrived at Srebrenica without a single aspirin? I asked the same question before Christmas, but received an unsatisfactory reply; perhaps my right hon. Friend now has a clearer picture of what is going on.
As I understand it, medicines have always formed a major part of the supplies, especially British medicines. We have supplied a high proportion of the medicines that have gone into Bosnia in recent months. I shall look into the point that my hon. Friend has raised about a specific convoy, and let her know the details.
Will the Foreign Secretary acknowledge that aid supplies to Yugoslavia will constitute a mere stop-gap cosmetic until the consequences of the war are confronted? Will the Government insist that sanctions are maintained until the areas stolen by ethnic cleansing are demilitarised, and until at least a majority of the 2.5 million refugees are permitted to return home in safety?
What action—along the lines of the action taken by the French—does the Foreign Secretary propose to stop the systematic rape of thousands of Muslim women in Bosnian prison camps? Does he accept that the war will not end until the Serbs accept that Bosnian-Muslim resistance—or, at least, international intervention and the threat of such intervention—has reached such a point that it is no longer in their interests to fight on? What action does the right hon. Gentleman propose to make that threat a real one?Relief supplies are not a cosmetic to people living in villages or towns, cut off for many months, who depend on those supplies if they and their children are to be alive in two or three weeks' time. I do not know what the hon. Gentleman is talking about. If he means that the supplies are not enough, of course he is entirely right.
As for the allegations of mass rape, it was the present Government, when they held the EC presidency, who asked Anne Warburton, the head of a Cambridge college, to lead a mission to the area. The accomplishment of that mission put beyond contradiction the fact that those atrocities had occurred. They are no longer allegations; they are fact. That is why we agreed last week to take the initiative in setting up a criminal court—probably through the Security Council—to remind the perpetrators of such atrocities that they are personally responsible, whatever orders they may have received. There is no difference between us and the French in that regard. The hon. Gentleman was right in his other two points. It is essential to maintain and, indeed, to intensify the pressure of sanctions, particularly at a time when there are signs that they are having some effect. Ultimately, however, these horrors will be brought to an end by a peace settlement within the framework that David Owen and Cyrus Vance are attempting to negotiate.Africa (Ec Aid)
41.
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on joint EC aid initiatives in relation to Africa.
The United Kingdom is contributing £1.3 billion over five years to the European development fund, over 90 per cent. of which goes to Africa. In addition, there are substantial European programmes of food aid and humanitarian relief.
I warmly welcome the recent pledging of 680,000 tonnes of EC food aid under the food aid programme for Africa. Does the Minister accept, however, that real problems are involved in the delivery of that vital food? Will he consider setting up an EC-sponsored Africa special recovery plan to upgrade the logistics, transport and distribution facilities available on the ground, so that the aid can reach those who need it?
The hon. Gentleman is right about the difficulty of delivery, but I am afraid that it cannot be achieved in the way that he suggests. There has been some help in Somalia for relief and rehabilitation purposes by means of unutilised funds, but we cannot extend the use of unutilised funds in the way that has been previously suggested by the hon. Gentleman, because the Community works on commitments, not on disbursements. That system is different from the British system.
Can my hon. Friend give the House an assurance that the British Government's aid effort to Somalia will be sustained for as long as famine conditions persist in that country?
Yes, I can confirm that the United Kingdom has a continuing programme of relief for Somalia. We are the world's third largest bilateral donor to the relief effort in Somalia. I have no doubt that we shall continue to give relief generously.
Flooding (Perthshire)
3.30 pm
(by private notice): To ask the Secretary of State for Scotland if he will make a statement about the flooding in Perthshire.
The Government fully appreciate the seriousness of the flooding, and have every sympathy for those who have been affected. The flooding has been caused by the combination of heavy rainfall and a rapid thaw of earlier snow. Large areas of land have been inundated and many properties have been flooded, requiring temporary evacuation of occupants.
The response to the emergency is of course primarily a matter for the local authorities, and they and the emergency services have responded well and are continuing to provide assistance. However, my right hon. Friend and I are keeping in close touch with the developing situation. Scottish Office officials have been in regular contact with the emergency control centre in Perth and are at the ready to provide what assistance they can in response to requests from the local authority. Scottish Office officials are also in the area to conduct preliminary inspections, but the full damage will not be apparent for some days until the flood waters recede. In addition, the Royal Navy, the Army and the Royal Air Force have given extremely valuable support. I am also pleased to announce the Government's decision to make special financial assistance available under the Bellwin scheme to the local authorities affected in the Tayside area.I am obliged to my hon. Friend for that statement. May I add my praise to all those—the Army, the Royal Navy and the Royal Air Force, the district authorities, Perth district council, the fire services and the local community, who—in the most appalling situation, in which at the moment the water in some parts of Perthshire is 7 ft high—have supported one another and given service? Can my hon. Friend say what assistance in the short term, financial and actual, the Government propose to give, what recompense, in the short term and the long term, the Government propose to provide, and what recompense and assistance he is going to give to farmers and householders who have been put in the appalling position of temporary if not permanent loss?
I am grateful to my hon. and learned Friend. I am sure that his comments about the outstanding work of the community would have been shared by my hon. Friend the Member for Tayside, North (Mr. Walker), had he been able to get here. My hon. Friend was absolutely right to give that praise, because everything I have heard about has been of the highest quality. It has been a tremendous community effort. Other than the practical assistance from officials that I have already announced, now that the Bellwin scheme has been triggered, it will be brought into operation as soon as possible and as soon as Scottish Office officials and local authorities have worked out what is involved.
As a farmer myself, I appreciate the extreme difficulties and major problems that are facing many farmers. I have seen pictures of farms under feet of water. That inevitably will damage flood banks, fences, dykes and hedges, which will need to be repaired. Two years ago, a special increase was made in the grant for flood banking, and the normal capital grant scheme will be available for hedges, walls and fences. All this will be looked at most carefully as soon as the waters recede and we know what is required.I echo what the hon. and learned Member for Perth and Kinross (Sir N. Fairbairn) said about the floods, which are unprecedented. I am informed that the rate of flow is 500 cu m greater than the floods of 1990 and that they dropped to 1990 levels only late last night. Tayside regional council and Perth and Kinross district council have been working flat out on the problem, but has the Scottish Office learned any lessons from the 1990 floods? Both local authorities have instituted emergency planning procedures since 1990 and are concerned to ensure that the Scottish Office is involved in the commissioning and management of investigations into flood protection.
I have a letter dated 15 May 1991 from Lord Strathclyde, the then Minister with responsibilities for agriculture and fisheries at the Scottish Office, which says that it would not beof the type mentioned. That is abrogation of responsibility by the Scottish Office, and what has happened in Perth and Kinross could have been avoided if it had been involved. In addition, the chief executive of Tayside regional council informs me that the helicopter search-and-rescue service performs an invaluable service. We all know that that service is being withdrawn from the area, but at this late stage will the Minister praise it and reconsider his decision to abandon it? On the issue of compensation, Council chiefs' involved in this operation informed me only 15 minutes ago that the Bellwin scheme is insufficient and restrictive, and that the whole of Tayside region has been affected by this emergency. Will the Minister do something to help Tayside region, the community, farmers and elderly people who are isolated in their areas? Will he give us a commitment now to help Tayside region and tell us precisely what the Government intend to do?"appropriate for the Scottish Office to be directly involved in the commissioning of investigations"
Of course I echo the hon. Gentleman's praise for the community and the Royal Air Force crews who operate search-and-rescue helicopters. His comments will be noted by the Ministry of Defence.
I accept that flood levels in Perth were the highest recorded for the Tay. Since 1990, we have had an early warning system for the flow of the river, which proved very effective and facilitated the evacuation of people and stock from farms early yesterday. I have explained that the Bellwin scheme has been triggered and agreed by the Treasury, the details of which will have to be worked out in discussions between the local authority and the Scottish Office. We shall consider everything as favourably as possible, because in a serious situation such as Tayside everything must be resolved.The Minister will be aware that there has been substantial flooding in my constituency in the communities of Auchtermuchty, Dunshelt and Strathmiglo. I should like to pay tribute to Fife regional council, the fire service, police, personnel from RAF Leuchars and the voluntary organisations such as the Scottish Women's Rural Institute and the Women's Royal Voluntary Service.
Since some of the roads involved are trunk roads, will the Minister now agree to order an immediate engineering assessment to see what lessons can be learned with a view to preventing such flooding from happening again? Will he look extremely favourably on claims for compensation and ensure that Fife regional council suffers no financial prejudice as a result of its efforts on this occasion?I note what the hon. and learned Gentleman has said, and I share in his commendation of the outstanding work done by voluntary services and all the other organisations which he mentioned—including, of course, the fire service and RAF Leuchars, which is where the helicopters have been based.
I said that Scottish Office officials are in the area, but it is difficult to make any firm comment on the future until we are able to see the damage once the flood waters have receded. However, as soon as that has happened, we shall be in a better position to consider the future.Will the Minister undertake a complete assessment of the disruption of communications which resulted from this tragedy, because north-south and east-west communications in Scotland have been severely disrupted? That has a knock-on effect on economies elsewhere in Scotland, not only in Tayside, where obviously the main crisis occured. Does the Minister accept that Tayside authority must not be expected to bear the brunt of repairs to communications services, but that it must be a Scottish Office priority? Is he satisfied that the Bellwin formula is suitable in these circumstances, given the nature of the disaster?
I note what the hon. Lady says, and of course one appreciates the fact that there has been very severe weather in the north of Scotland and in Morayshire, with trees blown down and much damage to property. Yes, communications are a serious problem—for example, the A9 has been opened and closed and opened and closed again in the past fortnight—which have disrupted economic progress in Scotland and must be borne in mind; but, at the same time, we must pay tribute to the men who drive the snow ploughs and gritters and who have kept the roads open in particularly ghastly conditions in the past fortnight. However, everything that the hon. Lady said will be carefully borne in mind.
Although there will be a general welcome for the special assistance being offered by the Minister to the victims of flooding in Perthshire, will he ensure that the assistance is not limited to Perthshire but will cover victims of flooding in whatever geographical area they happen to reside? In view of the very severe weather suffered recently by almost all of Scotland—not only flooding but very low temperatures—will the Minister have a word with his right hon. Friend the Secretary of State for Social Security with a view to expediting the payment of cold weather allowances to people who require them, bearing in mind the fact that, not all that long ago during a previous winter, the Prime Minister personally intervened to ensure that cold weather payments were made to people in the south of England suffering severe weather conditions?
I note what the hon. Gentleman has said. As he knows, the cold weather payments are triggered by particular circumstances at particular meteorological stations, and that, if they are triggered by particular areas of cold weather, that is dealt with by the Department of Social Security, which monitors the situation carefully. However, I shall certainly bear in mind what the hon. Gentleman has said.
Iraq
3.43 pm
With permission, I should like to make a further statement on coalition military action against Iraq.
Yesterday and earlier today, the coalition took further military action against Iraq. There were a number of separate operations. At 8.45 am GMT today, four RAF Tornado GR1 aircraft and two Victor tankers took part in a further coalition operation, involving over 40 United States, British and French aircraft, against Iraqi air defence facilities and command and control facilities in southern Iraq, which had continued to pose a threat to coalition aircraft in the no-fly zone. Attacks were also carried out to suppress air defence installations which threatened the security of coalition aircraft participating in the operation. All coalition aircraft and aircrew returned safely. Four RAF aircraft participated in the attack against an air defence operations centre at Al-Najaf. Two Tornado GR1 aircraft were to use 1,000-lb laser-guided bombs against targets designated by the thermal imaging airborne laser designator pods, carried by the other two aircraft. One of the Tornados was unable to clearly identify the target and did not release its weapons in order to avoid the possibility of damage to other buildings in the area and civilian casualties. However, the other Tornado successfully completed the attack. Like the operation on 13 January, this action was taken in self-defence to ensure the safety of coalition aircraft patrolling the no-fly zone below the 32nd parallel in support of United Nations Security Council resolution 688. This was a follow-up to the action taken on 13 January. Early indications are that further significant damage has been inflicted on Iraq's residual air defences in the southern no-fly zone. Assessment of the results is continuing. This followed action in the latter part of yesterday, when cruise missiles, launched from United States navy ships in the region, attacked a facility connected with the Iraqi weapons of mass destruction programme. The early indications are that the facility was extensively damaged. This action was taken to ensure that Iraq complies with its mandatory obligations under United Nations Security Council resolution 687 and related resolutions. Iraq has committed a number of material breaches of resolution 687 and has wilfully ignored the warnings given by the Security Council, and by the United States, United Kingdom, France and Russia on 11 and 14 January respectively. There has also been a number of incidents in the norther no-fly zone. On 17 January, an Iraqi fighter aircraft violated the no-fly zone in the north of Iraq. The Iraqi aircraft was engaged and shot down by coalition aircraft. In addition, coalition aircraft were illuminated by Iraqi air defence radars on a number of occasions in the past few days, including an RAF Jaguar on 16 January. This was in violation of the coalition demarche of 14 April 1992, which warned Iraq against a number of specific actions which would be taken as indicators of hostile intent. Following one such incident, a surface-to-air missile battery was attacked on 17 January by coalition aircraft armed with the high-speed anti-radiation missile. Initial damage assessments indicate that the SAM system was put out of action. Iraqi air defence radars were again attacked using those missiles on 18 January. These coalition actions have clearly demonstrated to the Iraqis the seriousness of our demand that Iraq should comply with United Nations resolutions and our continuing determination to maintain the no-fly zones, in the north and south of Iraq. Should the need arise, the Government will consider the need for further action in consultation with coalition partners. The House would not wish me to conclude without expressing again our appreciation of the continuing efforts of our service men and women serving in the Gulf. They can be assured that they enjoy the whole-hearted support of the vast majority in the House and of the British public at large.I thank the Secretary of State for informing the House at the earliest possible opportunity of British involvement in the allied action against targets relating to the no-fly zones in Iraq. I pay tribute to the skill of our personnel involved, and I am glad that all the aeroplanes and the personnel in them returned safely.
The Opposition have always maintained that we shall give our full support to any actions that are in accordance with United Nations resolutions and with international law. In that light, I yet again offer my support to the Government in this case. We support the military action in the knowledge that the Kurds in the north and the Shias in the south face terrible persecution if the no-fly zones are rendered ineffective. If allied aircraft cannot enforce those no-fly zones because of the deployment of surface-to-air missiles, clearly they will become ineffective with the resultant genocide of the Kurds and the Shias. We know that tens of thousands upon tens of thousands of people have already died at the hands of the Iraqi dictator. With that in mind, I was delighted to see that the Secretary-General of the United Nations, Boutros Boutros Ghali, had affirmed that last Wednesday's strike was within theIf that is the case, and if that is the judgment of the United Nations Secretary-General, I assume that the latest strike was, also within the remit of resolution 687. Can the Secretary of State provide any further information about whether a Scud missile was launched by the Iraqis towards Saudi Arabia, or was that a false alarm? The Secretary of State referred to last night's raid by the Americans and the damage to the al-Rashid hotel. Has he any further information in respect of the exploration carried out by the Ministry of Defence this morning into the damage and whether that was caused by an allied missile or an Iraqi missile? The House would be reassured if we could discover the position in that respect. Does the Secretary of State appreciate that there is a real fear that the provocations of Saddam Hussein and the legitimate responses could get completely out of hand? Saddam Hussein's brinkmanship could lead to the resumption of a full scale war. There is a feeling that we are drifting towards another bout of major hostilities. If possible, that should be avoided. With that in mind, does the Secretary of State appreciate the necessity to retain as wide a consensus as possible? This legitimate action must not be portrayed as a personality struggle between the American President and the Iraqi president. In order to try to resolve that problem, would it not be sensible for the matter to be returned to the United Nations Security Council? There is no doubt in our minds that Saddam Hussein has breached most of the United Nations resolutions. On the other hand, we need a coherent and long-term strategy towards Iraq. The Government should demand a debate within the United Nations to that effect. It is absolutely imperative that Saddam Hussein is not allowed to chip away at United Nations resolutions, and thus at the authority of the United Nations. However, it is equally important that the United Nations has a coherent long-term strategy towards Iraq that embodies as wide a consensus as possible."mandate of the United Nations resolution 687."
I thank the hon. Member for South Shields (Dr. Clark) for his support from the Opposition Benches for the operation. He is correct to emphasise that the activity has the support of the United Nations. United Nations resolution 687, as a mandatory resolution, specifically calls upon the Iraqis to allow inspection of possible sites of weapons of mass destruction. Last night's action was justified, because the Iraqis deliberately tried to thwart the United Nations inspectors in carrying out their responsibilities.
We have seen the press reports about Scud missiles. However, as yet, I have seen no corroborative evidence to support the view that that incident took place. With regard to the incident involving the al-Rashid hotel, we share the hon. Gentleman's anxiety to learn the precise cause of the explosion that affected the hotel. At the present time, we do not have a detailed response that we can share with the House. Clearly, we will all be concerned to know where the precise responsibility for that incident lies. I share the hon. Gentleman's desire to ensure, so far as possible, that these matters do not continue. However, the remedy for that particular problem very much lies with the Iraqi regime in Baghdad. The coalition and the United Nations as a whole have been very careful to take a very measured, prudent and sensitive response to these continuing prevarications and provocations. As a consequence, our response has always been measured and proportionate to the nature of the provocations for which the Iraqi Government are responsible. I agree with the hon. Gentleman that one must get away from any question of personalities. While we all have our views about President Saddam Hussein of Iraq, at the end of the day it is the issues that are at stake. The threat that the Iraqi Government pose to the security of the region and the international community must be the cause of the UN response that we have seen.Although a very strong response is entirely the right answer to Saddam Hussein's strong prevarications, his renewed threats to Kuwait and his flouting of UN resolutions, does my right hon. and learned Friend agree that something more is needed in the way of longer-term strategy? Will he urge his right hon. Friends to urge our Security Council allies to develop a sustained set of pressures, in response to these incidents—not only military but political, diplomatic and economic for the longer term, so that Saddam Hussein's political enemies, including the persecuted minorities—we call them minorities, but they are majorities—in Iraq, to whom he is delivering death and destruction all the time, might be given some longer-term hope that he will be weakened, that the initiative will no longer be in his hands but will pass into the hands of the international community, where it should be kept?
My right hon. Friend the Foreign Secretary would very much agree with my right hon. Friend's attitude. Of course it is important to take into account all that can be achieved by political and diplomatic means. We resort to military action only when it is clear that there is no alternative available to the international community. The fact that there have been a number of military operations over the past week is a direct consequence of specific actions and decisions by the Iraqi Government, for which they must take full responsibility.
Will the Secretary of State confirm that it is still Her Majesty's Government's position that every such action falls to be assessed against the criteria of, first, minimum force, secondly, consistency with international law, and, thirdly, the general support of our coalition allies? Does he agree that it is now necessary to have a long-term political objective, that it is necessary that the United Kingdom and the United States should be regarded as instruments of the United Nations, and that this matter should again be discussed by the Security Council so that we may have not only legal justification but moral authority for what we are doing?
It is of course desirable to continue to have a proper long-term strategy, but that must never persuade us to forget either the need to make an immediate response to those attempts by the Iraqi regime to render inoperative the no-fly zones that are the ultimate protection for Shias and Kurds in Iraq or the determination of the Iraqi regime to seek to damage Kuwait's territorial integrity. That sometimes requires an immediate response, at the same time as we continue to develop and take forward our overall strategy.
For the avoidance of any remaining doubt, will my right hon. and learned Friend confirm that the military actions by the coalition forces during the past week have been strictly in accordance with the United Nations resolution and will, and that all those actions have been entirely lawful within the terms of the United Nations statements?
I can indeed confirm what my right hon. Friend requests, and I can do no better than to quote the United Nations Secretary-General, who, on 14 January, said:
"The raid yesterday, and the forces that carried out the raid, have received a mandate from the Security Council, according to Resolution 678, and the cause of the raid was the violation by Iraq of Resolution 687 concerning the cease fire. So, as Secretary-General of the United Nations, I can say that this action was taken and conforms to the resolutions of the Security Council and conforms to the Charter of the United Nations."
What do Ministers say to Jusef al Hoei, the grandson of the Grand Ayatollah of the Shi'ites, who said on "The Sunday Programme", as indeed did Mr. Desai, the representative of the Kurds, and Mr. Barzani, that it was pointless undertaking that bombing? Surely, to justify the bombing on the basis of the needs of the Shi'ites and the Kurds is cant.
The hon. Gentleman is of course entitled to his view, but I believe that the whole House believes that it is important that the no-fly zones should be continued. Without their protection, the Iraqi regime would undoubtedly resort to the use of aircraft to impose further punishing injury, and indeed certain injury and death, on the populations in both the southern and northern no-fly zones. I do not believe that the alternative approach which the hon. Gentleman appears to suggest would do other than render inoperative efforts by the international community to help the suffering people in Iraq.
If we look at the position from the view of the Arabs—we have, or rather had, a number of Arab friends—if it was our intention to build up Saddam Hussein's support among his people, fire up the case for the Muslim fundamentalists and spatchcock the middle east peace process, how could we have done it better? What are we to do with Israel, which also seems to be not putting into effect United Nations resolutions? Is it the case that it seems to be politically correct to zap nasty Arabs, but to ignore what is done by the state of Israel?
If my hon. Friend is anxious to avoid bolstering Saddam Hussein's image, I hope that he will accept that nothing would have bolstered that image more effectively than for him to show his ability to thwart the will of the United Nations, render inoperative the no-fly zones in southern and northern Iraq, be responsible for successful incursions into Kuwait territory, and prevent United Nations inspections of sites in Iraq that are suspected of being part of the nuclear weapons programme. That would have been the alternative.
I believe that my hon. Friend would agree that to allow that would have done infinite damage to our efforts to ensure the speedy demise of Saddam and his removal from the international scene.All of us—Opposition and Conservatives—regret the civilian casualties resulting from the bombings. Is it not a fact that Saddam Hussein is responsible for those casualties because he refuses to conform to United Nations Security Council resolutions? Does not the right hon. and learned Gentleman agree that it is nonsense for the Iraqi regime to talk of the necessity for a political solution, as it has in the past few hours, as long as it refuses to conform to United Nations resolutions passed on behalf of the international community?
Does not the right hon. and learned Gentleman further agree that, until Iraq does so, all sanctions must be stringently maintained and military action taken whenever it is regarded as appropriate under United Nations resolutions? Saddam Hussein started the crisis, and he can end it by returning to civilised behaviour instead of continuing to behave as an international outlaw.The right hon. Gentleman is correct. Anyone with residual doubts about the unreasonable nature of the Iraqis' position has only to reflect on the demand made over the weekend that United Nations inspectors seeking to go to Baghdad to carry out inspections of possible weapons sites should be required to travel from Bahrain via Jordan to get to Baghdad. Those are the sort of proposals made by the Iraqis. The United Nations spokesmen properly rejected that suggestion as intolerable in relation to their responsibilities.
While I recognise the operational constraints, may I ask my right hon. and learned Friend to take this opportunity to assure the House that a full and effective consultation mechanism is open to Her Majesty's Government to ensure that the more than 30 countries which undertook to preserve an independent Kuwait two years ago are fully in the picture and support us all the way?
My hon. Friend is correct to emphasise the importance properly attached to the widest range of agreement and consensus on such matters. I believe that the international community remains united in supporting the actions necessary to impress on Saddam Hussein and his colleagues the necessity of conforming to their obligations to the United Nations.
Is the Secretary of State aware that we are signatories of the United Nations charter that pledges us to rid humanity of the scourge of war? President Bush is not licensed to kill or to speak on behalf of the international community. Is the Secretary of State also aware of a report in The Times today that the International Atomic Energy Agency inspected the site bombed 16 times last night and said that there was no military significance in it?
If it is the case that the two women receptionists at the al-Rashid hotel—whose deaths brought no sign of regret from the Secretary of State—had been killed in that raid, that would be in breach of international conventions on bombing civilian populations, and would, in effect, amount to a crime by those who conducted it. Finally, is the right hon. and learned Gentleman aware that he is taking the armed forces of this country deeper and deeper into what could become a full-blown war, without any authority from the House of Commons? We have never been told the policy or invited to endorse it, and it is a policy that has diminishing support worldwide.The right hon. Gentleman referred to the United Nations and its charter. I think that he will acknowledge that the Secretary-General of the United Nations—a fairly authoritative spokesman on this subject—has said clearly and unequivocally that he believes that the action is justified under the terms of the United Nations charter.
Of course we regret any civilian casualties. I said in my statement that the Royal Air Force had taken action to try to minimise that risk, as did other coalition partners. As for the International Atomic Energy Authority, the right hon. Gentleman should recall that it published a report in May 1992 which included the two plants on the site that was the subject of last night's attack in a list of facilities identified by the Iraqis themselves as manufacturing facilities for their enrichment programme—in other words, for producing components used in the manufacture of nuclear weapons.Can my right hon. and learned Friend confirm that this is the first time in the history of the United Nations that the Security Council has sought to remove from a member of the United Nations its nuclear, chemical and strategic capability, and thus that it is incredibly important for the future of the United Nations that success is achieved?
Secondly, what thought is being given to a no-fly zone for Iraqi combat aircraft covering the whole of Iraq, rather than just two important parts of it? Finally, bearing in mind Turkey's importance in the protection of the Kurds in northern Iraq, what is the position of that country in current events?As my hon. Friend says, the efforts by the United Nations to deal with the Iraqi nuclear programme are part of its overall policy of ensuring that Iraqi weapons of mass destruction are eliminated. That is clearly a consequence of the Iraqi aggression and occupation of Kuwait some two years ago.
The reason for imposing no-fly zones in southern and northern Iraq was the Iraqi use of combat aircraft to oppress those who live in the northern and southern parts of the country. That consideration does not obtain for the central part of the country, so the rationale for the no-fly zones does not apply to it. We have close consultations with the Government of Turkey. It provides facilities at Incirlik for the imposition of the no-fly zone in the northern part of the country, and we greatly welcome Turkish co-operation.The Minister will know that a constituent of mine, Paul Ride, and another Briton are being held in prison in Baghdad. Does he share my concern that the action taken against Iraq, especially the cruise missile attack which led to civilians being killed, will make it much more difficult to secure their release? What has been done to ensure that the men are safe? What hope can he offer their families about their release?
The hon. Gentleman is right to draw attention to the plight of these people. We are seeking to keep in contact with them through the good offices of the Russian Government. My right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs will wish to inform the hon. Gentleman about developments.
Will my right hon. and learned Friend confirm that, if Saddam Hussein refuses permission to United Nations teams to travel around Iraq with a view to identifying and destroying his nuclear and chemical weapons capabilities, it is hardly surprising that other means are found to do that?
What contact has there been with the incoming American president? Will the robust line in support of the United Nations resolutions taken by President Bush be followed by his successor at the White House?It is reasonable to assume that the present American Administration will have the closest possible contact and consultation with the President-elect. It is clear from the public statements by President-elect Clinton that he fully supports the actions that have been taken over the past week and intends to follow a similar policy when he assumes office.
Does not the international community have two responsibilities, the first of which is to ensure that the ceasefire agreement and the Security Council resolutions are fully implemented?
Critics will have to answer for what they would do in view of all the provocations if force is not used. Secondly, as we have no quarrel with the people of Iraq, we must try to ensure as far as possible the minimum civilian casualties and, hopefully, no civilian casualties at all. Apparently, there is yet no final evidence that the attack on the hotel was by the allies, but if it was, I deeply and genuinely regret what occurred. Does the Secretary of State agree that we should concentrate on weapons of mass destruction, which need to be destroyed?The hon. Gentleman is correct. He spoke about the hotel incident and was right to emphasise that, as yet, we do not know the precise cause of the incident. I understand that the hotel is about 15 miles from the factory which was the target of the operation. I assure the hon. Gentleman that all those who take part in these operations attach maximum importance to not attacking sites that are close to areas of concentrated civilian populations. The hon. Gentleman is right to draw attention to that.
Does my right hon. and learned Friend agree that the resumed provocation by Saddam Hussein merely causes suffering to the ordinary people of Iraq and that, sadly, that is likely to continue while Saddam Hussein is in power? Since the end of the Gulf war, political opposition to Saddam Hussein has become even weaker. Will my right hon. and learned Friend give a possible scenario for an end to this conflict so that coalition troops may be safely withdrawn?
Plainly, we hope that the time will come when the people of Iraq are allowed to show their true feelings about the present Iraqi regime. In the meantime, it is crucial for the United Kingdom and for other countries in the Security Council and the United Nations as a whole to do what we can in a responsible, sensitive and moderate fashion to ensure the preservation of the interests that point towards stability in that region.
While one fully supports the need for military action, in this case to enforce the terms of United Nations Security Council resolutions, does not the Secretary of State agree that there is an increased threat of Iraqi violation of Kuwait territorial integrity? Can he assure the House that steps have been taken to ensure that, if there is any such threat to Kuwait's territorial integrity, sufficient and adequate forces are in place to ensure that such an attempt is unsuccessful?
It has been made clear to the Iraqi Government that any violations of Kuwait's territorial integrity would be treated with the utmost seriousness. The United States Government recently announced the deployment of a battalion group to Kuwait and, of course, the coalition as a whole continues to attach great importance to the independence of that country and the preservation of its right to that status despite provocations by Iraq.
rose—
Order. We must now move on. [HON. MEMBERS: "Oh."] Order. I wish to hear a Standing Order No. 20 application from Mr. Tam Dalyell.
I believe that there is a genuine case, on grounds of urgency and importance, for this matter to be discussed under Standing Order No. 20.
In the very nature of things, there are many different views in the House of Commons which, bluntly, may differ from those of both Front Benches. In those circumstances, question and answer, doubtless conducted in good faith, is insufficient to deal with an immensely important problem. There can be no doubt of its importance. Military experts, such as Colonel Dewar of the International Institute for Strategic Studies, whom the Chairman of the Select Committee on Foreign Affairs heard at lunchtime, say that this could be the beginning of a Vietnam. If, in the opinion of serious experts, we could be embarked on a situation parallel to that of Vietnam, getting deeper and deeper into a situation that may not be too obvious at the beginning, surely there is a serious case, not for the posture of arguing for two minutes for a debate but for you using your discretion, Madam Speaker, to grant a debate for those many hon. Members who have views to put on this overwhelmingly urgent matter.I have listened carefully to the hon. Member for Linlithgow (Mr. Dalyell). As the House knows, I have to give my decision without giving a reason for it. I do not consider that the matter that he has raised is appropriate for discussion under Standing Order No. 20—[Interruption.] Order. Therefore, I cannot submit the application to the House—[Interruption.] Order. I am on my feet. Although I do not feel, at this stage, that it would be appropriate for me to grant the Standing Order No. 20 application, let me make it clear to the hon. Member for Linlithgow and to the House that I recognise the gravity of those developments—a recognition that I hope and I believe is shared by the entire House.
rose—
Order. I hope that I have made my views on the matter known, so that there will be no further points of order.
I did not know that my hon. Friend the Member for Linlithgow (Mr. Dalyell) was to seek the Adjournment of the House under Standing Order No. 20, and it was my intention to make a request based on a narrower but important point—that British forces are being committed to military action without a debate. That is not the more general question raised by my hon. Friend. In the past—30 or more years ago—I raised a similar point when a Minister failed to give an assurance that British troops would not be used without the consent of Parliament. The House should assert its authority now, to require a statement as to the circumstances under which the forces are to be used and the seeking of its authority for such a move before we adjourn today.
I hope that you recognise, Madam Speaker, that I am not challenging your ruling on the request made by my hon. Friend, but I ask you to consider that point carefully. If we lose control of the Government, and they do everything that the American Government want, we might as well pack up and go home.I appreciate the point made by the right hon. Gentleman. As he knows, it is a much wider point than that on which the original Standing Order No. 20 application was made. As he also knows, he should have given me notice of such an application by 12 noon today. However, I have heard what he says. I carefully considered the words that I used following the normal statement that I make on these matters. I hope that the House will allow it to rest there for the time being.
On a point of order, Madam Speaker.
Is it a different point of order?
It is a related point of order.
Let me see how closely it is related.
Thank you, Madam Speaker. I listened carefully to your statement, as did many others. As you are aware, many hon. Members do not share the consensus between the two Front Benches on the issue. Should further hostilities be resumed tonight, and further applications under the Standing Order No. 20 procedure be made, and should the Government still be reluctant to have an open debate on their policy towards Iraq, would you be minded to ensure that the House had that debate, despite the wishes of the Government?
I am always ready, according to the rules and procedures, to look at Standing Order No. 20 applications when they are made.
On a point of order, Madam Speaker.
Does it relate to the previous point of order?
It is separate.
Separate and different?
Separate and different, Madam Speaker.
During questions to the Secretary of State for Defence following his statement, points were made about the effect of the attack on citizens who are involved in Iraq. The Secretary of State said that it was a matter for the Secretary of State for Foreign and Commonwealth Affairs. As that Secretary of State is here, could you say, Madam Speaker, that, if he were to request the opportunity to make a statement later today, perhaps tonight, it would be received with approval? A serious consequence of the warmongering of George Bush is that the lives of British citizens could be at stake.That is a somewhat hypothetical question but, as the House knows, when any Minister makes it known that he or she wishes to make a statement, that statement is allowed.
On the question of Standing Order No. 20 applications, the Speaker has to play an important role in making a decision, albeit rarely, on the requests that are made by Back-Bench Members. I specify Back-Bench Members, because on this occasion the application could come only from them. That is because the two Front Benches and the Liberal Democrats are all in cahoots.
Your role, Madam Speaker, is extremely important on this occasion, because we have an American-led war only because of the role of the two Front Benches. As we cannot expect the Government to make a decision unless George Bush allows them to have a debate, your role in responding to Standing Order No. 20 applications is more important now than on any other occasion when such applications are made. You have to overcome the two Front Benches, and the fact that we are talking about the Americans running the show.I take my role extremely seriously. I can assure the House that I am not in cahoots with anyone.
May I help you, Madam Speaker, and the Government by reminding you that I have introduced the Declaration of War (Requirement for Parliamentary Approval) Bill? If the measure were brought forward for swift debate, we would have the opportunity to discuss various matters. Those who think, as I do, that we are seeing a personal vendetta being pursued by the United States President would be able to explain that view. We would also have the opportunity to vote against such action.
The hon. Member is astute when it comes to public relations in relation to his proposed legislation.
I wish to ask a question on the length of statements and the time that is given to them. Are you in a position, Madam Speaker, to outline the criteria that you employ in determining just how long questions on a statement should run? In the light of the Standing Order No. 20 application and the observations that were added to the sentiments expressed by my hon. Friend the Member for Linlithgow (Mr. Dalyell) by my right hon. Friend the Member for Chesterfield (Mr. Benn), it seems that some statements should be allowed to run a little longer than others, because of the gravity of the subjects that they raise.
rose—
Order. Are these points of order really necessary? I am attempting to deal with an extremely serious matter. I shall reply to the hon. Member for Greenock and Port Glasgow (Dr. Godman). I am not in a position to set out the criteria for determining the time that I allow for questions following a statement: that must be a matter for my judgment. I have to ensure that a fair proportion of Members who are anxious to put a question are able to do so. I must ensure also that there is a variety of opinion within those questions, and that hon. Members on both sides of the House are dealt with as fairly as possible.
I listened carefully to the Standing Order No. 20 application that was made by the hon. Member for Linlithgow (Mr. Dalyell) and to your measured response, Madam Speaker. Although the application followed a statement on Iraq, I did not hear the hon. Gentleman give a title to it; nor did I hear you announce the title when you gave your measured response. This is an important matter, because you gave an indication to the House of your own views. It is—[Interruption.] The hon. Gentleman has expressed concern about both Iraq and, on a separate occasion, the intervention in Bosnia. It is important that we know the heading of the hon. Gentleman's Standing Order No. 20 so that we can judge your measured response to it, Madam Speaker.
rose—
Order. I ask right hon. and hon. Members to let me do this. I am capable of letting the House know that the title of the application was
"The changing military situation in Iraq".
Having sat through the statement of my right hon. and learned Friend the Secretary of State for Defence on Thursday and again this afternoon, and having failed, sadly, to catch your eye on both occasions, Madam Speaker, and given the exchanges that have taken place over the past 15 minutes, it seems that many right hon. and hon. Members—especially the right hon. Member for Chesterfield (Mr. Benn)—have been able to catch your eye this afternoon, as they did last week, and thereafter to raise the matter again. It seems that some Members are getting more than their fair share of debating time.
Order. If the hon. Member is seeking to criticise the method by which I call hon. Members, he had better table a substantive motion. I invite him and any other Member who is expressing such criticism to stop by my office. I shall then ensure that they are given a printout from my computer of the number of times that they have been called.
Further to that point of order, Madam Speaker. That is definitely not the case; you misunderstood my point. Those hon. Members who have been critical of the opportunity that they have had to express a view this afternoon have had several opportunities to do so during the last three sitting days. I make no criticism of your selection, Madam Speaker—you have a difficult job—but it appears that some hon. Members are ungrateful for the opportunities that they have been given.
How very kind of the hon. Gentleman. I am always happy to receive bouquets.
Point Of Order
4.24 pm
On a point of order, Madam Speaker. Have you had an opportunity to rule on the very serious allegations made by my hon. Friend the Member for Dumbarton (Mr. McFall) last Wednesday about the tabling of parliamentary questions? I note that there is a question on the Order Paper today from the hon. Member in relation to whom it was alleged that a civil servant had initiated his question. Have you ruled on that, Madam Speaker?
No, I have not done so. The matter is still being investigated, but I assure the House that I shall give a ruling at the earliest possible moment.
Scottish Grand Committee
Local Government Reform
That the Matter of Local Government Reform in Scotland, being a Matter relating exclusively to Scotland, be referred to the Scottish Grand Committee for its consideration.— [Mr. Heathcoat-Amory.]
Orders Of The Day
European Communities (Amendment) Bill
Considered in Committee [Progress, 14 January]
[MR. MICHAEL MORRIS in the Chair]
Clause 1
Treaty On European Union
4.25 pm
On a point of order, Mr. Morris. You will recall that last Wednesday, under a ruling from the Chair, I was not successful in moving a motion to report progress. Of course, that is a past matter. I think that you will agree that unlike our system for applications under Standing Order No. 20, to which moving a progress motion or an amendment in Committee is at least comparable, the Chair is given no criteria on which to make a judgment. Therefore, hon. Members also do not have any distinct criteria to guide them.
Would I be correct in assuming that the major factor that the Chair takes into account when deciding whether to accept a motion to report progress—which is effectively the adjournment of the Committee—is whether information, an event or some other factor outside the proceedings of the Committee is of sufficient importance to require clarification before debate continues? I assume that that is the criterion. I do not want to hold up the Committee on a future date and if you, Mr. Morris, could endorse my suggestion, modify it or give some indication of the criteria, that might ensure that our proceedings move at maximum speed.I am grateful to the hon. Gentleman. He knows that the Chair does not give reasons. However, I can tell him that I take everything into account in reaching a decision on any point of order that is raised.
I beg to move amendment No. 1, in page 1, line 9, after 'II', insert
'(except Article 130 on page 35 of Cm. 1934)'.
With this, it will be convenient to consider the following amendments: No. 3, in page 1, line 9, after 'II', insert
'(except Article 129(a) on page 34 of Cm. 1934)'.
No. 14, in page 1, line 9, after 'II', insert
'(except Title XV on page 37 of Cm. 1934)'.
No. 132, in page 1, line 9, after 'II', insert
'(excluding Article G D (21) on page 16 of Cm. 1934).'.
No. 184, in page 1, line 9, after 'II', insert
'except Article 3 (e) on page 9 of Cm. 1934'.
No. 189, in page 1, line 9, after 'II', insert 'except Article 3 (1)'.
No. 190, in page 1, line 9, after 'II', insert 'except Article 3 (m)'.
No. 243, in page 1, line 9, after 'II', insert 'except Article 130i'.
No. 244, in page 1, line 9, after 'II', insert 'except Article 130j'.
No. 245, in page 1, line 9, after 'II', insert 'except Article 130k'.
No. 250, in page 1, line 9, after 'II', insert 'except Article 130f'.
No. 251, in page 1, line 9, after 'II', insert 'except Article 130g'.
No. 252, in page 1, line 9, after 'II', insert 'except Article 130H'.
No. 357, in page 1, line 9, after 'II', insert
'except Article 3(b) as referred to in Article G on page 9 of Command Paper number 1934 '.
No. 358, in page 1, line 9, after 'II', insert
'except Article 3(c) as referred to in Article G on page 9 of Command Paper number 1934 '.
No. 360, in page 1, line 9, after 'II', insert
'except Article 3(g) as referred to in Article G on page 9 of Command Paper number 1934 '.
No. 361, in page 1, line 9, after 'II', insert
'except Article 3(h) as referred to in Article G on page 9 of Command Paper number 1934 '.
No. 384, in page 1, line 9, after 'II', insert
'except Article 1301 as referred to in Article G on page 38 of Command Paper number 1934 '.
No. 385, in page 1, line 9, after 'II', insert
'except Article 130n as referred to in Article G on page 39 of Command Paper number 1934 '.
No. 386, in page 1, line 9, after 'II', insert
'except Article 130o as referred to in Article G on page 39 of Command Paper number 1934 '.
No. 387, in page 1, line 9, after 'II', insert
'except Article 130p as referred to in Article G on page 39 of Command Paper number 1934 '.
This is a large group of amendments, which essentially deals with European Community industrial policy, consumer protection policy, commercial policy and policy relating to research and development.
Amendment No. 1 is, in some respects, rather bizarre. Its purpose is to provide a peg for debate. If the amendment is put to the vote later, I shall ask my right hon. and hon. Friends not to support it. The Labour party at both national and European Community level favours industrial policy, but the amendment would delete all references to that in the treaty. Therefore, for that reason there is a clear contradiction in our position. As I said, the purpose of the amendment is to provide a peg for a discussion on European industrial policy, the Government's intentions and the way in which the Government define that policy. It may seem to many outside the House watching our proceedings that that is a strange way of making progress, but it is the only means of allowing us to debate issues that are crucial to many people.I heard my hon. Friend say that members of the Labour Front Bench—I emphasise the words "Front Bench"—support Common Market industrial policy. I hope that my hon. Friend will revise his opinion. In all the years since we joined the Common Market in 1973, we in the mining industry have been struggling to sell our coal. We have the cheapest deep-mined coal in Europe. It is twice as cheap as German and Spanish coal, yet the Common Market's tinpot industrial policy means that British miners have not been able to sell coal to the rest of the Community.
Conversely, the Common Market has been used as a laundering base for South African slave labour coal and Colombian coal. Twenty million tonnes of it were laundered in the Common Market and sold to Britain last year, with the result that the equivalent of 15 pits have been shut. If we do not change that policy, many more miners—and all those who provide goods and services to the mining industry—will be thrown on the scrap heap. I hope that my hon. Friend will take a different view of the Common Market's industrial policy. It is supposed to be based on a level playing field, but instead of buying British coal, the other member states buy German and Spanish coal—anybody's coal bar our own. It is high time that members of the Labour Front Bench took a different view of the Common Market's industrial policy. In my view, it stinks, and it has added to Britain's unemployment figures.My hon. Friend makes a number of cogent and well-argued points, with which I am not unsympathetic. I suggest that he returns to them when the Committee debates the next group of amendments, which deal with transport, telecommunications, and energy policy—when the intervention that he just made will be even more apposite.
Does my hon. Friend place under the heading of the Community's common industrial policy regulations concerning terms and conditions of employment? I ask that in relation to what is known by the acronym TUPE—regulations for the protection of employees on the transfer of undertakings. I am given to understand that the Government are in flagrant violation of the directive enacted by the Community 15 or 16 years ago. What is the point of the Committee debating such important issues when we have a Government who choose deliberately to ignore a Brussels-based directive that has the force of law throughout all 12 member states?
My hon. Friend makes an important point. I suspect that it drifts a little from amendment No. 1, but he will have an opportunity later in Committee directly to address employment issues. No doubt my hon. Friend agrees that there is no future for any industrial economy that is based on cheap labour and poor employment conditions.
On a point of order, Mr. Morris. When my hon. Friend offered his assessment of the validity of my remarks, I thought for a second or two that you were nodding in assent. I hope that I will not be ruled out of order when I come to talk about terms and conditions of employment throughout the 12 member states.
Order. We shall have to wait and see what the hon. Member for Leeds, Central (Mr. Fatchett) does next, but I draw his attention to the marshalling of amendments on the paper. I hope that he will stay within the terms of the amendments with which we are dealing. Now that we have moved on to specific matters, we have a fairly tight debate ahead of us.
I was not trying to assume your responsibilities, Mr. Morris. I suspect that my task is difficult enough without my taking on additional onerous duties.
The House will regret the curmudgeonly attitude of many Opposition Members. Do not the cohesion funds, in particular, provide tremendously exciting opportunities for a socialist Europe? No wonder those who want the power of politicians to be expanded at the market's expense were so enormously encouraged by the Government's support for the extension of the cohesion funds at the Edinburgh summit.
There is no doubt that Labour Members are presented with a tremendous opportunity by the exciting and on-going vision of cohesion funds. They will give politicians the chance to beat the market, and to select not merely individual industries but countries and even individuals for the benefactions of taxpayers throughout the Community. This is indeed a tremendously exciting opportunity: all true socialists ought to grab it, and to thank the Prime Minister for giving it to them.I do not think that the hon. Gentleman's intervention—intriguing though it was—was necessarily directed at me. It may well be part of the current debate within the Conservative party, some of which I read in last week's Hansard.
Europe's key social and economic problem at present is rising unemployment. Unemployment corrodes social cohesion, lowers living standards, removes hope, creates social tension and establishes the conditions for right-wing political extremism. We have witnessed the development of all those conditions in Europe over the past 18 months to two years—which is not surprising, given the backcloth of rising unemployment. Let us examine the standardised seasonally adjusted unemployment rates provided by the International Labour Organisation. Between June 1990 and October 1992, unemployment rose by 18 per cent. across the Community; that overall pattern however, fails to take account of the disparities between individual countries. The Danes, for example, have experienced a 20 per cent. increase, and the French a 13 per cent. increase. The Federal Republic of Germany—West Germany—experienced a 6 per cent. reduction, Ireland a 17 per cent. increase, Italy a 9 per cent. increase, the Netherlands a 20 per cent. reduction and Spain a 17 per cent. increase. What stands out like a sore thumb is the United Kingdom figure. As I have said, according to the ILO the European Community average rose by 18 per cent. in the period concerned; in the same period, unemployment in this country rose by a staggering 81 per cent. This country's figure is four times as bad as the Community average. When my hon. Friend the Member for Bolsover (Mr. Skinner) drew attention to the potential for further job losses in the coal industry, he clearly had in mind the poor performance of the British economy in regard to employment.rose—
rose—
I shall give way in a moment, but it may help both my hon. Friend and the hon. Gentleman if I give some more figures. National definitions of unemployment show exactly the same pattern. Despite the Government's attempts to adjust the unemployment figures during their period in office, Britain's economic performance in terms of job creation is shown to be very bad in comparison with the rest of Europe.
For the period from June 1990 to October 1992, the increase in unemployment is sharper. Unemployment was up by 37 per cent. in Belgium; by 31 per cent. in Denmark; by 28 per cent. in France; by 38 per cent. in Greece; by 27 per cent. in Ireland; and by 61 per cent. in Luxembourg. In the Netherlands unemployment was down by 8 per cent; in Spain it was down by 1 per cent. The increase in unemployment throughout the European Community averaged 19 per cent. Yet again, however, the United Kingdom figure, under this Conservative Government, showed an increase in unemployment of 81 per cent. We are doing considerably worse than any other European Community country.In making that extremely important point regarding the increase in unemployment in the United Kingdom, does the hon. Gentleman concede that the period that he has chosen almost exactly coincides with the period when we were members of the exchange rate mechanism? Does he not therefore conclude that that was the major contributory factor which led to higher interest rates than we could afford, together with the bankruptcies caused by the recession, with which his party concurred? Does he agree that by not repudiating the economic and monetary union provisions and the central banking provisions of the treaty, the recession and unemployment will grow even worse?
I suspected that the hon. Gentleman would make that point. Other members of the exchange rate mechanism experienced considerably lower increases in unemployment. The question, therefore, that he needs to ask relates to the basic strength and structure of the British economy.
The Italians left the exchange rate mechanism at about the same time as the United Kingdom. During the same period, Italy's unemployment increased by 9 per cent. according to the International Labour Office's figures, and by 13 per cent. according to the Italian Government's figures. That is a considerably lower figure than the United Kingdom figure. If the hon. Gentleman wants to do some research, he ought to remember that in any laboratory one controls for variables. I am not sure that the hon. Gentleman has controlled for the variable, which is the strength and the weakness of the British economy.This country left the exchange rate mechanism in September 1992. Today Plessey-Siemens, a major employer in my constituency, announced 80 job losses, with 33 people to be made redundant by 26 February. Whether we are within or outside the exchange rate mechanism, that is yet another indication of the fact that under this Conservative Government massive job losses continue in manufacturing industry. That is the fault not of the exchange rate mechanism but of this Government's lack of an industrial policy, their failure to invest in training and their lack of a strategy to help manufacturing industry. Since the Berlin wall came down in 1989, there has been a massive reduction in defence industry jobs, including those in my constituency, with the result that in the last few years it has lost about half its manufacturing employment. We need an interventionist industrial strategy on a Europe wide basis.
I am pleased that the hon. Member for Wolverhampton, South-West (Mr. Budgen) is so committed to the policies that he outlined. Government intervention is needed if we are to deal with these problems. It cannot be left to the vagaries of the market. We need a national intervention policy and a Europe wide industrial strategy, as proposed by the Commission.My hon. Friend asked me whether I had noticed that the Government left the exchange rate mechanism in September. I did. I sometimes wonder, though, whether Ministers in their subsequent statements remembered what they said prior to September of last year. My hon. Friend made a telling point about the need for an industrial strategy. Labour has been asking for such a strategy for a long time. Our poor performance in manufacturing trade compared with the rest of the world and the rundown of manufacturing jobs will not cease or improve until we have an industrial strategy.
Does the hon. Gentleman agree that within the constitution of the European Community there are already the seeds of a very substantial industrial policy? That must be one of the reasons why some Opposition Members, who may have doubts about sovereignty, none the less believe that this is a practical mechanism for idealistic socialism of the most advanced sort.
The hon. Gentleman continues to offer the Committee some interesting definitions of socialism. May I suggest that he should wait for the Minister's reply, when we may find out how this Government define industrial policy at European Community level?
4.45 pm
My hon. Friend is making an extremely good speech and has put his finger on some very good points. Is he aware that France and Italy joined the exchange rate mechanism before we did and that when this country was considering joining the ERM the Employment Select Committee asked the Department of Employment what research it had carried out into the effect of ERM membership on Italy and France? We were sent two pieces of academic research which showed that the effect on Italy of joining the ERM was to increase unemployment by 1 million and that the effect on France was to increase unemployment by roughly 500,000.
The chief economist of the Confederation of British Industry said at that time that if Britain joined the ERM and things went well for us within it, unemployment would be increased by 500,000 and that if things went badly unemployment would increase by 1 million. During the period that we were members of the ERM, unemployment rose by about 1.1 million. Are not there dangers for socialists in that type of policy? In France, the socialist Government pursued the franc fort policy, which has led to even more unemployment in France than in Conservative Britain. It looks as though the socialist party in France will be massacred at the next election because of the policy that it pursued.My hon. Friend was a very experienced and able Chairman of the Employment Select Committee. Therefore, I have listened with interest to what he said. May I suggest to him, however, that there is a very strong socialist argument for fixed exchange rates? The key argument relates to the level of those fixed exchange rates and the ability to adjust. I suspect that the evidence submitted to the Employment Select Committee varied in terms of its conclusions on the flexibility of the exchange rate mechanism and the level of the exchange rates within the ERM. It is those arguments which we should address, rather than arguments about a free market in currencies.
Has it not occurred to the hon. Gentleman that the slavish adherence of the Opposition Front Bench to the malign policy of the exchange rate mechanism may have contributed to job losses, deflation and unemployment? Is not the essence of the debate that competitiveness often reflects the exchange rate and that adherence, therefore, to what I would describe as philosophical dogma brings about the very objectives that I take it the Opposition Front Bench do not seek? The fact is, therefore, that somebody else's industrial competitive policy depends upon matters that are better argued and determined by markets than by ourselves in this Chamber.
I wish to make progress, but I shall try to respond to the hon. Gentleman's point. It is a novel notion of political accountability that the Opposition should be held responsible for the policies and consequences of the Government's actions. The hon. Gentleman will remember that in the early autumn of last year, my right hon. and learned Friend the Leader of the Opposition and my hon. Friend the Shadow Chancellor asked for a realignment of currencies within the exchange rate mechanism.
That was after we left the ERM.
No, before.
Will the hon. Gentleman give way?
No, I must make some progress.
Could I make just one point on what the hon. Gentleman has just said?
No.
rose—
Order.
Will the hon. Gentleman allow me to make just one point?
I think that the hon. Gentleman would be the first to agree with me if I said that I have been kind to him in terms of the number of interventions that I have allowed so far.
Yes, indeed, but I want to assist the hon. Gentleman.
Because the hon. Gentleman has been so keen to educate his colleagues about the nature and the dangers of socialism, I am tempted to give way to him on this final occasion.
Will the hon. Gentleman assist the Committee, because I saw many of his colleagues raise an eyebrow at his earlier comments? Why is there a socialist argument for fixed exchange rates? In 1979, Mr. Callaghan said that Britain should not enter the exchange rate mechanism—the poor Mr. Callaghan who had done the honourable thing by resigning when there had to be a devaluation in 1967. Until recently, it was the Labour party which had learnt most from the agonies of fixed exchange rates, which are an economic mistake. Will the hon. Gentleman please explain how it is a specifically socialist thing to have fixed exchange rates?
rose—
Order. If hon. Members wish to amalgamate the section on economic policy with that on trade deficits, the Chair will oblige, but to date that has not been the feeling of the Committee, and I respectfully suggest that the intervention of the hon. Member for Wolverhampton, South-West (Mr. Budgen) is not covered by the amendments. I should be grateful, therefore, if the hon. Member for Leeds, Central (Mr. Fatchett) would resume his speech.
rose—>
rose—
rose—
I shall give way shortly. It is interesting to see one or two of my hon. Friends with their hands up. That takes me back to my teaching experience, if nothing else. I shall make progress and then give way.
I was trying to show the extent to which unemployment has increased across the Community and how Britain has the worst record, with unemployment growing four times faster than the average. There is an increasing view that the world will divide into a number of economic trading blocs—Japan, the United States and the European Community. I am not sure that that view can be supported. Indeed, it is often simplistic about the flows of capital, but if the European Community is to compete, we need policies—Will the hon. Gentleman give way?
May I finish?
We need policies that provide for high-technology industries and for highly skilled, well-paid and secure employment. Statistics show that, as a trading bloc, the European Community has not performed particularly well against the United States and Japan in the past decade. In each year of the 1980s, the Japanese figures for GDP growth were better than those of the European Community. The United States and the European Community have performed roughly the same, but Japan has been growing faster than the European Community. In each year of the 1980s, unemployment in Japan grew slower than in the European Community, and each year somce 1981 unemployment in the United States has grown slower than in the European Community. The European Community has performed relatively poorly against other traing blocs and has experienced a sharp increase in unemployment, with the increase being sharpest in the United Kingdom. Against the background of relatively poor industrial performance and the growing social problems that are caused by unemployment, we argue that the European Community needs an industrial policy. Interestingly, the Government signed the Maastricht treaty, but on a domestic level Ministers at the Department of Trade and Industry have always resisted the development of an industrial strategy for the United Kingdom economy. Just before Christmas, Neil Johnson, director-general of the Engineering Employers Federation, stated clearly that the Government had no strategy for industry, no policy for manufacturing and that they were leaving the fate of British industry to the markets. The CBI, the Engineering Employers Federation and a range of employers' and trade union organisations have been asking for a new partnership between Government and industry, yet at national level the Government resist such a policy. What is significantly different at European Community level that enables the Government to sign up for an industrial policy? The Minister must explain that conversion because, although the hon. Member for Wolverhampton, South-West (Mr. Budgen) is no longer present, some other Conservative Members will be interested to know how a Government who profess their belief in free markets for the United Kingdom can adopt a different position in relation to Europe.Will my hon. Friend consider what would have happened to industrial manufacturing in Britain if the Government had got their way and remained in the ERM with 15 per cent. interest rates? That would have devastated our jobs, industrial investment and manufacturing future.
My hon. Friend is absolutely right. That is why my right hon. and learned Friend the Leader of the Opposition asked in July for realignment of currencies and cuts in interest rates, which would have enabled us to avoid the cold shower of membership of the ERM at a particular rate. My hon. Friend is right, and more jobs would have been lost.
I agree completely with the case that my hon. Friend is advancing and should like to express my gratitude for his answer to my earlier question. I think that he was saying that there is a case for managed exchange rates. Originally, the ERM was supposed to be a system of fixed but flexible exchange rates in which there could have been a realignment, as there should have been. Has he noticed that the ERM has reached a stage at which exchange rates are supposed to be fixed irrevocably, and that, as part of the procedure for achieving a single currency, the Maastricht treaty lays down irrevocably fixed exchange rates—
Order. I am afraid that the hon. Gentleman is straying. I call Mr. Fatchett.
The point that my hon. Friend made—
Order. I have understood the point. The exchange rate mechanism is a separate debate. I have listened attentively—
rose—
Order. The hon. Gentleman may wish to rephrase his intervention in a moment, but his previous intervention was out of order. I will call Mr. Fatchett, who may give way again.
I will make progress, because my hon. Friend will be able to return to those points later.
The Government have accepted the European Community's industrial policy. We would accept the principles and assumptions behind that policy. Some Conservative Members clearly do not do so, and the hon. Member for Wolverhampton, South-West will be interested to hear the three assumptions that underpin a industrial policy.Will the hon. Gentleman give way?
No. I will continue for a minute.
The three assumptions suggest that an industrial policy and an effective manufacturing sector cannot be achieved without intervention in the economy or the market.Will the hon. Gentleman give way?
No.
First, any industrial policy makes it clear that the market alone cannot deliver against a set of social and economic objectives. The market cannot deliver an effective manufacturing sector. It cannot deliver, and has not delivered, in relation to the provision of skills. It has not delivered in terms of regional equality, which is why there are regional imbalances in the United Kingdom and across Europe. It has failed to provide investment—the seedcorn for research and development and for the development of new technologies and ideas.The hon. Gentleman has talked a great deal about unemployment in relation to competitiveness. Does he agree that, when competitiveness was operating at its best in this country—during the 1980s—we created more jobs than all other European countries put together? Having just returned from the United States, does he not agree that, unless we as a Community put the right level of research and development into our industry, we shall never be competitive? Will he therefore deal with the amendment and talk about research and development and competitiveness, not about economic policy?
5 pm
I am delighted that the hon. Gentleman seems to be picking up the point that I was making. He may later be drawn into conversation with one or two of his hon. Friends. My point, with which he now seems to agree and about which he needs to persuade his ministerial colleagues with reference to the United Kingdom, is that we cannot merely leave the market to deliver in certain respects.
I now deal with one or two of the issues to which I drew attention earlier. The first is regional imbalances. It is clear that Governments of all parties have recognised that there are social inequalities because of imbalances among regions. That is why Governments of all parties have had regional policies for the past 30 years and why there is a need for intervention in the market. If we leave the direction and location of industry to the marketplace alone, we shall, as in the past, see the south-east prospering while other parts of the country do not. That is why we have all accepted the need for an industrial policy to deal with regional disparities.rose—
No, I must continue. I have given way to the hon. Gentleman three times—I am sure there must be some biblical reference there. I must make some progress.
It is because of the market that Governments have recognised the need to intervene to provide education and training to deal with our skills deficit. Our criticism of the Government is that they have not done enough and that, in terms of skill, there is a real danger that we shall lag behind other countries.The hon. Gentleman is moving an amendment—there is a point to make.
I shall not give way to a sedentary intervention. If the hon. Gentleman allows me to make a little progress, I shall give way to him.
I was saying that Governments have intervened. I share the view, which has been expressed strongly by my right hon. and learned Friend the Leader of the Opposition, that the United Kingdom economy will compete effectively only if we deal with our skills deficit and shortages. That means that we need more investment in education and training. The same applies to research and development. Because of our failure through the market to provide long-term research and development and long-term investment for research and development, the Government have intervened, often with very limited resources, to ensure that British industry and higher education have the opportunity to develop new techniques, new research and development and new ideas. As a country which recognises the need for an industrial strategy, we must ensure that our research and development is able to compete with that of other countries.rose—>
Let me finish this point.
The first assumption behind any industrial policy is that the market alone cannot deliver, which is why there is a need for intervention. That issue clearly unites the Opposition and it is why we, like virtually every industrial organisation in the country, have been asking for an industrial policy and why we shall continue to bang on the door for such a policy.rose—
The hon. Member for Aldridge-Brownhills (Mr. Shepherd) has been the most persistent. I shall then give way to my hon. Friend the Member for Newham, North-East (Mr. Leighton).
I understand the Labour party's position and, of course, through Maastricht, the Government support the hon. Gentleman's contentions. The Labour party could win an election and determine those priorities for itself. The difficulty under Maastricht is that they would then be subject to qualified majority voting. What if the balance of the argument goes against Britain as being an area in which investment should be made? We know that moneys from the cohesion funds will be directed to our competitors in the south and around the Mediterranean. Therefore, such judgments would no longer be within the call of a future or prospective Labour Government and are outside the call of the House. The hon. Gentleman may in fact, by his argument, be undermining British industrial competitiveness because of the distribution of resources elsewhere.
I fear that in many respects the hon. Gentleman fails to understand the way in which industrial capital has developed in recent decades. We now live in a global economy, and the notion that we can isolate one economy from the others is wholly out of date. The same applies to an industrial policy. We must ensure that, at certain levels, there is co-operation. The hon. Gentleman recognises that as part of industrial policy. The notion that we can develop an economy and an industrial policy which is circumscribed by one set of geopraphical boundaries is out of date.
Like all our colleagues, I agree with what my hon. Friend says about market forces and their limitations in innovation and investment. However, I draw his attention to the numerous regulations which pour forth from the Community, relating to grants that the Community makes available to institutions of research and innovation. Is it not a fact that the Community itself, or its insitutions, decides the distribution of those grants for innovation in order that the industrial base of the Community as a whole and not necessarily one part of it can, in the Commission's view, be strengthened? Does that not mean that taxpayers' money from this country can be distributed anywhere that the Commission and the Council decide, and that the House will lose its ability to decide?
My hon. Friend makes an interesting point, but if he reads some of the figures from the Office of Science and Technology, he will see that, under the European Community research and development programmes—cross-programmes, such as Brite-Euran, Esprit and RACE—the United Kingdom is, although not always, one of the major beneficiaries.
At the moment.
I can say only that I have a set of figures relating to history as it has so far been written and to events that have taken place; I cannot provide my hon. Friend with predictions about the future. If I could do so, I should probably win the football pools every Saturday afternoon and not be here. The current data show that under the programmes to which he referred, the United Kingdom seems to have done better than other countries.
A few moments ago, the hon. Member referred to co-operation, especially in science and technology. It is a very good idea, but article 130h states:
are consistent with Community policies. That does not mean co-operation; it means that we shall effectively have a Community research and technology policy which will be governed by a central policy, and that will kill scientific diversity and competition. Does he not agree that that would be extremely bad news, according to his own argument in favour of co-operation?"The Community and the Member States shall co-ordinate their research and technological development … so as to ensure that national policies"
I always worry when criticism of Ministers' effectiveness in European Community negotiations comes from Conservative Back Benchers. It is perhaps a criticism that we should make. In response to the hon. Member for Stafford (Mr. Cash), even under article 130h the British Government, as the Government of a member state, will have the opportunity to influence the development of any research and development policies, and I should have thought—
rose—
No, I shall give way later. In that context, I should have thought that the British Government, who do not have one of the best records in Europe of funding research and development and science, might gain as a result of article 130h, as might the British people and institutions.
rose—
I shall make some progress and come to the—
Order. Hon. Members keep standing up in the middle of the hon. Gentleman's speech. He has made it clear that he will give way in a few minutes. Hon. Members must learn to contain themselves.
You are kind to me, Mr. Morris. I have looked at last week's Hansard and I suspect that I have given way more than anyone else during my speech. I am glad that I have stimulated so much controversy and thought that I have persuaded hon. Members to wish to intervene. I am sure that hon. Members will allow me to make a little progress.
I said some time ago that there were three principles underpinning industrial policy. The first is that the market alone cannot deliver and the second, which is crucial and which will herald a shift in EC policy, is that industry policy must be more than competition. It was interesting to read the comments of the new EC Commissioner in an interview in last Friday's Financial Times. We always criticised the approach to competition policy taken by the previous Commissioner, Sir Leon Brittan, because he took what we saw as a tight and legalistic approach which did not recognise some of the industrial policy implications. I therefore welcome the statement made by Karel van Miert, the new EC Commissioner for competition policy. In last week's Financial Times, he was quoted as saying:Commissioner van Miert then says that he would take a much more flexible approach to competition. He draws attention to the Franco-Italian takeover of de Havilland, the Canadian aircraft manufacturer. What he says, which is central to Labour's view on industrial policy, is that there must be more than the market and that there must be more than competition. We welcome that development and the statements made by Mr. van Miert."competition is not the ultimate goal of the economy. The ultimate goal is for the economy to perform for the people, so that everyone gets his fair share and companies have a good environment to prosper, to invest and to be competitive."
Many of us who find it difficult to understand the changing views of Opposition and Government Front-Bench Members because of the warm consensus between them would like a summary of the hon. Gentleman's understanding of the difference between the two parties. Is he saying that at Maastricht, the Government became converted to a European industrial policy and that he now welcomes that conversion not only to Euro-enthusiasm, but to socialism, but that if the Labour party became the Government, it would pursue those policies with more vigour and with more liberality?
I guess that at some stage in the debate we may have the opportunity to find out the Government's position on industrial policy. I shall put a number of questions to the Minister. I suspect that he may be in the best position to answer all the interventions from the hon. Member for Wolverhampton, South-West.
The hon. Gentleman is recommending interventionist policies. Some European countries followed such a policy for some years. Why, therefore, has the EC's share of world trade declined from 25.5 per cent. to just 20 per cent. in a decade?
The hon. Gentleman says that some Governments have followed interventionist policies; others have not. The Government who have clearly followed non-interventionst policies are the United Kingdom Government under Baroness Thatcher. If the hon. Gentleman had been here earlier, he would have noted that I quoted unemployment figures that showed that the British economy had performed less well than other economies had in terms of jobs. The hon. Gentleman needs to answer the question why a non-interventionist Government have had such an appalling record on unemployment.
The point that I am trying to make is that our country's share of world trade has stayed—in fact fractionally increased to more than 8 per cent. The share of the EC as a whole has dropped from 25.5 to 20 per cent. What reason does the hon. Gentleman give for that?
I ask the hon. Member for Stroud (Mr. Knapman) to check his figures. His optimistic assumption about Britain's share of world trade is not accurate. The Minister may wish to look at a parliamentary answer he gave me on Thursday. If the hon. Member for Stroud looks at that answer, he will see the figures for Britain's balance of payments in manufactures against those of European Community countries and of Organisation for Economic Co-operation and Development countries, and for Britain's share of world trade in manufactures. If he looks at those figures, he will see that his assumption is not wholly valid. I encourage him to do that piece of basic research.
I make three assumptions. The first is that the market alone is not sufficient and the second is that we need a policy that is more than competition. Thirdly, economic policy must have more than one objective. An industry policy via supply side measures supplements macro-economic policy. We believe that an effective and sensible policy for any country needs to be based on four economic criteria: growth, balance of payments, unemployment and inflation. Our criticism of the Government is that they have concentrated almost wholly on one criterion of economic success—inflation. 5.15 pm The cost of that policy to British manufacturing industry, to industry generally and to British economic performance has been great. It is easy enough to squeeze inflation out of the system. The real economic skills and success is to get a balance between the four economic objectives: growth, the balance of payments, jobs and inflation. The Government have failed to do that. We believe that an effective industry policy acts as a vital supplement to effective macro-economic policies. Such a policy helps supply-side factors and it creates the conditions in which British industry will be able to perform. That is why we seek an economic policy for Europe and for the United Kingdom which emphasises growth and jobs. I commend to my right hon. and hon. Friends and to Conservative Members the comments made by my right hon. and learned Friend the Member for Monklands, East (Mr. Smith), the leader of the Labour party, in a speech last Friday. My right hon. and learned Friend said:he was talking about European recession—"There is clearly a danger"—
"that this may occur if the fiscal deficit rules of the Maastricht Treaty are rigidly interpreted. An excessively strict application of the protocol which specifies a target of 3 per cent. for government deficits would compound the existing financial squeeze which has been caused by high interests rates in Germany.
My right hon. and learned Friend's point is crucial. We need an economic policy that relates to all four criteria: growth, balance of payments, unemployment and inflation. Those criteria must be given equal importance and equal emphasis in terms of policy development. That is why we have seen industrial policy as a supplement to achieving those objectives of growth and of job creation. It is worth taking the House back to the comments made by the new EC competition Commissioner. His words could have been those of my right hon. and learned Friend the Member for Monklands, East. The Commissioner said:If all member states of the EC tried to satisfy the 3 per cent. target by the end of 1996, for example, (the earliest possible date for the rule to apply) the combined effect on total EC output would be a reduction of over 2 per cent. This is obviously absurd and simply not feasible for a majority of member states of the Community."
That means more than one economic objective and not just squeezing inflation out of the system. It means having low inflation, growth, jobs and a balance of payments position that is manageable. That is the objective of an industrial policy that will supplement the supply side policy."The ultimate goal is for the economy to perform for the people, so that everyone gets his fair share and companies have a good environment to prosper, to invest and to be competitive."
I have listened carefully, but I am afraid that I am not quite clear on this point. Is my hon. Friend suggesting that our erstwhile leader was disagreeing with the straitjacket being imposed by the 3 per cent. or that he was simply disagreeing with the percentage that was being imposed? The point is important. There were other aspects of that speech that I found a little difficult to understand and I mildly resented being called a barnacle.
I certainly did not call my hon. Friend that.
No, the reference was in the speech to which my hon. Friend has referred.
I am not sure whether that reference is in the speech. I will pass my script to my hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody). She referred to my right hon. and learned Friend the Leader of the Opposition as our erstwhile leader. I am not sure whether that was an accurate description—unless there has been a palace revolution to which no reference has been made.
In respect of a further recession, my right hon. and learned Friend the Member for Monklands, East said:That has been Labour's position throughout. There is concern about the fiscal and deficit rules and an argument that they cannot and should not be interpreted rigidly."There is clearly a danger that this may occur if the fiscal deficit rules of the Maastricht Treaty are rigidly interpreted."
With respect to my hon. Friend, I am still not clear what he is saying. Do we totally accept the straitjacket of the 3 per cent. while we disagree only with the size of the percentage?
I am not sure why my hon. Friend is in such difficulty. The point is that Labour looks for a range of economic goals which include inflation, growth and job creation. We believe that they are the key economic convergence criteria. We have said that consistently.
Against that backcloth, my right hon. and learned Friend the Member for Monklands, East has made an important intervention. He has stated clearly that if there is a very strict interpretation of the fiscal deficit rules, there will be a further push into recession. If my hon. Friend the Member for Crewe and Nantwich reads more of the speech, she will discover that my right hon. and learned Friend the Member for Monklands, East also refers to ways in which the rules can be interpreted more flexibly and more loosely.It appears that the Leader of the Opposition now has serious doubts about the basis upon which the Opposition have entered into collusive understanding with the Government Front Bench in respect of the convergence and budget deficit arrangements prescribed under the Maastricht treaty. Does not the hon. Member for Leeds, Central (Mr. Fatchett) agree—
Order. Before the hon. Member for Stafford (Mr. Cash) continues, I should say that the hon. Member for Leeds, Central (Mr. Fatchett) was referring to industrial policy, but he strayed into convergence and other matters to do with the Leader of the Opposition. The group of amendments that we are discussing are related to industrial policy, research and development and in particular, areas related to article 130. The hon. Member for Leeds, Central was being very tight in his speech and I congratulate him on that. I hope that we can continue with that tightness.
On a point of order, Mr. Morris. Will you reconsider your ruling in that regard? The hon. Member for Leeds, Central (Mr. Fatchett) made it quite clear that, in his opinion, industrial policy leads to objectives about growth, inflation and the balance of payments, all of which are generally regarded as wider economic issues. If the hon. Gentleman is allowed to discuss those points, surely the rest of the House should be able to do so as well.
Further to that point of order, Mr. Morris. As I understand it, you said that the points that have been raised had no bearing on the amendments. However, I suggest that they should be considered in the sense that competitiveness is affected and the amendment seeks to remove powers to ensure the competitiveness of industry. Therefore, matters that have a bearing on the competitiveness of industry are surely within the call of the Committee.
Further to that point of order, Mr. Morris. Bearing in mind the fact that later groupings of amendments deal with European monetary union, cohesion policy and many of the issues that are in dispute at the moment, when we reach those amendments, can we take into account the amount of time that we are spending on these amendments?
I am grateful to all hon. Members. So long as the hon. Member for Leeds, Central related his comments specifically to industrial policy, he was in order. Understandably, in his discussion with the hon. Member for Crewe and Nantwich (Mrs. Dunwoody), he was tempted a little away from that. I hope that we can now return to that course.
Further to that point of order, Mr. Morris. You raised a point in respect to something that I was saying and not with respect to the comments of the hon. Member for Leeds, Central (Mr. Fatchett).
The hon. Member for Stafford (Mr. Cash) was echoing and encouraging the hon. Member for Leeds, Central to go further down that road. It seemed to me to be entirely wrong of him to do that. Perhaps we can now get on.
rose—
Order. I call Mr. Skinner.
On a point of order, Mr. Morris. As Chairman of this Committee, will you explain to me how it is possible to discuss industrial policy without referring to economic policy or the balance of payments. If we have an industrial policy that ends up with a £14 billion balance of payments deficit after this recession, that must affect industrial policy one way or the other. How can we eliminate the argument about growth? Since I have been a Member of this place, I have always believed that all those things hang together. I find it crazy for you to be ruling in this fashion.
The hon. Gentleman is correct in so far as there can be allusion to all those points. However, there is a great difference between allusions to an exchange rate or other elements of policy when there are specific amendments on the Order Paper. It may have been some time since hon. Members have been in Committee. They should remember that, when we are discussing amendments, although hon. Members may allude to other elements that affect the amendments, the primary discussion must be about the amendment. That is the only point that I am making to the Committee. The Committee should bear that in mind.
On a point of order, Mr. Morris. May I suggest that there is a good deal of truth in the suggestions of the hon. Member for Bolsover (Mr. Skinner)? It seems to be the wish of the Committee to have, if possible, a slightly wider debate on the amendments. May I suggest that there was at the very least a grave misunderstanding about the decisions that were taken last week on the wider debate which, Mr. Morris, you may recall was concluded with the hon. Member for Antrim, North (Rev. Ian Paisley) being somewhat disconcerted. There is a need for some flexibility on a wider debate. When we tried to have a wider debate last week, my hon. Friend the Member for Vale of Glamorgan (Mr. Sweeney) had been sitting here for three days and my hon. Friend the Member for—
Order. I probably know better than any hon. Member who was sitting in the Chamber during the previous four days and I probably know better than any hon. Member how long they had sat here.
With great respect—
Order. I do not believe that the hon. Gentleman is showing great respect. We have had four days debating the titles, which were very broad areas of debate and purposely so. We are now moving to specific areas. I have made it clear that there can be allusions to exchange rate policy, devaluation and floating exchange rates and even to the coal mines that were referred to at the beginning of the debate. However, there are specific amendments on the Order Paper and the Committee has charged the Chair with having a debate on them. That is what I am trying to ensure happens. The fact that certain hon. Members have not sat on Committees perhaps for a fair amount of time and have forgotten how a Committee works means that it is my job to remind them of that.
On a point of order, Mr. Morris.
I will take a point of order from Mr. Walker.
If I might raise another point of order, Mr. Morris.
I will accept one more point of order from the hon. Member for Wolverhampton, South-West.
Of course I accept that you will undoubtedly have made a note of the right hon. and hon. Members on the Conservative Benches who rose last week. On the other hand, you may not wish to tell the Committee or give publicity to that number. Those of us who felt aggrieved and made a note of the number of Members who tried to speak may have a different purpose. I accept that you know, but the country may not know the extent to which those who had general views which they wished to express were unhappily stifled.
I will not hark back to last week. I hope that the hon. Gentleman will accept that.
rose—
Order. I must place on the record the fact that, prior to our proceedings today, the hon. Member for Wolverhampton, South-West has contributed more than 15 minutes—which, for some hon. Members, is long enough for a speech—simply on points of order and interventions.
What is wrong with that?
I am not saying that there is anything wrong with that. I am saying that the hon. Gentleman has had a fair voice, and I hope that the country has listened to him.
On a point of order, Mr. Morris. I apologise for arriving late. As you probably know, my constituency is suffering very substantially. I was wandering around in my welly boots trying to find some answers to our ghastly problems.
You will be aware, Mr. Morris, that we are not about to discuss the broad issues on which we have had four days debate and in respect of which closures were accepted. We have had four days debate on the broad issues affecting the removal of one section and then the removal of others, which of course did not take place. I am the only Scottish Conservative Member whose views on Maastricht are different from those of members of the Government Front Bench, but I was not given an opportunity to express them even though they are widely held throughout Scotland. The closure motion by the Liberal Democrats on the first two days prevented a Scottish Conservative Member from being called. On the third and fourth days, I was not called. In order to express my views and those that are held by many people in my constituency in Scotland, one will have to include in the range of amendments matters affecting finance, and so on.5.30 pm
I am sorry, but I have to inform the hon. Gentleman, who had the floor for 10 minutes prior to the debate today, that he will not be in order to bring in major matters of finance. He may allude to them. I repeat that the amendments are about industrial, consumer, commercial and agricultural issues, and they primarily refer to article 130. I ask hon. Members not to continue to rise but to read article 130 and refresh their memories on that point.
rose—
No "furthers". I call Mr. Marlow.
On a totally different point of order, Mr. Morris. I hope that you do not mind my raising it. A few minutes ago you referred to the hon. Gentleman who had the floor. I have been here for about 14 years and you have been here much longer than that, and very welcome you have been in the House all that time. I do not think that I had ever heard the expression "the hon. Gentleman who has the floor" until about a year ago. We have heard "the hon. Gentleman who was speaking", "the hon. Gentleman who caught my eye", and "the hon. Gentleman who was on his feet".
"Having the floor" is an expression that is used in European Parliaments or other nation state Parliaments in Europe. This place was in being for about 700 years before the European Parliament was a twinkle in anybody's eye. I wonder whether it would be more appropriate to maintain our procedures and expressions rather than adopt those of institutions that are much younger than ours.I have certainly used the phrase "the hon. Gentleman who has the floor" in Committee. It is a perfectly normal term and it has been used in many Committees. I see nothing wrong with the terminology.
rose—
Order. I am not taking any more points of order on that matter. [Interruption.] Order. I choose the language that I wish to express in a situation. Hon. Members have to accept that.
rose—
I hope that they are totally new points of order. I have dealt with the point by the hon. Member for Aldridge-Brownhills (Mr. Shepherd) about— [Interruption.] I have, with respect. Perhaps if he rises in his place we will see whether he can be called today. The hon. Members for Aldridge-Brownhills and for Stafford (Mr. Cash) have already spoken at some considerable length. [Interruption.] The hon. Member for Aldridge-Brownhills, too, has had the floor before today for only four minutes—he is quite correct—but he has been making up for it this afternoon. Nevertheless, I call Mr. Shepherd, but it must be a new point of order.
With respect, Mr. Morris, I have sat in the Chamber much longer than you have during the debate. My point of order relates to article 130, the very first words of which—forgive me for not having my glasses on—says:
Your ruling a little earlier about what one may choose to refer to seems to indicate a very limiting context. What is competitiveness unless it is formed by all elements, such as exchange rates, cohesion and diversion of investment? All those matters affect competitiveness. How can one discuss competitiveness without discussing the nature of those arrangements?"The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist."
The hon. Gentleman is right. There is a major element to do with competition, but a whole host of matters affect competition. If the hon. Gentleman would, with respect—I do not mean this facetiously—re-read article 130, he will see that there are large elements about
"speeding up the adjustment of industry to structural changes;
and co-operation, and so on. Those are the main elements of article 130 and competition policy is a part of it as well, but the point that I am making to the Committee is that, in terms of cohesion, we have some specific amendments. I am thinking of 20 amendments on cohesion policy. It is appropriate to develop the whole of that argument. Today it is more appropriate to develop industrial policy and to make allusions to cohesion; otherwise we will just have a general debate from now until we reach Third Reading, and that would not be in the interests of what hon. Members want. I am here to serve the Committee and to try to keep the Committee in order.encouraging an environment favourable to initiative"
On a point of order, Mr. Morris.
I call Mr. Cash with a final point of order, I hope.
Would it be possible for the hon. Member for Leeds, Central (Mr. Fatchett) to resume the debate? This waste of time has arisen because I merely mentioned the word "convergence". You have raised with me, Mr. Morris, the question whether that was in order. As a result of what you have said, it has now been conceded that it was. If the hon. Gentleman could now proceed, we could pick up where we left off.
On a point of order, Mr. Morris.
The hon. Gentleman is approaching this matter in a very relaxed manner. Is it a new point of order?
It is a new point of order.
The emphasis is on the word "new".
It is new.
It is a new point of order. Thank you.
If I could conclude by putting on the record that these points of order flow inevitably from the sense of outrage in the Committee that further—
Order. That is not a new point of order; it is not a point for the Chair. If the hon. Gentleman feels a sense of outrage, I regret that.
On a point of order, Mr. Morris.
Is it a new point of order and not the one that the hon. Gentleman raised earlier?
It is a new point of order.
All right.
I seek your guidance, Mr. Morris. This is a United Kingdom Parliament, and the future of this Parliament vitally depends on the Union that took place in 1707. I have raised this matter a number of times and I have had some difficulty in following the changes that have been made to the 1707 Act of Union. It will not surprise you that I have spent a lifetime in politics on that topic. I do not wish to bore the House tonight, but my concern is the future of this unitary Parliament and it has little to do with expressing personal views or obtaining extra time. I believe that this Parliament is now at greater risk than at any time since 1707. [Interruption.]
Order. That comment could have been made on Second Reading. Nevertheless, I call Mr. Fatchett.
On a totally new point of order, Mr. Morris. [Interruption.]
Order. I will call the hon. Gentleman, but I ask the Committee to recognise that the hon. Gentleman who was speaking wishes to develop his speech and to continue it. We have now spent 15 minutes on several points of order whch were not in order and one or two that were in order. I hope that this is a new point of order and that it is a specific point of order for the Chair.
You mentioned, Mr. Morris, that I had spoken for four minutes and you mentioned that another hon. Member had spoken for a length of time. In fact, I have not yet made a speech in Committee, as you will be well aware. I have not had an opportunity to express views or opinions other than to try to elicit information. Is it the practice, or is the Chair giving a ruling, that the length of time in an unguillotined Committee stage, and one that is subject to the acceptance of the closure only by yourself, will be a material factor in whether hon. Members are called, and in the length or shape of the debate and the freedom of speech in the Committee?
The answer to the hon. Gentleman's question is no.
It is difficult to maintain the flow of a speech after a break of a quarter of an hour. If Conservative Members wish to raise another batch of points of order, perhaps they could inform me in advance, and I can go and have a cup of tea.
rose—
I shall take one more intervention, before finishing my speech.
My question relates directly to industrial policy. I share my hon. Friend's view of the inadequacy of market determination in the future of our industries. However, I am not clear about the role that European industrial policy is to play, as distinct from the research and development, education and training policies, which are also linked. Will my hon. Friend say something about that? What is article 130 about in terms of the amendment? What will it allow the Community to do that it did not previously have the power to do?
I think that my right hon. Friend must have had the opportunity to look at my notes during the substantial break for points of order. The next few points that I was about to make are as follows. First, does the Minister accept the principles that I proposed in terms of industrial policy? Do the Government share those principles? If so, why is there a distance between those principles and the application of industrial policy in the United Kingdom?
Secondly—to pick up the point of my right hon. Friend the Member for Bethnal Green and Stepney (Mr. Shore)—how do the Government define industrial policy under article 130? How do they define European Community industrial policy? Is that policy more than research and development, more than providing help to small and medium-sized businesses and more than the development of skills at national and company level? If it is, will the Minister describe what he and the Government mean by industrial policy and how much money the Government would allocate to those policies?Will my hon. Friend give way?
I must continue, as I know that it will frustrate all those Conservative Members who are keen to intervene in the debate if I take too long and they do not have an opportunity to speak.
Will the Minister describe exactly what the Government mean by industrial policy? What will be determined at European Community level and what at the United Kingdom level? Where does the principle of subsidiarity apply to industrial policy? The Opposition favour an active industrial policy and active intervention in the market. We strongly believe that the market alone cannot deliver an efficient economy, high levels of employment and good social provision, and that the Government must perform that role. It has become clear during the current policy debate that those with free market views are now on the defensive. In the 1990s the free market has failed to deliver in the way in which those who support the free market claim that it should. The role of Government intervention is once again back on the agenda. We support Government intervention in the marketplace, which is why we support an industrial policy. We have argued for that and will continue to do so. We support article 130 because we support the principle of an industrial policy. What do the Government mean by an industrial policy? Why have they changed their position on an industrial policy from a national one to a European Community one? I think that we shall have an interesting debate and I look forward to the divisions that will emerge among Conservative Members of the Committee. The Opposition are keen to have a Europe that emphasises growth, jobs and the provision of social facilities. That is why we seek this debate on industrial policy.
5.45 pm
Amendment No. 1 embraces many of the other amendments in the group. I am grateful to the hon. Member for Leeds, Central (Mr. Fatchett)—as I am sure the Committee is—for stating that he will not press the amendment to a Division. I agree that the amendment provides the House with an opportunity to debate the industrial, consumer, commercial and research and development policies of the Community.
The issues under discussion are, by and large, covered in the treaty of Rome and the Single European Act. Therefore, incorporation of the issues in the Maastricht treaty does not signify a particularly dramatic departure from existing Community practice. Whereas new chapters were included in the treaty for the first time on industrial and consumer issues, action was already possible under the treaty of Rome. Consumer protection legislation has been an important element of the single market programme. Issues under discussion all fall within title II of the Maastricht treaty and amend the treaty of Rome. All the provisions are capable of action at Community level and are ultimately justiciable before the European Court of Justice. The principle of subsidiarity will apply in relation to those issues and others covered by the treaty. Her Majesty's Government will ensure that action respects that principle. The amendments largely echo the arguments relating to the debate on the development of the Community held in the House in the mid-1980s and before. Amendments Nos. 358 and 361, in the name of the hon. Member for Great Grimsby (Mr. Mitchell) remove the establishment of the internal market as one of the Community's objectives. I cannot believe that hon. Members would seriously wish to undermine the achievement of the creation of the single market less than a month after the United Kingdom presidency has brought the project to a successful conclusion. Amendment No. 1 takes issue with the functioning of research and development policy as it has devolved under the Single European Act. I accept, of course, that the hon. Member for Leeds, Central moved the amendment to stimulate a debate. The Parliamentary Secretary, Office of Public Service and Science, my hon. Friend the Member for Wantage (Mr. Jackson), who is present in the Chamber, can confirm that the United Kingdom has benefited from Community research and development policy and there is no case for reversing that achievement of the Single European Act. A further characteristic of some of the issues under discussion is the influence that the United Kingdom can exert on the negotiating processes through the unanimity provisions negotiated at Maastricht. That does not apply to all sectors, but action under the industry title can be taken only with the agreement of all member states. The retention of unanimity when agreeing the research and development framework programmes allows the United Kingdom to play a decisive role in shaping future research and development policy. One element that I believe will emerge from the detailed debate is the extent to which the Maastricht treaty—as it affects the specific issues under debate today—marks a substantial improvement in the position of the United Kingdom Government after the Single European Act.
I totally agree with my right hon. Friend, and I believe that the single market is important. However, I question the extent to which we have achieved it. Let us consider two important industries in this country: steel and coal. The hon. Member for Bolsover (Mr. Skinner) made an apposite point when he asked whether there was a single market in the coal industry. The same could be said of the steel industry. Our coal and steel industries are more effective and efficient than others in the Community, but the others are larded with direct and indirect Government subsidies and other support, to the disadvantage of our industries. So there does not appear to be a single market in coal or steel.
Will my right hon. Friend point out to the hon. Member for Leeds, Central (Mr. Fatchett) what regional policy means—which is, that we shall have to put more of our money into the Community budget to be spent in other parts of the Community?Of course I agree that the establishment of a single market in which anti-competitive practices are wholly eliminated would be a perfect state of grace, but I doubt whether the Community will ever attain it. The United Kingdom Government made it perfectly clear when we announced on 31 December that the single market was "complete" that the struggle to maintain competitiveness and to seek to eliminate uncompetitive practices must continue unabated—as the Communists would have said, "La lutta continua".
My hon. Friend referred to regional policy, as did my hon. Friend the Member for Wolverhampton, South-West (Mr. Budgen) in a characteristically moderate intervention. I say "moderate" because he asserted that the Community was a machine for idealistic socialism. In that, he was rather more moderate than our hon. Friend the Member for Billericay (Mrs. Gorman) who believes it to be a machine for communism. So I commend my hon. Friend's restraint. Opposition Members believe the treaty to be an unbridled machine for the pursuit of capitalism and market economics. My belief is that the treaty of Rome does not fulfil for Europe Professor Fukuyama's prediction that history is over. It merely provides a framework within which European socialists—or whatever they call themselves these days—and those of us who are part of the centre-right family of European political parties will pursue the sort of market-oriented policies in which we have always believed. It is worth remembering that the agreed seven-year financial perspective running through to 1999 will by then have involved an increase in the total public expenditure of the United Kingdom of 0.1 per cent. That is certainly a large figure—it is £200 million—but it is a very much smaller figure than the one that we agreed to at the time of the Single European Act. One should also bear in mind the fact that the cohesion countries would say that their chemical, insurance, brewing and service industries are increasingly being taken over by large transnational companies based in the United Kingdom, Holland and Germany, producing enormous benefits for those latter countries. So even the large sums of money which will be spent on cohesion and on improving the trans-European network—roads, communications, and so on—will rebound to the benefit of British companies and industries which are making inroads into important sectors of industry in southern Europe, to the benefit of workers and investors in our country.Is it a fair summary to say that, at both Maastricht and Edinburgh, the Government made substantial concessions for the cohesion fund, and that the hon. Member for Leeds, Central was thus perfectly right to say that the Government had made a substantial concession? They had agreed to the principle of socialist intervention, so the only difference between the Front-Bench spokesmen—who so often agree on these subjects—is that the Government agree in principle to this socialist intervention but do not wish to spend quite so much money as the Opposition do.
That is not a correct appraisal. There is certainly no collusion between Opposition and Government Front-Bench spokesmen: there is consensus about policy, which is quite different. The only collusion of which I am aware is that between my hon. Friend and some of his colleagues and certain Opposition Members. That collusion is perfectly legitimate. They are a tiny minority in the House and if they are to have any impact on our debates it is perfectly understandable that there should be cross-party collusion on this matter.
I hate to disappoint my hon. Friend by saying that, although there is no collusion on our part, there is an element of consensus about our membership of the Community. To make a point at the expense of the Opposition: if our party has stood for anything over the past 20 or 30 years it has stood, first, for our independent nuclear deterrent; secondly, for our belief in social market economics—I see my hon. Friend the Member for Wolverhampton, South-West frowning, so I will leave out the word "social" for his benefit; and thirdly, for our membership of the European Economic Community. By consistently standing on those issues, our party has won three large victories. By opposing them for the past 20 or 30 years, the Opposition have produced a generation of politicians looking at us now—people who by and large have been deprived of office—[Interruption.] I seem to hear my hon. Friend asking for a referendum. The last time I spoke to him he was not in favour of one, but my hon. Friend the Member for Stafford (Mr. Cash) was prominent in arranging a protest in favour of a referendum last Sunday—On a point of order, Mr. Deputy Speaker. How does a referendum relate to industrial policy?
We are indeed straying rather wide of the amendment.
Further to that point of order, Mr. Deputy Speaker. May I support my hon. Friend the Minister in referring to a referendum, and suggest that you—
Order. I have just ruled that out of order.
As you would expect, Mr. Lofthouse, I respect your ruling. When we come to certain other amendments which have been selected, I shall torture my hon. Friend about referendums later.
rose—
rose—
I am told by those who advise me that in my two speeches before the Committee thus far I have given way 50 times, as my hon. Friends would expect me to, but I also intend to do my best to get what I need to say on the record and to make some progress, so that other right hon. and hon. Members will not be disappointed when they try to speak. I shall give way to my hon. Friends after making a little more progress.
The emphasis of the new industry chapter on the creation of a favourable environment for industry is directly in line with United Kingdom policy. The industry chapter will not open up European industry to policies which are interventionist or dirigiste. The unanimous voting provisions of the chapter are welcome to the Government. Under the Single European Act, the Community could already adopt measures affecting industry through the internal market by qualified majority voting, by the research and development provisions and, of course, through article 235. Only measures supported by all member states will be acceptable under article 130. The United Kingdom attaches particular importance to the explicit statement that article 130 does not provide a basis for Community measures that would distort competition. Free and fair competition is essential to the functioning of the single market.My right hon. Friend spoke about trans-European networks. My constituents who go to other member states see enormous amounts of European Community money being spent on roads and other infrastructure. That happens in countries whose populations are sparser than in Shropshire, but in some parts of that county it is impossible in some places to get roads that are wide enough for two vehicles. How can I explain to my constituents that their money can be spent in southern Europe and even in Madeira, whose population is smaller than that of Shropshire, when they have to put up with an antiquated and totally inadequate road system?
6 pm
I shall try to help my hon. Friend in two ways. I would tell his constituents, as I could tell everybody in Britain, that the United Kingdom is lucky to have about a third of the major transnational companies in the Community. Those companies, which provide employment and wealth for my hon. Friend's constituents and for mine, are making large and successful investments in the industries in which Britain is especially good. Insurance is a good example. That is thanks not least to the removal of anti-competitive practices in other European markets. Such investments and services provide substantial benefits for our constituents.
A substantial British transnational company has just made a huge investment in southern Spain. If such a company seeks to move consumer products not just in Spain but around the Community, it is in the company's interests that the road and rail network be as efficient and as well invested in as possible. Of the three substantial contributors to the European Community—the Federal Republic of Germany, the French Republic and ourselves—the Federal Republic contributes about 30 per cent. of the cohesion fund, the French Republic contributes about 20 per cent. and, because of our abatement, we contribute about 5 per cent. I think that those percentages are right, but I am quoting off the top of my head. Even by 1997, the total increase in Community spending to which we agreed will represent only 0.1 per cent. of total public expenditure in Britain. My hon. Friend's constituents and mine are getting a jolly good bargain.I am following the thrust of the Minister's argument, but I want to make sure that I understand it properly. Is he saying that all the provisions of article 130 on industry and research and technology do not in any way enhance the competence or the responsibilities of the Commission and the Community in those fields?
I am saying more than that, and I shall deal with the issue in more detail later. In some specific areas—education and health are good examples, and I shall deal with them in detail later—the position of the United Kingdom is substantially improved compared with that which pertained under the Single European Act to which my hon. Friend the Member for Stafford (Mr. Cash) is so attached.
rose—
:I shall make a little more progress and then give way to my hon. Friend.
:Will the Minister further clarify that point?
:I shall not give way to the right hon. Gentleman, who has trailed his question. I shall clarify the matter later and give way to the right hon. Gentleman when I have done so.
I should like to deal with the common commercial policy and refer to article 3 and the extension of Community competence. The common commercial policy has been at the heart of the European Community's activities since its inception in 1957. It is a basic provision of the treaty of Rome, and its importance has been reaffirmed in all subsequent amendments to the treaty, including those advanced by the treaty on European union. The new title updates the existing provision and in addition—this is one of the areas in which there has been substantial improvement—removes the obligation under article 116 of the treaty of Rome, as amended by the Single European Act, on member states to co-ordinate their positions where there is no established EC competence in the area. We shall continue to act together, because in most cases it is in our best interests to do so. As before, there is no provision for European Parliament involvement. The new titles should reinforce transparency and predictability in the Community's trading patterns with the rest of the world. Article 3 is billed in shock-horror terms by some hon. Members as containing new competences. It lists the Community's activities. The list is longer in the Maastricht treaty than in the treaty of Rome, as amended by the Single European Act. That is because the list has been extended to include references to the new competence chapters included in the Maastricht treaty for the first time. Nine new policy areas are listed in article 3, but that does not mean that there are nine new areas of competence. In all these areas, competence has already been exercised under the provisions of the treaty of Rome and the Single European Act.
rose—
I shall give way later to my hon. Friend with relish. I think that my hon. Friend remains a staunch defender of the Single European Act. I shall seek to establish that the matters that I am about to enunciate are an improvement on that Act and why the position that he supported with such enthusiasm in 1985–86 can be supported now. I shall explain how the Maastricht treaty codifies and clarifies competence in these areas, extends it to a small degree and contains it to a large degree. Article 126 deals with education—
Will my right hon. Friend give way? [Interruption.]
:Order. The Minister will be aware that education is the subject of another debate.
With respect, Mr. Lofthouse, we are dealing with article 3 and the competences that it lists. Although I stand to be corrected by you, Mr. Lofthouse, one of those competences—
Order. The Minister should address article 130.
Perhaps I may be allowed to defend my hon. Friend the Member for Stafford (Mr. Cash). My hon. Friend voted for the Single European Act, and some of us have teased him about that, but he did not do it with any enthusiasm. Like many Conservative Members, he did it out of mistaken loyalty to the Government; it was a good illustration of how the House often does not represent the true views either of the Tory party or of the nation.
I realise that my hon. Friend frequently regards support for the Government as mistaken.
:Sometimes it is.
I agree that that is sometimes the view, but some of us have not consistently taken it. I have dealt with the common commercial policy.
My right hon. Friend made a robust defence of the cohesion fund, and said that to a certain extent it is in Britain's interests. He said that the fund is to be spent on infrastructure projects to help trade within the Community. Will he confirm that the fund will be spent on nothing other than infrastructure projects to help trade within the Community. Will he confirm that the fund will be spent on nothing other than infrastructure projects? Will it be spent only on transport?
Of course I cannot confirm that. I am simply giving it as an illustration. I was invited by my hon. Friend the Member for Ludlow (Mr. Gill) to illustrate why it was that the cohesion fund could be seen as beneficial to his constituents. I gave him an example. No doubt, when we come to debate the cohesion fund in detail, I shall be able to provide my hon. Friend with many other examples.
Article 130 is at the heart of the debate. Will the Minister make it clear whether anything in it deals precisely with industrial policy? By that, I do not mean research and development, education and trade. Does anything in it add anything to, or take anything from, what was previously available under the treaty of Rome or the Single European Act?
The answer is virtually no. The only additions were inserted at the request of the United Kingdom. They include, for example, the last sentence of article 130, which reads:
I see my advisers nodding. That sentence was new and was inserted at the express intervention of the United Kingdom and will give comfort to those Opposition Members who seek, quite contrary to what my hon. Friend the Member for Wolverhampton, South-West is doing, to demonstrate that the whole of the treaty is a capitalist plot."This Title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition."
I have been following the Minister's arguments, in which he has denied that there is any potential for an increase in competence over industrial affairs—the point addressed in the amendments. Will he accept that, as the European Community grows and as we see changes in the patterns of companies and transnational activities, there may need to be increased competence to ensure that the European Community is able to deal with companies which may be so large that a single member state could not deal with them?
Of course I agree with that. One of the points that I made when I appeared before the Select Committee the other day was that one of the advantages of the Commission is that it is not a member state. Like all others, our member state would protect and support its industries up to a point. Some industrial practices and environmental policies will require a strong Commission which is not a member state and does not have the competing vested interest that any member state will have.
In view of your strictures, Mr. Lofthouse, I shall not extend myself on my next point. No doubt I shall have opportunities to do so later. The education competence in article 126 states clearly that the content of teaching and the organisation of the education system are for member states. Community competence is limited to co-operation among member states—teacher and student exchanges, for example. I believe that most hon. Members will support those new competences. As a further barrier to creeping competence, all harmonising measures are specifically excluded, and those words are repeated again and again in the so-called new competences. In addition, if that were not enough of an improvement on the Single European Act, under which such matters were dealt with by a simple majority, it is now levered up to qualified majority voting. In many other instances, we shall discover as we go through the Bill the improvements that have been made. In some sectors this will involve the extension of competence, but in many it will tighten and define competence. As the right hon. Member for Bethnal Green and Stepney (Mr. Shore) rightly pointed out, there are no substantial changes over the Single European Act other than, through our successful intervention, the introduction of the sentence that I read out.The Minister is being generous in giving way. I should like to put on the record the fact that some hon. Members—their number is not confined to Liberal Democrats—do not regard qualified majority voting as a bad thing and also consider that bringing in a unanimity rule, which is another word for veto, is often a barrier to progress.
Yes, I understand that. I do not regard qualified majority voting as necessarily a bad thing. Indeed, one of the reasons why I and so many of my hon. Friends supported the Single European Act was that it introduced into the Community the greatest measure of qualified majority voting that has ever been introduced in one single dollop.
Yes.
6.15 pm
I am glad that my hon. Friend agrees with that. We did that for the very reason that the hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston) set out—because we appreciated that, in our drive towards a single market, the vested interests of single member states might prove such that we would never make any progress.
My noble Friend Lady Thatcher, then the Prime Minister, calculated that the liberal instincts of the British Government would put us in the position where it would be extremely rare that we would be out-voted. I think that I am right to say that we have been out-voted on only four occasions throughout the whole process of negotiations on the single market. My noble Friend was right in calculating that, in our drive to obtain the single market, it would be in our interests to go for qualified majority voting was right. Some member states have been out-voted more often than us in one day.Lady Thatcher gave her support to the Single European Act because she made two false assumptions. The first was that she would be the Prime Minister and leader of the Tory party for a long time. Secondly, she believed that the Tory party would always be in power and would always control things in Europe. As my right hon. Friend knew at the time, she was wrong in both assumptions.
Lady Thatcher must speak for herself as to why she commended the Single European Act. I was amused the other day, as my hon. Friend no doubt was, to see my hon. Friend the Member for East Lindsey (Sir P. Tapsell) pray in aid Lady Thatcher when he rose to defend my hon. Friend the Member for Worcestershire, South (Mr. Spicer), who had got into a bit of trouble. I was amused—
Order. We do not seem to be making progress, and it might be an idea if we did.
On a point of order, Mr. Lofthouse. As a privilege, could we just hear the end of the story?
The answer to that is no.
On a point of order, Mr. Lofthouse. Is there not a general request for an opportunity to debate the wider issues? There is a great and continuing sense of outrage that many of us have stifled in previous days. My right hon. Friend meets the needs of the Committee in referring to wider issues.
That is not a point of order for me. My duties are to chair the Committee and to see the Bill progress in a reasonable way. For the life of me, I cannot see what the opinions of Lady Thatcher have to do with the debate.
I accept your strictures, and will seek not to be drawn down those paths, Mr. Lofthouse.
We were talking about the Single European Act and the way in which amendments Nos. 1, 3 and 14 allude to areas of the treaty where, to the extent that a comparison can be made to the Single European Act, the changes are minor and strengthen and reinforce the competitiveness either of the Community or of the United Kingdom's position.Will the Minister give way?
No. I wish to conclude my remarks, so that the right hon. Member for Bethnal Green and Stepney, and others, may speak. I do not want to disappoint my right hon. Friend the Member for Shropshire, North (Mr. Biffen), so I shall just say that I found it amusing that my hon. Friend the Member for East Lindsey, while trying to defend my hon. Friend the Member for Worcestershire, South, should pray in aid my noble Friend Lady Thatcher, as it was he who, it might appropriately be said, cast the second stone against her.
I do not want to become involved in arguments about Baroness Thatcher. Instead, I shall take up the arguments that were advanced by my hon. Friend the Member for Leeds, Central (Mr. Fatchett) on unemployment. In a previous debate, there was much mention of article 2 of the Maastricht treaty which sets out all sorts of things in motherhood and apple-pie wording. It does not state, for example, "We propose to put the economies of western Europe into recession and to have mass unemployment." There were similar words in the original Rome treaty. Nevertheless, within the Community, about 17 million are unemployed. It seems that the proof of the pudding is in the eating. We should question why 17 million are unemployed. When we have chronic mass unemployment—it is often long-term—it is meaningless to use words such as those that appear in article 2.
The operation of the exchange rate mechanism meant that the weaker countries had to link their currencies to the deutschmark, which meant that it was deflationary. It has resulted in considerable unemployment in countries such as Italy and France. It is a great embarrassment to me that a socialist Government in France, in carrying out these policies, have even higher unemployment than we have in Conservative Britain. The socialist party in France will pay a very high price for having pursued such policies at the next election. The aim behind the treaty is price stability, and any fool can achieve price stability and low inflation if he is willing to put the economy into recession and have large scale unemployment. An interesting situation has arisen in Ireland. The Labour party there is going into office and Dick Spring will become deputy prime minister. Inflation is low in Ireland—about 2.3 per cent.—but unemployment is 17 per cent. I wonder what Dick Spring will do. It would seem that he will be unable to reduce unemployment unless he cuts the very high interest rates that apply in Ireland, but those high rates are operating to keep up the punt in the ERM. It seems that it will be possible for the Irish Government to reduce unemployment only if they reduce interest rates, and that will mean leaving the ERM and, probably, devaluing the punt.Will the hon. Gentleman give way?
Whenever I speak, the hon. Lady becomes excited and wishes to intervene. I think that I had better get the intervention over with now.
Does the hon. Gentleman accept that it would be possible for all the countries that are within the ERM to cut their interest rates together? The ERM does not require high interest rates as such. If all the countries that are members of the ERM had their heads screwed on, they would all get their interest rates down.
That is an interesting idea. Quite often we do not talk about reality. Instead of talking about the real ERM, we discuss someone's vision of an ERM that he or she would like. I suggest that the hon. Lady moves around the Community and tries to convince the various member states that she has the right idea.
I know that my hon. Friend will not want to misrepresent Mr. Dick Spring. When he becomes Tanaiste he will undoubtedly have a strong commitment to dealing with unemployment first and foremost. I am sure that we wish to support him in every way. We understand the problems that he will undoubtedly meet in dealing with the economic situation in Ireland.
I accept that completely. I hope that I did not give any other impression. I was trying to outline the problem that Dick Spring will have to solve. I am certain that he will want to do so and will have a shot at it, but he will have to cut interest rates, which means coming out of the ERM and, I would think, devaluing the punt in the process.
My hon. Friend the Member for Leeds, Central contrasted what is happening in western Europe with that which is happening in Japan and the progress that the Japanese are making. He mentioned also the United States. Those countries have not had fixed exchange rates. They have not had the nonsensical ERM. The truth that we must face is that western Europe is the unemployment blackspot of the world. We were blown out of the ERM and we must try now to remedy the damage. If we had economic and monetary union, we would be locked into the system.Order. Is the hon. Member going to reach industrial policy and article 130?
I want to talk about the effect of industrial policy on unemployment. The single market is an area of fierce competition and it seems that we shall see a rash of mergers. Indeed, it is inevitable that companies will merge. After all, that is the object of the exercise. Eventually, each industry is likely to be dominated by two or three major firms. In this process, many firms will go to the wall. In an area of fierce competition, there will be winners and losers. What protection will there be for employees?
There has been a merger in the industry in which I worked before I came to the House of Commons, and that is the printing industry. On 17 September 1992, it was announced that the boards of Elsevier and Reed International had decided to merge their businesses to create one of the world's largest publishing and information groups, with a combined market capitalisation of about £5.2 billion. The combined Anglo-Dutch group will employ over 25,000 people—11,000 in the United Kindom, 4,500 in the Netherlands and 7,500 in North America. Reed is an international publishing and information group, covering professional publishing, business-to-business publishing, travel information, exhibitions and consumer publishing. In the document that was issued to Reed International shareholders, there was a direct reference to the fact that, in the case of Elsevier, the merger was dependent on consultations and discussions with the relevant Dutch trade unions and the works council before the two parties entered into a formal agreement. That was in stark contrast to the British experience. The British work force of Reed International found out about the merger from radio and newspapers. On 29 September, Tony Dubbins, the general secretary of the Graphical, Paper and Media Union—the printing union of which I am a member—wrote to Mr. Peter Davis, the chairman and chief executive of Reed International, seeking an early meeting at which there would be open-ended discussions on the implications that the merger would have for GPMU members in Reed International's employment. Mr. Davis replied on 5 October to the effect that Reed International did not centralise its industrial relations, that any discussions would have to take place with the individual managements of each of its subsidiary companies in the United Kingdom, and that he had no idea what the reaction of individual managing directors would be to the GPMU's request. That statement must be viewed against the aggressive anti-trade union stance of Reed International over the past 18 months in its regional newspapers in particular and in its subsidiary, IPC magazines, where it has terminated recognition of the GPMU and withdrawn negotiating rights in respect of the terms and conditions of employment of the union's members. On 22 October, Tony Dubbins and Chris Harding, the GPMU national officer, met senior works council representatives from Elsevier and Rene Van Tilborg, the general secretary of Druk En Papier, the Dutch Graphical Union in Amsterdam. It transpired that the works council representatives there had had a number of meetings with Pierre Vinken, who will be chairman of Reed/Elsevier until his retirement in 1995, and Peter Davis, chief executive and deputy chairman, who will become chairman upon Pierre Vinken's retirement. At those meetings, Mr. Davis, in particular, stressed that there was no intention to change the current arrangements in Elsevier in Holland, but confirmed that Reed International would be loth to introduce those arrangements into the United Kingdom. Nor is the company prepared to recognise and deal with trade unions in the United Kingdom in any manner other than that which it currently adopts. Therefore, it is clear that unions will not be recognised. The point that I wish to make to the Minister is that it appears that the proposed merger is well within the criteria for reference to the competitions directorate. How will the Commission deal with that and similar cases? What criteria will the directorate use? What rights will the work force in that company have? 6.30 pm On 18 November, Reed International gave formal notification within its publishing sites that it was withdrawing recognition from both the GPMU and the NUJ. That announcement was made within 48 hours of the Reed International shareholders meeting that endorsed the merger with Elsevier. That means that some 762 GPMU members and 584 NUJ members currently employed in Reed International companies will have their individual right as employees to be represented by the union of their choice arbitrarily withdrawn by Reed International. That merger is one of the first to take place under the single market, but the employees in this country will be worse off and their conditions will deteriorate. I hope that we will be told this afternoon what protection and what rights employees will have in the inevitable mergers that will occur. I should like to be told what the social dimension will do for them. We have heard about the economic dimension—it was to be accompanied by the social dimension. What rights will that give to employees, or will its effect be nugatory? Is the Reed International-Elsevier merger and the way that it has been done to be the pattern for the future? Do the Government approve of what has happened? Are they willing to take any action? My hon. Friend the Member for Leeds, Central (Mr. Fatchett), who made an excellent speech, said that there were four aims of economic policy. That is absolutely right, but unfortunately only one—low inflation—is included in the treaty and within the objectives of the bank. Therefore, what my hon. Friend and the Labour party have always wanted is not there. My hon. Friend also gave us the good news that our right hon. and learned Friend the Member for Monklands, East (Mr. Smith) has denounced the convergence criteria, or at least that aspect under which Government borrowing must be limited to 3 per cent. in any one year. He said that applying that criterion in a recession would push countries even further into recession and create further unemployment. I do not know whether my hon. Friend the Member for Leeds, Central can give me an explanation, but I assume that, as three of the four aims of economic policy are not there, and as our right hon. and learned Friend has denounced the 3 per cent. limit in the treaty, that means that we shall vote against the Bill on Third Reading.I am glad to have the opportunity to speak in this debate on article 130 on industry and on article 130f on research and development. The articles offer us some very fine words. That has been forgotten in much of the waffle that we have heard so far in the debate. It is honourable and remarkable that we should be in a position to put into United Kingdom law the statement —and I shall quote fairly selectively:
Among the elements that are regarded as important, actions should be aimed at"The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist."
To me, that statement is wonderful, and I am glad that we have the opportunity to put it into our law. Some of my hon. Friends should also take that view and not try to get it removed from the Bill. I had one of the best experiences of my life this morning when I visited the new Toyota factory that has just opened in my constituency. It is a truly amazing place, and it is extraordinary that that factory is already up and running. The company has a work force of some 1,200 in the United Kingdom, and by Easter that will rise to more than 1,500. By the mid-1990s, it will have 3,000 employees in my constituency and in Shotton in north Wales. The vast majority of the 20,000 people who have applied to work for the company live within a 15-mile radius of the factory. The implication for employment in the area is immediately obvious. I am sure that the factory is already having an impact. At the end of the year, the unemployment rate in my constituency was 6.7 per cent.—one of the lowest in the country—having fallen during the autumn. We hope that that trend will continue. The company is also having an impact on other businesses throughout Europe. From the beginning, it said that it hoped to purchase 60 per cent. of the input for the cars, by value, from European companies. It tells me that it has already managed to achieve that. It intends that, within a couple of years, the figure should rise to 80 per cent. Half its component suppliers are from the United Kingdom—for example, GKN and Triplex—or companies that are based in the United Kingdom, such as Pirelli. The other half comes from companies mainly in the European Community, especially in Germany and Belgium. Only a small number of the businesses from which it buys components are Japanese, and several of those are already planning to move to the United Kingdom. If we consider the components, the services and the consumables, it is clear that the factory is already having a huge impact on the midlands and the north-west. I believe that, before the year is out, direct and indirect employment in the United Kingdom associated with Toyota will reach 10,000 jobs."speeding up the adjustment of industry to structural changes; encouraging an environment favourable to initiative … fostering better exploitation of the industrial potential of policies of innocation, research and technological development."
I fail to understand my hon. Friend's argument that she would not have that Japanese company in her constituency were it not for political union under Maastricht. Everybody accepts that there should be free and closer trade in Europe, and surely it is that which the Japanese companies are interested in. I presume that they are not very interested in the enormous new social and industrial costs that will occur under the treaty of union signed in Maastricht—surely that is the one thing that will deter those companies. Therefore, although I well understand why those companies have come to this country in the past, the question is whether they will still come or will expand under the Maastricht treaty.
My hon. Friend is well ahead of me: I had only just finished describing what I saw in the factory this morning. I have not yet begun to deal with the question of why Toyota is in this country. If my hon. Friend will bear with me a little longer, I shall come to that matter and also to what will happen if this country is hesitant about its membership of the European Community, as I know my hon. Friend wants.
Most of the production of the Toyota factory is for export. Indeed, its output will help to turn around the British balance of payments and move us from deficit to surplus on cars, if not on manufactures in general. On those grounds alone, if for no other, Toyota's arrival is most welcome and timely. I want to put on record my tribute to everyone associated with Toyota, in particular its directors, managing director and chairman for the skill and professionalism with which they have built the plant and brought that remarkable project to fruition. Most of all, I thank them for the tact, courtesy and consideration that they have shown to my constituents, especially their immediate neighbours in Burnaston, which include myself and my family.I note that the hon. Lady has expressed many thanks to various people. One person whom she did not thank was the former Prime Minister, Lady Thatcher, who was instrumental in bringing that factory to the hon. Lady's constituency because of its marginal nature.
I am not sure what the hon. Gentleman means when he says that it is of a "marginal nature". The factory is very far from marginal in our part of the world. It owns more than 600 acres and currently employs 1,200. It is likely to employ far more in future. That is hardly marginal. If the hon. Gentleman wants me to make a speech of thanks to everyone, I shall do so—but I have a feeling that you, Mr. Lofthouse, would shake your head and rule me out of order.
I want to make a number of points about how today's debate might affect Toyota and its view of some of the matters that we are debating. Toyota is in this country partly because the European Community is one of the largest and most important industrial markets in the world. With 340 million people, it is already much bigger than the United States of America and Japan put together. With the level of growth seen during the period of increasing co-operation between those economies, that is likely to be even more so. Europe's economy has grown because of the development of the single market. Toyota is also here because of fears of exclusion from the European Community. In my constituency today, I saw cars being made by British people from scratch, to be sold all over the world—but aimed particularly at the European market. Those cars are not transplants or implants but British cars. They are as British as the Peugeot cars made in Coventry, the Honda cars made in Swindon, and the Ford cars made in Halewood or anywhere else—when hon. Members back and support those companies in their constituencies.Does my hon. Friend have a new Toyota?
I have an old one, and I am awaiting the delivery of a new one. I have been told that they are only available in three colours at the moment—
Now I realise why my hon. Friend had lunch there.
I did not have lunch there. I was on the train to London. The three colours are red, white and blue. I have chosen a blue one.
I put it to my right hon. and hon. Friends on the Government Front Bench that the day may come when they will have to defend businesses such as Toyota, Honda and Nissan. If we mean what we say about the European Community being an open and free market, we may find ourselves having to challenge other countries and Governments through the European Court of Justice and whatever other systems are available—insisting that the cars that I saw being made today are British cars and are not to be excluded or treated differently from the cars of any other British manufacturer. I saw the sheet steel from British Steel being delivered, the equipment that is used to stamp out the bodies, and new engines arriving from north Wales. It is noticeable that, while everyone is aware that the main Toyota plant is in my constituency, hardly any right hon. or hon. Members has the foggiest idea in whose constituency is Toyota's engine plant. That is because it is in the north Wales constituency of a Labour Member, who would much rather no one knew about the success story on his patch.On a point of order, Mr. Lofthouse. Is it not customary to give notice to an hon. Member if one intends to make a personal attack on them? I hope that you will bring that convention to the attention of the hon. Member for Derbyshire, South (Mrs. Currie).
I am sure that the hon. Member for Derbyshire, South (Mrs. Currie) is aware of that convention.
If the hon. Gentleman were present, I would not have to give him notice—he would be on his feet backing and supporting the Toyota company in his constituency. Nevertheless, I note your point, Mr. Lofthouse.
Did the hon. Lady give him notice?
Order. It would be helpful if the Committee could make progress.
I mentioned that Toyota is in Britain because Europe is one of the most important markets in the world, and because of its fear of being excluded from other European markets—an aspect that the Government may have to take on board at some future point.
Toyota is also here because our country offers natural economic advantages. Its work force is largely strike-free. In south Derbyshire it is almost entirely strike-free. On a ballot, it decided not to strike in the miners' dispute nine years ago. The United Kingdom also has low manufacturing costs—and we want to keep them that way. That is why our version of the treaty is not the same as that which other countries have. That is why we have no involvement in the social chapter. I believe that is right, and should continue to be the case. I am not hostile per se to legislation that affects the work force. In fact, I believe that Toyota's working practices are better than many for which one could legislate. My opposition to the social charter is that, if we restrict employment, that will be inimical to jobs. Toyota is here because Britain has a Conservative Government who are favourable to business—a point made for me by Opposition Members. In 1989, 28 sites were proposed for the Toyota plant. One of the stranger questions put to me by Toyota's advisers was how come that of all those sites only one was in a constituency served by a Conservative Member for Parliament. My answer was that my constituents have their heads screwed on. Toyota is here because we have a competitive exchange rate, and I hope that our competitive actions will keep it that way.6.45 pm
Is my hon. Friend saying that she would resist Britain re-entering the exchange rate mechanism?
No, but competitive exchange rates only work if one country is competitively changing its rates. If everyone starts messing around with their exchange rates, they will get into a total mess. I would much rather my constituents, and those employed in my constituency by the many international businesses located there, are competitive not because of the exchange rate but because they offer first-class working practices, in which quality, safety and the consumer are put at the head of the game—rather than be for ever looking over their shoulders at the value of sterling.
The policy implication of article 130 is that it must mean what it says about Community action not distorting competition. I hope that my right hon. and hon. Friends on the Government Front Bench will make other countries hold as firmly to that as we intend to do. There should be no subsidies for competitive businesses. There should be no subsidies for Renault or Fiat. Last year, I queried a subsidy agreed by the European Commission, for Ferrari of all companies. If people can afford to fork out £40,000 or £50,000 for a Ferrari, they should do so without being subsidised. I was told that Ferrari was given that subsidy because it was producing in a particular part of Italy having assisted area status. I do not believe that subsidies of that kind should be paid. If an area requires a subsidy, it should be channelled in other ways. Such subsidies merit the most careful scrutiny. The Council, the Commissioner, and everyone else concerned should have a predisposition to say no to subsidies to car companies in other countries.My hon. Friend may like to know that Ferrari's grand prix cars are now made in Britain.
The company still should not receive a subsidy. The subsidy that I queried, which was equivalent to about £4 million, was paid to Ferrari in Italy.
Does the hon. Lady favour subsidies being paid to the shipbuilding industry, and would she agree with the President of the Board of Trade if he advocated subsidies for the British coal mining industry?
As to the latter point, the Whips Office already knows my view—[Interruption.] If Opposition Members want an answer, they must shut up and listen while I give one.
All industrial subsidies ultimately distort competition and trade, and do not create employment—they weaken it. A subsidised business is encouraged not to look hard at how best to serve its existing customers and to win customers from its competitors. Instead, the managing director and the senior management are concerned only about beating a path to Whitehall—and that is where they spend all their time. As a result, the business becomes even less competitive than it was in the first place, which destroys employment. Coming from Liverpool, as I do, I can tell the hon. Gentleman in all honesty and sincerity that I believe that it also destroys entire environments, cities and regions.rose—
I will not give way; I want to make progress.
On a point of order, Mr. Lofthouse. I am sorry to take up the House's time in such an important debate, but I understand that, when an hon. Member makes remarks about another hon. Member, it is traditional for the latter to receive some indication that that will happen. The hon. Lady may now wish to repeat the references that she made in my absence, or, alternatively, to withdraw them.
That point has already been dealt with.
If the hon. Gentleman wishes to behave in a way that prevents the House from knowing that Toyota is in his constituency, that is for him to decide.
On a point of order, Mr. Lofthouse. The hon. Lady was asked to withdraw her remarks, but she has not done so. All she has done is repeat her original slur in the presence of my hon. Friend the Member for Alyn and Deeside (Mr. Jones)—which she made without giving him notice. She should be asked again to withdraw it.
The hon. Lady has said nothing that was out of order. This is not a matter for the Chair.
On a point of order, Mr. Lofthouse. I do not wish to challenge your ruling, but I wish to ask the hon. Member for Derbyshire, South (Mrs. Currie) whether she wishes to repeat what she said when I was not present.
I do not think that that is necessary. It is fairly obvious that the hon. Gentleman knows what was said then. I dealt with it at the time, and addressed the hon. Lady accordingly. Let us now make some progress.
On a point of order, Mr. Lofthouse.
Is it the same point of order?
I seek your guidance, Mr. Lofthouse.
Is it the same point of order?
No, Sir. However, I shall be very brief; I am sorry to take up the time of the House in such an important debate.
I do not know the details of what was said by the hon. Member for Derbyshire, South, but I have been informed that she made a critical reference. I thought it reasonable, therefore, to ask her to have the courage to repeat that reference now that I am in the Chamber.I repeat that I dealt with the point at the time.
Thank you, Mr. Lofthouse. It is open to any hon. Member to read Hansard tomorrow.
Toyota is here in the United Kingdom because we are part of Europe: that is the last and main reason for Toyota's being based in our country. That means that we should be at the heart of Europe. It will never be easy for the United Kingdom to be at the heart of Europe, because we are geographically on the fringe and because we have been historically outside, tending to look down on continentals. That is all the more reason for sadness over the fact that we may be the last to ratify the Maastricht treaty: wanting to be at the heart of Europe means actions, not words. If we are not at the heart of Europe, industry and employment will be most affected and most damaged. Businesses such as Toyota, which was raised earlier, will eventually revise all their plans for manufacture in this country if we pretend, or hint in any way, that we do not want to be at the heart of Europe. Under phase 1, output is planned to rise to 100,000 cars a year, probably by the end of next year; phase 2 will increase output to 200,000 cars a year by about 1995. That can be done by means of expansion within the existing buildings. It is the phase after that which is at risk, and I am sure that the pattern will be repeated in many other businesses throughout the country. I am talking about the increase in output to 400,000, which we hope will happen by 1999 and which would mean the company's expanding to occupy more of the 600 acres that it owns—as well as, probably, an investment of the same order as the £700 million that it has already invested in this country. That is the investment that matters most to the United Kingdom, because it takes production past the critical mass to roughly the same as the output achieved by Rover at Longbridge. At that point, it is worth while for far more suppliers to come to the United Kingdom—to come close to the factory, and thereby to increase employment.In order to achieve that critical production level, the firm will need a large market. Everyone agrees that a free trading market should exist with European countries. I do not think, however, that Toyota wants a mass of impositions involving additional costs as a result of political union. That is what we are really discussing. My hon. Friend is not making that distinction, but she should.
I am not sure what all those fantastic costs might be. The most expensive thing that the company had to do was install a pile of machinery. It did so according to its own choice. It has two pieces of pressing equipment which had cost £10 million apiece. That is what such companies mean by expense.
As for the free market, I entirely agree with my hon. Friend. He and I sit on the same side of the House, and we share many ideas about the development of the free market and its importance. In view of that, I find it strange that my hon. Friend should object so strongly to proposals in the Maastricht treaty that will strengthen the competence of the European Court of Justice and the efforts of Ministers to make the free market stick, and to insist that restrictions and subsidies are removed.I agree with what my hon. Friend has said about Toyota and the Japanese. The Minister of International Trade and Industry was in London last week. What he consistently wanted to know was whether Britain would sign up, whether we would stand by our position on the social chapter and whether we would be seen as driving forward the European debate and being able to defend and support Japanese car companies as British car companies within Europe.
The Minister is absolutely right: he has put it far better than I have. Our British view on industrial policy is widely shared, particularly by Japanese companies. The trouble is that, if we are not at the heart of Europe, if European countries move at different paces and we are not at the centre, if we are in any way hesitant and if we fail to use Community institutions to enforce the provisions—I am entirely serious about this—Ministers will, at some stage, be obliged to take another country's Government to court over the question of subsidies to competing car companies, some of which they own. As I have said, certain key companies are state-owned and subsidised by taxpayers.
If we do not take that approach—if we are not vigorous in our defence of new businesses operating in our country—when the next phase decisions are on the table in Tokyo or wherever, it will be in Spain, Germany, Hungary or some other country with a clearer vision than ours that such companies will open the next European Toyota, Nissan or Honda factory. Ultimately, we shall be the losers. I believe that article 130 is a modest improvement on previous legislation, but it will serve us only if the Government put their heart and soul into ensuring that the Community is a free market—that it is open to competition, free of subsidies and free of interference in business. If that happens, our industry will be efficient and strong, and fit to compete throughout the world.I am sure that you will be relieved to hear, Dame Janet, that I intend to concentrate on a single amendment, on which I hope to speak very briefly.
Amendment No. 184 deals with the inclusion in the Bill of the common policy on agriculture and fisheries. The amendment would delete all reference to agriculture and fisheries. I am sure that other hon. Members share my concern about some of the changes that have taken place in the common agriculture and common fisheries policies. No doubt other hon. Members believe that some of the proposed changes will prove mistaken, retrograde and—probably for that reason—transitory. Few hon. Members—at least, those representing fishing and agricultural areas—would wish to tear up the existing European Community common policies and make a completely fresh start. The amendment puts nothing in the place of the existing policies. The common agricultural policy as it stands—the common agricultural policy is a moving target, as we all know—had, we thought, several core objectives. They were identified and analysed by Mr. MacSharry while he remained the Commissioner. During the negotiations in the Council of Ministers, they were analysed all over again. The intention seems to be to increase the simplification of the CAP, to eradicate surpluses, to reduce costs, to remove all artificial price mechanisms, to increase environmental benefits and, perhaps most important of all, to reverse the widening gap between farmgate and retail prices. The Agriculture Ministers set themselves those objectives. The Commissioner also set himself those objectives. We have yet to see whether the proposals that were made following that process meet the objectives.
7 pm
When it comes to British farmers, upon whom the hon. Gentleman no doubt wishes to concentrate, does he not agree that they have paid a price for the policy that he advocates so strongly, in that net farm incomes fell between 1975 and 1985, to the extent that they were halved? According to the Ministry of Agriculture, Fisheries and Food, between 1988 and 1992 dairy farmers' incomes fell, in real terms, by 45 per cent., those of cereal farmers by 75 per cent. and those of livestock farmers by 90 per cent. Given that this is such a comprehensive policy, does the hon. Gentleman not think that there is a case for absolutely radical reform, let alone all the fraud that the system represents?
If the hon. Gentleman had been patient and allowed me to warm to my theme, he would have found that I sympathise in some respects with his point of view. There is a dramatic difference, however, between radical reform and tearing the whole thing up, with nothing to put in its place. Those hon. Members who represent agricultural or fishing constituencies would need their heads examining if they went to their constituents and said, "We should vote for the complete abolition of this policy." If they said otherwise, it would mean that they had huge majorities.
It is important to identify the objectives of the reforms and to measure whether the proposals meet those objectives. That does not mean, however, that we want to go back to square one, or that we want the CAP to develop in the 11 other member states, with us outside. One only has to contemplate what the position would be if we were unable to deal with GATT on a Communitywide basis. Chaos would ensue. The fact that there has been radical change and reform in the Community, within the CAP context, demonstrates that the CAP is a moving target and that one can negotiate and move forward. It would be absurd if we, as an offshore island, were to be deprived of the opportunity to take part in collective, corporate negotiation.I am one of those Members who seek the abolition of the CAP. It is a total nonsense. I would argue firmly and, I hope, fairly sensibly for the repatriation of agriculture to this country, which I believe will happen sooner or later. Does the hon. Gentleman not agree that anybody who understands anything at all about Europe says that the CAP is a total nonsense and that in the same breath they say that it is a linchpin of the Community? What sort of an organisation is that?
I am grateful to the hon. Gentleman for making that point. I do not regard the CAP as the linchpin of the Community. Much wider issues are at stake. However, it is critical for the future of our producers and fishermen that we should be able to negotiate in the world, within the GATT context, as a member of the European Community. Without that network, we should literally be at sea—an offshore island without any negotiating rights.
I have been trying hard to follow the hon. Gentleman's argument. It would help the Committee if he could refer to any other time in our history when we were subjected to an agricultural policy that was decided outside this country, a policy that owed none of its allegiance to our climate, to our market needs, to the
abilities of our people or to the needs of our countryside. If the hon. Gentleman could tell me when, at any other point in our history, we have been put in that position I should be prepared to accept what he says about the need to protect our existing agriculture.I am very grateful to the hon. Lady for making a typical Little Englander contribution to our debate. It is absurd to suggest that any institution of which we are a member somehow imposes on us alien and totally hostile proposals. Her argument would mean that our membership of the United Nations somehow allows the United Nations to impose sanctions upon us—sanctions against a foreign power.
I am glad to see that the Minister of State, Ministry of Agriculture, Fisheries and Food is sitting on the Treasury Bench. I hope that that is an indication of the importance that Ministers attach to the significance of the common agricultural policy. I warn the Minister, however—I think that he will accept the point—that we are not setting in aspic, to use a phrase that was used during our earlier debate, the CAP as it now is. We are seeking to maintain a framework within which our farmers and producers—and our fishermen in the parellel policy for fisheries—are able to negotiate from a position of strength. It is often said by the farming community and by the general public that one of the objectives of our participation in such an international framework should be to seek a level playing field. One of the most serious criticisms of the United Kingdom's presidency of the European Commission is that we made virtually no progress towards a single market, in terms of the way in which farmers are controlled and helped. One of the explicit advantages of the Maastricht treaty proposals is that, at long last, some sort of mechanism has been provided and is ready for us to use to ensure that member states, which abide by the rules but not all of which have the same effective inspection and professionalism, are able to put the decisions of the Council of Ministers or the Commission into effect with equal rigour. One of the advantages of the Maastricht treaty is that at long last we can ensure that all the high-flown proposals that emerge from Brussels are imposed on a much more level playing field throughout the whole Community.This is a very important point. Many people in this country are uneasy about the common agricultural policy and the common market because of the level playing field. Can the hon. Gentleman tell us when milk quotas will be applied effectively and accurately in Italy? Will it be this month, this year, in five years', 15 years' or 20 years' time? We know that the Government of Italy cannot run affairs in Italy. At least half of it is run by the mafia. How convinced is the hon. Gentleman that European institutions will be able to operate these policies in Italy?
If the hon. Gentleman had a little patience and if he were to vote for the Bill, there might be a better chance of that happening. His present position is entirely antagonistic to the effective policing of the European Communitys' decision-making process. I see that some Ministers are nodding in agreement. A critical part of the treaty is that we should make certain that future decision-making is carried right through to every level of Government.
There are a number of features of the reforms that we are applying in a way that does not make good sense. That is up to the British Government. For example, their reliance on set-aside as the core of the proposals is nonsense, but I do not see the Governments of other member states falling for this with the same enthusiasm as our Minister. To blame the common agricultural policy for something that, by definition, is a subject for national decision-making—derogation or development within the United Kingdom—is particularly absurd. Similarly, there is a complexity about many of the regulations imposed in this country that is not to be found in other member states. By definition, that must be open to our Government to modify. The classic example—I see a number of hon. Members in their places who have raised the issue—is the food and hygiene regulations for slaughterhouses. I understand, and I hope that I am reasonably correct, that the Commission proposed about four paragraphs, but by the time the Ministry's multiplication system had worked, there were about 94. I am glad to say that the Minister is now retreating. That is good news for those concerned about animal welfare as well as for the farming industry. It shows that what is at fault is not the Community or common agricultural policy but the way in which the regulations are being applied in this country.The hon. Gentleman and I have made common cause on this issue, and rightly so. Does he agree that, if meat from abattoirs is not for export but for domestic use, it should be a national responsibility, as the Germans have suggested, rather than a European responsibility? Is not that a good example of where subsidiarity should work and where we should insist that it does?
I am grateful to the hon. Member, who makes a fair point. The corollary is that meat for export should meet the same conditions for rearing, animal welfare and so on. It is a national scandal that young calves are bought in Britain and exported by French buyers to the continent only to return as veal. Often supermarkets do not identify where rearing took place arid may pretend that the animal originally came from this country. These are examples of how Maastricht could make improvements, and we should welcome that.
Does the hon. Gentleman accept that the Maastricht treaty makes no attempt to do anything about agriculture, which in itself is a major omission from the negotiations and one of the reasons why I take such exception to it? Does he agree that the intensification of production will lead to more land being set aside? Recent calculations suggest that the amount set aside will increase by 20 per cent.
It would not be proper to go into detail on set-aside. However, the Government's insistence on making set-aside the core of their proposals, which is not shared by other member states, is a fault of the system, but the common agricultural policy cannot be blamed for that.
What is far more significant is that, if the amendment were made, it would tear up not only set-aside but the whole support system without proposing anything in its place. No doubt the hon. Member for Stafford (Mr. Cash) has such a large majority that he does not worry about the farming vote in his constituency, but if he has any concern for the future wealth and health of agriculture in his constituency, he cannot expect the common agricultural policy to be dismantled overnight, as the amendment would ensure.Does the hon. Gentleman accept and understand that if, by some miracle, we were to abolish the CAP tomorrow, Parliament has the ability and means quickly to rectify matters and make changes? One of the reasons why we are unhappy about the European Community is that it cannot act as quickly as Parliament to change mistakes. That is where the strength of this Parliament lies. The hon. Gentleman is not right: we could quickly make changes.
If the hon. Member is suggesting that a mistake such as the poll tax can be made in the House quickly only to be reversed and replaced with another mistake—the council tax—I accept his point. Mistakes are made more quickly in this House than anywhere else that I have known.
That is not an argument for tearing up the common agricultural policy, and it is even more fallacious when it is applied to the common fisheries policy, about which the hon. Member for St. Ives (Mr. Harris) and I are very concerned. If we opted out of the common fisheries policy, we could easily allow other member states to adopt the conservation measures that they prefer, and gain access to our natural waters. We cannot deny them access if we opt out of the common fisheries policy and say, "We will have none of it"; we should be left floating out to sea. I have been diverted by a number of interventions. I wish to be brief and stick to the amendment.7.15 pm
Will the hon. Gentleman give way?
No.
Will the hon. Gentleman give way?
No. I have given way a number of times.
I ask hon. Members who represent agricultural and fisheries constituencies to ask themselves a simple question. If they were meeting those interests tomorrow, would they be prepared to say, "Every element of the common fisheries policy is now a dead letter and we should get out"? If they believe that, they are effectively not only pulling out of the only framework that those interests understand—Will the hon. Gentleman give way?
No, I have given way a number of times.
One could do that only if one were prepared to sacrifice the fragile confidence of farmers and fishermen, which has been knocked far more by a succession of Government policies than by anything from Brussels. My colleagues and I are not prepared to do so, and for that reason will vote firmly against amendment No. 184.We have had an interesting debate so far. I very much enjoyed the speech of my right hon. Friend the Minister of State; I am sorry that I had to leave for a short period. We heard an interesting comment from him, which will be emblazoned throughout the rest of the debate in the House and in the country—his belief that there was consensus on policy between the Front Benches. The House should beware when there is consensus on policy between the Front Benches. If he looks at the Official Report he will see those precise words; I listened carefully.
Naturally, the Official Report will reflect what I said, but I believe that I said that, after 30 years of pro-European campaigning by the Conservative party, it had finally reached the minds of Opposition Members that there should be consensus on our membership of the Community. That is what I intended to say. If the record does not show that, I shall have to seek to qualify my remarks later.
I am happy that my right hon. Friend said that, but I believe that it is perceived throughout the country, whatever he may say or whatever alterations he may wish to make to the record later, that there is a cosy consensus between the Front Benches on this treaty.
rose—
rose—
Order. May I be clear to whom the hon. Member for Northampton, North (Mr. Marlow) is giving way?
My right hon. Friend has been so gracious in giving way to me that I give way to him first.
My hon. Friend is being mischievous. The point that I was seeking to make is that there is no collusion between Ministers and Opposition Front-Bench spokesmen. The only collusion is between my hon. Friend and some Opposition Members.
My right hon. Friend may say that, and may have used the word "consensus". As the debate proceeds, we shall see to what extent there is collusion between the Front Benches. It has been impressed on the country that the Government Front Bench and those of the Liberal and Labour parties are at one on the Maastricht treaty and we who oppose some elements of it have great difficulty in the face of that consensus, if not collusion.
For once, the hon. Member for Northampton, North (Mr. Marlow) is right and, as usual, the Minister is wrong. This afternoon, the Minister said that there was consensus between the Front Benches but added later that there was collusion between groups in the various parties. The hon. Gentleman is right—unusually.
I am grateful for any support, especially from the hon. Member for Rhondda (Mr. Rogers), for whom I have great respect.
The hon. Member for Leeds, Central (Mr. Fatchett) spoke about the benefits of regional policy. My understanding of regional policy in the Community is that one takes money from Community countries and shifts it in the directions in which one feels it should go. What worries me is that the great panjandrums in the European Community think that the countries to which it should go are those which they feel, if they were to massage and give money to them, would be inclined to support the ambitions of people at the centre of Europe for a more centralised federal Europe. Mr. Rogers indicated assent.The hon. Member for Rhondda nods his head, so perhaps he shares that view. He may be in favour of regional policy, but fearful that it might be used as an effective slush fund to bring about what he and I would perhaps not wish to see happen.
We saw the amazing spectacle of the hon. Member for North Cornwall (Mr. Tyler) blessing, praising and indentifying with the common agricultural policy. I am not very assiduous, but I do not think that I have heard any other politician, especially not one speaking for a majority party—or a minor party in his case—setting out the benefits of the common agricultural policy. It is something with which we must live and which we must endure, but to talk of the benefits of the CAP—rose—
I shall give way in a moment. First, I must declare that I have agricultural interests of my own.
I am delighted to hear that the hon. Gentleman has agricultural interests. If, tomorrow morning, the common agricultural policy did not exist, I suggest that he would be in considerable difficulties—much greater financial difficulties than he, as a normal working farmer, presumably already is.
Will my hon. Friend give way to his hon. Friend?
I shall give way in a moment, but let me attempt to deal with that point. If there were no CAP, it would not mean that the United Kingdom would be bereft of an agricultural policy—we could have our own agricultural policy. Most people in Britain would realise that it would serve us a damned sight better than that which we now have strung around our neck.
My hon. Friend will be aware that we ran our affairs satisfactorily before we had the common agricultural policy. We had systems of guaranteed payments and deficiency payments, which got food cheaply to the consumer but ensured that the farmers got a reasonable return. It is nonsense to say that we have no alternative—we could have what we used to have. Is there not something nonsensical in the hon. Member for North Cornwall (Mr. Tyler) asking whether we can find nothing good in the common agricultural policy and whether we would not be embarrassed if it disappeared altogether? I suspect that he is saying that, if there is a rotten apple in which one can find a tiny bit that is worth keeping, one should keep the whole apple—which is absolute nonsense.
My hon. Friend makes a powerful point. He says that we had an agricultural policy before the CAP was imposed on us, and that policy brought a great deal of benefit. We bought and sold food at world market prices, which meant that the poorer people in this country and those for whom we rightly provide through our welfare schemes bought food at lower prices than they can now, because they bought it at world market prices. The scheme benefited them, and us as taxpayers—in such circumstances, the transfer payments which we would make to my right hon. Friend the Secretary of State for Social Security would be lower, so taxes would be lower. As taxes would be lower, our industry would be more competitive and our entrepreneurs would be more aggressive.
In addition, we were also able to take advantage of the cheap food available on the world market. We paid our farmers what was right to encourage them to produce as much food as they could economically do so. When food was not available from our own farmers, we were able to buy it on the world market at cheap prices. If we were not in the CAP, think how massively we could benefit from the beef, butter and grain mountains—they would be available to us at low subsidised prices. Instead of sending the benefices to the Soviet Union—or to Russia, as it now is —we could benefit.Is the hon. Gentleman suggesting that by leaving the common agricultural policy, we could benefit from the beef and other mountains? How? If we were not in the CAP, we could not benefit.
If we were not in the CAP—the hon. Gentleman must bear in mind where we started from. We did not invent or want the CAP; we decided that we were going to join the European Community. The CAP had been stitched together for other countries in Europe and was totally inappropriate for the United Kingdom. However, once we had joined, as a massive part of our membership contribution to the Community, we had to pick up and live with it.
The hon. Member for North Cornwall has great respect for the other European countries, so he must surely realise that if we left the CAP, the Community would continue to have an agricultural policy and would continue to get it wrong—[interruption.] The hon. Gentleman makes a sedentary intervention. Is he saying that it would sell its surpluses to Russia but not to the United Kingdom? If that is what he is suggesting, I shall be happy to give way.Is the hon. Gentleman suggesting that the people of this country, and especially the farmers in his constituency, would welcome the dumping of cheap food on the market in this country?
Perhaps the hon. Gentleman is unaware of what happened under deficiency payments. Under that system—I hope that I will not be had up for tedious repetition—a price level was set for agricultural commodities which, by and large, ensured that our farmers got a fair and adequate return. That encouraged farmers to produce as much as they could if it was economically beneficial to the nation. The system worked well. I think that under that system the vast majority of farmers felt that they had a fair deal, and they prospered—they certainly prospered to a much greater extent than they prosper now.
rose—
rose—
I see that the Minister is minded to intervene. I am not saying that we can wholly return to a system of deferred payments.
I fear that my hon. Friend the Member for Stafford (Mr. Cash) and the hon. Member for North Cornwall are both wrong. It is true that, if we were not members of the system, we could no doubt benefit from the surpluses but the problem would be the effect on prices in the United Kingdom. What deficiency payments and Exchequer costs would my hon. Friend be willing to accept, given a price level set by the presence of dumped surpluses from the Community on our market?
The Minister makes his point, but I am sure that he will bear in mind the fact that in the past four years our net contribution has hovered between £2 billion and £2.5 billion a year. We could do an awful lot to ensure that the consumer gets cheaper food and that our agriculture gets an adequate return for its work with even a small portion of that sum. Our being in the CAP also imposes on us the Community budget, which takes vast sums of money from this country to be used for the benefit of our competitors in Europe.
The difference between the two situations is that British self-sufficiency is much greater now than when we joined the CAP and the Community. Therefore, the amount of produce that it would be necessary to support by deficiency payments is significantly larger than it was and the Exchequer cost would be very much greater. In the allocation of expenditure between Departments, one would have to judge the priority that agriculture would command.
The Minister is right—our self-sufficiency is greater now than when we joined the Community, but it was increasing and would have done so without the Community. If it were not for the Community, our self-sufficiency would be at a much higher level.
I am sure that my hon. Friend the Minister is aware that there are dairies—where people take milk from the farm and make it into cheese and butter—that cannot make as much cheese and butter as they could in the past because of milk quotas. We could produce more milk and we could become more self-sufficient in dairy products, but because of the common agricultural policy, even though our farmers in most areas are among the most efficient in Europe—and in some areas, are the most efficient in Europe—we are unable to take advantage off the additional potential for self-sufficiency. 7.30 pm My hon. Friend the Minister talked about the additional costs. That depends on the price that the consumer pays. If we are able to have prices at a lower level or at world market levels, the consumer may consume more. We shall have greater consumption. We may have to have more subsidy. My hon. Friend the Minister says that the Treasury would be jealous about the subsidy and would try to take it from the farmers and put it elsewhere. I wonder. Farmers have taken their chance with the Treasury in the past, and they did a damned sight better with the Treasury than they did with Mr. Delors and his cronies.Does my hon. Friend agree that the average size of a British farm is about 65 hectares, which is more than twice the size of the average farm in countries such as Denmark? In Portugal, the average is 4.3 hectares and in Italy it is 5.6 hectares. The very efficient British farmer is at a considerable disadvantage under the existing system, because we have a high level of productivity in relation to the hectares used.
My hon. Friend's argument in relation to what is effectively a probing amendment is having a profound impact on the debate, as is being shown by the interventions to which he is being subjected. The plain fact is that my hon. Friend is hitting a raw nerve. The system is not in the interests of the British farmer and must be reformed.My hon. Friend is right. I shall come later to some of the points that he makes.
I am sorry to intervene again, but the remark that the United Kingdom farm was disadvantaged by the system is one with which I take issue. Payments are made per acre in production, so the farmers with the most acres collect the biggest payments. If my hon. Friend is looking for the areas in the European Community in which the level of subsidies is highest, he must look to East Anglia, to the area around Paris and the area around Beaune. The subsidies are not at their highest in the small farms, many of which are too small for many of the mechanisms. That is one of the problems about which small countries' Ministers tend to complain.
In the recent reform, the one thing that we defended at the demand of all hon. Members was that there should be no discrimination according to size and that there should continue to be an absolutely straight expendiential relationship between size and benefit.My case is that the CAP is not, as the hon. Member for North Cornwall (Mr. Tyler) said, the best possible agricultural policy for the United Kingdom. We had a previous policy which was a system of deficiency payments. I am not saying that we can go wholly back to the policy that we had before. However, we could devise for the United Kingdom a far better policy than the CAP.
My hon. Friend will be aware that the average family pays £18 a week as a result of the CAP reforms. If every family is to pay £18 a week, would it not be cheaper to aggregate the contributions of all the families of the country and to hand that vast amount to each farmer? They could all run around in Rolls-Royces.
I would not suggest that, and I do not think that the farming community would like it. However, it is true that the CAP costs us money, both through subsidies and through prices higher than we should otherwise have to pay.
The Minister said that it is the bigger farmer who gets the most subsidies. That is true. The problem with the CAP is that it is a bastard policy. It is not an agricultural policy alone; it is half a social policy, and in much of Europe it is more a social policy than an agricultural policy. In the United Kingdom, we want within our agricultural policy an environmental policy to ensure that we look after the land, that we look after the hillsides and that we keep people in the villages in the more remote areas and in the less-favuored areas. That is right. That is our special way in which to look at our agricultural policy. Unlike the Italians or the Portuguese, or even those in parts of Germany, we are not concerned to have a social policy within our agricultural policy. Our responsibilities and our interests in agricultural policy are different from those in Europe. If we could extricate ourselves from the mess that comes from Brussels, the United Kingdom would be better served. I shall now deal with some of the more specific areas of the CAP. I do not want to fall out with my hon. Friend the Minister because I want favours from him. However, I must point out that the one thing about which people are irritated is the ridiculous system whereby, if farmers put in a return to the Ministry, they do not fill in the figures in acres. Everyone in the House knows what an acre looks like. It is a chain, a cricket pitch by a furlong. We can all visualise an acre. Everyone in the farming community knows what a United Kingdom or an English acre is. It is what a ploughman can plough in one day with a horse and plough. As a result of some bureaucratic reason on high—I do not blame my hon. Friend the Minister for this—we seem to have ditched the acre, to have surrendered it and to have kicked it into touch. Farmers now put in their agricultural returns with the figures not in acres, but in something called "hectares". That area is 100 m by 100 m. Like every other hon. Member—this is not really a diversion, so I hope that you will bear with me, Dame Janet—I enjoy watching rugby internationals on television. We no longer have the 25-yard drop-out, but a 22-metre drop-out. That is ridiculous. Do we really have to impose that change on the most traditional, patriotic, sensible and loyal part of the British people—the agricultural community? Let me get down on my knees before my hon. Friend the Minister. Now that we are in the time of subsidiarity, please may we have our acre back? It will not cause his Ministry any problems.The hon. Gentleman says that he enjoys watching rugby. Does that explain his absence from the so-called
which my hon. Friend the Member for Stafford (Mr. Cash) promised the House would take place yesterday? The hon. Member for Northampton, North (Mr. Marlow) was obviously not at that demonstration in Trafalgar square, and nor were many others of his supporters."gigantic demonstration"
If I followed that line, Dame Janet, you would very properly call me out of order. The fact that there is a good case for a referendum has nothing to do with meetings in Trafalgar square.
In my constituency, when it comes to putting in applications for subsidy, the farmers' ability to translate from acres to hectares is instantaneous.
That may be the case. I am sure that my hon. Friend agrees that the farmers in his constituency would be happier filling in the applications with the figures in acres rather than in hectares. It is not necessary to put the figures down in hectares. We are now, God be praised, in the days of subsidiarity. May we please have our acres back? Everyone would be pleased and it would not cause any problems for my hon. Friend's Department. If Brussels needs to have its figures and its bits of paper in hectares, I am sure that there could be a statistician in the Department who, in the twinkling of an eye, could give Brussels precisely what it wanted. There is no problem.
There are other problems with the CAP. I was talking about self-sufficiency. We believe in the market, although I realise that with agricultural commodities, with their dependence on the weather, all sorts of difficulties arise. We have to keep agricultural production going year on year. The solution to over-production which our mentors in Europe provide for us is a system of quotas and set-aside. I have a great deal of philosophical difficulty with that. I am not saying that I could come up with a better package starting from the European end, but if we had a British agricultural policy, I am sure that we could come up with a better package. What do quotas mean? They mean rationing. 1f a farmer has some cereals in this year, he can have some in next year, although not so many. If he keeps cows that produce milk, he can have cows next year, although not so many. If he has some sheep, he can keep some sheep next year. If he has some cattle, he can keep some cattle next year. By golly, it is just like the dock labour scheme—the rule seems to be, "If you have got it and you own it, you can keep it; if you do it, you can continue to do it." If someone from outside wants to compete and has new ideas, suggestions and more efficient ways of using a country's agricultural resources, that person is excluded. People say, "Not on your nelly." That person does not have a chance, and that is one of the problems with the CAP.The hon. Member for Northampton, North (Mr. Marlow) is making a very evocative speech and has painted a nice rosy picture of the countryside with horses pulling ploughs, the sun setting, and so on. Will he now talk practically about the difficulties and problems of the CAP, not just for farmers, but for consumers?
I thought that I was doing just that.
What about consumers?
Our overwhelming interest is for consumers. As I have said, consumers should get their food as cheaply as possible. That applies particularly to the less wealthy and less prosperous members of the Community. I believe that the CAP does everything but secure competitively priced food in the marketplace for the people of this country.
My hon. Friend the Minister of State, Ministry of Agriculture, Fisheries and Food and I were discussing self-sufficiency. Thanks to the effectiveness and productivity of our farmers and the agricultural community that supports them, self-sufficiency has increased in this country in respect of cereal growth. We used to import cereals in many areas, and we still import the hard wheat to make bread. However, we are now cereal exporters. The Community has now decided that it must do something about cereal surpluses. It has therefore introduced set-aside. There may be no alternative to that, but we must consider the effect of agricultural set-aside. If one has a farm above a certain size involved in cereal production, one must lay fallow a portion of that land. We have an effective and efficient agricultural structure in this country. We have large farms and, in particular in East Anglia, we have large cereal farms. The average size of our cereal farms is greater than anywhere else in Europe.That is big business.
Indeed. We are all concerned about British business and UK Ltd. We are all interested in ensuring that money comes to the United Kingdom and does not go elsewhere. I am sure that the hon. Member for Rhondda would agree with that.
Since Portugal, Spain and some other countries in southern Europe have joined the Community, with what they consider to be the benefits of the CAP, they have massively increased their cereal production. That is one of the reasons why we have surpluses. The effect of set-aside is that the United Kingdom, which, with Denmark and Holland, is one of the most efficient cereal producers in Europe, is required to take more cereal land out of production than any other country in Europe. The Greeks and Portuguese, who have recently increased production to take advantage of what, for them, has become a bonanza, must take only a relatively small proportion of land out of agricultural production. This country, as UK Ltd. and in terms of being able to produce and to obtain subsidies, is being discriminated against to a greater extent than any other European country. However, we are the most effective and most efficient. That does not make sense in market terms or any other terms.The discrimination goes way beyond that. The position is much worse. We classify our land according to five grades. No one would doubt that cereals and other arable crops should be grown on grade 1 and grade 2 land. I am glad to say that my constituency consists entirely of grade 1 and grade 2 land. However, our farmers are being penalised because we must have the same degree of set-aside as poor-quality grade 3 land—the typically poor land in Northamptonshire—even worse grade 4 land in Cornwall, and even grade 5 land which has been growing cereals. That must be done at vast expense to the CAP.
Surely one of the arguments for repatriating agricultural policy is that we would be able to tailor a set-aside policy—if we had to have such a thing—according to our own needs, instead of according to the men in Brussels, who have no idea how our land is parcelled out and at great disadvantage to my constituents.As usual, my hon. Friend is absolutely spot on and quite right. He is correct because, as I said earlier, the CAP is not just an agricultural policy—it is an agricultural and social policy. The social needs of the rural areas in the United Kingdom are very different from the social needs of the rural areas elsewhere in the Community.
Because it is a social policy, it is applied in a blanket way. The best and more efficient land is taken out of production when it should be in production while the less good land, on which other things could be done, particularly in southern England, is being allowed to produce in much greater quantities.7.45 pm
In line with what my hon. Friend the Member for Holland with Boston (Sir R. Body) said, does my hon. Friend the Member for Northampton, North (Mr. Marlow) accept that the method of parcelling out land is also directly related to land registry? According to the Court of Auditors reports that we debate once a year, it is clear that many other members states simply do not know who owns the land. Therefore, the massive fraud identified by the Court of Auditors militates dramatically against the interests of the British farmer. That is another scandal which must be sorted out.
The CAP is very unevenly applied in terms of ensuring that the right person does not get the wrong subsidy. I believe that it is effectively applied within the United Kingdom, but there are parts of Europe, which I must not mention for fear of offending my hon. Friend the Minister of State, Ministry of Agriculture, Fisheries and Food, which are less rigorous in the application of Community rules than the United Kingdom.
Those parts of the Community have not been particularly rigorous about such matters by custom and practice. If they are not rigorous, they get more money from Brussels. It is therefore in the national interest to be sloppy about the application of Brussels regulations. I do not wish to be derogatory when I say that the southern European attitude is different from the northern European attitude. The southern Europeans see the benefits of letting things go and of laissez-faire. I understand that there is a great thing about olive trees. It has been explained to me that in Italy, in respect of olive trees, one must submit an application for subsidy through a local co-operative, which manages the application and forwards the papers. Although I am sure that I have got it wrong, I have also been told that in Italy there are no regional co-operatives. There is a kind of communist co-operative, a kind of Church co-operative and a kind of geographical co-operative. Therefore, in every area in Italy, there are three co-operatives all ready, willing and able to handle an application for subsidy. One co-operative will not ask whether another is handling an application, because the producer will cease to do business with it. There was a time, therefore, when applications for subsidies in respect of olive trees in Italy outnumbered the number of olive trees that there could possibly have been in Italy. Even if Italy had been covered by olive trees from one end to the other, there would still have been more applications for subsidy than olive trees.Is not one of the main motivations of the CAP the way in which the ruling parties on the continent bribe their peasant farmers to vote for them? I do not mind that, but I object to the British paying the price.
As the hon. Member for Newham, North-East (Mr. Leighton) is aware, there is Salic law in Germany. If a landowner dies and he has 17 children, they each receive a 17th of the property. There tend to be smallholdings in Germany. People like to have smallholdings, which are not particularly efficient. They therefore have another job as well. They like to get some money to their smallholdings. As markets drop, they must get a lot of ecus for their land.
Although Germany claims to be effective and efficient, it is actually a secret admirer of the CAP because it allows Germany to provide through the back door subventions to the rural communities in Germany which the German taxpayers would not accept through the front door. That is their way of doing it. That is how they want it done. I apologise for boring my hon. Friend the Minister of State about the CAP. However, I want to refer to sheep.Does not my hon. Friend agree that one of the great tragedies of the CAP is that it has required some of the best minds in the British Government to devote so much of their time to activities which bring them little or no reward?
I would not say that. My hon. Friend and our right hon. Friend the Minister of Agriculture, Fisheries and Food struggled valiantly in the jungle and the morass of the common agricultural policy to do what is right and best for Britain, but they are one among 12. As I have said before, we normally play by Queensberry, whereas the rest play by Italian rules, and that makes life rather difficult.
My hon. Friend is making a most interesting and wide-ranging speech about agriculture, which he clearly recognises as a practical industry. It is regrettable that, in that highly practical industry—my hon. Friend might agree—the least consideration is now given to the practical aspects of agriculture and its products. For political reasons, each decision is inevitably a compromise, and almost invariably is too late for the practical farmer.
I am interested in my hon. Friend's views on that subject. If we go down that road and make decisions too late to be of any practical use, decisions which at the best of times are only a compromise, and decisions which are purely political, the long-term future for farmers must be pretty bleak.My hon. Friend is right to an extent. There are grave difficulties for people running the common agricultural policy at the moment because of circumstances, and they have to introduce policies. I hope that they will introduce policies in time for farmers to know what to do, what to sow, what to buy and what their programmes will be next year and the year after that. That is very difficult at the moment. I do not know what they can do to improve it, but improve it they certainly should. It is very difficult.
As we have different agriculture, a different society, a different rural mix and all the rest, if we had our own agricultural policy in our own country, that would not mean that we could not have a common market with Europe and that we cannot have one big level playing field—it would take some time to get there, but one big commercial and industrial playing field in Europe. We do not have to be part of a common agricultural policy to do that. If we had our own agricultural policy, I believe firmly that we could provide a much more flexible system so that our farmers were aware in time of what was the best programme in the interests of the United Kingdom so that they could follow that programme.rose—
I am getting confused.
Will my hon. Friend give way?
I am getting even more confused. Our problems at the moment are, first, that farmers do not know what to do in time and, secondly, that there is an increasing tendency among farmers not to plant crops but to plant subsidies. If we had our own agricultural policy we would have a far more genuine and sensible approach.
rose—
Order. Before another hon. Member intervenes, I remind hon. Members that interventions should be short. They have been becoming progressively longer as the evening has passed.
My intervention will be short, as is my custom. Does my hon. Friend the Member for Northampton, North (Mr. Marlow) believe that one of the dangers might be that, in essence, civil servants in Brussels have views on slaughterhouses, for instance, and when the matter comes back to this country we have another group of civil servants, also with views on slaughterhouses, who build one lot of regulations on top of another? If the treaty is passed, will it affect the number of civil servants in this country?
As night follows day, if we introduce legislation, particularly European legislation, there is a geometric progression in the number of civil servants. My hon. Friend reinforces a point that I have been making. Complex regulations are sometimes made in Brussels and we, because of our very honourable traditions, enforce them to the letter by the Queensberry rules, whereas others do not. My hon. Friend has referred to slaughterhouses. They are causing great grief to many people. Fallen stock or dead cattle—casualties—have to be moved. That is causing problems in agriculture at the moment.
Also, if an animal is fit but has to go, and it has to go fairly quickly, one does not want to have to put it on a lorry and trundle it 10 or 15 miles across the country to the nearest slaughterhouse. One needs somewhere small and close. All our traditional little butchers that have had their own slaughterhouses have produced an excellent service for the public for generations. I am not aware of any great hue and cry about people getting food poisoning in the village of Braunston where Berry's has been producing meat for many years. However, apparently we are going to be obliged by the great high-ups in Brussels to jettison our traditions, our culture and our butchery trade so that we can all have it nicely sealed in hermetic packages that come from Sainsbury's. I prefer the old system and I am sure that my hon. Friend does, too.My hon. Friend the Member for Ludlow (Mr. Gill) posed a question about how difficult it is to fix prices promptly when there are so many people to think about. Is it not a basic problem of the common agricultural policy that, when dealing with 12 nations with different climates, cultures and political outlooks, it is bound to take a lot of horse trading, if my hon. Friend will forgive the agricultural allusion, to get it right? We have been asked what are the advantages of our old system. In the old days, when such matters were the responsibility of our own Minister of Agriculture, Fisheries and Food, on one particular day of the year all agriculture prices were fixed and everybody knew precisely when that was going to happen and where they stood.
My hon. Friend is quite right. There are disparate agriculture economies in the European Community. We are trying to force them all into the same mould. That has not worked—it is not working. Also, some countries within the Community have a far higher proportion of people who live on the land, work on the land, work with people who work on the land or who have families who work on the land. Therefore, those countries have a disproportionate influence on agricultural policy which is then handed down to us. Our agricultural policy—the European agricultural policy—is less apt and appropriate for the United Kingdom than it is for many other countries within the European Community.
My hon. Friend the Member for Stroud (Mr. Knapman) asked a question about slaughtering. One thing that tears people's hearts is that, if we are to move towards the European system of having a slaughterhouse every 50 miles or so, animals will have to travel much greater distances before they are slaughtered. I should have thought that animal welfare groups would have had a say in those matters.I am going to try to help my hon. Friend. In fact, I hope that I can help him to avoid falling straight into a major trap. He has been arguing that we should repatriate agricultural policy while having a free market with the rest of the Community in agricultural products. Does he appreciate that the result would be that the continentals would subsidise their farmers to a much greater extent precisely because of the greater political pressures on the farming community that have already been referred to, and our farmers would be undercut because they would not have the benefit of the same subsidy? As a result, our farmers would be wiped out and consumers in this country would be totally dependent on continental producers.
I have heard of scaremongering and bogus scare stories, but I draw my hon. Friend back to the point that I made some time ago. We are making a massive subvention each year to the European Community, basically through the common agricultural policy and the European budget. By some judicious arrangement, if we did not have to make such massive subventions to the Community, we could make sure that our farmers were all right, that they were producing more, that they were producing as efficiently as they are at the moment, that we were more self-sufficient than we are at the moment, that our consumers and our poor would be able to have lower food prices which would enable us to keep taxes lower—my hon. Friend has connections in the City—and business would boom with the most prosperous economy in Europe because our taxes would be so low because we had to pay relatively smaller amounts.
I said that I would say a few words about sheep. We have a European policy with regard to sheep. My hon. Friend the Minister of State has struggled manfully in this matter, as in all others. Last year, one had to apply for subsidy, and so on. If one had a ewe that died, one had to inform the local office of the Ministry that the ewe had died, within 10 days of one's having discovered that the ewe had died. I think that there are 20.5 million ewes in this country. My hon. Friend the Minister of State will tell me what proportion of ewes die in childbirth, so to speak—it must be 2 per cent. or 3 per cent., which is about 500,000 ewes dying each year. Have half a million letters been turning up at the Ministry of Agriculture, Fisheries and Food? If they have, what has been happening in France and Italy? Within 10 days of the discovery of the loss of an animal, have the returns been sent in? Last year, it was easy, but this year we have directives from Mr. Delors and his friends—it is not the fault of my hon. Friend the Minister of State. 8 pm This year, one has to provide, in advance of a 100-day season, the number of ewes, including ewe lambs, that are about to give birth. If, during that period, one loses an animal, within 10 days of discovering the loss, one must let the Ministry know. If one gets rid of an animal, within seven days of doing so one has to replace it. Let us suppose that it rains heavily and spoils the pasture so that one has to get rid of some animals. One must replace them within a week. If the pasture cannot sustain them, why should one obtain more animals just because Mr. Delors says so? If the farmer is dealing with lambing or some other task on the farm, he may not be able to replace losses within seven days. He will not be able to go to his neighbour to replace a sheep as the neighbour will have to keep up his quota. The farmer may well not be able to get to market to buy the sheep to keep up to quota. What will he do? Will he say, "I am sorry—I have lost some sheep"? In addition, his bank manager may be sniffing over the farmer's shoulder and wanting cash. The only way the farmer can raise some cash is by selling a few ewes. If he does so, he will be in trouble with Mr. Delors, and for every ewe sold he will lose three or four times as much subsidy. We all play cricket in the United Kingdom, so our farmers will all admit that the pasture was wrong, the bank manager was getting on to them, and they had to sell 40 out of their 200 ewes. The farmer will say, "I am an honest man—it was an fair cop and I will write to the Ministry to say that I have got rid of 40 ewes." He will lose the subsidy on the other ewes. Will that happen in Italy and the rest of Europe? Or will the regulation merely discriminate against people in the United Kingdom?My hon. Friend is out of order in ascribing all that to Mr. Delors. The Council of Ministers has approved such matters.
My hon. Friend is being a little harsh. I know that it is the Council of Ministers that takes such action. My hon. Friend also knows of the long nights spent in discussion, when we lose 20 and win one. In order to ensure that we win one concession, we have to lose 20. I ask my hon. Friend to put himself in the Minister's position to see how difficult it would be to achieve a better deal. The cards are stacked against us. Our boys have struggled manfully on behalf of the Government.
The hon. Gentleman is wrong on another matter—
I am sure that I am wrong on many issues.
That is also true. I am tired of hearing the hon. Gentleman say, "The rest of Europe is dishonest and we are the only honest people around." That is simply not true.
The right hon. Gentleman was not present when I intervened in the speech of his hon. Friend the Member for North Cornwall. I am sure that the right hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston) talks to farmers in his district about milk quotas. I asked the hon. Member for North Cornwall when milk quotas would be applied in Italy. We have had them here for years—we are under the same regime, in the same common market—but the Italians have not had them. Will they be imposed in Italy this month, next month, this year, in five years or in 10 years? The right hon. Member for Inverness, Nairn and Lochaber said that we should not say that there was an uneven level of application of Community regulations. Can he tell me when milk quotas are to he applied in Italy? I shall gladly give way. I give him the chance, but he is not taking it.
Is there not a basic difference? I think that the hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston) is talking about fraud and cheating, whereas my hon. Friend the Member for Northampton, North (Mr. Marlow) is talking about ridiculous machinery. There is, in fact, common ground. My hon. Friend referred to Italian milk quotas. I was a parliamentary private secretary in the Ministry of Agriculture, Fisheries and Food when milk quotas were introduced—it seems a long time ago.
In this country, we flick a switch and, because we have a milk marketing board, all our farmers are called into line the next morning. They fill in their forms and do what they are told. In Italy, it is not known where the dairy farmers are, so there was no question of the milk quotas being enforced in the same way as we were able to do here. There is an uneven playing field, which discriminates horribly against this country. That is not the result of fraud, but because we are much more competent and organised, and have been penalised for it.My hon. Friend has been characteristically generous. He likes to see the best side of people. I am not critical of southern Europeans for having a different attitude to such matters—that is to do with their culture and way of life. I am worried that the difference discriminates against us. As my hon. Friend said, in matters of regulation and record, the southern Europeans, for reasons of their own, have different standards and attitudes from those of the United Kingdom. I am concerned about Britain. I want us to get a fair deal, and I do not think that we do.
Does my hon. Friend agree that, before we entered the common agriculture policy, the structures and civil service which existed in this country—such as the marketing boards—gave us a framework within which it was possible to change policy quickly? That is why it is easier for those in other parts of Europe to cheat if they want to.
I am grateful to my hon. Friend but, with respect, I think that we have exhausted that subject.
I shall make one comment on sheep and then move to other issues, unless someone is bursting to talk about other matters. There are many important subjects that I want to mention, but I am not mad keen to do so if other hon. Members want to speak on them. I understand that, as a result of a decision by our bureaucratic masters, we will have to identify all animals, including sheep, for the purposes of avoiding fraud. In this context I do not mention Italy, but Greece and Portugal. How are we to mark the sheep? As I said to the hon. Member for Inverness, Nairn and Lochaber, I get many things wrong, but I understand that we must ear-tag sheep, which worries me. I doubt whether the people who make the regulations have ever put on a pair of Wellington boots, let alone gone on to a farm. My hon. Friend the Member for Suffolk, Central (Mr. Lord) knows considerably more about the subject than I do, but I have spent nights with sheep—I shall rephrase that: I have helped sheep to lamb, I have experience of catching sheep and dealing with sheep, and I know a certain amount about sheep. It is a savage thing to do but—because I want to identify sheep and how well they are lambing—I put ear tags on sheep. Sheep are funny animals, which burrow around in hedges and get caught on barbed wire. If we ear-tag sheep, I bet a pound to 20 shillings that, within three years, the tags will have been ripped out. I do not know of an identification system that will work properly. Again, I get on my knees to my hon. Friend the Minister of State to ask him not to introduce a system that will not work just to please our bureaucratic masters in Brussels. I congratulate the Government on a difficult task that has been almost adequately performed. The amendments are probing amendments which relate to many of the issues in article 3, which is part of the meat—the sirloin—of the treaty. They constitute the 10 commandments from Brussels and have involved long negotiations in Brussels. If we look back to the dark days of the Maastricht meeting about 15 months ago, we see that my right hon. Friend the Prime Minister performed magnificently. He had a difficult task. He did not want the Maastricht treaty. He did not initiate or give birth to it. It was foisted on him; he was ambushed. In those circumstances, the treaty could have been much worse. I congratulate my right hon. Friend the Member for Watford (Mr. Garel-Jones). He has shown charm and a considerable knowledge of Europe. I disagree with him on many of these policies, but in the circumstances he has done a good job. The trouble is that, despite heroic efforts, we still have this treaty and certain of the amendments to it. The world has changed since December 1991, and when judging the treaty we ought to look at the motive behind it. Whose fingerprints are on it? We need look no further than the three wise men, or perhaps wicked uncles: Kohl, Mitterrand and Delors—two Frenchmen and a Hun. They are old men in a hurry, anxious to impose their own chapter on the history books of Europe before it is too late. They have said many times that Europe is changing and that the window of opportunity is closing fast, so they want to spirit the treaty through before the window is closed forever. They display the ambitions of a generation of the past to fix Europe for ever in its own time warp. It is almost like a mad perversion of Sleeping Beauty—not to kiss the European princess and wake her to the glories of the Maastricht castle but to rape her while she slumbers before she is sensible to the realities of her degradation—I hesitate to interrupt my hon. Friend's reverie, but perhaps he will reflect on the fact that we are not moving into some wonderful new Europe, as he seems to think, because we have come to the end of the cold war. The cold reality, as witness Yugoslavia, is that we have reverted to the old Europe—full of national hatreds, competing nationalisms, ethnic unrest and factional groups. Had Yugoslavia been in the Community for the past 30 years, it is very unlikely that the sort of conflict taking place now would have happened. I am worried that people like my hon. Friend who talk of Huns and Frenchmen carving up Europe want to invoke again the old nationalisms and to cause again the old problems which the EC is designed to prevent.
Order. I hope that the hon. Gentleman will not go down that road; it is not strictly relevant to the amendments.
Some of my best friends are Huns, Dame Janet. The treaty will impose on the Community the very problems that Yugoslavia and the Soviet Union have experienced. I am in favour of European co-operation and greater European unity. The trouble is that the contents of the treaty have been devised on high by a group of bureaucrats who believe that they know what is best for us. If we want Europe to come together and co-operate so as to generate a moderen and prosperous Europe, that must be done in a natural and developing process. It cannot be imposed. In the Soviet Union, communism was imposed; what happened in Yugoslavia, with the ending of the Austro-Hungarian empire after the first world war, was also imposed. That is why it did not endure, and why I seek, to amend the treaty so that the same sort of nonsense and damage is not imposed on Europe. But I am every bit as keen on progress as the Minister of State is.
Does my hon. Friend agree that a major argument against the common agricultural policy is that it has driven a wedge between us and France—two countries which should be at peace and working together in comity, which they are not doing now?
Yes. The agricultural needs of France are different from those of the United Kingdom. The French will realise as time goes on that we must return to a balance of power in Europe. Germany has problems which I hope, from its point of view and from ours, it will overcome. There is no guarantee that it will—it might start to spiral downwards—but if it gets through its financial problems and unification problems and refugee problems and regains its self-confidence, it will become incredibly powerful in the European Community, so there is a natural alliance between ourselves and the French in maintaining the balance of power. Increasingly, some French statesmen, not politicians, understand that.
8.15 pm
I am not sure whether our hon. Friend the Member for Stockton, South (Mr. Devlin) is trying to say that there would not have been a war in Yugoslavia if it had been a beneficiary of the common agricultural policy, but his historical analogy is in any case a poor one. From 1815 to 1914, the United Kingdom was not engaged in continental warfare, so long periods of our history—
Order. The hon. Gentleman is going down precisely the road that I suggested that he should not take.
I was trying to emphasise that, during those hundred years, we did not have the benefit of the common agricultural policy, so there was no basis for tension. I was trying to suggest that the CAP perhaps gives rise to tension rather than the contrary.
My hon. Friend is right. The CAP does give rise to tensions in Europe, because the needs of our agricultural economy are very different from other parts of Europe. By repatriating agricultural policy we would cater for our own needs better, as would the countries in Europe, so there would be fewer grounds for conflict.
The world has changed a great deal since December 1991. The European bicycle is still pedalling, but intermittently, and it is swerving from side to side. It is in grave danger of being squashed by a juggernaut. First the Danes said no, then only 33 per cent. of the French said, oui. As they become aware of the contents of the treaty and the amendments proposed to it, the people of Britain are becoming more reluctant to embrace it.If we did not have the CAP, does my hon. Friend think that Britain would have any more success at getting her consignments of lamb into France? Does he appreciate the extent to which upland constituencies depend on exports and the extent to which United Kingdom sheep producers depend on this market place? Would it be easier to get our consignments into France if we were not partners in the common agricultural policy and thus had no right to send our lamb to France?
I regret that intervention. I respect my hon. Friend as someone who is much more intelligent than I am. He should realise that, if we were not in the CAP or could derogate from it and had our own structure of agriculture—British agriculture is still not self-sufficient—it would be markedly different. If farmers were not raising sheep, they might be doing something else. The prices might be lower. Red meat consumption has fallen in this country, but if prices were lower it might increase. The problem is not as straightforward as the Minister suggests.
It is not just we who might seek to repatriate agricultural policy. Perhaps other nations will think of doing the same. Every nation should look after its own agriculture as it thinks best and have trading arrangements which suit it.
To answer the Minister's point about lamb, surely the answer is that people will buy our lamb if it is the right lamb at the right price. It will be in their interests to do so. Otherwise, they will be biting off their noses to spite their faces.I have been boring the House for far too long—[interruption.] I am sorry to see the Minister of State agreeing with that remark. While he was away—I know that he had good reason to be—I was polite about him. My hon. Friend has a strength which is a weakness in me. He is fair to all the other countries and peoples in Europe. I am not—I am purely concerned with the interests and policies of the United Kingdom, which would be better effected if we had a level playing field and proper co-operation with our European partners. We shall not achieve those ends through the treaty. That is why I support the amendments.
The amendments, of which I have tabled six or seven, propose that certain sections of the treaty be omitted so that they can be discussed. I wish that I was dealing with economic issues but we have had one debate on those and shall return to the topic in other debates. The main problem with the treaty is that monetarism is the cancer at its core.
I should like to deal with three broad areas, the first of which is commercial policy towards the single market. The second area is research and development and the third is primarily concerned with the common fisheries policy and its legal basis. It is important to raise those issues because in many ways the treaty is all things to all people. It is deliberately designed and written in that way. As we saw earlier in the debate, the simple position of my party is that the treaty means what we wish it said, to the Government the treaty means what the Prime Minister wants it to mean, and the European position tends to be that the treaty means what it says. The European approach will prevail because the damaging evidence and the results of the treaty are clearly spelled out in it. The debate has been a process of wish fulfilment, with people arguing that the treaty does not quite mean what it says or that it will all be different when it is implemented. Therefore, it is important to ask what will be implemented. I have tabled amendments Nos. 357, 358, 360 and 361 on commercial policy, the internal market, competition and the approximation of laws. What do the sections of the treaty that I propose to remove add to the provisions of the Single European Act? We are all attached to the principle of fair competition, but all hon. Members are deluged with complaints from constituents and firms that the level playing field does not operate. Even now in 1993 with the single market nominally with us there are still inhibitions on competition and areas in which British firms cannot compete on an equal basis. There are many barriers to the operation of the single market and they must be removed. What difference will the Maastricht treaty make to the barriers to fair competition for our firms and industries that operate in the EC? Some of the barriers are social, some are institutional and some are legal, and they will not be effectively removed by the provisions of the treaty that my amendments would remove. I want Ministers to justify the treaty's proposals and tell us how they will help British firms facing inequal competition. There is a series of inequalities. For example, there is the inequality of the ability to take over and develop representation or to take over firms to obtain a distribution network in Europe. Britain has the most open takeover market in Europe. It is possible for any firm to come here and launch a contested takeover bid for a British firm and then dismantle it. That has happened many times and firms have been reduced to shells. The manufacturing capacity was removed and production on the continent was substituted. The firms were used as a distribution network for imported manufactured goods from outside, usually from Europe.Does my hon. Friend agree that that happens not just in manufacturing? Nationalised companies in France use taxpayers' money to buy large numbers of assets that have been sold by the British Government and which belonged to the British people. Large companies such as Compagnie Generale des Eaux control many British assets through quite legitimate acquisitions of rights.
As usual, my hon. Friend is absolutely right. Wherever the investment money comes from, those firms have a freedom which our firms do not have. There are all kinds of inhibitions—legal but mainly institutional, and especially the close nexus between firms and the banks which provide the finance and have an interest in the firms—to the ability to make contested takeovers in Germany. In that sense a British firm is on its own. It is nominally controlled by its shareholders who are nominally all-powerful. In practice they sell to the highest bidder, but there is investment by the banks and Lander in German firms.
Competition is rendered unfair because of effective subsidies through lower prices charged by nationalised industries in Europe, especially Electricité Generale de France, which provides an effectively subsidised lower energy price which reduces costs for French firms. There are also problems with subsidies to Italian firms. All those subsidies take time to define and explore and it takes time to make representations to the Commission. The other hidden obstacle to genuine competition is that, as far as I can see, there is no strengthening of any ability to strike down the barriers and no sign of an ability by British firms faced with such barriers to have them dealt with promptly before those firms are ruined by the barriers. Those who are inhibiting competition and distorting the playing field survive and prosper to take over an increasing share of our market and repel the exports that we need to make to Europe. What do the provisions which my amendments seek to remove mean for the effective establishment of a genuine, open, single market with effective and free competition? The Minister must deal with that question in length. We have had many assurances that in voting for the Single European Act five or six years ago Conservative Members entered into all kinds of commitments. To what did they commit themselves in terms of accomplishing the single market that they support? The second group of amendments are Nos. 384, 385, 386 and 387, which deal with research technology and development. The whole tenor of Government policy for the past 13 or 14 years has been to weaken and undermine the manufacturing base upon which the economy rests. Research technology and the kind of development that the Commission wants to be able to foster through the treaty's provisions do not spring fully armed from the head of the Commission. They are generated, supported and financed by a powerful, effective, competitive industrial base. That is exactly what has been undermined in this country. Instead of building up British industrial and manufacturing capacity, the process over the past 13 years of diminished competitiveness, over-valuation and deflation has been deeply damaging, especially from 1979 to 1982 but also from 1989 onwards and particularly after we joined the exchange rate mechanism in 1990. The result is that over a quarter of our manufacturing capacity has closed and our manufacturing base has shrunk too far to be viable to support a healthy competitive manufacturing economy and our standard of living and institutions. That weakness will be disastrously difficult to remedy. It gives the lie to all the Government's hopes that we are in a 1973 situation—one little dollop of devaluation and we can produce a new economic miracle. When that happened in 1973, our manufacturing base was stronger and more competitive and it could be revived by devaluation. It has now been undermined too far for that policy to be effective.8.30 pm
Given what my hon. Friend said about the decline and the destruction of a large part of our manufacturing industry, would it not be necessary to do an awful lot more than have a level playing field? My right hon. Friend the Member for Bethnal Green and Stepney (Mr. Shore) and I were involved in the earlier devaluation, when we had a manufacturing base, but the problem now is that if we do not have the power to act, it will not be possible to—
On a point of order, Mr. Morris. We cannot hear the right hon. Member for Chesterfield (Mr. Benn) because he is turning and talking to his colleague.
The right hon. Member for Chesterfield (Mr. Benn) may have noted what the hon. Lady has said.
My right hon. Friend is right. To revive, expand, widen or deepen our industrial base will be a more difficult challenge and it will not be achieved either by getting an effective level playing field in Europe or by just redressing the terms of manufacturing trade through competitive devaluation, which is what we have had. That devaluation must go further and deeper and there must be measures to manage the economy and encourage investment in manufacturing. The whole job will be much more difficult.
My point was simply that the weakening of the industrial base has meant that substitution of a large part of domestically controlled manufacturing capacity by Japanese investment, which will not generate the same investment in research and development. To call it "screwdriver investment" is to put it too harshly and strongly, but all that it will bring us is the assembly of cars and other goods from materials manufactured in Japan. More importantly, the high value-added element in the research and development equation will be kept in Japan because the Japanese, unlike us, know where their real interests lie. All that means that we have been weakening research and development and technology at the same time as the European Community has been trying to build up a competence in that sector. I do not quibble with that—it is bound to follow that course, particularly because Europe too has been burdened with over-valuation. The emphasis in research and development and technology is now all on competitiveness and on increasing the competitiveness of Europe as a whole through investing in that sector. That becomes a substitute for the competitiveness which should be there through the exchange rate, but which we lost through the exchange rate policies that dominated in Europe. There was an over-valuation of European currencies as a block throughout the 1980s. That over-valuation, which has made the Community the unemployment and low growth black spot of the west, has also made it an area of diminished investment and the Commission has had to come forward with its own programmes and policies.Does the hon. Gentleman remember that the percentage of sales in the United Kingdom that goes into research and development is only 2 per cent., whereas in Germany runs at 6 per cent.? That tells a story, and shows what we must rectify. Is the hon. Gentleman also aware that research and development for the benefit of the so-called Euro-champions—for example, Phillips-Siemens and the APT-Spanish telecommunications venture—have been singular failures? Pouring in money in an attempt to restrain the invasion by the Japanese of mega-bids, as they call them, is not working. Indeed, it is chucking money away.
The hon. Gentleman is right. He used the argument that I was about to advance. He has stolen my thunder and hon. Members will say that I am being boring when I make the same point, but it remains valid. Research and development and technology, have been weakened, in Britain and in the Community, compared to the Japanese competitor particularly. The Commission has attempted to substitute its own research and development programme. We shall have to pay for that—because, under the present system of financing the Community, we shall be major contributors—without getting the benefit of it. Because it is a bureaucratically handled system of investment and technology, it will often—not necessarily always—be wasted. The problem is that it will go to the kind of prestige project that a bureaucracy is likely to invest in rather than to the kind of project that the market would drive investment to if we had a healthy competitive manufacturing base.
We are preparing the way for an extension of that policy by the provisions of the treaty and in particular those that my amendments would remove. I have tabled the amendments to find out what Ministers expect to see as a result of those provisions in the treaty. I am worried about what will be the nature of development. We have seen it already in high definition television. As the Community has concentrated on the D-MAC system, it has invested in a technology that is manifestly outdated rather than moving ahead to the latest technologies. That will benefit companies in Europe that the Community wishes to protect—in Holland and France—but it is of no benefit to Britain, although we shall have to help pay for it. The Government have rightly opposed that. The treaty will lay us open to a whole series of such bureaucratic investments, which will have to be fought each time. That will be a wasteful process. I notice in the Commission's document, "Research after Maastricht: an assessment, a strategy", it says, almost rhapsodically:That is beautiful stuff but it must be taken in conjunction with another sentence, which reads:"The 'research' part of the Treaty has been amended, and while the changes are not earth-shattering in absolute terms, as with music very small differences of emphasis may alter the overall effect."
What are we embarking on by the research and technology provisions in the treaty, which my amendments would strike out? What will Ministers accept and go along with? Is not the policy dangerous in that we shall contribute to the paying of it, but will not get the benefit of it? What provisions do Ministers envisage under the Delors proposals to finance them at our expense? The document on the assessment of research after Maastricht gives the new purposes of research. I shall not bother the Committee with them all, but page 35 sets out four new objectives for research. They also include the following provision:"The impact of the Delors II package, which contains an entirely new part devoted to competitiveness, can be seen in terms of its research application."
On page 33, on the financial perspective on research and development, it also says:"The framework programme shall be implemented through specific programmes".
What is our position on that? Do we accept that? Do we accept that the provisions in the treaty will have the implications that the Commission is setting out in its document? That question must be answered so that we can know exactly on what we are embarking in terms of the Maastricht treaty. The next part of my argument is based on the common fisheries policy. I am glad to see the Minister of State, Ministry of Agriculture, Fisheries and Food on the Government Front Bench. I hope that he will respond to my remarks. I shall not deal with the common agricultural policy, which I dislike intensely. The hon. Member for Northampton, North (Mr. Marlow) assessed it correctly. There is a need to repatriate the CAP. I hope that the Committee will divide on amendment No. 184, to which I am speaking and which, if agreed, would repatriate the policy. It is a disastrous part of the EEC. It is still taking nearly two thirds of the Community's budget after all these years of reforming, changing and modifying it. There have been so many "triumphs" in the negotiating chamber, but the CAP still absorbs the overwhelming part of the budget. It is still unmodified, and it costs more every year. There is still massive fraud, and the policy continues to suit the United Kingdom as little as it ever did. It costs every family of four in this country between £17 and £18 a week. It imposes a burden on our industrial costs and competitiveness. We are being asked to support inefficient agriculture in other parts of Europe. I am baffled by the position of the Liberal party. The Liberal spokesman represents the party of free trade. We recall that Cobden and Bright led the movement to abolish the corn laws, yet Liberal Members are now the foremost defenders of the new corn laws."An examination of the figures appearing in the R and DT item in the financial perspectives shows a significant progression. R and DT expenditure increases from ECU 2.4 billion in 1992 to ECU 4.2 billion in 1997. The annual increase is about 11.5 per cent. The increase from 1992 to 1997 is about 71.6 per cent. In 1997 R and DT expenditure will reach approximately 5 per cent. of the total Community budget."
The hon. Gentleman has referred to the excellent speech of my hon. Friend the Member for Cornwall, North (Mr. Tyler). My hon. Friend said that the alternative policy, as the wrecking amendments before us signify, would be to take Britain out of the common fisheries policy and out of the CAP. They would be removed from the part of the treaty that we are discussing. I shall be interested to hear the hon. Gentleman's response to the question that my hon. Friend put to the Committee: does he think that Britain would have more influence in trying to see, for example, the furtherance of the GATT and global free trade on its own or as an integrated member state of the European Community?
I am sorry that the hon. Gentleman is falling into the same trap as his Liberal conferes. It is obvious that they are producing a sort of brain rot that is affecting his position on these matters. As for the GATT negotiations, it has been extremely difficult to stop the Commission negotiating from a French point of view and instead to negotiate from the point of view of consumers in the United Kingdom.
If we came out of the CAP, we could buy food on the cheapest market and reduce our costs. The basis of our agriculture has been distorted. We would be better repatriating the CAP. Great play has been made about the cost of returning to the old deficiency payments, but those would be domestic costs. Those costs would not go across the exchanges. We have a massive balance of payments deficit and we are having to contribute to a policy that does not suit us. The system of payments within the Community distorts the United Kingdom's position. We are not contributing in terms of our ability to contribute: we are contributing instead in terms of the overall situation of agriculture and imports of food into the country. We are a net contributor, and the second highest contributor.We hear so much talk about cheap food, but there is none unless we choose to take cheap food by exploiting the third world.
The hon. Gentleman's shape suggests that he has found access to cheap food or that he is extremely well paid. What he has just said is nonsense. Food outside the EEC is much cheaper than food within it. If we resumed our old pattern and repatriated our policy on agriculture, we could do what comes naturally to us, which is to buy food on the cheapest markets and send out our manufactured goods in return for that relationship.
8.45 pm
Will my hon. Friend give way?
Will the hon. Gentleman give way?
I have obviously touched a nerve. I give way to the hon. Member for Ross, Cromarty and Skye (Mr. Kennedy).
I do not know why the hon. Gentleman is expressing surprise. He has touched a nerve by attacking my party. Surely it is reasonable to respond. The hon. Gentleman talks about going back to the old patterns, but what sort of argument is he trying to re-run? I remember the literature that the Labour Government distributed. It was supposed to be neutral material. In 1975, we had the "yes" literature and the "no" literature. The Government advice was to vote yes.
We were told in the literature that various Prime Ministers of Commonwealth countries— for example, Australia and New Zealand—were urging us to vote to stay in the European Community. I am taking up the hon. Gentleman's reference to exporting patterns. It was said that we should opt to stay in the Community and then to renegotiate terms. The Labour Government are on record as recommending that course to the British people. Why is it that, nearly 20 years later, the hon. Gentleman cannot come to terms with reality and with the decision that was then made?The hon. Gentleman is seeking to divert me from the path of rectitude. I was praising the past of his party, not attacking it. He is attacking the past of his party. Indeed, he is betraying every principle for which it ever stood in the context of these matters. It is incomprehensible that he should be doing so.
To answer the hon. Gentleman's question, are we to be forced to escalate payments to agriculture by accepting the CAP in a form which French farmers determine for the Community by means of political power or intransigent obstinacy, inappropriate though that might be for the United Kingdom? Why cannot we repatriate the CAP in bits? Why cannot extra payments be made domestically if a Government want to make extra payments to their farmers to support them at the level of the French peasantry, or to those German part-time farmers who work in the car industry but who have a few cows? Why cannot there be that form of repatriation? It does not have to be done in one fell swoop. The answer to the hon. Gentleman's question is that, if we took that course, we would be more competitive economically. The cost of living would be lower if we repatriated the entire policy.Is my hon. Friend aware that one of the consequences of the CAP has been the destruction of agriculture in many third-world countries? The CAP is directed towards producing food products within western Europe that could be produced elsewhere at less cost and at much greater social benefit. Examples are the fate of the banana industry on the Windward Islands, of the cane sugar industry and of the maize industry in many countries throughout the world. The policy of the EEC has been detrimental to third-world economies. The last Lomé convention to be signed gave the lowest ever real rate of increase in food prices to the ACP countries, and produced the greatest interference in those economies. Is that not an example of Euro-arrogance, to the detriment of the peoples of the third world?
My hon. Friend is right. At this stage, however, I shall leave the CAP. I never intended to deal with it. I mentioned it only in passing. It is because the Liberals are so guilty about their position on the CAP that I have been diverted. My hon. Friend has made a powerful and effective point.
I move on to the common fisheries policy, which would be struck out, as it were, by the acceptance of amendment No. 184, but in a different way and on a different basis. If we accept amendment No. 184, which advocates the striking out in article 3e of the reference to a common policy for agriculture and fisheries, there will still be a common agricultural policy. That policy is set out in the treaty of Rome, a treaty that we will not be amending. The important distinction is that there will not be a common fisheries policy, because there is no legitimate, legal provision in the treaty of Rome for such a policy. I hope that the Minister will respond to my argument. If we accept the amendment and strike out the common fisheries policy as it is referred to in article 3e, we leave ourselves without such a policy except that which is agreed between Governments. It does not have any basis in a treaty in the way that the CAP does, because that is written into the treaty of Rome, whereas that is an argument for accepting the amendment and striking out the CFP. I want to develop my argument about why, if we accept the amendment, effectively we will be eliminating the CFP. It is a difficult argument. I hope that the Minister will bear with me because he will have to reply to it. I want to refer to a book by a Mr. R. R. Churchill called "EEC Fisheries Law". On page 23, he says about the treaty of Rome:In other words, any assumption that the CFP has been provided for in the treaty of Rome is wrong. It has been provided for only by a series of distortions and dodges and doubtful interpretations. Therefore, if we agree to the amendment and strike out the CFP, it will no longer exist in a treaty. The book then says, however, that evidence for a common fisheries policy is to be found in the provisions dealing with agriculture:"At first glance, it is not obvious that there is any provision in the EEC Treaty that could form the legal basis for a common fisheries policy or for fisheries legislation, since no article of the Treaty is overtly concerned with fisheries."
to argue that agriculture actually includes fisheries. As I read the treaty—I want the Minister to deal with this point—article 38 does not deal with agriculture in that way. It states:"After providing in Article 3(d) that the activities of the Community shall include 'the adoption of a common policy in the sphere of agriculture,' the Treaty goes on"
Those are two matters with a distinction between them. The book states that in the treaty"the common market shall extend to agriculture and trade in agricultural products."
The extension to fisheries applies only to agricultural products, not to agriculture. Therefore, the common policy for agriculture does not extend to a common policy for fisheries. That is an important distinction because although we can regulate the trade in fish products, we cannot regulate the catching and the conservation of fish and other such aspects. My argument is supported by the fact that article 40(1) of the treaty of Rome specifies that a common policy should have been adopted by the end of the transitional period—that is, 31 December 1969. No policy was developed—"Agricultural products are defined as 'products of the soil, of stockfarming and of fisheries".
My hon. Friend means 1979.
No, I mean 1969. I am talking about the treaty of Rome.
No common policy was developed for fisheries by that time; it was developed only subsequently, in the early 1970s. It was clearly developed then as a means of gaining access to the waters of those fishing nations with rich fishing grounds applying for entry— Britain, Norway and Denmark.My hon. Friend will correct me if I am wrong, but my understanding is that, during the negotiations in 1972 on Britain's accession to the treaty, there were not specific negotiations on fisheries. That bears out what my hon. Friend has said.
I am grateful to my right hon. Friend. His point emphasises the basic difference between our approach and that of the Norwegians. Fisheries were not important to our Government, who were desperate to get into the EEC because they had no policy for the independent development of our country. They were prepared to accept any humiliation and any inadequate deal for the fishing industry in their desperate desire to get into the EEC. That was not the attitude of the Norwegian Government, who obtained stronger defences for their fishing industry. However, even those subsequently proved to be inadequate because the Norwegian electorate rejected them.
However, I am not sure that my hon. Friend is right in what he says, because, on page 29 of his book, Churchill argues that article 102 of the treaty of accession mentions fisheries and provides:However, Mr. Churchill argues that that cannot be a legal basis for a common fisheries policy. He says:"From the sixth year after Accession at the latest, the Council, acting on a proposal from the Commission, shall determine conditions for fishing with a view to ensuring protection of the fishing grounds and conservation of the biological resources of the sea."
It is important that we consider the argument, and that the Minister deals with it when he replies. There is no legal basis in either this treaty or in the treaty of Rome for a common fisheries policy that has been bedeviling the fishing industry for so many years."Article 102 cannot be considered as a legal basis for fisheries legislation…because the intention in adding Article to the Act of Accession was that a specific time limit should be laid down, rather than a new power conferred on the Community".
One point slightly troubles me, and that is the Factortame case. Whether or not we like it, the European Court has adjudicated on that case on the assumption that there is a fisheries policy, including quotas, when in fact it appears that there is no such policy. Was the Churchill book published after Factortame?
The book was published before Factortame. The judgment is a further force behind my argument. The court made a decision, based on a principle that is in the treaty of Rome, that companies within the Community should be able to establish themselves wherever they wanted—that there should be the right of free circulation of business within the Community. The judgment was not reached on the basis of any common fisheries policy that gives nation states a measure of control or influence over the catches in their waters or that allocates catches on the basis of contributions to the common fisheries pool. The court effectively said that the principle included in the treaty of Rome was more important than the principle which I am arguing is not in that treaty. That was the basis of the judgment.
I am grateful to my hon. Friend, because some hon. Members have assumed that those of us., who follow these matters know all about the treaty. In fact, this is the first time in 20 years that I have realised that there is no sound basis for the common fisheries policy, with its attendant problems for fishing vessels and policing the seas. The House and the country are much obliged to my hon. Friend for making that clear.
Does not my hon. Friend's point clearly show that the moral throughout these debates is that there are always surprises in any EC treaty? If the basis of the CFP is rocky, does not that show that in many of the treaties we have passed, especially the Single European Act, there are constant surprises? We do not know to what we bind ourselves.I am most grateful to my hon. Friend for that compliment. To have added to his stock of knowledge on Europe is, perhaps, the most significant contribution that I have ever made to the proceedings of the House. I am genuinely flattered, because it is difficult to add to what my hon. Friend knows about Europe. We have mistakenly acknowledged that the treaty of Rome provides for a common fisheries policy, but it does not. If the amendment is passed, we will be able to decide what action we want to take about a fisheries policy to suit our purposes.
9 pm The fisheries policy does not have a legal basis in the treaty. It is sometimes argued that fish do not carry flags and do not have any national allegiance. The argument does not have a biological basis. It is nonsense to say that other nations will fish out those fish that migrate across the North sea just out of spite. The normal process of migration would continue. That inhibition has not prevented Norway from enforcing and administering a most efficient fisheries policy, which has done far better by that country's industry than the common fisheries policy has done by ours. Only this nation state is concerned to conserve and to build its fish stocks so that they can be passed on to the next generation. All the other nations have a predatory interest in our fish stocks because they want to keep their industries, which are too large, in existence. That is why they wanted access to our waters in the first place. That is why they framed that pastiche of a deal in the form of a common fisheries policy just before the right hon. Member for Old Bexley and Sidcup (Mr. Heath) initiated negotiations. Those nations knew what was coming and wanted access to our stocks. There is no legal or biological basis for the common fisheries policy. For a nation whose waters contain more than two thirds of the stocks and more than 70 per cent. —probably three quarters—of the stocks by value of those fish most needed for human consumption, we secured a pathetically bad deal in being allocated one third or less of the catches made in waters to which we make such a large contribution. That happened after losing access to Icelandic waters as well. It would be in our interest to repatriate our fisheries and agricultural policies. We could administer and enforce them. The waters are ours, and we have the Fisheries Limits Act 1976 as a basis. We would only have to relist the countries exempted from that legislation. It is spectacularly in our interests to do that. The Minister has created a situation in which our fishermen will be stopped from putting to sea to catch our fish in our waters, while at the same time not imposing any effective control on continental competitors whose landings are not administered, checked and policed in the same way, but who are allowed to fish on uncontrolled in our waters. The British fishing industry will not accept that for a minute.As to south-west area 7, does the hon. Gentleman recall that Britain is allowed to take only 10 per cent. of quotas and stocks, whereas our so-called partners in the Community take 90 per cent? That is a curious partnership. In 1993, the quota in the south-west will be nearly halved. Is that not a disgraceful state of affairs? How in heaven's name did we reach that position?
The hon. Gentleman is right. In this context, "partners" means bitter competitors. The fisherman is by nature a predator. While our fishermen are shackled and kept in port by Government policies, their fellow predators are not held back, checked and controlled in the same way. The odds must be redressed in favour of our industry. Aneurin Bevan said that our island was built on coal and surrounded by fish. It is inconceivable that it should find itself in the present situation. We are closing our coal mines and allowing other nations to catch our fish. That is a result of a misguided emphasis on developing a common fisheries policy.
To complete the Bevan trio, is my hon. Friend aware that there is considerable doubt and argument about sovereignty over the oil beneath the sea? Perhaps that ought to be considered in a future debate, Mr. Morris—but it is quite as murky as the non-fisheries policy.
I will not extend myself like an oil slick across the surface of this debate and address the oil industry, otherwise people will say, "Well, well—he has gone too far." Nevertheless, my hon. Friend is absolutely correct.
I have asked a series of questions arising from the Government's perception of what will happen following the introduction of the single market, which is supposed to introduce a genuinely level playing field for our businesses exporting to and competing within Europe. I have asked about research and technology, and the consequences to our contribution and our benefits if this inflated programme goes ahead.Is not repatriation a double-edged sword? Would it not help both our farming and our fishing industries? The whole tenor of the hon. Gentleman's argument—with which I greatly sympathise—has been almost one of helplessness, on behalf of the fishermen in his constituency. His ability to represent them in the House, as Members of Parliament for his seat have done for centuries, has been taken from him.
My principal interest is in farming rather than fishing, but the hon. Gentleman's problems are even greater than mine. I wait with interest to hear the Minister's justification for what the Community has done to the fishermen, and his explanation of the benefits that they are to receive.The hon. Gentleman is quite right. Great Grimsby is still England's premier fishing port, and ours is still a major fishing industry. It is very frustrating to have to go back to fishermen who are already bitterly disappointed—fishermen who have had an extremely raw deal, whose take-home money and catches are substantially down and who are now stopped from going to sea at certain times—and tell them. "I am sorry, but I can do nothing about it; it is the common market. We accepted what the common market said. The Minister did a deal. I know that the result of that deal will be enforced more vigorously on you than on your competitors, but we are not our own masters."
We shall all find ourselves in that position in regard to a range of policies—particularly the central policy that governs the way in which our economy is run to achieve growth or full employment—if we accept the deflationary monetarist cancer that lies at the core of the Maastricht treaty. We shall all be in a position in which I have been for years: a position that I would not want to inflict on anyone, because it is a national tragedy and a personal humiliation. I have presented three serious arguments about three matters of prime concern to me. I hope that they will be dealt with seriously—especially the argument about fishing—because the House and the country are becoming fed up with continually being told, "Never mind the text; feel the glory of the union. Never mind what the treaty says; think how it will be when wishes are horses." We must consider the reality—what the treaty really says. I hope that the Government will justify that.The concluding remarks of the hon. Member for Great Grimsby (Mr. Mitchell), who represents a fishing constituency, could well have been my concluding remarks about the Scottish constituency and interest that I represent. There is no doubt that, when Scotland joined the Union and created this unitary Parliament, that Parliament had powers to make decisions about all the matters that affected our constituents. The more powers that we give away—however good our intentions—the more we will weaken this Parliament. We must reach a point at which the people of Scotland will ask, "What is the advantage to us of a unitary Parliament, given the powers involved?"
I want to consider those powers under the amendments that we are discussing. If I had drafted them myself, they could not have been more relevant to my constituency. I do not think that it will be long before the people of Scotland point out that they could do better on their own, whether they are inside or outside Europe. I suggest that at that point the days of this Parliament will be numbered. The group of amendments that we are considering deal with industrial issues. I represent a 2,000 square mile Scottish constituency which is under water today. Last week it was under a lot of snow, with blocked roads causing many problems. That snow has largely melted, so my constituency is now under water. Horrendous transport problems therefore face my farmers and constituents. Yesterday I had to drive about 60 miles in order to reach my stables, only seven miles away, so that my daughter could feed the horses. Earlier in the day I could not have reached the stables. No roads were open. Eventually, however, one road became just passable with the right kind of vehicle. The wealth of my constituency was built on whisky, textiles, food production and food processing. I invite those who believe that the whisky and textile industries and food production and food processing have had a good deal over the past 20 years to come to my constituency and talk to the industrialists there. The whisky and textile industries believe that they have not had a fair deal. The food production and processing industries, in particular the canning factory and the chicken processing factory in my constituency, believe that there is no level playing field for the rules. French factories are desperately trying to penetrate United Kingdom markets. The maintenance of common European standards on hygiene and other matters costs money. Those standards are not common, however. We have to shoulder costs that they do not have to bear. The tourist industry creates much employment in my constituency. Anybody who is involved in that industry knows that if we do not satisfy the customers they do not come back. One of the greatest attractions in the winter months in my constituency is the skiing in Glen Shee. We have snow on the mountains this year, but the roads are not open. There have been two landslips on the road up from Blairgowrie to Glen Shee. Anybody who has studied the problem realises that we need snow in quantity this winter in Glen Shee if the skiing is to remain viable. With the roads closed, the skiing industry faces financial disaster. It is important to understand how great a magnet skiing has become in drawing consumers to the area. Without the skiing, Blairgowrie, where I live, would have died many years ago. Why do I say that? I return to our membership of the European Community and the impact of our membership on the canning industry. It was the largest employer in Blairgowrie. The industry employed more than 400 people. Blairgowrie also had spinning mills. At one time it had 19. When I stood as a candidate, Blairgowrie had four working spinning mills. Just before I became the Member of Parliament—it was fortunate for me that it happened no later—the canning factory and the spinning mills closed down, and more than 600 people, in a very small community, lost their jobs. Only the magnet of the skiing industry has offset the huge problems that the closure of those industries caused.I am listening, as ever, with care and attention to the hon. Gentleman's detailed comments about his constituency. I accept that he approaches the debate from an anti-Maastricht view, or at least from a somewhat sceptical view about the European Community as a whole. I cannot speak with authority or knowledge about Glen Shee, but does he recognise that other major skiing developments, such as Aonach Mor in the constituency of my hon. Friend the Member for Inverness, Nairn and Lochaber (Sir R. Johnston), were possible only because of European regional development fund support? He is highlighting the importance of the ski industry, but the point could be made equally about other sectors. He should recognise that the ERDF has made the difference in the development of the skiing industry.
9.15 pm
That was the best intervention that I could have asked for. A long time ago, a line was drawn across Scotland, north of which, it was said, is the Highland region. Of course, you, Mr. Morris, should never come to my constituency, which has some of the highest mountains in Scotland, because, according to whoever drew that lovely line on the map, we are not Highland. Therefore, my constituency does not enjoy the benefits of Ross, Cromarty and Skye—the largesse that comes from Europe. My taxpayers' money—they pay £1.68 into Europe and get £1 back—is laundered to the hon. Gentleman's constituency. That applies to industry and farming.
The hon. Member for Ross, Cromarty and Skye (Mr. Kennedy) can sit there and smile, because vast sums of money will go to his constituency, but the problems that my farmers are facing today will not be offset by the fact that farmers who have sheep north of that marvellous line on the map will get much more from the European agricultural budget. It is not realistic to suggest that it is easier to farm in the hon. Member's constituency than in Rannoch Moor, Glen Shee and Glen Lyon in my constituency, which are equally remote and where the problems are the same.Does my hon. Friend agree that it is dangerous to suggest that we are somehow benefiting from money from Europe? Europe has no money, just as the Government have no money. The money belongs to the people and must be removed from them by taxation. Frequently, it is not returned to them efficiently by our national Government, but usually, when it comes back via Europe, it has been handled much less efficiently.
I thank my hon. Friend for his helpful intervention. He said what I want to say. I describe it as laundered money, because it seems nonsense to pretend that taxpayers' money is largesse; it is not.
I am not opposed to assisting those who need it, but I am opposed to the Spanish Prime Minister coming to the capital of Scotland and asking that Scottish taxpayers should pay higher taxes so that Spaniards can subsidise their industry. British Airways competes with the heavily subsidised Spanish airline, Iberia.I have listened to the hon. Member fulminating about the fact that people north of the Tayside border can take advantage of European grants that are not available to his constituents. Does he accept that the line about which he is so upset was drawn not by the Spanish Prime Minister but by Ministers in this House? Those incentives could be available to farmers, industrialists and tourist operators in Tayside, as they are in the highlands and other parts of the European Community—and would be available if it had anything to do with the European Commission or European Parliament. They would be available if it were up to the European Commission or the European Parliament—it is the idiots in the Government who have deprived his constituency of the development area status which could be available.
That is fascinating, but the idiots in this Government did not draw the line. It was the idiots, if they were idiots—although I should not so describe right hon. and hon. Members—in a Government formed by the Opposition—[Interruption.]—when the line was first drawn. I do my homework carefully—the hon. Member for Ross, Cromarty and Skye should know that.
I remind the hon. Member for East Lothian (Mr. Home Robertson) that if we were not in the European Community it would be much easier for me, as a Scottish Member of Parliament, to argue my case, because I would be able to use much more leverage than I can now. I shall outline the basis of my case later, but it is important that the House knows about other commercial interests in my constituency. I am not talking about abstract theories but dealing with serious issues affecting my constituents. One of the major commercial interests in my constituency is the General Accident insurance corpora-tion. Although its headquarters are located in a neighbouring constituency, it will not surprise the House to learn that many of my constituents work there because Scone, which is a suburb of Perth, is in my constituency. Another matter of interest in my constituency is whisky—people often think of that in the city of Perth. When Britain was a member of the exchange rate mechanism, General Accident was operating in a marketplace in which its costs were in pounds sterling but the bulk of its income was in dollars. One does not have to be a genius to realise that the change when we left the ERM on white Wednesday and got out of the straitjacket worked greatly to the advantage of a massive employer whose costs and expenses were largely in pounds sterling and whose income was substantially in dollars. Before we joined the European Community, it is true that Scottish farmers were considered to be relatively comfortable—I would not say well off, although some were. In fact, lairds such as the hon. Member for East Lothian were probably very well off. I do not speak only on behalf of lairds, because many of my constituents are tenant farmers. While I do not know as much as the hon. Member for East Lothian about being a laird, because he is one and I am not, at least many of my friends are lairds. Some have phoned me this evening about the problems that they face. The main problem is what has happened to farmers' incomes since we joined the European Community. Anyone who talks to hill farmers, especially those in north Tayside who do not get the additional benefit of being in the highlands and islands, will find that their income has dropped savagely during our membership. There is no doubt that one of the best things we could do—certainly for the hill farmers—would be to repatriate the common agricultural policy and to return the issue of agricultural support to our Parliament.I am glad that the hon. Gentleman has mentioned hill farmers. Does he acknowledge that the European Community has quite generously increased the hill livestock compensatory allowance for the current year but that, once again, it is the Government whom he continues to support who have clawed back all of that increase so that the hill farmers about whose plight he is whingeing do not get the benefits or access to the extra support which the European Community wants to offer? Once again, the Government whom he supports are damaging the interests of his constituents.
The hon. Gentleman is again trying to play with figures. He should address the matter objectively. The average British family pays £17 or £18 a week more for food than they would otherwise require to do. That is a cost to Britain. In addition, for every pound that comes back to the United Kingdom—
Order. The hon. Gentleman is being tempted by an intervention. I should be grateful if he would address his remarks to the question why the amendments—there are a fair number—should make deletions in the Bill to limit the effects of the treaty. That is the crunch issue from which the hon. Gentleman has strayed just a little.
Unless I am a complete idiot, Mr. Morris—I hope that I am not—my understanding is that, if amendment No. 184 were accepted, it would remove the common agricultural policy completely from the jurisdiction of the European Community. Have I got that right, Mr. Morris?
Yes.
In that case, my argument is that the CAP's no longer being there would have an effect on the sums available via taxation in this House to be spent on the farmers in my constituency. That is the point I am trying to make.
The hon. Member for East Lothian demonstrated the great Euro-trick of pretending that the world is square. In 1972, we were told that, if we entered the European Community and joined the club called the common agricultural policy, my farmers, the consumers and everyone else would benefit. My case is that the goods were oversold. Europe did not deliver on the promises made in 1972, as I shall try to show. We lost the right of veto, which we were told was built in. We were told that the Single European Act, which affects industry, commerce and tourism, would be to our advantage. I point out that insurance still does not have a level playing field. If I may stray into a later group of amendments, I also point out that transport does not have a level playing field, although it is part of commerce. Some hon. Members who voted for the Single European Act did so under a little pressure called a three-line Whip. We are constantly told today, "If you voted for that, you cannot possibly have any views on the Maastricht Bill and treaty." I am in the fortunate position of not having supported the Single European Act; nor did I support entry into the EC under the conditions and terms in 1972.Before my hon. Friend leaves amendment No. 184, would he tell that silly hon. Member for East Lothian (Mr. Home Robertson) that, if the amendment were passed, every farmer in Britain with a farm of more than 40 hectares could get £127,000 per year fully indexed? Every farmer with a farm under 40 hectares could get £40,000 fully indexed. That is without any increase in resources. To hear a socialist Member of Parliament arguing for a policy that involves the expenditure of £250 million every week solely for the storage, dumping and destruction of foodstuffs is an insult to all that socialists have stood for over the years.
I thank my hon. Friend for that helpful intervention. There is no doubt that if we were able to make decisions in the House first, on the pricing levels that the market in the United Kingdom would accept and, secondly, on how we supported various activities, including agriculture, and if we were completely answerable here for what we were doing, we would be in a different position.
The hon. Member for Ross, Cromarty and Skye, who argued for the Liberal Democrats' position, may be interested to know that the Dewars bottling and blending plant, which is part of the United Distillers-Guinness group—it is in my constituency and not in the neighbouring constituency of Perth and Kinross—was advised last week that it is to close. I believe that, if those lovely lines that have been drawn on maps at different times had been applied—I am talking about support for areas in need—and if the area around Perth had been designated an area of need and were able to receive the grants and aid that are provided in such circumstances, it is probable that the plant would not be closing. It is well known that the work force at the plant has been loyal and hard working. It has been non-militant. The grants and aid available for massive investment elsewhere in bottling and blending plants by United Distillers in areas such as Kilmarnock, which will enjoy benefits, seem to be a funny way to repay the work force who have been loyal and non-militant. I do not argue about what is happening, as that is for the company to judge.
9.30 pm
I join the hon. Member for Tayside, North (Mr. Walker) in paying tribute to the Dewars plant at Inveralmond. I represented the workers at that plant for many years and I pay tribute to their long-standing loyalty and their productivity. They have produced a product which has been successful all over the world. However, has anyone at any level in United Distillers ever suggested to the hon. Member for Tayside, North that, if the area had been one of special preference, that would have changed the company's decision last week?
The hon. Gentleman is asking me about commercially confidential conversations. One of the reasons why industrialists trust the hon. Member for Hamilton (Mr. Robertson) and, I hope, trust me is that when, they talk to us privately and confidentially, they know that we will not blab it in this place.
From my experience of the boardroom, I know that, when one takes decisions on where to place investment, one must necessarily look very carefully at areas that receive aid and those that do not. If one has to decide which plant to close and which plant to invest in, that decision will inevitably be part of a package that will contain the amount of Government assistance or aid that is available. That is the normal way in which boardrooms work. We have always worked that way in the boardrooms of which I have experience. I am deeply concerned, because my constituency will lose all round. The European club, of which everyone has told me we should be pleased to be a member, has failed to deliver in many different ways. For example, it has failed to deliver in respect of jobs, trade and investment. Those failures cannot be hidden for ever. The cold, hard facts are that, when we joined the Community in 1972, unemployment in the United Kingdom was just over 800,000. Today, unemployment is 3 million. In 1972, we were told that, if we did not join Europe, we would face massive unemployment. However, Europe has failed to deliver. In the five years before we joined the Community—this is important to the whisky industry and others—the average trade deficit with the Community countries was around £230 million a year. In the past five years, the deficit has averaged £12,000 million a year. Again, Europe has failed to deliver.I have a very straightforward question for the hon. Gentleman. If all those problems—the hon. Gentleman mentioned unemployment, for example—can be laid substantially at the European Community's door, why did the hon. Gentleman, along with his hon. Friends, subscribe to an election campaign which said, "Vote Conservative on Thursday and the recovery will continue on Friday"? How come the recovery could be dependent on the domestic political result here if all our economic woes are decided in Brussels?
Order. I hope that the hon. Member for Tayside, North (Mr. Walker) will not go down that route.
The hon. Gentleman is tempting me, but of course it is nonsense. I am not blaming Europe. The structures and the way that Europe has evolved are the problem. It is right that we should be in Europe. It is right that we should be working within the Community to obtain benefits and advantages. I just think that giving away powers in the way that we did in 1972 and the Single European Act are not what we were told would happen. Europe has failed to deliver. As a former shopkeeper, I know that, if one sells goods that do not live up to expectations, the public become disillusioned.
My hon. Friend has told us about the importance of whisky distilling not only in his constituency but throughout Scotland. Can he tell us of any major whisky distilling or exporting company in Scotland that, as a matter of policy, is opposed to the ratification of the Maastricht treaty?
A major United Kingdom whisky company director—the chief executive; without asking him I cannot say his name—at a function in the House which was run by the Scotch Whisky Association, told me that I was right. That is all that I can say. He wished me luck. He said that I was right. [Interruption.] He happens to be the chief executive. As for my views on Maastricht —that is what we are debating. That is the question that was put to me, Mr. Morris. I was responding to the question. I have lived long enough to know that, more often than not, one is rarely right. I live in a house full of women, and one is regularly reminded that one is not right.
Will my hon. Friend tell our right hon. Friend the Minister of State, Foreign and Commonwealth Office that we will never know what the people of Britain think about the Maastricht treaty, and we will never know about the damage to their jobs and their freedom and liberty until the Government have the courage to hold a referendum so that, instead of—[Interruption.]
Order. I appeal to hon. Members to stick to the amendment. The hon. Member for Southend, East (Sir T. Taylor) knows that there is an amendment on a referendum to be discussed later in our proceedings. I imagine that the hon. Gentleman will want to catch my eye, not least because he has the lead amendment. I do not believe that it is appropriate that we should bring the referendum amendment into the other amendments.
On a point of order, Mr. Morris. I do not cause trouble by making unrealistic points of order. Surely, if the Minister brings in something relating to the views of people, it is fair for someone else to make the same point.
I heard the Minister refer to the whisky industry, which was the point that the hon. Member for Tayside, North had been contributing to. Both were entirely in order.
The whisky industry, like the rest of the United Kingdom, has different views on the European Community. The country is divided, just as France was divided when it was given the opportunity to show how it felt.
On the opinions of industrialists, I wonder whether my right hon. Friend the Minister could tell us of that famous evening when a letter was circulated at a Confederation of British Industry dinner at which, apparently, 60 industrialists were present. About 15 industrialists were prepared to sign that letter and others, for private reasons, did not do so. Does that mean that more than 50 per cent. of industrialists who were especially invited to back the Government's position could not bring themselves to do so? Surely all such matters are nonsense. It is not entirely fair for my hon. Friend to say, "Find an industrialist to take one position or another," because, for very good reasons, many wish to keep their opinions to themselves.
The point has been well made. The country is divided and there are different views at all levels. It is nonsense for either myself or Ministers to suggest that we have a monopoly on the views—we do not, and we do not know the position. Anyone who suggests—as was suggested earlier—that we fought an election and have now given way is incorrect. I fought the election on the basis that I would oppose the treaty. I want there to be no question about that—my integrity is not in doubt. Others may doubt my judgment, but not my integrity.
Between 1981 and 1990, the United Kingdom's overseas investment outside the European Community was 76.4 per cent. of all investment. There was far greater investment outside the European Community, and it produced a surplus of £40,100 million. Within the European Community, 23.6 per cent. of United Kingdom overseas investment created a deficit of £75,400 million. That means that more and more Scots—not just fishermen and farmers—will feel that they are not receiving many of the advantages that they were promised in 1972. Consequently, when I look forward, I am concerned. I consider my good fortune and the ghastly future in store for so many other members of the human race. I wonder if my good fortune will continue. I live in a country called Scotland, which is free and democratic. I am an elected Member of one of the few Parliaments where membership cannot be bought—in a country where the Government are changed by the ballot box, not the gun. I also reflect that, for many people, last year was ghastly, and many of them will face famine, drought and other problems. My constituency faces flooding, but no one seriously believes that many of my farmers will die next year as a result of starvation caused by flooding. Many of them will be in terrible financial straits, but they will not die. I consider how different it is in Scotland and throughout the United Kingdom. Despite the substantial difficulties caused by unemployment—to which I have drawn attention—and the world recession, the young and the old in Scotland will not face famine, pestilence or war. However, Scotland's good fortune was not created by chance, but by our forefathers, who fought for Scotland's and the United Kingdom's democratic rights, and defended our right to be free. They also negotiated a Union, where the leadership, courage and talents of the minority population from Scotland would be employed to the advantage of the new country that had been created: the United Kingdom. I know that we are changing United Kingdom law, but my view is that, if substantial amendments are accepted and the treaty is changed as a result, so that the treaty has to be renegotiated, the original treaty will be dead. I believe that the time has come for us to look at how the United Kingdom population has benefited and 9 per cent. of that population—the Scots—have always enjoyed much more representation in agricultural, industrial, consumer, commercial, political and trade union matters. They have enjoyed a greater share of the key positions. Scottish power and influence has been greater than its percentage share of the United Kingdom population. Any possible future Labour Cabinet would consist of more than 20 per cent. of Ministers from Scotland, even though Scotland has less than 9 per cent. of the United Kingdom population. I am worried that all this is liable to change. Hon. Members can ask Ministers questions about all relevant matters, but if we give away these powers to Europe—the hon. Member for Great Grimsby (Mr. Mitchell) drew attention to the dubious nature of our authority to do that—the European Court will base its judgments on the political intent as well as on the contents of the treaty, as we know from the preamble to the Bill and from elsewhere. 9.45 pm Unless the House agrees to these amendments, the Maastricht treaty and its amendments to the Single European Act and the treaty of Rome will give away massive powers that have hitherto belonged to this Parliament. Members representing constituents will no longer be able to ask Ministers questions on behalf of those constituents. The cornerstone of our unwritten constitution, which is part of the cement binding the United Kingdom together, will thus be eroded. That cornerstone consists of a Member's right to ask questions and to have them answered. Already, more often than not, we are told by Ministers that our questions have nothing to do with them: "Hard luck, this matter has to do with Europe." As Scottish constituents see their Members of Parliament becoming less able to pursue their interests—Order. I have been very tolerant of the hon. Gentleman, who keeps on using the phrase, "If these amendments are agreed to". That, however, is really not sufficient to keep him in order. He must speak specifically about the amendment—not generically.
I wish you had not asked me that, Mr. Morris, because I was coming directly to the amendments. This House is the key to maintaining the Union of the United Kingdom. There are more separatists on the Opposition Benches than wear the nationalist colours. Once they see they no longer have an opportunity to become Ministers after the next election it is just possible that we may find ourselves facing the end of this Parliament as we have known it.
My hon. Friend knows as well as we all do that Scotland has far more representations in the House than it is due given the nature of the population. But Scotland also has Members in the European Parliament. Just as my hon. Friend can scrutinise the actions of Ministers who make up the Council of Ministers, so Members of the European Parliament will be able to scrutinise the work of Commissioners and others—
Order. That has nothing to do with industry.
Like you, Mr. Morris, I shall treat that intervention with the contempt it deserves—[Laughter.] Hon. Members may find that amusing, but we Scots grew up on a diet of the constitution and some of us have spent all our adult lives trying to protect it. There is not a Scottish Member of Parliament or politician who does not have a view on the Maastricht treaty as it affects the CAP, unemployment, commerce or industry—or who does not from time to time discuss the issue of representation in Edinburgh in some guise or other.
I am certain that, if we do anything to weaken the powers of the House, we will enter on the slippery road to separation. That may lead to Scotland remaining inside the United Kingdom as we know it, or in Europe as some Scots wish, or outside Europe. Denmark has clearly shown what a small country can do to the European juggernaut, and that has not gone unnoticed in Scotland.The Minister spoke about Britain being a wealthy country, but that wealth is not being well shared. We seem to be wealthy enough to afford 3 million people on the dole, according to the official statistics. Of course, the real figure is far higher. That in itself is a shocking indictment. We have been in the EC for 20 years and unemployment in the EC is no fewer than 17 million: that is hardly a fact to cheer about.
My hon. Friend the Member for Leeds, Central (Mr. Fatchett) spoke about the need for more research and development and education and training. I agree with that, but I have reservations about those functions being under the EC umbrella. This country certainly needs an industrial policy, and market forces will not cure the mass unemployment from which we suffer. Article 130 deals withWhat does that mean? I look upon it with a good deal of fear and foreboding. I am a Welsh MP of long standing. In Wales, we know from experience what structural change can mean. Thousands of jobs have been lost in Wales, but the Maastricht treaty does not contain a social chapter—so what are the safeguards for working people? Wales lost many thousands of jobs in the steel industry because of structural change. Ebbw Vale no longer produces steel. The community there has never got over the experience of losing all those jobs in that vital industry. In north Wales, the Shotton works lost thousands of jobs, as did Port Talbot, Llanwern and many other areas. Steel is allied to the motor car industry, which is next for rationalisation: it is top of the list for the structural changes referred to in the treaty. There is already speculation about the German company, Volkswagen, taking over Rover. I read about that in the press. What will that mean for jobs in this country? What will it mean for the constituents of my hon. Friend the Member for Oxford, East (Mr. Smith)? There are ominous signs for Vauxhall in Luton. Could the work there go to the continent to join the rest of the General Motors organisation in Europe? Such developments would be highly damaging to the British economy. Wales relies heavily on the motor components industry. We have major concerns in Wales: Ford engines in Bridgend, the Bosch plant in the Vale of Glamorgan, Lucas Girling in Cwmbran, and many more besides. If the assembly plants were to be wound up, would the component sectors go as well? It would be a disaster for employment if that were to happen. The engineering sector of industry in Britain today is largely dependent on the motor industry for work. That industry is the key to the future economic success of the country. Vehicles of first-class quality are being produced here, but if the structural changes take place, the quality of our products would count for nothing. We know that we have an efficient coal industry, but the Government cannot close it down fast enough. I cannot over-stress the importance of the motor industry to our economy. That must be born in mind when we consider the structural changes set out in the Maastricht treaty. The economies of Germany and Japan are heavily reliant on their motor industries. It is not without significance that those two countries also have strong currencies. We must examine the implications of the proposed structural changes. According to official statistics, our unemployment rate stands at no less than 3 million. That figure involves many factors. For example, it is directly related to our crime rate. It is as true now as it ever was that the devil finds work for idle hands. Unemployment has brought about social and domestic difficulties, with an increasing divorce rate and more marital difficulties. Those out of work are demoralised. The structural changes could be a further step to the deindustrialisation of Britain. We have been in the European Community for 20 years. The Government must intervene in industry. They must not leave industrial policy to the vagaries of market forces, because unemployment is the most important issue facing us. The sooner we tackle it, the better."speeding up the adjustment of industry to structural changes".
rose—
Sir Teddy Taylor.
There are two amendments listed here—
Order. Is this an intervention or a speech?
I have finished my speech.
In that case, I apologise. I thought that the hon. Member for Southend, East (Sir T. Taylor) was making an intervention. I call Mr. John Butcher.
I am grateful to you, Mr. Morris, for allowing me to start my speech so close to 10 o'clock and, I hope, to continue for some time afterwards.
I begin by addressing a point raised by three hon. Members in the course of the debates that we have held on the general principles of the treaty. My hon. Friends the Members for Stockton, South (Mr. Devlin) and for Derbyshire, South (Mrs. Currie) and the hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston) have all said that the treaty is no different to those which set out our defensive alliances with NATO or our agreement to UN conventions. I never thought that I would see the day when there was such a fundamental misunderstanding by any parliamentarian of the nature of this treaty as compared with treaties, such as the NATO treaty, signed by sovereign states for mutual defence. It is in the very nature of the NATO treaty that we bind each other one to another to defend the sovereignty of individual nations. Yet the Maastricht treaty is about the passing over of powers away from sovereign nations. I hope that we never hear that canard—that fundamental misunderstanding—mentioned again in the Chamber. The amendments deal with industry and consumer affairs. We have had no reassurance from the Government Front Bench that the treaty implies that we should re-enter the exchange rate mechanism. We have had no reassurance that is not within the implications of the treaty. If history—It being Ten o'clock,THE CHAIRMAN left the Chair to report Progress and ask leave to sit again.
Motion made, and Question put,
That, at this day's sitting, the European Communities (Amendment) Bill may be proceeded with, though opposed, until any hour.— [Mr. Robert G. Hughes.]
The Committee divided: Ayes 304, Noes 271.
Division No. 112]
| [10.00
|
AYES
| |
| Adley, Robert | Currie, Mrs Edwina (S D'by'ire) |
| Ainsworth, Peter (East Surrey) | Curry, David (Skipton & Ripon) |
| Aitken, Jonathan | Dafis, Cynog |
| Alexander, Richard | Davies, Quentin (Stamford) |
| Alison, Rt Hon Michael (Selby) | Davis, David (Boothferry) |
| Alton, David | Day, Stephen |
| Amess, David | Deva, Nirj Joseph |
| Ancram, Michael | Devlin, Tim |
| Arnold, Jacques (Gravesham) | Dickens, Geoffrey |
| Arnold, Sir Thomas (Hazel Grv) | Dicks, Terry |
| Ashby, David | Dorrell, Stephen |
| Aspinwall, Jack | Douglas-Hamilton, Lord James |
| Atkins, Robert | Dover, Den |
| Atkinson, Peter (Hexham) | Duncan, Alan |
| Baker, Nicholas (Dorset North) | Dunn, Bob |
| Baldry, Tony | Durant, Sir Anthony |
| Banks, Matthew (Southport) | Dykes, Hugh |
| Banks, Robert (Harrogate) | Eggar, Tim |
| Bates, Michael | Elletson, Harold |
| Batiste, Spencer | Emery, Rt Hon Sir Peter |
| Beith, Rt Hon A. J. | Evans, David (Welwyn Hatfield) |
| Bellingham, Henry | Evans, Jonathan (Brecon) |
| Beresford, Sir Paul | Evans, Nigel (Ribble Valley) |
| Blackburn, Dr John G. | Evans, Roger (Monmouth) |
| Booth, Hartley | Evennett, David |
| Boswell, Tim | Ewing, Mrs Margaret |
| Bottomley, Peter (Eltham) | Faber, David |
| Bottomley, Rt Hon Virginia | Fabricant, Michael |
| Bowden, Andrew | Fenner, Dame Peggy |
| Bowis, John | Field, Barry (Isle of Wight) |
| Brandreth, Gyles | Fishburn, Dudley |
| Brazier, Julian | Forman, Nigel |
| Bright, Graham | Forsyth, Michael (Stirling) |
| Brooke, Rt Hon Peter | Forth, Eric |
| Brown, M. (Brigg & Cl'thorpes) | Foster, Don (Bath) |
| Browning, Mrs. Angela | Fowler, Rt Hon Sir Norman |
| Bruce, Ian (S Dorset) | Fox, Dr Liam (Woodspring) |
| Bruce, Malcolm (Gordon) | Fox, Sir Marcus (Shipley) |
| Burns, Simon | Freeman, Roger |
| Burt, Alistair | French, Douglas |
| Butler, Peter | Gale, Roger |
| Butterfill, John | Gallie, Phil |
| Campbell, Menzies (Fife NE) | Garel-Jones, Rt Hon Tristan |
| Carlisle, Kenneth (Lincoln) | Garnier, Edward |
| Carrington, Matthew | Gillan, Cheryl |
| Channon, Rt Hon Paul | Goodlad, Rt Hon Alastair |
| Chaplin, Mrs Judith | Goodson-Wickes, Dr Charles |
| Churchill, Mr | Gorst, John |
| Clappison, James | Grant, Sir Anthony (Cambs SW) |
| Clarke, Rt Hon Kenneth (Ruclif) | Greenway, Harry (Ealing N) |
| Clifton-Brown, Geoffrey | Greenway, John (Ryedale) |
| Coe, Sebastian | Griffiths, Peter (Portsmouth, N) |
| Colvin, Michael | Grylls, Sir Michael |
| Congdon, David | Gummer, Rt Hon John Selwyn |
| Conway, Derek | Hague, William |
| Coombs, Anthony (Wyre For'st) | Hamilton, Rt Hon Archie (Epsom) |
| Coombs, Simon (Swindon) | Hamilton, Neil (Tatton) |
| Cope, Rt Hon Sir John | Hampson, Dr Keith |
| Cormack, Patrick | Hanley, Jeremy |
| Couchman, James | Hannam, Sir John |
| Critchley, Julian | Hargreaves, Andrew |
| Harris, David | Montgomery, Sir Fergus |
| Haselhurst, Alan | Moss, Malcolm |
| Hawkins, Nick | Needham, Richard |
| Hayes, Jerry | Nelson, Anthony |
| Heald, Oliver | Neubert, Sir Michael |
| Heath, Rt Hon Sir Edward | Newton, Rt Hon Tony |
| Heathcoat-Amory, David | Nicholls, Patrick |
| Hendry, Charles | Nicholson, David (Taunton) |
| Heseltine, Rt Hon Michael | Nicholson, Emma (Devon West) |
| Hicks, Robert | Norris, Steve |
| Higgins, Rt Hon Sir Terence L. | Onslow, Rt Hon Sir Cranley |
| Hill, James (Southampton Test) | Oppenheim, Phillip |
| Hogg, Rt Hon Douglas (G'tham) | Ottaway, Richard |
| Horam, John | Page, Richard |
| Hordern, Rt Hon Sir Peter | Paice, James |
| Howard, Rt Hon Michael | Patnick, Irvine |
| Howarth, Alan (Strat'rd-on-A) | Patten, Rt Hon John |
| Howell, Rt Hon David (G'dford) | Pattie, Rt Hon Sir Geoffrey |
| Hughes Robert G. (Harrow W) | Peacock, Mrs Elizabeth |
| Hughes, Simon (Southwark) | Pickles, Eric |
| Hunt, Rt Hon David (Wirral W) | Porter, Barry (Wirral S) |
| Hunt, Sir John (Ravensbourne) | Portillo, Rt Hon Michael |
| Hunter, Andrew | Powell, William (Corby) |
| Hurd, Rt Hon Douglas | Rathbone, Tim |
| Jack, Michael | Redwood, John |
| Jackson, Robert (Wantage) | Renton, Rt Hon Tim |
| Johnson Smith, Sir Geoffrey | Richards, Rod |
| Johnston, Sir Russell | Riddick, Graham |
| Jones, Gwilym (Cardiff N) | Rifkind, Rt Hon. Malcolm |
| Jones, Ieuan Wyn (Ynys Môn) | Robathan, Andrew |
| Jones, Nigel (Cheltenham) | Roberts, Rt Hon Sir Wyn |
| Jopling, Rt Hon Michael | Robertson, Raymond (Ab'd'n S) |
| Kellett-Bowman, Dame Elaine | Robinson, Mark (Somerton) |
| Kennedy, Charles (Ross, C&S) | Roe, Mrs Marion (Broxbourne) |
| Key, Robert | Rowe, Andrew (Mid Kent) |
| Kilfedder, Sir James | Rumbold, Rt Hon Dame Angela |
| King, Rt Hon Tom | Ryder, Rt Hon Richard |
| Kirkhope, Timothy | Sackville, Tom |
| Kirkwood, Archy | Sainsbury, Rt Hon Tim |
| Knight, Mrs Angela (Erewash) | Scott, Rt Hon Nicholas |
| Knight, Greg (Derby N) | Shaw, David (Dover) |
| Knight, Dame Jill (Bir'm E'st'n) | Shaw, Sir Giles (Pudsey) |
| Knox, David | Shephard, Rt Hon Gillian |
| Kynoch, George (Kincardine) | Shepherd, Colin (Hereford) |
| Lait, Mrs Jacqui | Sims, Roger |
| Lamont, Rt Hon Norman | Smith, Sir Dudley (Warwick) |
| Lang, Rt Hon Ian | Smith, Tim (Beaconsfield) |
| Leigh, Edward | Soames, Nicholas |
| Lennox-Boyd, Mark | Speed, Sir Keith |
| Lester, Jim (Broxtowe) | Spencer, Sir Derek |
| Lidington, David | Spicer, Sir James (W Dorset) |
| Lightbown, David | Spink, Dr Robert |
| Lilley, Rt Hon Peter | Spring, Richard |
| Lloyd, Peter (Fareham) | Sproat, Iain |
| Llwyd, Elfyn | Squire, Robin (Hornchurch) |
| Luff, Peter | Stanley, Rt Hon Sir John |
| Lyell, Rt Hon Sir Nicholas | Steel, Rt Hon Sir David |
| Lynne, Ms Liz | Steen, Anthony |
| MacGregor, Rt Hon John | Stephen, Michael |
| MacKay, Andrew | Stern, Michael |
| Maclean, David | Streeter, Gary |
| Maclennan, Robert | Sumberg, David |
| McLoughlin, Patrick | Sykes, John |
| Madel, David | Taylor, Ian (Esher) |
| Maitland, Lady Olga | Taylor, John M. (Solihull) |
| Major, Rt Hon John | Taylor, Matthew (Truro) |
| Malone, Gerald | Temple-Morris, Peter |
| Mans, Keith | Thomason, Roy |
| Marshall, John (Hendon S) | Thompson, Sir Donald (C'er V) |
| Marshall, Sir Michael (Arundel) | Thompson, Patrick (Norwich N) |
| Martin, David (Portsmouth S) | Thornton, Sir Malcolm |
| Mawhinney, Dr Brian | Thurnham, Peter |
| Mellor, Rt Hon David | Townsend, Cyril D. (Bexl'yh'th) |
| Merchant, Piers | Tracey, Richard |
| Michie, Mrs Ray (Argyll Bute) | Tredinnick, David |
| Milligan, Stephen | Trend, Michael |
| Mills, Iain | Trotter, Neville |
| Mitchell, Andrew (Gedling) | Twinn, Dr Ian |
| Mitchell, Sir David (Hants NW) | Tyler, Paul |
| Monro, Sir Hector | Vaughan, Sir Gerard |
| Viggers, Peter | Wiggin, Sir Jerry |
| Waldegrave, Rt Hon William | Wigley, Dafydd |
| Wallace, James | Willetts, David |
| Waller, Gary | Wilshire, David |
| Ward, John | Wolfson, Mark |
| Wardle, Charles (Bexhill) | Wood, Timothy |
| Waterson, Nigel | Yeo, Tim |
| Watts, John | Young, Sir George (Acton) |
| Wells, Bowen | |
| Welsh, Andrew | Tellers for the Ayes:
|
| Wheeler, Rt Hon Sir John | Mr. Sydney Chapman and
|
| Whitney, Ray | Mr. James Arthbuthnot.
|
| Widdecombe, Ann |
NOES
| |
| Abbott, Ms Diane | Darling, Alistair |
| Adams, Mrs Irene | Davies, Bryan (Oldham C'tral) |
| Ainger, Nick | Davies, Rt Hon Denzil (Llanelli) |
| Ainsworth, Robert (Cov'try NE) | Davies, Ron (Caerphilly) |
| Allen, Graham | Davis, Terry (B'ham, H'dge H'l) |
| Anderson, Donald (Swansea E) | Denham, John |
| Anderson, Ms Janet (Ros'dale) | Dewar, Donald |
| Armstrong, Hilary | Dixon, Don |
| Ashton, Joe | Dobson, Frank |
| Austin-Walker, John | Donohoe, Brian H. |
| Barnes, Harry | Dowd, Jim |
| Battle, John | Duncan-Smith, Iain |
| Bayley, Hugh | Dunnachie, Jimmy |
| Beckett, Margaret | Dunwoody, Mrs Gwyneth |
| Bell, Stuart | Eagle, Ms Angela |
| Bennett, Andrew F. | Eastham, Ken |
| Benton, Joe | Enright, Derek |
| Bermingham, Gerald | Etherington, Bill |
| Berry, Dr. Roger | Evans, John (St Helens N) |
| Betts, Clive | Fatchett, Derek |
| Biffen, Rt Hon John | Field, Frank (Birkenhead) |
| Blunkett, David | Flynn, Paul |
| Boateng, Paul | Foster, Derek (B'p Auckland) |
| Body, Sir Richard | Foulkes, George |
| Boyce, Jimmy | Fraser, John |
| Boyson, Rt Hon Sir Rhodes | Fyfe, Maria |
| Bradley, Keith | Galloway, George |
| Bray, Dr Jeremy | Gapes, Mike |
| Brown, Gordon (Dunfermline E) | Gardiner, Sir George |
| Brown, N. (N'c'tle upon Tyne E) | Garrett, John |
| Budgen, Nicholas | Gerrard, Neil |
| Burden, Richard | Gilbert, Rt Hon Dr John |
| Butcher, John | Gill, Christopher |
| Byers, Stephen | Godman, Dr Norman A. |
| Caborn, Richard | Godsiff, Roger |
| Callaghan, Jim | Golding, Mrs Llin |
| Campbell, Mrs Anne (C'bridge) | Gordon, Mildred |
| Campbell, Ronnie (Blyth V) | Gorman, Mrs Teresa |
| Campbell-Savours, D. N. | Graham, Thomas |
| Canavan, Dennis | Grant, Bernie (Tottenham) |
| Cann, Jamie | Griffiths, Nigel (Edinburgh S) |
| Carttiss, Michael | Griffiths, Win (Bridgend) |
| Cash, William | Grocott, Bruce |
| Chisholm, Malcolm | Gunnell, John |
| Clapham, Michael | Hain, Peter |
| Clark, Dr David (South Shields) | Hall, Mike |
| Clarke, Eric (Midlothian) | Hardy, Peter |
| Clelland, David | Harman, Ms Harriet |
| Clwyd, Mrs Ann | Hattersley, Rt Hon Roy |
| Coffey, Ann | Hawksley, Warren |
| Cohen, Harry | Henderson, Doug |
| Connarty, Michael | Heppell, John |
| Cook, Frank (Stockton N) | Hill, Keith (Streatham) |
| Cook, Robin (Livingston) | Hinchliffe, David |
| Corbett, Robin | Hoey, Kate |
| Corbyn, Jeremy | Hood, Jimmy |
| Corston, Ms Jean | Hoon, Geoffrey |
| Cousins, Jim | Howarth, George (Knowsley N) |
| Cox, Tom | Howells, Dr. Kim (Pontypridd) |
| Cran, James | Hoyle, Doug |
| Cryer, Bob | Hughes, Kevin (Doncaster N) |
| Cummings, John | Hughes, Robert (Aberdeen N) |
| Cunliffe, Lawrence | Hughes, Roy (Newport E) |
| Cunningham, Jim (Covy SE) | Hutton, John |
| Cunningham, Dr John (C'p'l'nd) | Illsley, Eric |
| Ingram, Adam | Prentice, Ms Bridget (Lew'm E) |
| Jackson, Glenda (H'stead) | Prentice, Gordon (Pendle) |
| Jackson, Helen (Shef'ld, H) | Primarolo, Dawn |
| Jamieson, David | Purchase, Ken |
| Janner, Greville | Quin, Ms Joyce |
| Jessel, Toby | Raynsford, Nick |
| Jones, Barry (Alyn and D'side) | Redmond, Martin |
| Jones, Jon Owen (Cardiff C) | Reid, Dr John |
| Jones, Lynne (B'ham S O) | Robertson, George (Hamilton) |
| Jones, Martyn (Clwyd, SW) | Robinson, Geoffrey (Co'try NW) |
| Jowell, Tessa | Roche, Mrs. Barbara |
| Kaufman, Rt Hon Gerald | Rogers, Allan |
| Keen, Alan | Rooker, Jeff |
| Kennedy, Jane (Lpool Brdgn) | Rooney, Terry |
| Khabra, Piara S. | Ross, Ernie (Dundee W) |
| Kinnock, Rt Hon Neil (Islwyn) | Ross, William (E Londonderry) |
| Knapman, Roger | Rowlands, Ted |
| Lawrence, Sir Ivan | Ruddock, Joan |
| Legg, Barry | Sedgemore, Brian |
| Leighton, Ron | Sheerman, Barry |
| Lestor, Joan (Eccles) | Sheldon, Rt Hon Robert |
| Lewis, Terry | Shepherd, Richard (Aldridge) |
| Litherland, Robert | Shore, Rt Hon Peter |
| Livingstone, Ken | Short, Clare |
| Lloyd, Tony (Stretford) | Simpson, Alan |
| Loyden, Eddie | Skeet, Sir Trevor |
| McAllion, John | Skinner, Dennis |
| McCartney, Ian | Smith, Andrew (Oxford E) |
| Macdonald, Calum | Smith, C. (Isl'ton S & F'sbury) |
| McFall, John | Smyth, Rev Martin (Belfast S) |
| McKelvey, William | Snape, Peter |
| Mackinlay, Andrew | Soley, Clive |
| McMaster, Gordon | Spearing, Nigel |
| Madden, Max | Spellar, John |
| Mahon, Alice | Spicer, Michael (S Worcs) |
| Mandelson, Peter | Squire, Rachel (Dunfermline W) |
| Marek, Dr John | Steinberg, Gerry |
| Marlow, Tony | Stevenson, George |
| Marshall, David (Shettleston) | Stott, Roger |
| Marshall, Jim (Leicester, S) | Strang, Dr. Gavin |
| Martin, Michael J. (Springburn) | Sweeney, Walter |
| Martlew, Eric | Tapsell, Sir Peter |
| Maxton, John | Taylor, Mrs Ann (Dewsbury) |
| Meale, Alan | Taylor, Sir Teddy (Southend, E) |
| Michie, Bill (Sheffield Heeley) | Thompson, Jack (Wansbeck) |
| Miller, Andrew | Tipping, Paddy |
| Mitchell, Austin (Gt Grimsby) | Townend, John (Bridlington) |
| Molyneaux, Rt Hon James | Turner, Dennis |
| Moonie, Dr Lewis | Vaz, Keith |
| Morgan, Rhodri | Walker, Bill (N Tayside) |
| Morley, Elliot | Walker, Rt Hon Sir Harold |
| Morris, Rt Hon A. (Wy'nshawe) | Walley, Joan |
| Morris, Estelle (B'ham Yardley) | Wardell, Gareth (Gower) |
| Morris, Rt Hon J. (Aberavon) | Wareing, Robert N |
| Mowlam, Marjorie | Watson, Mike |
| Mudie, George | Wicks, Malcolm |
| Mullin, Chris | Wilkinson, John |
| Murphy, Paul | Williams, Rt Hon Alan (Sw'n W) |
| Oakes, Rt Hon Gordon | Williams, Alan W (Carmarthen) |
| O'Brien, Michael (N W'kshire) | Wilson, Brian |
| O'Brien, William (Normanton) | Winnick, David |
| O'Hara, Edward | Winterton, Mrs Ann (Congleton) |
| Olner, William | Winterton, Nicholas (Macc'f'ld) |
| O'Neill, Martin | Wise, Audrey |
| Orme, Rt Hon Stanley | Worthington, Tony |
| Patchett, Terry | Wray, Jimmy |
| Pawsey, James | Wright, Dr Tony |
| Pendry, Tom | Young, David (Bolton SE) |
| Pickthall, Colin | |
| Pike, Peter L. | Tellers for the Noes:
|
| Pope, Greg | Mr. Peter Kilfoyle and
|
| Porter, David (Waveney) | Mr. Thomas McAvoy.
|
| Powell, Ray (Ogmore) |
Question accordingly agreed to.
Question again proposed, That the amendment be made.
A few moments ago, Mr. Morris, I was reflecting—
On a point of order, Mr. Morris. Have you had any information from, or discussions with, the Government? They obviously intend to get this business through on the basis of Liberal party support. Do they intend to get the rest of their programme through in the same way?
I have no idea of any honourable Member's intention.
10.15 pm
Earlier, I was reflecting on the rather unhappy spectacle of two hon. Members equating the treaty on NATO, or our United Nations obligations, with the Maastricht treaty. I was trying—[interruption.]
Order. I ask hon. Members either to listen or to depart quietly.
I was trying to point out that it is surely unforgivable for a parliamentarian to misunderstand the nature of the Maastricht treaty to such an extent—to see it as just another treaty between sovereign nations which does not hand over sovereignty, as this one does. The other two treaties were between countries which were sovereign, and they were designed to protect the sovereignty and independence of nations. To assume that the Maastricht treaty does the same is to perpetrate a misunderstanding that no parliamentarian should ever repeat.
I think that my hon. Friend is fundamentally mistaken. Comparisons were made earlier between the ceding, or rather pooling, of sovereignty—
Order. The hon. Gentleman seems to be comparing the NATO treaty with the Maastricht treaty. The two have nothing to do with each other.
The comparison was made earlier, Mr. Lofthouse. I hope that you will forgive me for wandering into such a generality.
I want to examine precisely how the Maastricht treaty would affect the performance of industry.On a point of order, Mr. Lofthouse. Before the Division, my hon. Friend made a comment about myself, my hon. Friend the Member for Derbyshire, South (Mrs. Currie) and the hon. Member for North Cornwall (Mr. Tyler). When I intervened, I was merely seeking to answer his point. If I am not permitted to do so, how am Ito answer arguments that were put earlier in the debate?
That is not a point of order for me.
As to the effect of the treaty on Britain's industrial and commercial future, I shall refer to those parts of it which in my view will impoverish Europe, make the continent uncompetitive and cause us eventually to hide behind a protective barrier—a barrier behind which all the people of Europe can grow poorer together. That is the inevitable conclusion of a number of trends presaged in the treaty.
I begin with the exchange rate mechanism, for we have not yet had a satisfactory answer as to whether there are provisions in the treaty which imply that by our adherence to stages 1 and 2 we must eventually rejoin the exchange rate mechanism. We must have an answer to that fundamental question. This is the Committee stage of the Bill. It is an iterative process. Our function today is to do that with which we have been charged: to examine the treaty. If we do not obtain an answer to that fundamental question, we shall strengthen the argument for a referendum because the famed sovereignty of Parliament—the function of Parliament to examine legislation—will not have been properly discharged. In a later debate, we shall have to decide whether to vote for a referendum. On that occasion, I hope that every hon. Member will remember these amendments and the extent to which we received answers to the questions posed by them. I am very worried about the Confederation of British industry. Bang on cue, the CBI signed the appropriate letter for public distribution. Bang on cue, it has organised a letter-writing campaign to Members of Parliament. In my view, it has done so on a number of non sequiturs. For instance, it says that if the treaty is not ratified we shall endanger Britain's commercial position at the heart of Europe, that we shall risk isolation and that we shall risk being part of the outer tier of a two-state Europe. Someone has to ask the CBI whether, if it believes in the concepts behind this treaty, the treaty of Rome and the Single European Act, it is prepared to say that other members of the Community can break treaty obligations in the treaty of Rome and the Single European Act in order to release us from the confines of the common tariff barrier and deny us access to the internal market. The treaty of Rome, as amended by the Single European Act, binds each member unto each other by keeping us all within the common tariff barrier and by allowing all of us access to that internal market. The European Community would have to break its own laws in order to achieve that which the CBI fears. The CBI says that this organisation is so unprincipled that solemn treaty obligations, signed by the Twelve, can be broken by one, or three, or five members of the Twelve in order to push us out of the inner tier. If that is so, what kind of organisation is it that we are being solemnly asked in this debate to sign up to by means of a third party?I do not think that the point is that anybody would want to break legal obligations. The point being made by the CBI and by many industrialists is that international business, including British-owned business, which could go anywhere in the European Community and which promotes its activities throughout the European Community, might in future—were we not at the heart of the Community—choose to go elsewhere.
Despite my limited experience of multinational corporations, I know that it is very much their wish to make their European base in the United Kingdom because they see competitive advantages here that they do not see elsewhere. Five or six years ago, I had a conversation with the chief executive of an American multinational company with which I did not have a direct connection. He said, "If the British want to maximise inward investment they should persuade all the others to sign up to Vredeling and then not sign themselves." That would do more for inward investment than almost any other measure.
I agree with my hon. Friend the Member for Derbyshire, South that, when my right hon. Friends the Prime Minister and the Minister of State negotiated our exemption from the social chapter, it was the best they could do in the limited rules of engagement that they faced at Maastricht. Those limited rules of engagement and the confines within which the debate took place will eventually impoverish Europe. I welcome that tactical win. Why, therefore, do I say that our friends the Japanese will continue to invest in this country? It is because they know that we shall stay within the tariff wall, that we shall continue to have access to the internal market and that we shall always have a 20 per cent. competitive edge—provided we do not sign up to the social chapter. Hon. Members should beware, however, as there are signs in the treaty that other ways of introducing chapter costs will be found. None the less, the Japanese are here because they like our competitive position and our labour relations and, above all, because they feel closer culturally to the United Kingdom than to the continental Europeans.Is my hon. Friend aware that the Japanese choose to base their industries here rather than other parts of Europe because most of their material is translated into English for the American market and because almost all their senior managers in Japan are fluent English speakers and therefore find it easier to deal with a British work force? Furthermore, they are violently opposed to the ERM, a single currency and a central bank. That is another reason why they were pleased when we fell out of the ERM.
The English language is a national asset. An Irish Commissioner—I may be wrong, and I hope that I do not malign him—was credited with the malapropism that English is now the lingua franca of Europe. It is the trading language of the world—which brings me to our trading position, British jobs, the future of British industry and customers.
I do not want to undermine my hon. Friend's opposition to the Bill, but will he be very cautious about making too much of the social chapter? The Commission has made it abundantly clear that, whether we have a social chapter or not, it will shove this through under the Single European Act. The phoney debate between Labour and Conservative about whether the social chapter is good or bad is a load of rubbish, and people should wake up to that fact. The Commission will shove it all through anyway, and all of them know it, particularly the Ministers sitting on the Front Bench.
The social chapter is an industrial and commercial question. My hon. Friend has made his point eloquently and briefly but I must add that certain elements of the on costs which the French and Germans would like to wish on us will come to us willy-nilly round the flank, through social measures, not least those involving health and safety.
It is still not widely enough accepted that, if one amalgamates the foreign earnings of Britain's top 20 manufacturing companies—I emphasise the term "man-ufacturing"—half still come from the north American market. Why is that relevant to today's debate? If in future we are to negotiate on a pan-European basis, will a majority of the companies negotiating have a vested interest in making sure that we continue to have open access to that market at the lowest possible tariffs? 10.30 pm We have already been warned. I have seen what I thought were ghosts returning during the debate on the general agreement on tariffs and trade. There is in Europe —more so than in the United Kingdom—an element of opinion which is protectionist and anti-American. Some of it came into play during the GATT negotiations, and we suffered as a consequence. I shall not go into detail about the negotiations, even as they pertain to agriculture, which is covered in one of the amendments, but just before Christmas we were in great danger of jeopardising hundreds of thousands of British jobs in the manufactur-ing sector for the sake of 2.5 per cent. of Europe's population. The French farmers represent 2.5 per cent. of the continental population of Europe, but through their contacts with their Ministers and their people in Brussels and by obscurantist methods, they were able to jeopardise the negotiations which were so vital for British jobs. I mention that in speaking to the amendment because, unless we are clear about who will be negotiating what on our behalf for the foreseeable future, and unless we vote fully informed, we may run the risk of things happening to our manufacturing industry which we have hitherto seen happen only to our fishermen and farmers. I beg my hon. Friends and members of the Opposition parties not to vote away our powers and thus affect in key ways our vital commercial and industrial interests. I am still puzzled about the Confederation of British Industry. When we were debating whether to join the ERM, the CBI—the people whom I suppose Chairman Mao would have called the "running dogs of the Administration"—decided that they would press very hard for our membership. They did so with other prominent members of the chattering classes and on the basis—I believe that I summarise their arguments correctly—that they did not want to tolerate the costs of fluctuating currencies: they wanted the convenience and surety of fixed exchange rates moving eventually to a fused currency to give a tremendous advantage, as they saw it, to their companies. The fact is—I say this with as much accuracy as I can —that the transaction costs in currency terms of doing a deal in the export market are 0.5 per cent. of the value of the contract. It is for the 0.5 per cent. that we sought fused currencies. Chasing that particular god or objective, we placed our manufacturing companies at a price disadvantage of 12.5 per cent. to 15 per cent. for two years. Anyone who wishes to argue that that exchange rate had nothing to do with the deterioration in our economic performance over the past couple of years need not accept my word for it, but simply ask any economist of any school—Order. I note that the hon. Member for Derbyshire, South (Mrs. Currie) is dealing with correspondence. Facilities are made available in the Palace for dealing with correspondence, and the Chamber is not the place. I should be grateful if the hon. Lady would refrain from dealing with correspondence here.
On a point of order Mr. Lofthouse. I beg your pardon—[Interruption.] I wish that hon. Members would shut up. I have been here for 10 years. This is the first time that I have heard that rule. I know that we are not allowed to read a newspaper in the Chamber. I am answering queries about Europe.
It is fairly obvious that, if the hon. Lady has not realised the rule before, it is because she has not been taking notice.
I was inviting the House to consult whichever economist it wished about the effects of our overvalued and fixed exchange rate on our industrial and commercial performance.
When we had an economic stance as a result of which we invoked deflation, when we had prolonged recession and, for the first time in our economic history, when those other factors were brought into play, we ran a deficit on our trading account in goods and manufactures. That is a sure sign that a currency is overvalued. I am not an advocate of continuing competitive devaluations as a panacea for our troubles. That is another totem which is set up and then demolished. I advocate an independent British bank on the lines of the Bundesbank or the Federal Reserve—Order. The hon. Gentleman is straying by moving on to banks. I hope that he will stick to the amendment.
I hope that I can demonstrate to your satisfaction, Mr. Lofthouse, that our industrial and commercial performance depends vitally on having a stable economic framework against which we can plan. The argument here is whether that should be imposed as an external force, a la ERM or Maastricht, or whether we can do it for ourselves. We have signally failed to do it for ourselves in the past because we have not had the advantage of a policy, which has given Germany 40 brilliant years, of taking day-to-day economic management out of the hands of the Treasury and giving interest rate policy to an independent bank. That is how the Germans ironed out the peaks and troughs of boom and slump, and that is how we should do it.
It is an industrial question. No industrialist can plan anything against wild fluctuations. I agree with those who support Maastricht that we need to have a more stable economic framework. However, I fundamentally disagree with having that framework imposed by continental European considerations of their position in the trade cycle as opposed to ours.rose—
rose—
I challenge my hon. Friends the Members for Stafford (Mr. Cash) and for Castle Point (Dr. Spink) to intervene in two minutes' time when I have explained why we must have a domestic smoother of economic policy as opposed to one driven from, for example, Frankfurt.
The reason is as follows. If one examines the trade cycle as it has affected this country since 1945, one finds that our economy is a so-called "early cycle" economy. We tend to move on the demand phase of the economic cycle whereas, in the main, Germany and continential Europe move on the second, investment phase of the economic cycle. Because we are a year ahead of Europe, when we are at risk of inflation as our recovery is going too fast, the rest of Europe is still in the stagnant phase. When we want interest rates to be stable or to go up a bit, Europeans on the continent want them to come down because of the phasing difference. The reverse applies when we are going into recession, and the rest of Europe enters recession a year to 18 months after us. If we set interest rates from a central bank based on the conditions which pertain in continental Europe, we shall invariably be out of phase. There will also be an addition to the inflationary and recessionary pressures in this country. That is how the trade cycle has operated since 1945. If we want to smooth it out, to integrate with Europe and—dare I say it—converge with Europe and all enter the same phase, that will cost a further 500,000 British jobs.We have been following my hon. Friend's interesting analysis of the cusp, the moon in Jupiter, and all the rest of it with great care. However, a moment ago my hon. Friend was praising Germany's 40 years of growth and he seemed to imply that that occurred because the Germans have an independent central bank. Does my hon. Friend now support that for this country?
One of the things that has typified this debate has been selective deafness. The intervention of my hon. Friend the Member for Derbyshire, South (Mrs. Currie) was the most vivid example of that that I have heard so far.
The point about the European market is its fundamental interdependence: what happens in one country affects what happens in other countries. We have a choice at this point and crossroads in our history of having a deutschmark-dominated continent where all European economies are at the whim of the deutschmark, or a truly independent currency with a truly independent central bank operating in the interests of all the European economies. That is the fundamental choice.
If my hon. Friend the Member for Coventry, South-West (Mr. Butcher) wants to opt for the slow lane or the second rank, we shall lose not only the inward investment to this country but a say in what happens in the central banking system which develops in Europe.Order. The debate now appears to be about the economy and not industry. Before anyone says that the two cannot be divorced, I remind the Committee that the economy can be discussed thoroughly in the group of amendments headed by amendment No. 79. I hope that we can return to industry.
Our industrialists do not operate in a vacuum. They need a stable economic framework in which to operate. The majority of our industrialists now believe that we need an independent British bank to give them that stable framework. For the reasons that I have adduced, that is far preferable to stability set by an external force and conditions which may not pertain in our country due to the structural differences between this economy and the mainland continental economy.
Even when the CBI's economists may be cynical about ERM membership, why has the CBI pushed so hard for that kind of deal?I have been listening very carefully to what the hon. Gentleman has been saying about membership of the ERM and I noticed that he drew our attention to the situation of this country with regard to Germany. Has he considered the present situation in the Irish Republic, where interest rates have gone through the roof, where there must be considerable hardship with debts being deferred and increased by the application of interest rates, and where—
Order. We are going down that same track again. I have just said that we are discussing industry and not the economy. There will be an opportunity to discuss the economy on a later group of amendments. I hope that we can stick to industry and that the Committee can make progress.
I should like briefly to consider convergence funds and what they will mean for us and for our constituents. We are one of the two key contributors to the budget. We shall be asked for much more money in the coming years. The bills will be presented long after this debate is concluded one way or the other. I am tempted to make remarks from two standpoints: first, the experience which I enjoyed but occasionally suffered from as a junior Industry Minister in a national Government and, secondly, my experience of Industry Council meetings over about five years in Brussels, Research Council meetings and, once, an Environment Council meeting. My experience wearing those two hats and as a British negotiator has tempered what I am about to say.
10.45 pm If colleagues are going to vote for the treaty assuming that, once it is passed, we can gradually work it out together rationally, building consensuses and making our points and standing up for our interests, gradually making it work to the dream—for it is a dream—with the noble aim of producing the full employment that we want, the inflation-free society, that industrial Valhalla that Commissioner Bangemann would like us to achieve, they should realise that it does not happen that way. Once the treaty is passed, that will be the end of House of Commons input into the policy-making process which will subsequently take place. I shall now say a little about what actually happens in Industry Council meetings. The Minister is delivered to the airport at Brussels. He shoots straight through with one of those effective civil servants to take him through the side doors to bypass customs. In he goes and he meets UKREP, who is a very interesting person—the gentleman who, in previous weeks, has been doing deals with the ambassadors of the other countries about the Industry Council budget. Some hon. Members have been through that process. UKREP's job is to deliver his Minister and his position. Much will have been fixed within the machinery, and much of it will have been fixed through horse trading inside the Commission, but it is a matter of pride for UKREP that, when his Industry Minister arrives, there should not be too many differentiations between the position as advised by UKREP and what the Minister actually does. I found—perhaps I was slow on the uptake—that the only way in which I could have an effect on that cosy bringing together of industrial policy was not to read my brief. My brief, of course, had been put together as a consensus piece. It had probably been trailed around other Ministers from other nations—they had done their trading and come back. I found that I had to adopt a tactic which I called the ear jiggler. Everyone at those meetings wears an earpiece. I found that if I went off the script and introduced something new which had not gone through the machinery, they started to jiggle their translation earpieces. Their ambassadors would lean across to their Ministers and say, "He is not supposed to be saying this; it is terribly wrong." Of course, their ambassadors were subsequently discredited, or rather made to feel uncomfortable. I found that I could actually have a negotiation because I caused a weakness in my opponents' hand; I had taken somebody by surprise, and I could try to win a few points. Deals were done, sometimes with Commissioners in the lead. I met a Commissioner called Davignon. I had never met a civil servant like him. Admittedly, he was a vicomte—A what?
A viscount—in the vernacular of the hon. Member for Boslover (Mr. Skinner), a Euro-toff. He was the most powerful civil servant I had ever come across. He not only proposed, he disposed. He admonished us: he chastised us. When that did not work, we used to break and go to lunch. Lunches were working lunches and, as my hon. Friend the Under-Secretary of State for Technology can confirm, they were very good. The reason that they were so good was that they had to last at least two and a half hours as that was the time during which most of the advisers were chucked out and we began horse trading. We sat around the table, with the Commissioner at the head, horse trading took place and deals were done. One scored 10 points for Machiavellian negotiating skills and one point for the merits of the argument, so we were lumbered with all sorts of technological lunacies which should not have occurred. Hon. Members should not pretend that the House will have a significant effect on policy formation once the Bill has been passed. They should not fool themselves about that.
Does my hon. Friend accept that the conditions that he has been describing are ones which exist in almost all forums of international negotiation and are not peculiar to the European Community? Indeed, they apply within our own country.
I readily concede that such things have been known to happen in our country, but I believe that I am making a significant point. Many of those who advocate the adoption of the treaty have said in the debate, "Don't worry about the words; we can sort bits of it out as we go along; do not take the words at face value." If we take many of the words at face value, they give many people powers of initiation, instigation, influence and persuasion—powers which cannot be formalised and which will change policies and the way things happen in this country, in the House, and in British companies, farms and workshops. Let us at least vote for such provisions with our eyes open.
Is not the lesson of the negotiations at Maastricht that Ministers did prepare themselves before they went to Brussels and Maastricht and knew the issues involved, their civil servants had been fully briefed and Britain was at the centre of the negotiations and, as a result, obtained a treaty that is very much in its interest? That is quite unlike the standard preparation that my hon. Friend the Member for Coventry, South-West (Mr. Butcher) said that he was unable to command when he was a Minister. It is only by negotiating in Europe that Britain will obtain achievements in the European market in favour of its industry and commerce and the country as a whole.
I think that I said at the beginning of my speech that I would compliment my right hon. Friend the Prime Minister on an away win—3:1 within the rules of the engagement. He did better in his negotiations than any other Head of Government at Maastricht. We are fortunate to be blessed with both a Foreign Secretary and a Prime Minister who can knock the spots off their competitors in such negotiations.
I also said that I questioned the basis of the Bill. Is it not curious that, skilled as all the negotiators may have been, some of those returned to their capitals and said that the treaty would cause the integration of Europe, but one has returned to his capital and said, "Don't worry—it will not really cause the integration of Europe." Therefore, we have a brilliantly negotiated, elegant treaty, containing some wonderful objectives, which is already subject to great disparities of interpretation. One of the reasons for the hyper-ventilation in Committee is that we had thought —whether Europhobes, Euro-realists or Euro-sceptics—that we would try to solve some of those mysteries in Committee. What exactly does the treaty mean? For instance, we discovered by a fluke—the information was not volunteered—that the pillars, which are outside the treaty and may not be justiciable by the European Court, are legally binding. That is a pretty weird distinction. My hon. Friend the Member for Hertford and Stortford (Mr. Wells) shakes his head. I appeal to him to join me in getting to the bottom of this matter, or we shall be selling the British people a pup. We must either call for an advance interpretation by the court or ask for one from our own Law Officers, whom we have not yet seen on the Front Bench. Will the pillars be legally binding?Yes.
In that case, a number of the propositions to which we have been treated over the past six months have been erroneous.
On a point of order, Mr. Lofthouse. Do I not recall your saying earlier that this part of the debate should be on industry, agriculture or fishing?
That is certainly right, and I have had to draw that to the attention of the hon. Gentleman on two or three occasions. I hope that he will now stick to the amendment.
With your guidance, Mr. Lofthouse, I move on—
May I bring my hon. Friend back to more concrete matters—specifically to the concrete and cement industry? He will be aware that Rugby Cement, a well-known company, operates in his constituency and in mine. He may not be aware of the fact that, owing to the way in which the Community operates, certain environmental conditions are being imposed which are being adopted eight years earlier in the United Kingdom than in other member countries. That implies great additional costs for our home-based industry, and it will mean that we are greatly disadvantaged. Would my hon. Friend care to offer his advice to hard-pressed companies such as Rugby Cement on what action they should take?
I defer to my hon. Friend's expertise. He does not need me to tell him, however, that in the first instance he should hold another meeting with the company and discuss with it his powers to do anything now—and then perhaps discuss what powers he will have in, say, a year's time, after ratification has taken place.
Is not the hon. Member for Rugby and Kenilworth (Mr. Pawsey) raising a salient point? As the European Court is wholly involved in reaching judgments on the present treaties, it will have a direct effect on industrial matters—that is one of its functions. It judges whether countries are complying with the law. Unless the Community takes action against countries and companies, certain companies will be able to escape the industrial and economic effects of the treaty—precisely the sort of inequality to which the hon. Gentleman referred. That will have an impact lasting in some cases for years, and will have a direct effect on competition. If the Government believe all this rubbish about fair competition, is it not time they did something about it?
The hon. Lady makes her point well. It is refreshing to see cross-party unity breaking out. It is also refreshing to see that some Members, at least, are searching for truth.
Under convergence policy, grants will be pushed around on a Euro-basis. The debate on the effectiveness of industrial grants has been going on in this country for at least three years. There is also debate on what kind of industrial policies should be adopted to put right some of our problems. To some extent that debate is a dialogue of the deaf. To equate an industrial policy with turning the Board of Trade into a grant factory is a curious phenomenon, which has long been discredited, but on a pan-European basis. The problems of efficiency and effectiveness and the effect on the motivation of what went on among the decision makers were serious and would be compounded on a European basis because there will be even less knowledge about what was happening on the periphery. 11 pm If we opt for convergence and try to bring all our economies up to the same standard, producing almost mirror economies in the nation states, money will be transferred by Europe's industrial grant mechanisms, mainly from north to south. That will ensure that Greece can have industries like ours and Spain and Portugal can mirror the industrial composition of Germany and, say, central France. That flies in the face of everything that we have learnt from economic and industrial history since it first became a matter for policy discussion, perhaps beginning with Adam Smith. I thought that the whole point of free markets was that they allowed specialisms to develop and countries and companies to seek their own salvation by becoming better and competing with other countries. I wonder about the philosophy behind this. Anyone who doubts that we are creating a nation state should look at what this thing which may not be a nation state will be doing. Surely only nation states pursue industrial policy, legislate and supervise consumer affairs. Surely only such states have commerce Ministers and Ministers to supervise pan-European competition. Before my hon. Friends who are pro-Maastricht accuse me of being entirely negative or dogmatic, I should say that if I were pushed into a corner and asked to state the boiled-down kernel of my policy on Europe, I would say that it would be to strengthen the competition Commissioner's brief—the brief of Sir Leon Britian. He should be given powers to construct a level playing field. If it is suggested that we should not have tariff barriers against the outside world, that Commissioner's role becomes even broader and more relevant to the wealth-creating parts of our economy. I doubt that Britain, as one of the two net contributors, will be able to afford the money to persuade others to provide even more competition for our companies. That is nonsense, and it is difficult to understand why that has not been recognised. I am a free trader and an internationalist in the broadest sense of the word. I am frightened that elements of the treaty's industrial and commercial policy have more to do with the mercantilism of Colbert and Mazarin and Richelieu than with the inheritors of the economic policies first enunciated by Adam Smith. There is a sort of déjá vu, an out-of-date feel about all this. I do not know why we are buying it, because Conservatives spent the last four elections trying to turn back such policies. It is weird. I am worried because I want us to continue to trade with the rest of the world as well as with Europe for the jobs reasons that I gave earlier, and I feel that if the economic, social and industrial policies and some of the treaty's other policies affecting industry are adopted, we shall institutionalise the declining competitiveness of Europe. It may be controversial to say that today, because who can deny that Germany, for example, has had 40 brilliant years? I wish that we had had 40 years like the Germans have had since about 1948, when the Wirtschaftswunder was first built by Erhardt and somebody who, for my money, was the best and most underrated economist: of the post-war period; a chap called Euchen. We did not do it —they did. Those 40 brilliant years are being sold away. The Germans and the French have loaded into their economies a number of on costs and anti-competitive trends that will make them weak in competing in global markets—and all markets are now global. One of the reasons why the treaty has been pressed so hard on us is that German and French industrialists want to see British industry lumbered with some of the same conditions that have already been introduced by their national legislation. While Germany has had four successful decades and France two, what they have done recently will undo all that. Furthermore, they are trying to wish it on us. The House should be on its guard about looking to continental Europe for leads in economic policy making. If we are to institutionalise the gradual uncompetitiveness of Europe, the only way to safeguard Europe's position is either to fail to reduce the tariff barrier further under GATT, or to increase it again. We are already seeing reactions to the continental Europe system in other parts of the world. America is building a North American Free Trade Area, which includes Mexico, Canada and the United States. Those who talk to American politicians know that there is a great deal of "me-tooism" about the decision to build that continental trading system. They looked at Europe and wanted to have something similar, but bigger, with even more people. Elements within the treaty make a fortress Europe more likely. That is particularly so, given my next point—an economic point arising from politics. We should not assume that the dominance within Europe of the centre and centre-left parties in the Parliament and of tthe centre parties of policy-making in the Council of Ministers will continue for ever. We do not know what will happen in our next general election or in the French and German general elections. Those elements that are slightly more concerned about a nationalist Europe—that is, a continental Europe —having clout and power and producing reactions elsewhere, may be reinforced at the expense of an element of opinion that we have always espoused: internationalism, outward-looking, free-trading, "win on competitive grounds if one can". That philosophical point is still in doubt. The jury is still out. I cannot support the industrial and commercial measures in the treaty. When it all boils down, I am in the House to provide jobs for my constituents. Jobs and more jobs are the best welfare programme of all. With fuller employment, we would not argue about welfare programmes. My fear is that in deepening rather than widening Europe, in bureaucratising rather than in freeing it up, in loading Europe with uncompetitive situations, we may be making it less likely that, in coming years, we shall be able to face our constituents with a clear conscience and say, "I voted for Maastricht to preserve and build jobs."The hon. Member for Coventry, South-West (Mr. Butcher) was right to emphasise the enormous competitive power of Germany after 40 years of successful industrial and economic development. That is my starting point to reinforce his argument that it is essential that the United Kingdom, faced with that formidable manufacturing and industrial power, insists upon the retention of control over its own interest rates and exchange rate so that it is not bottled in and circumscribed by the exchange rate mechanism.
I do not agree with the hon. Member for Coventry, South-West that exchange rate policy alone will be sufficient to deal with the problems that now face British industry. We are far behind our competitors, and we need an effective industrial policy. In so far as my hon. Friends have advocated that in supporting amendment No. 1, they are right. There are several difficulties. One of them—this was confirmed by the Minister of State in answer to a direct question—is that there is nothing in article 129 that will assist in developing an effective industrial policy over and above what is already in the Rome treaty and the Single European Act.indicated assent.
I am glad that the Minister of State nods. I hope that my hon. Friends on the Opposition Front Bench will take this in. There is nothing in the article except that which the Minister of State went out of his way to emphasise, which is contained in the final sentence. It reads:
Even the generalities—they add nothing to powers that already exist—are subjective. They do not infringe on or distort competition. In other words, the principle has been established that industrial policy, to which my right hon. and hon. Friends attach such importance, is wholly subject to competition policy. There can be no effective industrial policy for as long as competition policy is allowed to reign supreme. I do not understand why my right hon. and hon. Friends have chosen to make No. 1 their lead amendment. It has, of course, opened up a major and interesting subject for debate, but if anyone thought that he should identify article 129 as the sunny face of the treaty from the point of view of those who wish to have an effective industrial policy, he would be wrong and disappointed. It is not there. We would wish it to be there, but it is not. Even if the Community developed an industrial policy—it would not get very far—at a later stage and it helped European industry, would it necessarily help British industry? What are the principles of distribution among member states and the different industries of the European Community? I put that unanswered question to the Committee. Anyone who believes that Britain would benefit automatically from a European industrial policy has much explaining to do. He would have to search for any evidence that that would follow. My hon. Friend the Member for Newport, East (Mr. Hughes) drew attention to another important feature of the so-called industrial policy. He talked about accelerating structural change in the context of article 129."This Title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition."
It is article 130.
I am grateful to my hon. Friend for that correction. I have been referring to article 130 throughout. I do not know why I identified it as article 129.
It is right that the article emphasises an acceleration of structural change. Those are pleasing words which disguise what we know is the reality—mergers and the elimination of firms as they go to the wall. Those are not pleasing prospects. The motor car industry is an example which we must all have in mind. When we look across the Atlantic, see where the American single market has left its motor car industry and consider how many separate units remain, it is surely not fanciful to talk about takeovers and mergers between the eight or more major motor car companies that are in Europe. Those problems will arise. To anyone who looks a little further ahead, I say that that is not a pleasing prospect. There could be a takeover bid for one of the remaining British car companies, such as Rolls-Royce. If the scale were big enough—for example, if ICI were the subject of a takeover bid by I.G. Farben—it would be no use arguing that that would not be in Britain's national interest. Under the Single European Act, we have already abandoned the power to decide whether a merger or takeover should take place; we have given that power to the European Commissioner. That is no longer Sir Leon Brittan—although, quite frankly, I would not have any greater confidence if it were, as he is a great believer in competition policy. In appropriate conditions, he is in favour of mergers, amalgamations and takeovers where they do not disturb the objective of competition. 11.15 pm That is the reality of competition policy. There is nothing in the treaty that helps, safeguards or strengthens British industry. Instead, it is possible that there will be an open season on British firms. There is nothing to protect them other than their own strengths and competitiveness. Whatever their temporary difficulties may be, they could easily be brought down. My hon. Friend the Member for Great Grimsby (Mr. Mitchell) rightly pointed out that we have the considerable difficulty that our capital market is so open. Our firms are vulnerable to takeover bids because there is no protective institution in the United Kingdom. They may run into short-term difficulties and their stock market values may tumble. Then, regardless of their long-term potential, they become very vulnerable. That is not true of Germany. As my hon. Friend explained, many German shares are held by German banks for a long period. They will not give them up, so there are not the same pressures. Those are real dangers for British industry. If nothing else, we have drawn attention to that by putting article 130 under the spotlight.Is it not true that, as the right hon. Gentleman said at the beginning of his remarks, article 130 is the product of the treaty of Rome as amended by the Single European Act, and that the Maastricht treaty makes no change? Although we respect the right hon. Gentleman's objections to the whole concept of Europe and a European industrial policy, in fact the Maastricht treaty, and therefore the Bill, do not affect what is already in existence and will remain so even if we reject the Bill.
I agree that the Bill repeats and reaffirms what is already in the Single European Act. Perhaps those of us who fought that Act tooth and nail may be accorded some understanding of why we opposed it when it was pushed through this Parliament on a three-line Whip.
The right hon. Gentleman said that European mergers and takeovers will be all one way because of institutional problems in other European countries. Is it not worse than that? If any of our television companies wanted to take over a European television company it would be unable to do so, whereas potentially in a few months' time European television companies will be able to take over our television companies.
If our steel industry, which is the most efficient in Europe, wanted to take over some of the rotten remnants of European steel, it would be unable to do so, because other European Governments would get in the way. In every area of endeavour, by and large, the dice are loaded against us.Yes, and with some European countries more than others. The French and Germans in particular protect their industries—not completely, but they provide their industries with defences against predatory raiders and takeover bidders.
Since the Minister stated that article 130 does not change the treaty of Rome or the Single European Act, I researched the matter as best I could in the Library. I can find nothing as explicit as the reference in article 130 to
Perhaps my right hon. Friend will press the Minister to say, when he winds up, whether that phrase comes from the treaty of Rome or the Single European Act, or whether it is a new provision—and therefore potentially rather more dangerous."speeding up the adjustment of industry to structural changes".
I thank my hon. Friend for that valuable intervention. I ask the Minister to address himself to precisely that part of article 130 that refers to
Is that a new form of words, and does it carry the general implication that I have placed upon it?"speeding up the adjustment of industry to structural changes".
I agree with my right hon. Friend that this issue is important, but is it not one that already confronts us in the United Kingdom? I refer, for example, to the threatened takeover of Pilkington plc, with the potential loss of regional and centralised jobs. More tellingly, did not that issue arise when Distillers was taken over by Guinness? It is nothing new—it is just that we have to face it on a European rather than a British stage. Presumably my right hon. Friend's solution to the Guinness-Distillers case is not to argue for independence for Scotland, to be able to defend its own industries. We must work out an investment strategy on a British stage, then on a European stage.
My hon. Friend misses the whole point. Of course some United Kingdom takeover bids were very unwelcome. If Hanson had pursued its quest for ICI, an issue of major importance would have been raised—with most right hon. and hon. Members, I believe, wanting ICI to remain independent. Until the Single European Act, the arbiter of whether such a takeover bid should, in the national interest, proceed was the Secretary of State for Trade and Industry—a British citizen whose primary concern was the welfare of his own country, not of some generalised European future nation state.
rose—
No, I will not give way again to my hon. Friend on that point.
I am not sure that my hon. Friend the Member for Western Isles (Mr. Macdonald) understands the purport of that important phrase,
My right hon. Friend the Member for Bethnal Green and Stepney (Mr. Shore) referred to structural change in the financial sense of markets, takeovers, the ownership of firms, and so on. He cited the chemical industry as an important example. However, as we know only too well, structural change in this context means not just takeovers but market changes. Does not article 130 attempt to enjoin nation states, in so far as they have any powers left, and the Community to speed up the process of change irrespective of the social effects?"speeding up the adjustment of industry to structural changes".
There is no suggestion in the section on industrial change that any regard or consideration will be given to such matters as employment.
Surely the aim is to secure an industrial policy in Europe of which we, as socialists, would approve. The controversy over the Secretary of State who decided the question of the Guinness takeover bid, the Hanson attempt on ICI or the Pilkington issue concerned not whether it was a British Secretary of State, but whether it was a socialist Labour Secretary of State or a market-oriented Conservative Secretary of State. The solution to the Guinness takover was to involve not a Scottish but a socialist, Labour, Secretary of State.
Clearly, there are differences between Conservative and Labour Governments and Presidents of the Board of Trade. There is, however, a fundamental interest that unites us all; I am amazed—indeed, shocked—that my hon. Friend does not seem to share it. I refer to the British interest. Britain as a whole is a nation and a people: we have our own interests, and those interests—while not necessarily hostile to those of our European neighbours—cannot be assumed to be identical to them. To transfer these powers from our people, our Parliament and our Government to our European neighbours is, in my view, a great mistake.
Article 130 deals with research and technological development. Its proposals are quite ambitious. What does the Minister understand by, for instance, the following passage in article 130h:What is the "mutual consistency" of such research and development programmes likely to entail? According to article 130i,"The Community and the Member States shall co-ordinate their research and technological development activities so as to ensure that national policies and Community policy are mutually consistent"?
The purpose of all that is as follows:"A multiannual framework programme, setting out all the activities of the Community, shall be adopted by the Council, acting in accordance with the procedure referred to in article 189b."
Do we really envisage the taking over of research and development, on a massive European scale, by the European Commission? Are those policies backed up by any budgeting arrangements, and any allocation of funds? I think that we should know the real meaning of title XV. People may wonder about this at times, but agriculture is an industry—an important industry, with separate and special characteristics. One of the great puzzles of the Maastricht treaty is the fact that, although so much was examined—the treaty of Rome and the Single European Act were rephrased, added to and, sometimes, subtracted from—the agricultural matters in articles 38 and 47 of the treaty of Rome were not subjected to a single amendment. The only reference to agriculture is dealt with in amendment No. 184: it comes into the list of common policies, and is dealt with in just two lines. Not a single amendment was proposed. That is extraordinary. The CAP is one of the least efficient, highly protected and most expensive policies for consumers, farmers and the nation that have ever been devised. It was a constant worry during the simultaneous GATT negotiations and nearly brought that round to a dead stop. Another extraordinary feature of the CAP is the great cost that it still imposes upon the whole Community and upon Britain as part of the Community. We heard earlier about the substantial reduction in farmers' incomes over the last few years. That reduction in farm incomes and the continued rise in food prices has to be set against the continuing increase in agricultural expenditure. The guarantee and guidance sections of the CAP accounted during the past year for 60 per cent. of the total budget of the European Community. 11.30 pm I notice in today's press that one of our colleagues in the European Parliament has stated that up to £5 billion a year is defrauded from the European Community's agricultural budget by means of simple administrative procedures. I refer to Mr. John Tomlinson, who was formerly a Member of this House. He said that the Community's export refund regime is the biggest incentive to crime in Europe today and that it is extremely wasteful and costly. Why is the CAP so costly? It provides guaranteed prices for almost unlimited quantities of production, although it tries to claw them back and to limit them where there are obvious excesses. It operates a system of levies that leads to any third-country producer, however efficient he may be, being cut off. His produce may be pounds per tonne cheaper than the European Community guaranteed price, but he will never be able to sell his produce within the European common market. However big the difference is, the levies will impose themselves and make up that difference. One of the most extraordinary features of any protective system that I have ever heard of is the system of export restitutions—selling the surpluses produced, at dumped prices, in third world markets, thus affecting both developing countries and developed countries such as our old temperate food suppliers: New Zealand, Australia, Canada—and Argentina, for that matter. The CAP structure consists of export restitutions, guaranteed prices and import levies. Despite the fact that the GATT negotiations were taking place at the same time, not a single amendment was tabled to change the CAP. I find that extraordinary. I am sure that the Committee does so, too. There is a strong common-sense case for dismantling a large part of the CAP. If we are serious about subsidiarity, surely we ought to be repatriating many of the powers that were handed over when the CAP was devised 20 years ago. Can the Minister of State tell the Committee whether that question was even raised with the Commission or the Council of Ministers during the protracted discussions before Edinburgh, and ending in Edinburgh, about subsidiarity? Is it on the agenda, and if not, why not? It is the costliest and most foolish policy that the Community has devised. If we are serious about subsidiarity and repatriating powers that we should never have let go, it must be the prime target for examination and change. I do not intend to pursue that issue further, because I am looking forward to hearing the Minister's reply. However, if we are to be competitive in Europe we must, first, keep our exchange rate policies under control and, secondly, find ways not of trying to invent European industrial policies but of assisting our own industry, which is so grievously out-classed by Germany's."The framework programme shall … establish the scientific and technological objectives to be achieved … indicate the broad lines of such activities … fix the maximum overall amount and the detailed rules for Community financial participation".
I am able to oblige the right hon. Member for Bethnal Green and Stepney (Mr. Shore) by seeking to intervene at this stage and deal with at least some of the points that have been made.
I shall start with what the hon. Member for Great Grimsby (Mr. Mitchell) said about the common fisheries policy. A number of his points were dealt with by my hon. Friend the Minister of State, Ministry of Agriculture, Fisheries and Food, who was present at the time. The hon. Member for Newham, South (Mr. Spearing) expressed delight at being instructed for the first time in a matter concerning the treaty of Rome. I must disappoint the hon. Gentleman: the hon. Member for Great Grimsby has not opened a new window. The first important fisheries decision, equal access to stocks, was adopted by the Six just before we joined the Community in 1972. As the hon. Member for Great Grimsby will recall, Lord Wilson did not challenge that—On a point of order, Mr. Lofthouse. I have sat throughout the debate hoping to speak on behalf of my farming constituents. I am not anxious to conclude the debate, but experience has shown that, when the Minister speaks at this point of the evening, he is making his wind-up speech and a closure motion will follow shortly. Are we to assume that that is so this evening?
I do not think that we can assume anything. We shall have to wait and see.
The hon. Member for Great Grimsby will be aware that that position was not challenged by the Labour Government in 1974, when we sought what was euphemistically called renegotiation. The European Community has always used article 43 as the treaty base for fisheries. As far as I am aware, that has not been challenged before the European Court of Justice, so it is clear that no one shares the hon. Gentleman's rather idiosyncratic view.
Another point was made about fishing by my hon. Friend the Member for Stafford (Mr. Cash), who is not in his place at the moment. I do not say that in a critical sense; he has spent a considerable amount of time with us in the Committee. He mentioned United Kingdom quotas in one fishing area. Traditionally, as I am sure the hon. Member for Great Grimsby will confirm, we have never been big takers of monkfish from the area to which my hon. Friend referred. Our interests are in the North sea off Scotland, where our share of the take is high. For example, we take about 80 per cent. of the haddock caught in those waters. The right hon. Member for Bethnal Green and Stepney is, of course, correct to say that there are no reforms per se in the treaty of the articles which refer to the common agricultural policy. However, there is probably unanimity in the House that the CAP should be the subject of continuing pressure for reform. The right hon. Gentleman will know that the CAP has been reformed this year, as a result of which price support has been reduced for cereals by almost 50 per cent.—or will be reduced by 50 per cent. in time. The amount of resources which the Community devotes to the CAP is already down—not least thanks to pressure from the Government—to 60 per cent. of the budget, having been almost 80 per cent. at one time.rose—
I shall finish this point and then I shall of course give way to the hon. Lady.
The Edinburgh future financial deal reinforced discipline in that respect and maintained the guidelines restricting budget growth. We expect that the CAP share of the EC budget will be less than 50 per cent. by the end of this financial perspective, by 1999.Is it not clear from the pattern of past years that the CAP budget is agreed at an early stage but, because of the number of supplementary budgets agreed throughout the year, it is only well into the financial year that the true total, as opposed to the budgetary total, becomes clear? Inevitably, it is obvious that the budget rises well above 60 per cent. and has in many instances reached 80 per cent.
The hon. Lady is not correct. One of the things that gave us a fair amount of leverage in arguing the financial perspective for the next seven years was that there had been a considerable underspend by the Community, not least in agriculture.
The right hon. Member for Bethnal Green and Stepney and other hon. Members referred to article 130.rose—
I should like to make my point, and then I shall give way.
Hon. Members have been broadly correct to say that there have been no what I would call "changes of substance" in article 130 as opposed to the text under the treaty of Rome as amended by the Single European Act. As I said earlier, the key change for which Britain pressed was the sentence that I quoted on the need to preserve "open and competitive markets". Hon. Members have expressed concern about how the British interests will be defended by the Government. The quick and not so simple answer—the quick and easy answer—is that unanimity will be required, which seems to give the Government every opportunity to defend Britain's interests.Will my right hon. Friend give way?
In a moment. I want to respond to as many of the right hon. Gentleman's points as possible.
He also mentioned the Community's research and development programme. It is well known that the United Kingdom has been very successful in gaining funds under the Community's research programmes. For example, it has more participants than any other member state and we certainly receive substantially more than we contribute to the EC's research budget. A recent report by the university of Manchester showed that the impact of the European research programmes is far greater than the research funding itself. It has become a vehicle for links with Europe and for obtaining the two-way flow between researchers which is so important in the area. I am sure that the House and hon. Members who have universities and seats of learning in their constituencies will be aware that researchers from industry and in academia are extremely enthusiastic about their participation in the EC programmes. We in the United Kingdom are very anxious to press the point—there is a danger here from other pressures within the Community—that EC research should be focused on generic issues and underpinning technology rather than seeking a back-door subsidy for particular industries within the Community
11.45 pm
My right hon. Friend has said that article 130 under title XIII with the heading "Industry" in the Maastricht treaty is substantially in the treaty of Rome. Is it under one heading in the treaty of Rome or is it spread about within it? If it is spread about within that treaty, in what parts of the treaty can one find it?
Article 130 contains the words:Does that mean picking winners? If it means picking winners, where did the policy first appear in European legislation?"speeding up the adjustment of industry to structural changes".
The best answer I can give my hon. Friend at this stage—if I am inaccurate in what I am saying, I shall write to him—is that under the treaty of Rome as amended by the Single European Act there was an industrial policy. The Government have sought—this is the only substantial change in the text—to preserve unanimity so that we have a veto over any moves made in the area and, above all, to insert wording—I accept the point made by an Opposition Member that these are only words—in the chapter that ensures that nothing shall be done to undermine competitiveness within the Community.
The Minister may remember that I intervened to commend to him the virtues of majority voting, which produced from him a paean of praise on the virtues of majority voting and how important it had been in the completion of the single market. Now he is telling us how important unanimity and the capacity to introduce a veto are. He does not seem to be very consistent.
What member states must do, and what the United Kingdom seeks to do, as my hon. Friend the Member for Northampton, North (Mr. Marlow) said in an intervention, is make judgments about what is in the interests of the United Kingdom. My right hon. Friend Baroness Thatcher when she was Prime Minister judged rightly—this is the example I gave—that, if we were to achieve the single market, the only way in which we would achieve it would be qualified majority voting, because of the vested interests involved.
We have judged that there is a danger that research and development resources could be used to underpin uncompetitive industries in Europe. We want to be certain that the decisions taken about research and development should be taken by unanimity, so that we can ensure the pure, generic research of general application, which we think is the right way in which the Community should spend money. That is why we judged, in this instance, that it was right to preserve unanimity. We should not seek to elevate qualified majority voting or unanimity into a religious principle. One should seek to make judgments in each instance about what is in the best interests of the United Kingdom.Will the Minister define in greater detail what he means by competitiveness in this context? There is an argument about whether competitiveness should be justified in the European context, or whether it should be defined as Europe versus Japan or the United States. Do the British Government differentiate in terms of competitiveness, or do they accept that there is an argument for European competitiveness in certain industries against Japanese and American interests? Or are the Government taking a view of competitiveness that relates to the European Community?
I reassure the hon. Gentleman that we are doing both. On the one hand, we want to ensure that anti-competitive practices shall not flourish within the Community, and that Community funds should not be used to support and sustain uncompetitive industries, particularly in matters of research and development. In doing that, we seek to make this country and the Community as a whole competitive in world markets.
My right hon. Friend the Minister of State has referred to the pre-existence of industrial policy under the treaty of Rome. To begin with, I presume that my right hon. Friend meant to refer to the treaty of Rome as amended by the Single European Act. Does my right hon. Friend agree that article 130 of the Single European Act, which deals with the European investment bank, and title 5, which relates to economic and social cohesion and research and technological development, do not deal with industrial policy in the terms in which he put it?
Furthermore, my right hon. Friend the Minister of State referred to Baroness Thatcher and her policies. The concept of economic policy under the critical title 2 was based exclusively, directly and deliberately on the notion of co-operation and not in terms of the proposals included in the Maastricht treaty that are intended to lead, and do lead, to a single currency and fixed exchange rates and have nothing to do with co-operation.I do not know whether my hon. Friend was in the Chamber yesterday when my hon. Friend the Financial Secretary to the Treasury dealt with these points—
Rubbish.
I was about to deal with the points raised by my hon. Friend the Member for Coventry, North-West (Mr. Butcher). It is all very well for my hon. Friend the Member for Stafford (Mr. Cash) to make derogatory remarks from a sedentary position about the speech of my hon. Friend the Financial Secretary. I would limit myself to saying that my hon. Friend the Member for Lindsey, East (Sir P. Tapsell), who is no great lover of the treaty, described the intervention of my hon. Friend the Financial Secretary as brilliant, and his mental approach as first class.
Will my right hon. Friend give way?
I will give way when I have finished this point.
My hon. Friend the Member for Lindsey, East said that my hon. Friend the Financial Secretary had a first-class mind. I thought that my hon. Friend the Financial Secretary, to the satisfaction of the Committee, made it perfectly clear that there was absolutely nothing in the treaty that obliges the United Kingdom to join the exchange rate mechanism at any particular date and absolutely nothing—and rather the contrary—Will my right hon. Friend give way?
I am not going to give way again to my hon. Friend the Member for Stafford on this point. My hon. Friend the Financial Secretary made it absolutely clear that nothing in the treaty forces Britain or the House to take a decision, if the circumstances arose when that might be possible, to move to stage 3.
May I remind my right hon. Friend of a point made by the hon. Member for Leeds, Central (Mr. Fatchett) about the funding of research and development and how the whole thing fits together? If we are talking about nation states or multinational companies and the kind of competition between Europe and America, is not the great contradiction and conundrum the fact that we are being asked, almost in the same breath, to support both co-operation and competition? Somehow, that does not seem to hang together.
My hon. Friend is making a perfectly intelligent point—I do not say that in a patronising way. That is why, in the discussions about research and development, we sought to ensure that the Community's money was put into generic research. Of course my hon. Friend is right: a number of vested interests in the Community will seek to divert the research and development funds into the support of uncompetitive or failing industries. That is not something that we would wish to seek.
rose—
I should like to make a little more progress, if I may. A number of my hon. Friends are still rising, and they might wish to catch your eye, Mr. Lofthouse.
Will my right hon. Friend give way?
I promised to give way.
I am sorry to be so tiresome about this matter. I am grateful to my right hon. Friend for his great courtesy. Under the Maastricht treaty, there is a distinct title—"Industry"; article 130. My right hon. Friend has said that there is a minimal amendment since the treaty of Rome, as amended by other treaties. He is surrounded by Industry Ministers, and there are three people in the Box. I wonder whether my right hon. Friend would tell the Committee precisely where in the treaty of Rome, as amended by previous treaties, there is that industry policy which is virtually the same as article 130, except for the amendment with regard to competition. The Committee would be very pleased to know that. I do not doubt that it is there, but these matters are very complex and it would be very helpful for the Committee to know where it appears in the treaty of Rome.
I cannot answer my hon. Friend at this moment, but I will certainly ensure that he receives an answer to his question. I think that the right hon. Member for Bethnal Green and Stepney (Mr. Shore) made the point that there is very little difference between the industry provisions as contained in the treaty of the Union and those which pertained during the Single European Act. I cannot quote the exact article to him, but the main changes made during the negotiations were the strengthening of competitiveness.
On the cohesion fund, which a number—
rose—
May I make my point on the cohesion fund? On the cohesion fund, to which a number of hon. Members have referred, I have already made the point that, by 1999, the increase in the British Government's contribution to the budget will be about £200 million—0.1 per cent. of our total gross domestic product.In the case of the cohesion fund, by 1999 it will be 3 per cent. of the total Community budget.
The key point so far as the abatement is concerned is that we, the United Kingddom, will contribute only 5 per cent. towards that cohesion fund; 30 per cent. will be contributed by Germany and 20 per cent. will be contributed by France. Despite pressure from other member states, in Edinburgh we succeeded in ensuring that the abatement should apply to the new cohesion fund as well. As I said to one of my hon. Friends, for the reasons that I gave, the cohesion fund represents a very good bargain for Britain, and a very good bargain for Britain, and a very good bargain for our constituents.rose—
rose in his place and claimed to move, That the Question be now put.
Question put, That the Question be now put:—
The Committee divided: Ayes 299, Noes 61.
Division No. 113]
| [11.58 pm
|
AYES
| |
| Adley, Robert | Butler, Peter |
| Ainsworth, Peter (East Surrey) | Butterfill, John |
| Aitken, Jonathan | Campbell, Menzies (Fife NE) |
| Alexander, Richard | Carlile, Alexander (Montgomry) |
| Alison, Rt Hon Michael (Selby) | Carlisle, Kenneth (Lincoln) |
| Alton, David | Carrington, Matthew |
| Amess, David | Channon, Rt Hon Paul |
| Ancram, Michael | Chaplin, Mrs Judith |
| Arbuthnot, James | Chapman, Sydney |
| Arnold, Jacques (Gravesham) | Churchill, Mr |
| Arnold, Sir Thomas (Hazel Grv) | Clappison, James |
| Ashby, David | Clarke, Rt Hon Kenneth (Ruclif) |
| Atkinson, Peter (Hexham) | Clifton-Brown, Geoffrey |
| Baker, Nicholas (Dorset North) | Coe, Sebastian |
| Baldry, Tony | Colvin, Michael |
| Banks, Matthew (Southport) | Congdon, David |
| Banks, Robert (Harrogate) | Conway, Derek |
| Bates, Michael | Coombs, Anthony (Wyre For'st) |
| Batiste, Spencer | Coombs, Simon (Swindon) |
| Beith, Rt Hon A. J. | Cope, Rt Hon Sir John |
| Bellingham, Henry | Cormack, Patrick |
| Beresford, Sir Paul | Couchman, James |
| Blackburn, Dr John G. | Currie, Mrs Edwina (S D'by'ire) |
| Booth, Hartley | Curry, David (Skipton & Ripon) |
| Boswell, Tim | Dafis, Cynog |
| Bottomley, Peter (Eltham) | Davies, Quentin (Stamford) |
| Bottomley, Rt Hon Virginia | Davis, David (Boothferry) |
| Bowden, Andrew | Day, Stephen |
| Bowis, John | Deva, Nirj Joseph |
| Brandreth, Gyles | Devlin, Tim |
| Brazier, Julian | Dickens, Geoffrey |
| Bright, Graham | Dorrell, Stephen |
| Brooke, Rt Hon Peter | Douglas-Hamilton, Lord James |
| Brown, M. (Brigg & Cl'thorpes) | Dover, Den |
| Browning, Mrs. Angela | Duncan, Alan |
| Bruce, Ian (S Dorset) | Dunn, Bob |
| Bruce, Malcolm (Gordon) | Durant, Sir Anthony |
| Burns, Simon | Dykes, Hugh |
| Burt, Alistair | Eggar, Tim |
| Elletson, Harold | Kirkwood, Archy |
| Emery, Rt Hon Sir Peter | Knight, Mrs Angela (Erewash) |
| Evans, David (Welwyn Hatfield) | Knight, Greg (Derby N) |
| Evans, Jonathan (Brecon) | Knight, Dame Jill (Bir'm E'st'n) |
| Evans, Nigel (Ribble Valley) | Knox, David |
| Evans, Roger (Monmouth) | Kynoch, George (Kincardine) |
| Evennett, David | Lait, Mrs Jacqui |
| Ewing, Mrs Margaret | Lang, Rt Hon Ian |
| Faber, David | Leigh, Edward |
| Fabricant, Michael | Lennox-Boyd, Mark |
| Fenner, Dame Peggy | Lester, Jim (Broxtowe) |
| Field, Barry (Isle of Wight) | Lidington, David |
| Fishburn, Dudley | Lightbown, David |
| Forman, Nigel | Lilley, Rt Hon Peter |
| Forsyth, Michael (Stirling) | Lloyd, Peter (Fareham) |
| Forth, Eric | Llwyd, Elfyn |
| Foster, Don (Bath) | Luff, Peter |
| Fowler, Rt Hon Sir Norman | Lyell, Rt Hon Sir Nicholas |
| Fox, Dr Liam (Woodspring) | Lynne, Ms Liz |
| Fox, Sir Marcus (Shipley) | MacGregor, Rt Hon John |
| Freeman, Roger | Maclean, David |
| French, Douglas | McLoughlin, Patrick |
| Gale, Roger | Madel, David |
| Gallie, Phil | Maitland, Lady Olga |
| Garel-Jones, Rt Hon Tristan | Malone, Gerald |
| Garnier, Edward | Mans, Keith |
| Gillan, Cheryl | Marshall, John (Hendon S) |
| Goodlad, Rt Hon Alastair | Marshall, Sir Michael (Arundel) |
| Goodson-Wickes, Dr Charles | Martin, David (Portsmouth S) |
| Gorst, John | Mawhinney, Dr Brian |
| Grant, Sir Anthony (Cambs SW) | Mellor, Rt Hon David |
| Greenway, Harry (Ealing N) | Merchant, Piers |
| Greenway, John (Ryedale) | Michie, Mrs Ray (Argyll Bute) |
| Grylls, Sir Michael | Milligan, Stephen |
| Gummer, Rt Hon John Selwyn | Mills, Iain |
| Hague, William | Mitchell, Andrew (Gedling) |
| Hamilton, Rt Hon Archie (Epsom) | Mitchell, Sir David (Hants NW) |
| Hamilton, Neil (Tatton) | Monro, Sir Hector |
| Hampson, Dr Keith | Montgomery, Sir Fergus |
| Hanley, Jeremy | Moss, Malcolm |
| Hannam, Sir John | Needham, Richard |
| Hargreaves, Andrew | Nelson, Anthony |
| Harris, David | Neubert, Sir Michael |
| Haselhurst, Alan | Newton, Rt Hon Tony |
| Hawkins, Nick | Nicholls, Patrick |
| Hayes, Jerry | Nicholson, David (Taunton) |
| Heald, Oliver | Nicholson, Emma (Devon West) |
| Heath, Rt Hon Sir Edward | Norris, Steve |
| Heathcoat-Amory, David | Onslow, Rt Hon Sir Cranley |
| Hendry, Charles | Oppenheim, Phillip |
| Heseltine, Rt Hon Michael | Ottaway, Richard |
| Hicks, Robert | Page, Richard |
| Higgins, Rt Hon Sir Terence L. | Paice, James |
| Hill, James (Southampton Test) | Patnick, Irvine |
| Hogg, Rt Hon Douglas (G'tham) | Patten, Rt Hon John |
| Home Robertson, John | Pattie, Rt Hon Sir Geoffrey |
| Horam, John | Peacock, Mrs Elizabeth |
| Hordern, Rt Hon Sir Peter | Pickles, Eric |
| Howard, Rt Hon Michael | Portillo, Rt Hon Michael |
| Howarth, Alan (Strat'rd-on-A) | Powell, William (Corby) |
| Howell, Rt Hon David (G'dford) | Rathbone, Tim |
| Hughes, Simon (Southwark) | Raynsford, Nick |
| Hunt, Rt Hon David (Wirral W) | Redwood, John |
| Hunt, Sir John (Ravensbourne) | Renton, Rt Hon Tim |
| Hunter, Andrew | Richards, Rod |
| Hurd, Rt Hon Douglas | Riddick, Graham |
| Jack, Michael | Rifkind, Rt Hon. Malcolm |
| Jackson, Robert (Wantage) | Robathan, Andrew |
| Johnson Smith, Sir Geoffrey | Roberts, Rt Hon Sir Wyn |
| Johnston, Sir Russell | Robertson, Raymond (Ab'd'n S) |
| Jones, Gwilym (Cardiff N) | Robinson, Mark (Somerton) |
| Jones, Ieuan Wyn (Ynys Môn) | Roe, Mrs Marion (Broxbourne) |
| Jones, Nigel (Cheltenham) | Rowe, Andrew (Mid Kent) |
| Jopling, Rt Hon Michael | Rumbold, Rt Hon Dame Angela |
| Kellett-Bowman, Dame Elaine | Ryder, Rt Hon Richard |
| Kennedy, Charles (Ross,C&S) | Sackville, Tom |
| Key, Robert | Sainsbury, Rt Hon Tim |
| Kilfedder, Sir James | Salmond, Alex |
| King, Rt Hon Tom | Scott, Rt Hon Nicholas |
| Kirkhope, Timothy | Shaw, David (Dover) |
| Shaw, Sir Giles (Pudsey) | Tracey, Richard |
| Shephard, Rt Hon Gillian | Tredinnick, David |
| Shepherd, Colin (Hereford) | Trend, Michael |
| Shersby, Michael | Trotter, Neville |
| Sims, Roger | Twinn, Dr Ian |
| Smith, Sir Dudley (Warwick) | Tyler, Paul |
| Smith, Tim (Beaconsfield) | Vaughan, Sir Gerard |
| Soames, Nicholas | Viggers, Peter |
| Speed, Sir Keith | Waldegrave, Rt Hon William |
| Spencer, Sir Derek | Wallace, James |
| Spicer, Sir James (W Dorset) | Waller, Gary |
| Spink, Dr Robert | Ward, John |
| Spring, Richard | Wardle, Charles (Bexhill) |
| Sproat, Iain | Waterson, Nigel |
| Squire, Robin (Hornchurch) | Watts, John |
| Stanley, Rt Hon Sir John | Wells, Bowen |
| Steel, Rt Hon Sir David | Welsh, Andrew |
| Steen, Anthony | Wheeler, Rt Hon Sir John |
| Stephen, Michael | Whitney, Ray |
| Stern, Michael | Widdecombe, Ann |
| Streeter, Gary | Wiggin, Sir Jerry |
| Sumberg, David | Wigley, Dafydd |
| Sykes, John | Willetts, David |
| Taylor, Ian (Esher) | Wilshire, David |
| Taylor, John M. (Solihull) | Wolfson, Mark |
| Taylor, Matthew (Truro) | Wood, Timothy |
| Temple-Morris, Peter | Yeo, Tim |
| Thomason, Roy | Young, Sir George (Acton) |
| Thompson, Sir Donald (C'er V) | |
| Thompson, Patrick (Norwich N) | Tellers for the Ayes:
|
| Thornton, Sir Malcolm | Mr. Andrew Mackay and
|
| Thurnham, Peter | Mr. Robert Hughes.
|
| Townsend,Cyril D. (Bexl'yh'th) |
NOES
| |
| Barnes, Harry | Betts, Clive |
| Bell, Stuart | Budgen, Nicholas |
| Butcher, John | Marlow, Tony |
| Cash, William | Mitchell, Austin (Gt Grimsby) |
| Chisholm, Malcolm | Molyneaux, Rt Hon James |
| Cohen, Harry | Morley, Elliot |
| Cousins, Jim | Pawsey, James |
| Cran, James | Pike, Peter L. |
| Cryer, Bob | Powell, Ray (Ogmore) |
| Davies, Rt Hon Denzil (Llanelli) | Robertson, George (Hamilton) |
| Davis, Terry (B'ham, H'dge H'I) | Ross, William (E Londonderry) |
| Dixon, Don | Rowlands, Ted |
| Dowd, Jim | Shore, Rt Hon Peter |
| Dunwoody, Mrs Gwyneth | Skeet, Sir Trevor |
| Etherington, Bill | Skinner, Dennis |
| Evans, John (St Helens N) | Smith, Andrew (Oxford E) |
| Fatchett, Derek | Smyth, Rev Martin (Belfast S) |
| Flynn, Paul | Spearing, Nigel |
| Foster, Derek (B'p Auckland) | Spicer, Michael (S Worcs) |
| Foulkes, George | Tapsell, Sir Peter |
| Gill, Christopher | Taylor, Sir Teddy (Southend, E) |
| Godman, Dr Norman A. | Tipping, Paddy |
| Gordon, Mildred | Walker, Bill (N Tayside) |
| Gorman, Mrs Teresa | Wilkinson, John |
| Graham, Thomas | Wilson, Brian |
| Howarth, George (Knowsley N) | Winterton, Mrs Ann (Congleton) |
| Jessel, Toby | Winterton, Nicholas (Macc'f'ld) |
| Knapman, Roger | Wray, Jimmy |
| Lawrence, Sir Ivan | |
| Lewis, Terry | Tellers for the Noes:
|
| Lord, Michael | Mr. Alan Meale and
|
| McMaster, Gordon | Mr. Jack Thompson.
|
| Mahon, Alice |
Question accordingly agreed to.
Amendment negatived.
I beg to move amendment No. 2 in page 1, line 9, after 'II', insert '(except Article 129b on page 34 of Cm 1934)'.
With this, it will be convenient to consider the following amendments: No. 130, in page 1, line 9, after 'II', insert
'(excluding Article G D(16) on page 15 of Cm 1934).'.
No. 185, in page 1, line 9, after 'II', insert
'except Article 3(f) on page 9 of Cm 1934'.
No. 191, in page 1, line 9, after 'II', insert 'except Article 3(n)'.
No. 195, in page 1, line 9, after 'II', insert 'except Article 3(t)'.
No. 371, in page 1, line 9, after 'II', insert
'except Article 75 as referred to in Article G on page 15 of Command Paper number 1934'.
No. 383, in page 1, line 9, after 'II', insert
'except Article 129d as referred to in Article G on page 35 of Command Paper number 1934'.
No. 218, in page 1, line 10, after '1992', insert
'but not Article 129c of Title II thereof.
The unexpected arrival on the Government Front Bench of the hon. Member for Littleborough and Saddleworth (Mr. Dickens) is final confirmation that the lunatics are in charge of the asylum. Fortunately, his efforts have been overruled and he will doubtless retreat to decent obscurity. [Interruption.] I was at the game between Queen's Park Rangers and Manchester United earlier tonight and the crowd noise was probably lower there than it is here. I shall battle on regardless. [Interruption.]
Order. I am sure that hon. Members will wish to listen to the hon. Gentleman so that they may fully understand the amendment. May we have a little quiet?
I am sure that those who arrive expecting a vote on the amendment would like to have a remote idea of what it is about. However, this is a probing amendment and we shall not press it to a vote. We totally favour trans-European networks and better communications as set out in article 129b of the treaty. There are some extremely interesting concepts to explore in the article and I welcome the opportunity to debate the needs of Europe's islands and peripheral regions.
I hope that the debate will affirm that the European Community has much to offer such regions and will help us better to devise how the treaty can be used to strengthen that purpose. Many people in the islands and peripheral regions of Scotland see Europe as a better friend to them, and an agency more responsive to their needs, than British Governments and the Scottish Office have been. They hope that, if there is to be an improvement in the communications systems, the European Community will play a large part in the process. Encompassing that proposition into article 129b would offer a great deal and provide plenty of material for debate.12.15 am
Will not the improvement of networks of any sort to further competition—that is the aim, as the Minister told us in the last debate—not only allow access out, whether it be from the highlands and islands of Scotland, the mountains of Wales or the moorlands of the south-west, but access in from outside? If the advantage to those going in is greater than the advantage to those going out, is not improved communication a disadvantage to the peripheral areas, instead of being the advantage that my hon. Friend and many others think that it will be?
It may sound paradoxical, but in my experience, islanders rarely suffer from insularity. For example, many of the residents of the islands on the periphery of Scotland have been two or three times round the world as merchant seamen. It is a myth that they are concerned about people moving in or out of their area. What they want—this underlines my hon. Friend's point—is the opportunity to live and work within their area. They do not want a magnetic force drawing them out of that area.
I hope that no hon. Member would propose that we should impose poor communications lest people should be able to remove themselves from any part of the country or the community. That would doubly penalise them. The communications envisaged under the title would lead to a greater flow of people, but there would also be a greater flow of economic activity. That could only be to the advantage of these communities.I want to reinforce that point. In the island communities of Scotland, the traditional economic disadvantage has not been lack of material resources or of skills, talent and enterprise on the part of the people, but simply distance from the main centres of population and markets. Anything that develops communications and transport networks and helps to overcome that distance is hugely to the benefit of those people.
I entirely agree. As my hon. Friend knows as well as I do, one of the great growth industries in the islands and peripheries of Scotland is the seafood industry—both its cultivation and the catching of a high quality produce. In the old days, people who caught fish or shellfish in those places sent the catch off to market in London. Whether the catches arrived dead or alive was at the mercy of those who transported them, and they took what price they could get. Now, there is an immensely sophisticated system that transports live shellfish and fish from the furtherest parts of the United Kingdom to the extremities of the European Community.
It can only be in the interests of the primary producers and those who are involved in transportation that every barrier is broken down to ensure that consignments are moved more quickly, efficiently and healthily so that each catch has a higher value. The idea that there is any advantage in diminishing progress towards optimum communications is farcical. The idea that we protect peripheries by refusing to implement optimum communications is patronising and no part of my philosophy.Does the hon. Gentleman agree that the problem goes much wider? We are talking not of the peripheral regions of Britain but of those of the Community, which encompass the north of England, the whole of Scotland and, some might argue, Britain itself. We know that Britain is away from the centre of the European market and that it will need a great deal of assistance. I am pleased to say that assistance is developing in the north of England—I know that it is being developed in Scotland—in terms of communications, including direct links so that it is not necessary always to go through the south-east of England, which in the north has been the bane of our life.
Up to a point, I agree with the hon. Gentleman. I say in the nicest possible way, in putting down a marker, that I shall not allow the word "peripherality"to be hijacked on behalf of the whole of Britain. We have seen that happen already with "subsidiarity", which has been falsely translated to mean the level of national government. To me, peripherality does not mean the whole of Britain. It means places that are genuinely peripheral to Europe, which means in turn the fringes of the coast, areas that are disadvantaged within a country, or a region which is also disadvantaged by relative remoteness. "Peripherality" is a specific word that means the edges, the places on the edges. From a Scottish perspective, those are places that are far from national markets, never mind any others.
I am happy to work within the confines of the definition that the hon. Gentleman has outlined. To take up the remarks of the hon. Member for Western Isles (Mr. Macdonald), does the hon. Member for Cunninghame, North (Mr. Wilson) agree with the fair point, as I see it, that the Commission often takes a sensitive approach to the problems of peripheral areas within Europe, not least the highlands and islands of Scotland? That approach is brought into sharp and vivid relief when we consider the sky-high tolls that are about to be levied by the Scottish Office on the Skye bridge, which is in the early stages of construction. That policy will affect the Skye community and it will have a knock-on effect.
That is an argument which we do not need to advance in detail now, but the knock-on effect on Caledonian MacBrayne could well disadvantage the farther communities on the Western Isles which depend on the existing ferry link, which will be adversely affected economically by the provision of a bridge. Is the hon. Gentleman aware that many of us will be looking to the Commission to take a direct and active interest in the project and the financial scheme? The Scottish Office has lamentably failed peripheral communities.As the hon. Gentleman well knows, I agree with every word that he has spoken. I do not, however, want to be taken away entirely from the structure of my speech by diverting interventions, attractive though they may be. I shall come to the Skye bridge and ferry services later. I agree that we could have a long debate about ferry services in a real periphery. Of course, it is not only about the periphery; it is about the interconnection and interoperability of national networks, as well as access to such networks.
As the hon. Member for Stockton, South (Mr. Devlin) rightly said, that means the maximising of communications. Surely we all want it to be possible to get on some form of transport at any point in the United Kingdom and, with the least possible trouble and the best possible connections, arrive somewhere within the European Community in the shortest possible time. That is a tremendous aim, on which all hon. Members should agree.Did not the immensely sophisticated communications system for the transportation of shellfish and other goods come into being before and without the Maastrich treaty, and cannot it be extended without that treaty? Is the hon. Gentleman aware that the Council of Europe, which goes wider than European union and the European Community, is considering the introduction of fast communications throughout Europe? Why do we need a Maastricht treaty to bring about what the hon. Gentleman wants?
That is a catch-all question. I was expressing the general view and perception of people on the periphery that communications should be speeded up. A journalist friend recently travelled with a consignment of shellfish from the Isle of Skye to Barcelona. His purpose was to observe the product from the moment of the catch to the moment it was sold, covering the various intermediaries. It was anything but an obstruction-free journey. It was not a single market; it was not a seamless movement through an internal market. Apart from other obstructions, at various points along the route it was necessary to pay Customs officers in kind. On entering France, that meant handing over eight crabs.
I do not know whether the aim of a seamless journey from Skye to Barcelona is feasible under the previous arrangements, but I want it to be feasible under the new ones.Why should that be through the Maastricht treaty?
That is a question which the hon. Gentleman must ask himself. I want to move from discussion of the periphery to the question of rail links currently being developed in Europe.
To my knowledge, several hon. Members in the Chamber have visited France to look at the development of French railways. I know that several hon. Members have travelled on the TGV. Several have looked at the infrastructure projects in the Pas de Calais area. I ask hon. Members, irrespective of party allegiance, to ask themselves whether what is being done on this side of the channel to facilitate the concept that underlies title XII is being undertaken with an iota of the enthusiasm being shown on the other side of the channel.As the hon. Gentleman is so enthusiastic—as, indeed, are some of his colleagues from the Scottish islands—could he tell me whether he has received an assurance that the United Kingdom will get more money out of the new slush fund for transport than it has to put in because of Maastricht? There will be no benefit if we had to put in a great deal of money only to get out very little. Has the hon. Gentleman received an assurance from the Government, the Commission or anyone else that we will get more out than we put in?
The hon. Gentleman, from the remote region of Southend, is trying to return to the peripheral question. I am trying to move on. Past experience suggests that the peripheral regions get more out of the Community than they put in. I know of the hon. Gentleman's long-standing objections.
I just asked a simple question.
The hon. Gentleman always asks a question three times. I will try to answer it once.—[Interruption.] That makes it five. If the hon. Gentleman will pause, I will try to answer.
rose—
12.30 am
The hon. Gentleman is incapable of resisting the temptation to ask his question a sixth time. I will try to think of a profundity, given the build-up that the hon. Gentleman has given me. If he is asking whether the periphery of Scotland and of Britain get more or less out of the Community than they put in—
That was not my question.
That was the hon. Gentleman's question.
We want to make progress, and to save time I emphasise that I was simply asking whether the hon. Gentleman has received an assurance from anyone—the Government, the Commission, or anyone else—that Britain, which includes the peripheries, will get more out of the new transport slush fund than the extra it will pay towards it. We are not asking whether Skye will receive more from Southend, but whether there will be a net gain or a net loss from the introduction of the new transport subsidies. If the hon. Gentleman can say that he has received an assurance on that point, it would save a great deal of time and we could progress with our business more quickly. Is the answer yes or no?
I do not want to be as pedantic and semantic as the hon. Gentleman. I have not received any assurances as to how much Britain will get out of any fund. I do not have an assurance that I will be here tomorrow. The hon. Gentleman asked a rather silly question. He began by asking whether the peripheral regions would get more out of Europe.
indicated dissent.
Yes, he did. I am hypnotised by the shaking of the hon. Gentleman's head, but that is the question that he asked. It is a matter of historical record that the peripheral areas of Scotland have done rather well out of the Community. A lot of money has come from the Community, albeit it came from the British taxpayer in the first place—but if it had been left to Government Departments to make decisions on such ventures as the integrated development programmes in the Western Isles, they would never have seen the light of day.
I am by no means an uncritical admirer of the institutions in question, but had it been left to the British Government, many of those schemes would not have happened. Even then, it had been difficult getting the Government to chip in their share in the form of additionality. Whatever may be the balance sheet between Britain and the Community, from my own extensive observation of the periphery I have not the slightest doubt that the periphery has done rather well out of the Community and has nothing to fear from the transport fund or any other.Does the hon. Gentleman consider that the railway line between Perth and Drumochter is peripheral?
Since part of that line serves the hon. Gentleman's constituency, it follows logically that it is at the heart of the universe. I do regard it as reasonbly peripheral, but it depends where one starts. If one starts at Pitlochry, it is not peripheral. I have seen a proposal to site the European investment bank at Dunoon, but I have not yet come across a proposal to site the European Commission at Pitlochry.
I shall try to return to the other point, about—Shellfish.
I am trying to get off that subject; shellfish can have deleterious effects after midnight. I shall try to return to the point about the railways.
I well understand why the hon. Member for Tayside, North (Mr. Walker) was not present earlier, and I am sure that he was as pleased as I was about the tabling of a private notice question about storm damage in Perthshire. No doubt he is well aware of the damage that has been done to railway infrastructure in his constituency, and elsewhere north of Stirling. We accept that British Rail, in recognition of the social obligation to maintain peripheral railway lines, will put the necessary investment into restoring that infrastructure. Is the hon. Gentleman as confident, however, that under a privatised railway system someone would be prepared to put several million pounds into the repairing of bridges, and all the other work that will have to be done to put loss-making railway services back in place?Order. The merits or demerits of privatisation are not appropriate subjects for debate on amendment No. 2.
I respect your ruling, Mr. Morris. Surely, however, an interrelationship exists between privatisation—particularly privatisation of a railway network—and the probability of maintaining the transport services referred to in article 129b.
Article 129b(2) states:
That could imply that, at some stage in the future, privately operated transport networks would be expected to exist in every member state. It is implied that privatisation is within the framework of article 129b."Within the framework of a system of open and competitive markets, action by the Community shall aim at promoting the interconnection and inter-operability of national networks".
Order. That does not include the pros and cons of privatisation.
One form of transport competes against others. No one but a clown would believe that there will be a competitive system on the railways, in any meaningful sense: trains cannot overtake each other.
May I take my hon. Friend back to Drumochter? He will be aware that virtually all the cement in Scotland is produced at Dunbar, in my constituency. As a consequence of decisions made in the run-up to privatisation, the price of transferring rail freight to Inverness, via Drumochter, has been increased to such an extent that railway freight transport no longer competes with road freight transport. Instead of one train carrying cement up to Inverness every week, there will be 40 lorryloads.
That is the kind of dotty system that is operating in the United Kingdom. If we had a proper integrated policy providing for bulk transport around the country, we should not experience such problems.
I could not agree more. The issue exercises me greatly as well. Obviously, I wish to remain within your guidelines, Mr. Morris; however, I want to highlight the contradiction involved in adopting article 129b, which pays lip service to the extension and development of communications to reduce the disadvantage to the periphery, while pursuing a policy that, on rational grounds, we can only expect to endanger railway services in precisely the areas that article 129b is supposed to benefit. I am not sure how we can avoid that.
I cannot imagine why anybody should not want what is envisaged. Article 129b does not set out a firm programme for achieving those objectives, but the aspiration—that Community funds should be used to support projects and that the Community should promote these objectives—is unexceptionable. I expect this country to be in a position to benefit from the cohesion fund that is to be established no later than December 1993 for the financing of specific transport infrastructure projects in member states. The important word in article 129c is the word "may." The article states that the CommunityThe question is whether projects will be put forward by this member state in order to qualify for the support that is clearly envisaged in article 129c. The United Kingdom Government are not bringing forward infrastructure schemes on the same scale as other member states. They lack vision. One only has to look at the envisaged railways map of Europe to recognise that fact. If one looks at a small map covering the north of France and the south of England, one sees a network of high-speed rail links, although speeds are lower on this side of the Channel than on the other. There is, however, some vestige of comparability between the north of Europe and the south of England. If, however, we look at a map that encompasses France, Italy and Spain as well as the whole of the United Kingdom, we see that any pretence of high-speed links before the end of the decade ends in London, whereas the work going on in Europe is aimed at extending those links so that people arriving at Lille or at any other great centre of the railways industry will be able to travel in high-speed trains to every other member state."may support the financial efforts made by the Member States for projects of common interest".
The hon. Gentleman is talking rubbish. My complaint is that the sleeper arriving from mainland Europe will end at Plymouth instead of going all the way to Penzance. It will not end at London. The network is fanning out, although not far enough. I make common cause with the hon. Gentleman on that point. He is wrong, however, when he says that everything will end at London.
The hon. Gentleman seems to have established to his own satisfaction, and everybody else's, that the sleeper will end at Plymouth rather than Penzance, but beyond that I am mystified by the point that he is trying to make. There will be a nightly sleeper to Glasgow and Edinburgh, or from Glasgow and Edinburgh to London. It would be smashing to get on a night train in Glasgow and to get off it in Paris the next morning, but it is not a high-speed train link. The point that I was making, which the hon. Gentleman conspicuously failed to contradict, is that links are being established throughout the rest of Europe, but we are not at the races. We have not designated a route—unless the Minister knows something that I do not—between the tunnel and London, far less the rest of the country.
The House will recall that the Government have said repeatedly that they will move to announcement of a new high-speed rail link route shortly and that public consultation will start on that. The only way to finance such a major project is not from an enormous European fund but from the private sector. The private sector will provide the majority of the finance and will carry the project forward. We shall have a high-speed rail link between Folkestone and London much earlier than if we had relied on European funding.
12.45 am
I do not want to prolong my speech, but the Minister has opened a new seam to the debate. The proof of the pudding is in the eating. Progress is being made in the Pas de Calais area, but we are still messing about finding a route between the tunnel and London.
If a rail link is already faster than travelling by air and has already won the market, what is the purpose of expending a vast sum of money simply to make it faster?
I did not quite catch the point, but if the hon. Gentleman is drawing a comparison between rail and air, I think that fewer people will want to travel between London and Paris by air if they can use a high-speed, efficient link.
A high-speed link in the United Kingdom is not necessary if the total journey is already quicker than by air.
That is a fantastic argument: that because the French have speeded up their link we need not bother. That is a remarkably defeatist argument. It may find a market in the south of England between the tunnel and London, where there is resistance to a high-speed link, but it is no excuse for the Government's failure to develop high-speed links north of London, where the advantage to which the former Minister, the hon. Member for Hampshire, North-West (Sir D. Mitchell), refers will not exist. It will not be quicker to travel by train from Paris to another major city in the United Kingdom if high-speed links are not put in place. At best that seems a parochial view, and at worst a defeatist one.
Labour Members and, I am sure, many Conservative Members recognise the need for good communications in Europe and want barriers broken down. My ambition for my children and their generation is that they will get on a train, plane or bus from Glasgow to Paris, Seville or any of the great European cities and will think of it not as an outlandish journey but as part of their common heritage. Good communications and a fair structure that accommodates all people are necessary to achieve that.As the hon. Gentleman is talking about the business of people being able to go by bus or by air, how does he feel about United Kingdom taxpayers paying money into a European fund which is then used to subsidise European state-owned companies in competition with our privately owned companies which are doing a better job?
I have too much regard for the hon. Gentleman's probity in these matters to think that he is referring to Stagecoach—
I was talking about British Airways and British Midland.
—which is at the moment reduced to acting as a booking agent for one coach on overnight trains from Glagow to Aberdeen, which is not quite the proud new Valhalla which the Minister went north to inaugurate some months ago. I should have thought that the mention of British Airways as a model of private success was a bit dubious in the present climate.
I certainly want taxpayers' money to be used to make transport cheaper and more efficient—I can think of no more sensible way of using taxpayers' money. Having a good transport system is in our environmental and social interests and counters the remoteness of some places. There is no better way to use taxpayers' money than to promote such an infrastructure. We could debate all night. I shall continue only for a few more minutes, but I want to talk about the genuine periphery and about ferries and bridges in particular. I want my part of the country—the west of Scotland—and the north of Scotland to be served by an ever improving network of ferries. I do not want people who live on islands to be penalised. It is wrong and immoral that people who suffer many hardships and difficulties in order to live in island communities should have to pay high ferry fares for doing so. I want subsidy—to the Tories it may be a dirty word, but to me it is a socialist word—because it equalises and is a safeguard against disadvantage for people who live in peripheral communities. I am glad that Caledonian MacBrayne, for instance, has been able to weigh in heavily to take advantage of European funds to build new ferries.rose—
I shall give way to the hon. Gentleman—no, I shall not, because I have been very generous. I am not filibustering—if we are to have this debate, we might as well ensure that some reasonable points are made. I wish to express my strong philosophical support for subsidies, for grants and for European support for transport systems in peripheral areas. The hon. Gentleman is extremely agitated so I shall accept one final intervention.
The hon. Gentleman went off the point—I was not talking about buses. Will he consider holidaymakers, for example, who travel from south-east and London airports to Spain? Does he think it right that the Iberia airlines should be subsidised, unlike United Kingdom airlines which work in a similar market? That was my question.
If the hon. Gentleman had asked it properly, it might not have been veiled in such mystery. I defend the right of countries to have their own airlines, but how they manage those airlines' fiscal policies is quite another question—to get into that would require a whole new debate.
I return to what Government policies do to peripheral communities and the example cited by the hon. Member for Ross, Cromarty and Skye (Mr. Kennedy). There are currently proposals—unique, for the moment—to construct a road toll bridge which will at the start, in 1996, result in the imposition of tolls of about £6 per car on an island community. The toll will be at least eight times higher than that for any other road bridge in Britain. That is what the Tories are doing to island communities. If there is any fund in Europe to which the community can apply to get the funding that will remove that imposition on the island in question, I would rather place my faith in that European fund than I would in the political motivation of Ministers who have wished the toll on a community which patently does not want it.When my hon. Friend pushes the point, he may care to contrast the current position, with the absence of any European funding going into the peripheral areas, such as funding for the Skye bridge, with the previous position whereby structural funds were available which went into financing a range of new ferries to serve the outer islands of Scotland. There were roll-on/roll-off facilities and the Kylesku bridge. All those were built with European money. Without European money, the Government are simply turning round and leaving the local community to finance the infrastructural projects themselves.
That is a neat point for the end of my speech. My hon. Friend is entirely right. He has explained the perceptions of people who live in the peripheral communities. As long as there were European funds, people living in Skye could say to a European source, "This is a cruel and vicious thing, which is being done for political motivation. Is there any way in which to get round this?" Such people would expect to find—I believe that they would find—in European sources some sympathy for the plight into which they have been plunged by the determination of the Scottish Office to have a pilot project based on tolls.
What would the reaction of hon. Members be if a community in their constituency had imposed on it a toll bridge regime of £6 per car? If they cannot answer that question, why are they prepared to see it happen in the name of the Government somewhere else in the country? Hon. Members should realise that there would be sympathy in Europe, whereas there is no sympathy in the Government. The islanders say, rightly, that, if there are funds to be drawn on and devices to be used that ameliorate the impact of Government policies, they want them. Islanders are not insular. They have no reason to trust the Government. If there are Conservative diehards who cannot understand why people are prepared to support the EC even in communities that, 15 years ago, would not have been prepared to support it, they should look at themselves in the mirror and at the actions of their own Government. People are looking for defence mechanisms and for alternatives. They are looking for ways of avoiding the impact not of EC policies, but of the policies of the British Tory Government.The provisions to which the hon. Member for Cunninghame, North (Mr. Wilson) has just referred were directed to transport—to rail and to roads. We heard not a word that I can recall relating to telecommunications or to energy. For that reason, his speech skimmed over the surface of the matter. I have no doubt that we shall remedy that.
The provision that we are discussing deals not only with transport, but with telecommunications and energy. In effect, a perfect example of a governmental—in this case, supragovernmental—system which is being devised in Brussels. It is intervention in the market, although it pretends to respect the market. There is a fundamental contradiction in the way in which the provisions have been cast which is characteristic of the contradictions in the Maastricht treaty, which I have described as a hall of mirrors. It looks both ways at the same time. Unfortunately, many of the perfectly reasonable objectives which could be achieved by European co-operation by private companies and private operators working within the Community are being subsumed, as the hon. Member for Cunninghame, North made clear, by a dirigiste, supranational, state-controlled, socialist-engineered system. No doubt the hon. Member for Cunninghame, North believes in that, but will it actually work? Is it the right way to proceed? 1 am I have a slight historical interest in the matter in that my great-great-grandfather founded the London and Brighton railway in 1830. I believe that that was the second railway in Britain, if not in the world, although my hon. Friend the Member for Christchurch (Mr. Adley) knows far more about these matters than I. My great-great-grandfather also went to St. Peterburg in 1855. In other words, we were dealing with trans-European networks in the railway system, and also in respect of south and north America, more than a century ago.I know that my hon. Friend lives in the past, so perhaps he was not aware that the motor car, which had a passing effect on the finances of the railways, had not been invented in those days.
I always defer to the superior knowledge of my hon. Friend the Member for Christchurch in respect of such matters. He, too, lives in the past. Indeed, he writes about it. However, we have a trans-European network which has been devised and based on a system set up more than a century ago.
The policy that has been pursued claims to want an open and competitive market, but, it then wobbles. It states that we will take into account the potential economic viability of the projects. It sets out a grand panoramic vision and, as with so much of the European dimension, it promises much, but it attenuates and begs the question whether it will deliver the kind of operations to which the hon. Member for Cunninghame, North referred. Will it be able to provide a system that will benefit the people in the islands to whom the hon. Member for Cunninghame, North referred? Obviously, he made much of that point for parochial reasons. I doubt whether the north of Scotland will get the kind of system that the hon. Member for Cunninghame, North hopes that it will get, simply because of the costs involved. The potential economic viability of a project will frequently be the reason why objectives are not achieved.I support the aspirations of my hon. Friend the Member for Cunninghame, North (Mr. Wilson), but does he agree that some colleagues inside and outside the House have underestimated the bureaucracy involved? My hon. Friend will be aware that the first report of the Select Committee on European Legislation reported on trans-European networks. In relation to transport, it stated:
The report then gives several criteria. Does the hon. Member for Stafford (Mr. Cash) agree that, while the promise may be great, the delivery via layers of bureaucracy and the Commission, with the Commission deciding in the end on a pork-barrel basis in relation to other matters, may not satisfy the aspirations that I share with my hon. Friend the Member for Cunninghame, North?"The Commission proposes to allocate the Declaration for transport projects following consultation with the existing Transport Infrastructure Committee."
I tend to agree with the hon. Gentleman. No one would remotely object to the idea of an efficient intercontinental rail system. However, for the reasons that the hon. Member for Newham, South (Mr. Spearing) has given, and because of the qualifications about the economic viability of the project, it seems highly improbable that the proposal will turn out to be more than an aspiration. That begs the large question of whether the system will work.
We must also consider subsidies. There is no question but that in France, Germany, Spain, and so on, massive subsidies are paid to the railway systems. British Rail is only partially subsidised. There is an important issue. Maastricht permits subsidies to selected networks. Will subsidised Greek road transport, for example, compete fairly with non-subsidised British hauliers both operating, for example, in Germany? Does Maastricht mean that rail transport will be subsidised throughout Europe? If so, at what level, and will it be at the same level throughout? At present, as I have said, British Rail is partially subsidised, whereas the French and other railway systems are heavily subsidised. I do not intend to complain at this moment about the Government's rail privatisation programme, but the fact that it is bound to reduce or even to remove subsidy will surely have an adverse impact on the relative competitiveness of our system vis-a-vis those of continental railway systems which are more heavily subsidised.My hon. Friend is not right in asserting that our proposals for privatisation of the railways will automatically lead to a reduction and an elimination of subsidy.
I am delighted to hear that. The extent of the subsidy is relatively less than in those other countries. I hope that my hon. Friend the Minister will strive, in his departmental responsibilities, to ensure that the other nation states in Europe, within that framework, eliminate or at any rate level off the amount of subsidy they pay, so as to ensure a level playing field in respect of transport networks.
I understood my hon. Friend to agree with the hon. Member for Newham, South (Mr. Spearing) that he was opposed to bureaucracy. Which European railway has or intends to have an organisation called Railtrack, a franchising authority and a regulator, to name but three out of about eight new bureaucratic quangos proposed to be set up? If my hon. Friend would tell me that, I might be more interested in what he says.
I am not the slightest bit interested in setting up a bureaucratic system. The proposed system is likely to be extremely bureaucratic because it will have centralised control based on decisions taken within the European Commission to far too great an extent. That is one of the main problems. On the one hand, we shall have railway systems elsewhere in Europe which, on the face of it, are more heavily subsidised than ours without the prospect of ours having greater subsidy—to which I would object in principle, in any case. On the other hand, we shall also have more bureaucracy, because the system will be based on centralised control.
I have been listening to my hon. Friend with great interest as he referred to the importance of the incidence and weight of subsidy. He is obviously something of an expert on the subject. As you know, Mr. Morris, he himself used subsidised mail recently when he sent out a letter advertising on Tuesday 8 December an anti-European meeting, when a French anti-federal leader—a foreigner—was going to come and speak with him—
Order. I ruled on this matter the other evening, so I do not think that we need to develop that point any further.
I understand that, Mr. Morris, but may I continue? There is a further reply from the Department of the Serjeant at Arms, and that is what I was referring to. It is germane to the argument of subsidisation that my hon. Friend has been deploying. That is why I should like to continue this intervention—with your very kind permission, Mr. Morris, if I may, but I will sit down if you deem me to be out of order when I make my next few contiguous remarks.
On 14 January, the Assistant Serjeant at Arms kindly wrote to me again, referring to the letter that I wrote to Madam Speaker—that is why I am asking my hon. Friend about the important matter of subsidisation—saying that my hon. Friend the Member for Stafford (Mr. Cash) had conceded that he had wrongly used the subsidised mail system of the House of Commons, both the notepaper of the House of Commons and the official franked envelopes, and had repaid the entire amount. Of course, I am interested in the extent and weight of the subsidisation in this connection, which is rather similar to railway subsidisation if one considers it in profound terms, Mr. Morris, because the Department of the Serjeant at Arms makes a policy point of never revealing to anybody how much public money was actually used in that illicit purpose of advertising a meeting to other hon. Members' constituents. Will my hon. Friend say how much of the subsidy he has now repaid to the public fund?Every time we are in this position the hon. Member for Harrow, East (Mr. Dykes) raises the same issue. The matter has been dealt with through—
Order. We are not in this position—the hon. Gentleman is in it.
The matter has been disposed of through the Serjeant at Arms, the money has been repaid and that is the end of it.
On a point of order, Mr. Morris. With great respect to my hon. Friend, the matter has not been disposed of. The matters were raised by my hon. Friend the Member for Harrow, East (Mr. Dykes) and myself some nights ago, and we gave the hon. Member for Stafford (Mr. Cash) opportunities to clear them up. We have returned to the matters tonight and the hon. Gentleman has again not cleared them up—
Cashgate.
Cashgate has been mentioned. The hon. Member for Stafford has not cleared up the matter. It has been put to him quite fairly, and he obviously wants to clear his name and dispel any uncertainty. In fairness to the hon. Gentleman it is only right and proper that we should give him the opportunity to dispose of the matter once and for all. All he needs to do is say by how much he has reimbursed the House authorities for the expenditure.
We all remember that last week the hon. Gentleman said that there was to be a demonstration in Trafalgar square this Sunday. He used the House to advertise the demonstration and he said that—Order. The hon. Gentleman is straying wide of the amendment, and the issues are ones for the House authorities, not for the Chair. If the hon. Member for Stafford (Mr. Cash) wishes to say something about them, I am sure that he will do so. If he does not, I would be grateful if he would return to the amendment.
Further to that point of order, Mr. Morris. May I seek your guidance? Are we not discussing telecommunications under this group of amendments? Do not the issues raised by my hon. Friends fall perfectly properly under the amendments, which deal with subsidies on telecommunications?
I have just ruled and given guidance to the hon. Member for Stafford, who is to take one of two options relating to transportation.
On a point of order, Mr. Morris. Is it in order to ask for the sum to be spelt out in ecu?
I am not sure that that point of order is helpful.
The matter has been disposed of. I think that the figure was about £210. I am afraid that I do not have the correspondence on me, although my hon. Friend the Member for Harrow, East (Mr. Dykes) carries it around with him all the time. Every time I rise to speak, he raises the issue. The matter has been disposed of, and it would be best if I continued with the issue of road transport.
Does my hon. Friend receive the regular communication that I and all other hon. Members receive weekly, which is paid for by the public purse and informs us how grand the Community is? No one seems to be raising points of order about that.
My hon. Friend makes a good point.
Order. Before the hon. Member takes up the issue raised by the hon. Member for Tayside, North (Mr. Walker), I should tell him that it does not fall within the remit of the amendments. I am having difficulty hearing the hon. Member for Stafford, and would be grateful if he would speak up.
As my hon. Friend the Member for Tayside, North (Mr. Walker) says, there are matters relating to subsidies all over the place. With regard to public subsidies, it would be as well if we could return to the provisions, as I initially wanted to do.
There is already a road transport market throughout Europe, in which British transport contractors are already well placed. The onset of the single market a few weeks ago has greatly speeded up road transport by removing some of the border red tape. Now, unfortunately, the extra regulations implicit in the Maastricht process will have a tendency to slow it down. How does the Minister see the provisions of the Maastricht treaty improving the market for British road hauliers in practice?Although the hon. Gentleman is out on a limb on this issue in his party, he is very much in the main stream on others. He believes that subsidies to British Rail should be heavily reduced, and should not be brought into line with the subsidies in other European countries. How representative of the rail industry does he think that view is?
1.15 am
The subsidy for British Rail must be weighed against the money being spent on roads and motorways in the United Kingdom. There is a proposal to widen the M6, part of which runs through my constituency. Much of that widening is quite unnecessary. The proposal, which would involve huge sums of public money, includes the creation of another spaghetti junction at junction 15—an idea strongly opposed by my constituents. No one has come up with any justification for the project as yet. The real problem is the bottleneck at the junction between the M5 and M6. If there is to be an equitable distribution of money for the improvement of our road and rail networks—I am not against investing public money in that—such distribution must be done in the right place and in the right way.
Will my hon. Friend tell the hon. Member for Harrow, East (Mr. Dykes) that the same will happen here as has happened with every other Euro-fund? Britain will pay in more than it gets out, so we shall have less money to spend in Britain. Will my hon. Friend tell the socialists who, strangely, sit on the Conservative Benches that the result will be fewer jobs and transport facilities for the British people, and that all we are doing is implementing another socialist policy over which we shall have no control? We shall be handing over more money to Europe, which is madness, and it will cause more unemployment, even in socialist-held Harrow.
I could not agree more. I was most surprised that my hon. Friend the Member for St. Ives (Mr. Harris) avoided any reference to the impact of the fisheries policy on area 7. He knows perfectly well that his fishing constituents are being wiped out, but he has not spoken up because he is a Euro-fantasist—
Order. Not by this amendment, they are not.
In the context of the trans-European network there is considerable interest in the amount of money that goes into the fisheries policy—
Order. The hon. Gentleman must understand the rules of debate. If I say that a certain line of argument is out of order, it is no good the hon. Gentleman's returning to it. I should be grateful if he stuck to these amendments.
Does article 129c mean that the Community will pay for the fast passenger rail link from Folkestone to Waterloo?
My hon. Friend is being frightfully unkind to the Department of Transport. Speaking of roads, is he aware that there is a secret plan to widen the M25 to 14 lanes? Although the Department of Transport has not announced it yet, it is to be a new London airport.
My hon. Friend is another Euro-fantasist. No doubt he will be able to live with that nightmare as well.
I would be grateful if the Minister would tell us whether the Community will help to contribute to the fast rail link. It is a project as defined under the treaty, and it needs to connect with the rest of Europe. The point deserves consideration and a reply. If not, why will the Community not pay for it?I am glad to respond briefly to my hon. Friend. I assume that my hon. Friend is speaking about the new rail link from Folkestone to King's Cross rather than the one from Folkestone to Waterloo, which will open in a year's time. I have said that it will be financed largely by the private sector, by this country, and that any European fund contribution will be relatively modest.
Why should the west coast line to Scotland not receive similar funds? That would lead to interconnection and interoperability. Perhaps the Minister will answer that question.
I shall move on and deal with energy policy. British Gas has done extremely well not only in the United Kingdom but throughout the world. It has entered the world market for the discovery, recovery, distribution and marketing of gas. Under the Maastricht treaty, who will place the contracts for interstate pipelines? Will it be done through Brussels, and who will enter into the contracts? The issue is not merely to assert what we want but to look at the characteristics and provisions of the treaty, relate them to practical examples, and ask where the money will go. Will it go to the other European countries or will we get our fair share? If there is increased distribution of public subsidies, we must get a reasonable slice of the cake. Massive problems will arise if the entire system is translated to a centralised, Brussels-orientated slush fund. If that happens, national interests will intervene and we shall be outmanoeuvred and outgunned. The Minister said that the Folkestone to King's Cross link will be paid for by private enterprise, and I do not cavil at that, but will there be equitable distribution of the slush funds to which our taxpayers contribute? We must try to understand such matters, because the treaty is not just a few words or paragraphs: it translates into law the prospects for parts of the Community to tap cohesion and slush funds. We need direct answers to our questions. Article 129c states:that is, countries outside the 12 member states. What happens if the Community decides not to do that? How and to what extent will contracts for British Gas pipelines throughout central and eastern Europe be provided? Siemens has worked its way into Czechoslovakia and is securing a substantial degree of control over the energy grid in that part of central and middle Europe. Under the third-country provision, will Siemens be able to obtain European funds which will enable it to compete for projects with United Kingdom companies?"The Community may decide to co-operate with third countries"—
I can set my hon. Friend's mind at rest on that: no funding flows directly from these articles.
We have already touched on the pit closure programme and the fact that under the European Community coal and steel regulations the former Competition Commissioner, Sir Leon Brittan, recently approved a DM3.3 billion deal between the power generators in Germany and Germany's highly subsidised coal industry. We arc given to understand that this exemption was to last for as much as 100 years.
Against that background, the President of the Board of Trade recently went to Brussels, apparently to get clearance for the arrangments that he would like to make to fit in with the White Paper on the pit closure programme that the Government are about to produce. The Government are in a fix over that programme, which includes a pit at Trentham in a constituency neighbouring mine. The trouble is that the RWE—the biggest energy producer in Germany—intends through its subsidiary to sell steam coal to our power generators, in direct competition with British mines which are to be closed by the Government. That cannot make any kind of sense for the future of British energy. It appears—why else would the President of the Board of Trade be going to Brussels to get clearance?—that all that is tied up with European energy policy.The hon. Gentleman is on to a good point. Another important point is that the Commission will also heavily subsidise the metallurgical coal industry in Germany.
That is one of the problems that we are up against. As I put it to the President of the Board of Trade when I had a meeting with him, had the arrangements for dealing with expensive and heavily subsidised coals in Germany been dealt with as part of the Maastricht negotiations, our energy users would not have been put at a competitive disadvantage by the DM3.3 billion deal approved by Sir Leon Brittan under the European energy policy. I heard the Minister say that there is no question of a subsidy under the energy and coal policy, but unfortunately—I imagine that he will be able to address the point—subsidies are made to the German coal industry, if not under Maastricht, certainly under the European Coal and Steel Community regime.
Those matters should have been ironed out in the negotiations. As with the CAP, so with this. One of the points about the treaty to which I object is the fact that there was a lack of proper negotiation, because both the CAP fund and the energy policy should have been sorted out as a quid pro quo for other things. British industry is being penalised, leading to RWE and others making bids for our coal mines. The 31,000 British miners whose jobs are at risk are being thrown out of work while German miners are being subsidised through both German and European subsidies. [Interruption.] It is all very well for the hon. Member for Harrow, East to titter occasionally in a rather irrelevant and trivial way, but those matters are of great concern to many people and many hon. Members, as was shown by the debate on the pit closure programme only a few weeks ago, which is shortly to be repeated. It is important for us to understand why the matters were not solved in the run-up to Maastricht so that we are still saddled with them.The hon. Gentleman's argument is paradoxical. For the past 10 years, we have been hearing from the Conservative party that subsidies are profoundly destructive of economic efficiency and competitiveness. Accordingly, the hon. Gentleman should be delighted that the Germans are subsidising their coal industry. It is his argument that that will undermine the German economy. The hon. Gentleman should be asking the Germans to load on subsidies. Has he finally rumbled that public investment promotes economic efficiency and development in Germany and other countries?
1.30 am
I take my hat off to the hon. Gentleman for his ingenuity.
It is my argument that the scale of the subsidies and their historical input to the German coal industry is doing enormous damage to our energy users, including those in the consitituency of the hon. Member for Western Isles (Mr. Macdonald). Irrespective of the superficial nature of the hon. Gentleman's remarks, it should be borne in mind that unfair competition is costing British industry a great deal and is tending to put people in his constituency, and in others, out of work. He should bear that in mind. We buy electricity at off-peak times from France via underwater cables. I understand that, under the Maastricht treaty, Brussels will be able to intervene. Under the treaty, those who are opposed to nuclear-generated power, such as the French electricity suppliers, will be able to stop the sale of that power to Britain. Scotland has a surplus of electricity, which it sells to England. Under the Maastricht treaty, Brussels will be able to intervene on that as well. Our arrangements are already set up, and I believe that as much as 10 per cent. of our electricity supplies come from the French nuclear industry. Under my constituency, there are about 300 million tonnes of coal running from the Trentham pit, yet it is one of the 10 that are to be closed. I and many others would claim that it is viable. We are, however, entering into a system with more dirigisme, interventionism and subsidies, which will do immense damage to our indigenous energy supplies and to those who work in the coal industry, not to mention all the ancillary industries such as the manufacture of coal-mining equipment. To my mind, things will be made worse by the interventionist, dirigiste, slush-fund politics that is contained in the Maastricht treaty. British Telecom, like British Gas, is a privatised industry. It competes effectively within Europe and worldwide. Telecommunication companies co-operate—it is in their mutual interests to do so—within Europe and in the world as a whole. What benefit would there be to cable and satellite communications if the provisions of the Maastricht treaty were to be implemented? I hope that my hon. Friend the Minister of State will respond to my question. Can my right hon. Friend give us an assurance or undertaking that, under article 129, air travel throughout Europe will be truly competitive?Never.
Precisely.
The present protectionist policies will no doubt persist. It is cheaper to fly from London to New York than to many of the European capitals. In other words, we are presented with a range of potential advantages, so it is claimed—aspirations to greater degrees of competitiveness—but how realistic is it all?I wish to be helpful, and to remind my hon. Friend again that no funding flows directly from these articles.
I hope that my right hon. Friend is not trying to dodge the issue of cohesion and structural funds. I remember meeting him before the Maastricht treaty was signed, when he said in as many words that there would not be any cohesion fund, or that it was highly improbable that there would be one. He said that there would be a fight against it. It was that sort of language. We now have the cohesion fund—under which, at Edinburgh, a little noticed provision gave a substantial amount of additional funding for eastern Germany. I think that it was about 18 billion ecu.
Order. Was that money for transport, telecommunications or energy?
With respect, Mr. Morris, the relationship of the cohesion fund to trans-European networks—
Order. The hon. Gentleman appears to have some difficulty communicating. It either was or it was not. I suspect that it was not, so I should be grateful if he would return to the amendments.
The cohesion fund is not specifically—
Order. The hon. Gentleman does not have to tell me what the cohesion fund is; I am well aware of that. I also note that that subject comes further down the Order Paper. For the moment, I should like the hon. Gentleman to stay with the subjects of transport, telecommunications and energy.
rose —
Is my hon. Friend aware that article 129c states specifically:
Quite apart from transport money, the article is specific, clear and concise in its reference to cohesion fund money. Therefore, any suggestion that a great deal of cash is not involved not only misleads the House—[Interruption.] Hon. Members may laugh, but I ask them to think about the poor people of Britain who are already paying too much and who will now pay more—"the Community may also contribute, through the Cohesion Fund to be set up no later than 31 January 1993 … to the financing of specific projects"?
Order. The hon. Member for Stafford (Mr. Cash) was referring to eastern Germany and the cohesion fund. I asked a simple question—was that related to transport, telecommunications or energy? If it was, his remarks might have been in order; if it was not, they would not have been. We then moved to a debate about the cohesion fund and the poor people of Britain.
It is not a question of whether it may or may not be, or whether you, Mr. Morris, may or may not suspect that it is relevant—I am telling you, with respect, that article 129c states:
"the Community may also contribute, through the Cohesion Fund to be set up no later than 31 December 1993 pursuant to Article 130d, to the financing of specific projects in Member States in the area of transport infrastructure."
Perhaps I could help the House. My hon. Friends the Members for Stafford (Mr. Cash) and for Southend, East (Sir Teddy Taylor) are right about article 129c—
My right hon. Friend said that there was no money.
If my hon. Friend will try to calm down for one moment, I can tell him that under title XII—trans-European networks—no money flows directly from articles 129b, 129c. Those articles lay down the guidelines within which a project might take place and which might then, if approved—this is where my hon. Friend is right—be financed through the cohesion fund. I think that there has been some misunderstanding on that point.
Between ourselves and you, Mr. Morris, we have established that my remarks are relevant. Of course I understand that you want us to stay within the framework of the debate. I am doing so, and I have no reason not to pursue my points.
People in my constituency are excited about article 129c. They are looking forward to the possibility of the cohesion fund making an impact on the electrification of the railway from Crewe to Holyhead, because of the important connection between Ireland and the remainder of the continent of Europe. That is an example of where we hope that, in time, funds may flow directly from article 129c to help people in my constituency, which is why they are so enthusiastic about it.
I am delighted to hear that, but I am not sure that right hon. and hon. Members ought to be enthusiastic at the thought that this country will qualify for cohesion funds. The principle to which my hon. Friend referred is based on the assumption that our gross domestic product has sunk to the level of countries such as Portugal and Greece.
And perhaps Ireland.
My hon. Friend's constituency is so near Ireland that he has no doubt reached the conclusion that, with these provisions, they are almost indivisible.
Looking at the course of the United Kingdom's enconomy, is it not reasonable to assume that the United Kingdom will qualify on the criteria in question?
No one can say for sure, because we have not reached the point in 1996 when, if the treaty is enacted, the convergence conditions are likely to be applied. At this moment in time, it is not a happy state of affairs to find that we are heading towards qualifying for cohesion funds. That is not something that we should greet with much enthusiasm, because it shows the dire economic straits in which our country finds itself. The reason is that we got ourselves locked in to an exchange rate mechanism that led to untold trouble.
However, I will not be tempted down that route, because I am sure that you, Mr. Morris, would be the first to point out that we shall have ample opportunity to discuss that aspect later. Despite your suspicions now and again, I have every intention of staying within the rules of order.So that the constituents of my hon. Friend the Member for the City of Chester (Mr. Brandreth) are not disappointed, will my hon. Friend make it abundantly clear that, sadly, Britain will pay a lot of money into the cohesion fund but is unlikely to get anything out of it? Regrettably, therefore, there will be even less money available to help the constituents of my hon. Friend the Member for the City of Chester. Should they not be warned of that sad situation?
I am sure that they will take on board my hon. Friend's remarks. It is a sad situation, and it is directly related to Britain being locked into the exchange rate mechanism. It was a disaster, but, thank God, we managed to get out of it—although I noted with great concern that that may not necessarily be for more than one year. I found that very worrying.
Perhaps I may try to be helpful again. My hon. Friend the Member for Southend, East (Sir T. Taylor) is right. When my hon. Friend meant to talk about the structural fund—I have done this myself—he referred to the cohesion fund. The cohesion fund is for poorer countries, but my hon. Friend will be relieved to learn, as I was, that, once any framework decision is taken under the articles in question, any decision to spend under the cohesion fund would be by unanimity, whereas spending under the structural fund would be by qualified majority voting.
As my right hon. Friend knows, the structural fund has substantially increased over the past few years. That is yet another example of the social engineering that is under way in Europe. One difficulty is that there is neither the will, the capacity, not the ability to pay over many of the funds.
Promises were made—of the kind that will no doubt arise in relation to transport policy, and of the kind found in article 109c—in relation to Ireland. They might well be found wanting. Ireland was promised 6 billion ecu, if not more, in a deal—if not as a bribe—to go along with the Maastricht arrangements. There must be significant doubts in the minds of many people in Eire today about whether it will get that money. At the same time, in relation to transport and trans-European networks, a question arises in respect of cohesion fund moneys being pumped into the eastern part of Germany under the Edinburgh agreement. In my view, Chancellor Kohl emerged victorious from the Edinburgh summit, on all counts. Germany is now investing massively in eastern Europe. About 85 per cent. of all foreign investment in such countries as Czechoslovakia and Hungary is derived from moneys made payable for transport, energy grids and so forth. However, it has not invested in eastern Germany on the scale required to deal with its problems. There is a clear imbalance. Owing to the complete failure of the one-for-one policy pursued by Chancellor Kohl—against the advice of Karl Otto Pöhl, the president of the Bundesbank at the time of reunification—our taxpayers are now paying the price of the increased investment, along with the additional cohesion funds for eastern Germany. 1.45 am Meanwhile, German bankers and industrialists investing in transport, energy and all the trans-European networks are feeding into the new economic hegemony—which is well known to Ministers in such countries as Czechoslovakia, even if it is not known to Ministers in this country. Under the ERM and the introduction of high interest rates in Germany, our taxpayers and mortgage holders are effectively subsidising arrangements in eastern Europe, whose profits will go back to German companies. Let me now turn to the markets in road, rail, air, telephones, gas, electricity and so forth.It may not be a one-way transfer. Contrary to what the Minister blandly said, the cohesion funds are not simply for the poorer members of the Community. According to the protocol on economic and social cohesion,
On present economic trends, and with the devaluation of the pound, we might well qualify in the mid-1990s."financial contributions to projects in the fields of … trans-European networks in Member States will be paid to those States with a per capita GNP of less than 90 per cent. of the Community average".
The other day the hon. Gentlemen put up a strong defence of the Maastricht treaty, to which he is plainly dedicated. None the less, a number of questions, which present a number of difficulties, remain unanswered. It is all very well to draft provisions that look good on paper; the question is whether the practical will, the ability and the capacity exist to deliver those provisions.
One of the dangers is that some of the poorer countries' expectations are being raised. They are being shown a vision of magnificent road and telecommunications systems; they are being led to believe that they will be uplifted and turned into modern economies like the northern industrial countries. The truth is that they will not; furthermore, the dashing of their expectations may well lead to greater instability within Europe than many people have predicted. There is nothing worse than giving—through promises and assurances on a piece of paper—an impression that will not be delivered in practice, particularly if the nations involved are already at a low threshold.In fairness to the people of Skye, the Hebrides and the island of Arran, would it not be very unwise—perhaps even misleading—to give the impression that all their problems involving ferries and bridges will be solved by this wonderful new slush fund, when it is clear that—sadly—nothing will come out of it unless by some remote chance the economy goes down to such a degree that we might qualify for the cohesion funds? Would it not be better for the Government to warn the people of Benbecula, the Hebrides and the island of Arran that cohesion fund money will mean less, not more, money for Scotland and the rest of the United Kingdom? Would that not be more careful, honest and appropriate?
I very much agree. There are people in the Hebrides who have been promised money for infrastructure projects, a promise that may turn out to be unjustified. The provisions give the impression, subject to the point that I made about project viability, that money will be given for these projects. The hon. Member for Cunninghame, North (Mr. Wilson) made a lot of play of the people in the north of Scotland, but I hope that he will have the honesty to admit that it by no means follows that they will be able to get the money for infrastructure projects that is implied in the language that is used. It may not be followed through in policies.
It is becoming a caricature of what went before to suggest that anyone made any such promises. What I suggested was that there are no grounds for assumptions, but nor are there grounds for the paranoia that the hon. Gentleman so ably epitomises. People know that the policies of the United Kingdom Government have left them with the unwanted high-toll Skye bridge, and that European structural funds have provided them with financial support for improved communications and ferry services. People are well able to evaluate the relative trust that should be placed in the Government, compared with the European Community's interest in peripheral areas.
There is a problem with setting out on a piece of paper what could or might be done. The question is whether it is practicable, whether it will be delivered, who will pay for it and who will benefit? Who will be the gainers and losers? A practical analysis, an audit of the manner in which it will be done, would have been preferable, before these pieces of paper were prepared, with the draftsman sitting down and writing it out.
rose—
I see that I am exciting some interest on the Opposition Benches, so I shall give way to my hon. Friend the Member for Newham, South (Mr. Spearing).
Politically that is not so, Mr. Morris. Does the hon. Gentleman not agree that the real position is that, although Scotland and the Highlands and Islands have been dealt with disgracefully by the Government—
Disgracefully?
Yes, disgracefully. They may have been dealt with, for the time being, with some liberality by the Council of Ministers, but if the British people feel at the end of this Parliament that the Conservative Government should be turned out and the EC's liberality ceases, the people of the Highlands and Islands and the rest of Britain will have no power to do anything about the people in Brussels, will they?
The hon. Gentleman is absolutely right. The setting up of a new competence in this area means that the hon. Member for Ross, Cromarty and Skye (Mr. Kennedy) is advocating personal responsibility for the decisions that he takes in the House with respect to the competences that are to be handed over to the European Community. There will be anger in his part of the world if there is no delivery. How on earth will he be able to deliver those policies within the centralised arrangements that are to be set up?
Does my hon. Friend realise that we are now moving into an area where Opposition Members will blame this Parliament and this Government for failures that were never intended but which can be used to discredit this Parliament and the Conservative Government and cause a political reaction in Scotland that is in their interests and not in the United Kingdom's?
My hon. Friend makes an extremely good point. At the heart of these provisions is pessimism, economic defeatism and an abdication of responsibility, whereby powers are handed to people who are so remote that there will be no compensation from any member of the European Parliament. Maastricht is not merely raising people's expectations with an utterly misleading prospectus but, even worse, it is an abdication of responsibility. Ministers know perfectly well that they will not be able effectively to influence many policies.
Some hon. Members tell us that we shall be better able to influence on the inside than on the outside, but I should be interested to see their reaction when they are out-voted and do not get what they were expecting or had promised their constituents.On the question where anger will be directed, does the hon. Gentleman believe that the 25,000 people who rallied in Edinburgh on 12 December showed the extent of the concern about the lack of Democracy in Scotland? Will he contrast that with the 1,000 people who rallied in Trafalgar square at the weekend? Does he accept that, on a rough calculation, the people of Scotland are 250 times more concerned about the lack of democracy in Scotland than the people who rallied in Trafalgar square about the Maastricht Bill?
I was in Scotland at that time, and was thoroughly impressed by the 25,000 people who turned out. That was an arrangement that the hon. Gentleman and his friends had been working towards for many years, whereas the issue whether there should be a vote on a referendum in the House arose only a few days ago. I believe that recent opinion polls showing that 75 per cent. of the public want a referendum will be translated into action.
There are markets for road, rail, air, telephones, gas, electricity and so on, but some countries have open and competitive markets, whereas others do not. In some countries, the market is distorted by Governments with protectionist regulations, subsidies and unfair competition. Far from removing that distortion and creating a level playing field, Maastricht promotes further unfair regulation and subsidy. The European Community's proposal for a pan-European telecommunications market, presented in the Green Paper on the development of the common market in telecommunications services and equipment, is aimed at reducing the influence of national, public, postal and telecommunications bureaucracies on certification; but it is not working. I should be delighted if the Minister could tell me that the vastly inflated, subsidised, bloated nationalised telecommunications industries in Germany and elsewhere are operating under those putative arrangements. The plain fact is that they are not, and the Government know it, but we are being taken in on a promise of what might be regarded as a dream or an aspiration that things will change. That brings me to the issue of public procurement and publicly subsidised industries. Will there be a change in the 2 per cent. subsidy for trans-boundary contracts in the public sector? Will the countries that apparently will provide us with this wonderful new market recognise reality? Will these great aspirations work? The evidence is extremely thin and, at the moment, I know of nothing to suggest that the telecommunications industry will be opened up as promised. This part of the Maastricht treaty is based on a figment of the imagination, but it is on paper, and I shall be interested to know whether many of the proposals will come to fruition. There is nothing inherently good about networks being interconnected and interoperable, whether at the European or any other level. There may be circumstances in which, for reasons of security of supply, efficiency or cost, such interconnection should exist, but it does not follow as an axiomatic principle. There may be practical reasons for it in some cases, but there is a world of difference between that and prescribing it as a rule of law in all circumstances. It is that socialist engineering, that dirigisme, to which I profoundly object.2 am
I am fascinated by that concept. Does the hon. Gentleman agree that the only people who do not think that it is a good idea to have interconnections between systems are those who do not wish to be connected to the systems? If he regards it as a term of abuse to say that socialists wish to be connected to other people by all means at our disposal, it is an affront with which we are easily able to live.
I should be much more impressed by the hon. Gentleman's argument if we were not having to pay for that great panoramic view, the three-dimensional transport infrastructure policy of which he is so fond.
I have been having great difficulty—not for the first time—in following my hon. Friend's logic. He says that he is against public subsidy to industry and against public protectionism in procurement for nationalised industries. We are all against such things, but they have existed for a long time, long before the single market and Maastricht. They have long been a distortion of trade and an obstacle to our sales abroad.
Now, for the first time, things are changing: there has been a public procurement directive, and Sir Leon Brittan has been successful in reducing public subsidies—he has got back billions of pounds from Renault. My hon. Friend is incorrect about telecommunications monopolies. The Bundespost has been broken up and Deutsche Telekom has been set up—they are real improvements. Is it not more than a little perverse to spend a long time complaining about a range of evils but then to reject, without comment, all the tremendous attempts that have been made in the treaty and as part of the single market to do something about them for the first time?The problem with what my hon. Friend is saying—he was not in the Chamber at the time, so I shall not hold it against him—is that the ex-Commissioner for competition, Sir Leon Brittan, has just agreed a DM3.3 million deal between the power generators and the German coal industry. There is a tremendous problem with subsidies and public procurement, which is not working as well as my hon. Friend suggests. We are still at a very low threshold.
In case my hon. Friend the Member for Stamford and Spalding (Mr. Davies) gets too excited, will my hon. Friend the Member for Stafford (Mr. Cash) remind us that the Prime Ministers of countries such as Spain, the Republic of Ireland and many others returned from Edinburgh saying that they had billions of pounds more in subsidies? If he considers the EC's current expenditure, agreed before the Edinburgh agreement, he will find that increases in spending are planned, most of which will go on subsidies of more than one third between now and 1999. Does he agree that any Conservative Member of Parliament who thinks that Maastricht will mean less subsidy is kidding himself. He should look at the figures and at what all the leaders said when they went back from Edinburgh.
It is slightly depressing to find my hon. Friend the Member for Stamford and Spalding (Mr. Davies) advocating the policy of subsidisation on such a scale, which is effectively what he is saying. He is giving comfort to those who will milk the British taxpayer. We are the second greatest contributor to the EC.
There are circumstance, on a selective basis, in which some of the arrangements may be justified. However, the scale envisaged by the arrangements is vast and the extent of fraud that goes with it is dramatic. The figure is estimated to be £6 billion a year by the Court of Auditors. I recommend my hon. Friend the Member for Stamford and Spalding to read the reports by the Court of Auditors, because I doubt whether he has. The amount being thrown away is staggering—rose—
Much of the money—[Interruption.] I notice that the Minister is threatening my hon. Friend the Member for Stamford and Spalding in his typical way. I think that he has forgotten that he is about to be no longer Minister of State, Foreign and Commonwealth Office, by his own wish. He is certainly no longer the Deputy Chief Whip. It is slightly depressing to find that my hon. Friend the Member for Stamford and Spalding is such a strong advocate of policies that I should have expected more to come from the Opposition.
My hon. Friend the member for Stafford (Mr. Cash) talks about the importance of the Court of Auditors and of proper financial controls. Would he take this occasion to welcome the arrangements elsewhere in the treaty which strengthen the Court of Auditors, strengthen parliamentary control, and make it more likely that British taxpayers' money will be well spent by the Community?
I should certainly be far more enthusiastic about the idea of the Court of Auditors having greater supervision if I did not know that the chairman of the Court of Auditors, Mr. Carey—as the hon. Member for Newham, South knows—has very grave reservations about the direction in which all this is going. He has expressed himself in a letter, and I believe that the hon. Member for Newham, South has a copy, because it has been circulated to me as well.
One must not be too starry-eyed about the way in which the Court of Auditors has gone or is going. The fraud is on a massive scale. The £6 billion hole to which I referred is a significant underestimate, as we were told by members of the Court of Auditors when we went to see them. That money is British taxpayers' money which is going down the drain.I have been listening to the hon. Gentleman for more than an hour, and very entertaining it has been. I am getting rather worried, because there is no doubt that he is cracking up—that is, his voice is cracking up, because of a cold, perhaps. Might not it be a good idea at this stage for the hon. Gentleman to save his strength for some of the big debates to come? Perhaps he could pass on the torch to some of his hon. Friends. If he is not able to do that, perhaps he could give me an ETA on his speech.
I should be glad to do so. I am looking in the direction of my hon. Friend the Member for Worcestershire, South (Mr. Spicer) in the hope that he will be able to take over in a minute.
There is no need for Community involvement in the pan-European transport projects, however big. The three prime examples would be the airbus programme, the European fighter aircraft programme and, in many respects, the channel tunnel. All are intergovernmental and intercompany ventures in which Community involvement is marginal. If trans-European networks are desirable, it does not follow that the Community should necessarily have any role in their development. These provisions are just socialist aspirations flowing out of the paperwork without regard to the realities and necessities of the EC as it has been for many years. The main brake on the development of intra-European transport networks is national protection and subsidy. Hon. Members should look at Air France and at Iberia International. Contributing to the development of transport infrastructures, whatever that means, would involve further subsidy and interference, with an associated distortion of competition. With our privatisation programmes, our insistence on value for money, practical considerations and choices that are relevant to the marketplace, the Conservative party is supposed to have eschewed all those ideas. We are going through the Maastricht treaty backwards. We are adopting a range of proposals that I thought that we had eschewed and given up. I did not think that we were going in that direction. Effectively, we are being taken down a route that I thought had been discarded in the mid-1970s.With regard to subsidies and competition in respect of airlines, my hon. Friend the Member for Stafford (Mr. Cash) and the Committee will be interested to learn that, at a recent Brussels conference on open skies, the new Commissioner was unwilling to answer any questions and the representative from the Commission would not answer direct questions on subsidies to Iberia and competition with British airlines. It was noticeable that the hon. Member for Cunninghame, North had some difficulty dealing with that point.
National flag carriers are notoriously nationalistic. There are serious problems, and I hope that our Ministers will be able to break them down in negotiations. However, I doubt whether they will be able to do that because there are massive vested interests involved. The proposals and the new competencies will simply make the problems worse. Worse than that, they will encapsulate them into a legal framework that will not work. It is improper and wrong to expect judges to take decisions in relation to such matters.
The telecommunications operators and equipment suppliers are well managed, capitalised and profitable. Why, for heaven's sake, should the British taxpayer be involved in subsidising France Telecom, Deutsche Telecom, Telefonica, GEC, Seimens and Co. as they have moved into the new arena prescribed under the new trans-European telecommunications proposals?My hon. Friend has not done his homework tonight as well has he often does it. He has just recounted a list which is a complete mix-up of telecommunications utilities and manufacturers of telecommunications equipment. Telefonica is a subsidiary, while Siemens is a manufacturer of equipment. There is no question of supplying any kind of support, even in the form of feasibility studies and so forth, for manufacturers of equipment.
I want to raise an essential point that my hon. Friend the Member for Stafford (Mr. Cash) has missed. The treaty provides for a small increase—0.1 per cent.—in the own resources of the Community. However, a much greater reduction in national subsidies to industry has been brought about by the single market programme and other initiatives in connection with Maastricht. On a net basis, there are far fewer subsidies and distortions to trade as a result of subsidies than was the case. This initiative is the first time that we have been able to make real inroads into Europe and the protectionist procurement policies which my hon. Friend the Member for Stafford is right to say have caused us great economic damage in the past. I hope that my hon. Friend recognises the hopeful way forward.Following on from the point made by my hon. Friend, I would be more than happy to check what he has just said about those companies. However, most merchant banks would be more than happy to underwrite rights issues of those organisations. It has yet to be shown that those issues have been less than satisfactory in respect of the proposals in the treaty.
At the end of the day, we want highly profitable, well organised, privately owned companies to provide the best possible arrangements for the consumer. Drawing them into highly directed, centralised telecommunications competence of the kind that is contained in the treaty bodes very ill for the future of telecommunications. The matter is based on the concept of Euro-champions—that somehow or other we will effectively improve the quality of R and D, or whatever, by aggregating on a Eurochampion basis the facilities that are made available on a European continental basis. It is not ncessarily such a good idea in theory, and I am quite sure that it is not going to work in practice.
2.15 am
Surely my hon. Friend will say something about the astonishing statement by our hon. Friend the Member for Stamford and Spalding (Mr. Davies) that the Bill adds only 0.1 per cent. to the expenditure of the EC. What on earth were the Government of the Republic of Ireland, for example, doing during the referendum, telling the people that the money from Europe was going to double because of Maastricht? What was the Prime Minister of Spain doing when he came back from Edinburgh, saying that there would be an increase of billions of pounds? Sadly, time and again, people say something about the EC, and, when it actually happens, it turns out to be horrible, nasty, costly and expensive. Has not that happened time and again, as my hon. Friend the Member for Stamford and Spalding should know?
Vicariously, my hon. Friend the Member for Southend, East (Sir Teddy Taylor) has dealt extremely well with the point that was raised by my hon. Friend the Member for Stamford and Spalding. I sincerely hope that the Maastricht treaty, or at any rate its aspirations, will be nasty, brutish and short.
On energy, we must remember that there is no national grid in the United States. There is nothing necessarily good or inherently desirable about having one in Europe. It is all to do with creating one country. Some months ago, I went to the Berlaymont and saw placards saying, "Europe, my country". That is the trans-European network that they are seeking to establish. There are those who hope and believe—it might be honestly, and it might not be honestly, because there has been much misleading over the provisions—that we are not heading towards a unitary state. Hon. Members can go elsewhere in the Community and be under no misapprehension. There they talk a totally different language from the language that we have to endure sometimes in this country and in the pamphlets that are put out—all that talk that, somehow or other, they are going to prevent the federal tendencies or the unitary tendencies from getting a grip on this country. In all fairness, there are hon. Members, who are honest people, who genuinely want to see a federal Europe, and who genuinely would be very happy to have one country. The transfer of powers—transport, energy, telecommunications—is part of the network that is thought to be desirable to deliver the infrastructure of that federal arrangement of that one country. I am not going to hold it against people who honestly and genuinely believe that that is a good way to go: I am just going to beg to differ. It will lead to collapse. The ERM has collapsed and interest rates rocketed up, causing immense damage to the British economy, which is leading even now to further recession and bankruptcy. If we have emasculated the powers of the House of Commons in relation to those competences—in relation to those powers—which we cannot reclaim, if we have raised people's expectations which cannot be fulfilled, and if people in other countries have been bribed into believing that they are going to get all those glorious projects paid for and they are unfulfilled, it will simply add to the sense of anger and anguish when the collapse comes. If and when it comes, and we have committed political voluntary euthanasia, we will get rid of the framework of consent and the framework of democracy, as Jeremy Leaman pointed out in The Guardian today. It is well worth reading that article. When The Guardian contains articles stating that the proposals for monetary union and other aims are fundamentally undemocratic, Opposition Members may want to have a good look at them. The bottom line is that an impossible dream is being created. The projects will not be fulfilled, except in the minds of Utopians. The history of Utopia is that it does not work. When it collapses, the rule of law will collapse with it. There will be no democracy to put in its place. When that happens, the political and business instability will be so great that there will be massive disorder throughout Europe. There is already evidence of that in Italy, not to mention Yugoslavia. The creation of that network and intercommunications is based on theory, not practice. The provisions should not be allowed to proceed.I am tempted to spend the next hour and 22 minutes giving a point-by-point rebuttal of what the hon. Member for Stafford (Mr. Cash) has just said, but I shall resist that temptation. The apocalyptic—I can still say that word at 2.20 am—conclusion that he drew will not ring true in many ears in the Committee. Many of us do not identify with the sort of democratic structures of the House that the hon. Member was extolling. Some of us find this place profoundly undemocratic in the means by which its Members are elected. At least one nation of the United Kingdom is very undemocratically treated. Therefore, we do not admire the set-up that the hon. Member has spent so much time this evening and on previous occasions trying to defend.
One of the most extraordinary phrases in the hon. Gentleman's address was that he did not believe in networks. He really meant that he does not believe in networks that link us to anything the other side of the English channel. I cannot believe that the hon. Member would not wish the produce from the good people of Stafford, their manufacturing industry and the coal mined at the threatened mine in his constituency to be stuck in Stafford. No doubt the hon. Gentleman welcomes the fact that Stafford is so close to hundreds of miles of motorways and main rail lines that can take goods from Stafford to many parts of the United Kingdom. I am sure that his constituents will be only too pleased that, with the single market, they will have the advantage of being able to export their goods to other parts of the European Community. When the hon. Member for Cunninghame, North (Mr. Wilson) opened the debate, he said that the articles under discussion give those of us representing districts that are not in the heart of the networks in the United Kingdom the opportunity to be linked up to receive some of the advantages that will flow from the creation of the single European market. Unfortunately, the hon. Member for Stafford dismissed those opportunities early in his speech. If hon. Members have long enough memories, they will recall that he said that the proposals would not be viable. The hon. Gentleman wants to preserve not just a United Kingdom, but his vision of a narrow little England. I received the impression that, whether it be Cornwall in the south or the highlands and islands in the north, such regions were not of great concern to the hon. Gentleman.
I have some sympathy with what the hon. Gentleman says. Does he agree that the importance of networks at any level relates to how they are created, who creates and controls them and their purpose? While I agree that many of the networks in this country, including motorways and the grid—particularly in the least populated districts—serve a purpose of mutual support, the purpose of the networks that we are discussing is eternal and destructive competition.
I agree with some of the hon. Gentleman's generalities, but I disagree with what he says about purpose. If, as many of us want, the peoples of Europe are to come together more closely and to work together, the networks of transport and telecommunications are of fundamental importance to facilitating the working of a single market.
I agree with much of what the hon. Gentleman is saying. Is it not odd that Conservative Members should be arguing against greater European integration, for the sake of preserving what they see as something unique about Britain, when Britain itself is a multinational state and a creation of a political union between four different countries?
Absolutely right. It has been a successful Union in many ways, and although we identify some of its deficiencies and want to correct them, some things cannot be measured in terms of gross domestic product. For instance, intermarriage between people from the four countries happens without anyone thinking anything of it—a real achievement. Various networks have been built up to facilitate this Union.
Article 129b states:Those of us who represent peripheral areas of the United Kingdom and of the Community would like to home in on that. As for the cohesion funds, I hope that the Minister of State will confirm that, under article 129c, it is not just a question of the Community contributing to funds for specific projects. That part also states that the Community"Within the framework of a system of open and competitive markets, action by the Community shall aim at promoting the interconnection and inter-operability of national networks as well as access to such networks. It shall take account in particular of the need to link island, landlocked and peripheral regions with the central regions of the Community."
In other words, there are categories of project in member states that will not be covered by cohesion funds but in respect of which guidelines can be drawn up with, one hopes, the objective of linking islands, landlocked and peripheral regions with the mainstream of Community life. Twice a year, figures are published showing the cost of living in various parts of Scotland. Lerwick almost invariably has the highest cost of living. It is followed by Kirkwall and Stornoway—not surprisingly, these are small island areas. Whatever the issue in constituencies such as mine or that of the hon. Member for Western Isles (Mr. Macdonald), it always seems to come down to a matter of transport costs and transport facilities. The cost of bringing in goods has a profound impact on the cost of living; and the costs of exporting to the rest of Scotland, Great Britain and the Community are also very high. Every effort should therefore be made to reduce these costs. I acknowledge that there are subsidies—in the case of my constituency, particularly to P and O and one or two other shipping lines that operate services to and from Orkney and Shetland, but in the past two or three years P and O in particular has faced a problem when it came to renewing its vessels—that is, with capital projects. When the Government renounced their commitment to an equivalent tariff in 1984, the then Secretary of State for Scotland, now Lord Younger of Prestwick, said that one of the reasons was that they had identified some capital projects in the pipeline. At that time, the Government were reluctant to support projects for a major refit or the purchase of a new vessel. Many people felt badly let down by that. 2.30 am Caledonian MacBrayne is in the public sector and has been able to obtain some European assistance for vessel replacement. Because shipping services to Orkney and Shetland are in the private sector, it has not been possible to attract such European assistance. That link is like the M74, the A9 or the M6. It is the main thoroughfare linking the islands to the Scottish mainland, and it is used for the import and export of our goods. Therefore, it is not unreasonable to expect it to receive some public assistance. I hope that provisions such as the article will make it possible to formulate guidelines that will allow access to European funding for some necessary and important investments. Last month, the Minister for Public Transport met a deputation from the four island areas which are members of the islands commission of the Committee of Peripheral and Maritime Regions in the Community. They are Orkney, Shetland, the Western Isles and the Isle of Wight. The Minister gave us a good hearing and felt that we could probably extract more if we argued on a national basis and distributed to the islands rather than proceeding to allow the islands to argue their own case. Perhaps we can debate that. As the hon. Member for Cunninghame, North said, there is a feeling in the isles and other parts of the north of Scotland, possibly because by its nature the Community has more island and peripheral areas than the United Kingdom, that the Community is often better able to identify some of the needs. Examples of that are the integrated development programme for the Western Isles and the agricultural development programme for the other Scottish islands, which is about to end. The Community took the lead and the Government fell in behind it. A more controversial issue is decommissioning, which is important to the fishing industry in many of Scotland's peripheral areas. The Community identified the need for decommissioning and the Government took a long time to catch up. We often feel that the Community has a better idea of what is needed and articles such as the one we are debating are encouraging. Amendment No. 130, tabled by the hon. Member for Northampton, North (Mr. Marlow), relates to article 75. In that article, the Council, after consultations, lays down a number of measures about transport, including measures to improve transport safety. Transport safety is of particular interest in view of the events in my constituency in the past fortnight arising from the grounding of the tanker Braer in Shetland. I understand that the paper on the future development of a common transport policy says that the Community should, within and in support of the International Maritime Organisation, ensure that ships trading in Community waters respect common standards for the effective guarantee of safe operation. That is a worthy objective, and many of us would like to see much emphasis and urgency being placed on fulfilling it. The United Kingdom Government take a number of measures unilaterally, such as the installation of radar at strategic points around the coast, while others need to be taken on an international basis. The Community should have the clout, particularly in matters affecting its own waters, to drive through some measures. Many of us who have been talking about shipping safety for some time are worried about the snail's pace at which the International Maritime Organisation moves at times. For example, transponders could be fitted to vessels, allowing them to be tracked by satellite, as happens with international aircraft. Two years ago, when I took the matter up with the Department of Transport, I was told that this had been under discussion for some time in the IMO. Such measures should be given a push. The Community could act within the IMO to give some of them greater impetus."may support the financial efforts made by the Member States for projects of common interest financed by Member States, which are identified in the framework of the guidelines referred to in the first indent, particularly through feasibility studies, loan guarantees or interest rate subsidies".
I share many of the hon. Gentleman's aspirations, but it is a matter of practicality. Does he agree that the problem with the IMO is that it is dominated by the owners and by the countries in which ships are notionally registered, whose standards we know all about? Would it not be possible for the United Kingdom Government, inside or free of the European Community, to make a multinational agreement on standards of ships that they allow into their ports, and get the north American states of Canada and the United States, and perhaps Japan as well, to agree to help to prevent problems? That would short-circuit the problem caused by the IMO, and would not confine the solution to the Community.
I share many of the hon. Gentleman's reservations about the IMO. Its pace appears to be slowed by those who have an interest in not going forward as fast as that body should in promoting standards on the structure of vessels, the routing of vessels, navigational aids, and crewing arrangements. Those matters are best and most effectively sorted out internationally.
The European Community can carry clout that Britain acting alone would not necessarily have, not least because of the decline of our merchant fleet. If the IMO is taking too long, the Community should be prepared to introduce measures on Community waters. That would be far more effective than dealing with solely British waters. In the aftermath of Exxon Valdez, the American Government were able to introduce measures for ships on US waters, including a stringent safety regime. The Community can do that on its own if it cannot get the wider international application. The Community also has a role within the IMO and other international organisations to push the case for safety. I am pleased that article 75 gives a specific remit to promote measures to improve transport safety. I hope that, when the treaty is passed, as I am confident that it will be, the Government will be willing to activate other measures.
I am grateful to the hon. Member for Cunninghame, North (Mr. Wilson) for telling the Committee that the amendment is a probing amendment tabled to allow the Committee a chance to debate important matters.
The networks articles 129b and 129c are new articles. Action could have taken under the transport articles of the treaty of Rome, as amended by the Single European Act. The new text circumscribes the actions in question—for example, to ensure interoperability. No funding flows—that was the point that my hon. Friend the Member for Southend, East (Sir T. Taylor) rightly drew to our attention—directly from the articles, and no specific decision-making procedures are provided in them. If projects are to be funded by the cohesion fund, as they can be, such projects would be by unanimity. That raised the question—it was taken up by the hon. Members for Western Isles (Mr. Macdonald) and for Orkney and Shetland (Mr. Wallace)—of the exclusion or otherwise of the outer regions and islands of the United Kingdom from the cohesion fund. My hon. Friend the Member for Southend, East was right to remind the Committee that the new cohesion fund is limited to the four cohesion countries. That limitation does not apply to structural funds, and the Government have been able to protect Northern Ireland as an objective 1 region for structural funds. We actively support the claim that is being advanced by the highlands and islands for objective 1 status. The future financing deal provides for increases in central funds both to objective 1 regions and elsewhere as well as the new cohesion fund spending. The United Kingdom regions will benefit, but under an overall settlement that we believe to be affordable. The United Kingdom received over £1 billion in 1992 from structural funds, the funds for which the constituents of the hon. Member for Western Isles would go.How close is the United Kingdom now to qualifying for cohesion funds? How close are we to becoming 90 per cent. of the Community per capita average? Will the Minister of State confirm that, if we qualify according to official EC statistics in future, the Government will apply for the funds for which the United Kingdom has qualified?
I hate to disappoint the hon. Gentleman. For some hon. Members it would be a matter of some joy to be able to proclaim that Britain had sunk beneath the per capita average. On purchasing power parity, which is the basis on which these matters are decided, we remain quite a long way away from the level to which the hon. Gentleman referred. I hope that Britain does not qualify for the funds, and that, in the course of the seven-year financial perspective that we are moving into, several countries that currently qualify for cohesion funds, will cease to be cohesion countries.
When was the most recent calculation made of purchasing-power parities on which the Minister of State is basing his remarks?
I cannot give the hon. Gentleman that precise information. It was certainly some time in the past six or seven weeks. I have seen figures that lead me to believe—the hon. Gentleman may regret this—that we are a long way from being a cohesion country.
The Community already has the power under the treaty of Rome to fund infrastructure projects through the provisions in the transport chapter and by use of structural funds. I was surprised that my hon. Friend the Member for Stafford (Mr. Cash) said that he could see no place for the Community in transport matters. He will recall that the fourth title of the treaty of Rome, as amended by the Single European Act, contains no fewer than six or seven articles that relate to this very subject.Will my right hon. Friend explain the differences that will be experienced because of article 129 in the operation of the principle of additionality? We in the United Kingdom understood that the principle gave decisions on priorities to our Government and not to Brussels, the Council of Ministers or the Commission. It is confusing when almost every Opposition Member gives the impression that Brussels will make decisions now on the construction of roads and bridges. Are we to abandon the principle of additionality because of article 129? It would be helpful to the Committee to know whether decision-making is being transferred from the United Kingdom Government to Brussels.
Article 129b and c allows the Council of Minsters to decide the framework within which any action would be taken. Then, if that action is agreed, applications might be made through the cohesion fund for cohesion countries and through the structural fund for other countries.
Will my right hon. Friend give way?
2.45 am
No, I will not. My hon. Friend took one hour and 20 minutes of the time of the House. I want to be brief to allow other hon. Members to speak.
It is useful to clarify the purpose of such projects and the means by which they might be adopted in a clear treaty chapter, as agreed at Maastricht. That explicitly states, for example, that guidelines and projects of common interest that relate to the territory of a member state shall require the approval of the member state concerned. That is a useful safeguard, which the House will welcome. Of course, Community action must take place within the framework of an open, competitive market and must take account of the potential economic viability of any project. It is helpful that, where there is already European co-operation, the matter has been clarified and codified in that way. I am glad that most hon. Members who have spoken, with the exception of my hon. Friend the Member for Stafford have welcomed that provision.I have a good deal of sympathy with my hon. Friend the Member for Cunninghame, North (Mr. Wilson). I am sorry that he is about to leave the Chamber. I wanted to refer to him—[interruption.] I am glad to catch his ear before he leaves. He and his compatriot, the hon. Member for Orkney and Shetland (Mr. Wallace), have an intense and proper regard for local communities. We all do, but the local communities in Scotland are even more distinct than those in some parts of England. As an Englishman and a Londoner, I want firmly to register that fact. However, for reasons that I am about to give, I do not think that the benefits that my hon. Friend, the hon. Gentleman and their constituents want and deserve will, in the end, come from the source that they believe they will.
Of course, during the past 10 years there has been a marked disparity between the resources and the approach of two political centres. That caused the demonstration by 25,000 people in Edinburgh at the time of the summit. I well understand that. I have to say to Conservative Members, some of whom I agree with on the question of the constitution, that the Government have dealt disgracefully with some of our friends in Scotland—[Interruption.]The hon. Member for St. Ives (Mr. Harris) appears to disagree. He should get up and say so because this House is about debate. The Government have transgressed one of the major features that we prize— paying due regard to the minority. As I understand it, Scotland is a country of high corporate sensitivities. It is a country with its own distinctive history, tradition and political and civic pride. Those have been trampled underfoot by forces which need not have done what they did. That has caused a great deal of bad feeling, as some of my friends in the TUC may have noticed. Networks is, I suppose, an abstract word. It is more an adjective than a noun, in the context of this group of amendments. Networks permit exchanges of all sorts—a transfer in one direction or another. That can be a transfer of money, goods or persons, energy, or intelligence.The hon. Gentleman suggested that I, as a Scot, have been trampled on in recent times. I submit that Scotland's network systems are second to none. We have very good systems. The hon. Gentleman referred to energy. We have over-provision, with excellent networks which are ready to transfer south. Our road systems are reasonably good, as are our interchanges between cities. I do not feel trampled on. Perhaps the hon. Gentleman will expand on that observation.
I was not speaking of network but, as the hon. Gentleman and other hon. Members in all parts of the Committee who represent Scottish constituencies make plain from time to time, of the poll tax, for example —on which, in Scotland, the views of the people were clearly made known.
The networks in Scotland of which the hon. Member for Ayr (Mr. Gallie) speaks probably serve many of the people well. I stand to be corrected by hon. Members who represent Scottish constituencies and who know Scotland better than I do. I intervened on the hon. Member for Orkney and Shetland to make the point that an electricity network— whether it covers the Scottish highlands, and whether it is based on hydropower, generated power in the lowlands, or is part of a national grid for the United Kingdom—is of general benefit to all. The electricity network was pioneered by the House 50 or 60 years ago. The idea was that those who benefited from being part of a tightly-knit population would contribute to those living in the peripheral areas. Is that not one of the characteristics of many networks created by the House, which may be permitted—though, I suggest, for another purpose—by the other political body that the treaty sustains and enhances? Although we are not debating agriculture, I will mention the milk network in passing. The economics of transporting and distributing milk were poor, and the milk network has worked to the benefit of both the peripheral farmer and the peripheral consumer. The postal services also are a form of transport—the transport of intelligence, by way of letters, and of parcels. We know how important are the economic activities of certain peripheral areas—I refer in particular to the production of delicacies and high-value goods—and of the reliance that they place on postal services. I am happy that there should be a transfer of resources, which the Post Office often advertises in a romantic way, between those of us who live in the cities, where letters and parcels can be conveyed within a tightly integrated network, and peripheral areas all over the place. I include the south-west peninsula—and I see the hon. Member for St Ives nodding his head. Such benign networks are under the control of the community as a whole. They are created for the benefit of the community, and generally they work well. I understand the feelings of the people of the Scottish highlands and islands. In the past hour or so we have heard only one Welsh and one English speaker. All the others were Scottish. I understand why they are so concerned about bridges, ferries, roads, and tolls. In transport terms, geographical distance often coincides with economic distance; but it does not always do so. Economic distance in terms of actual movement, leaving aside the time factor —although that is sometimes an important commodity, within limits—is not necessarily geographical distance. If market forces are introduced into the equation, geographical distance—say, between London and Paris, or between London and Brussels—will often be reduced in terms of economic time, because of the volume of traffic. The peripheral areas will tend to be at a disadvantage if we allow market forces free rein. It would be possible to run train services from Glasgow, Edinburgh and Aberdeen, but no doubt some areas in the rural regions west of Aberdeen would regard themselves as peripheral. That is true of areas other than Scotland. I am trying to prove the point that I put to the hon. Member for Orkney and Shetland. It is not a question of networks themselves or even, necessarily, how they are funded; I am talking about the purpose for which they are designed. All the examples that I have given recently are of benign networks, although one has been the subject of some humour in Scotland. There is a very old joke, or rather a paraphrase of a psalm: "The earth is the Lord's and the fulness thereof, but the Highlands and Islands are MacBrayne's." The network run by that firm and its modern counterpart, Caledonian MacBrayne, which has been mentioned today, could be run at a loss. It could be run with some subsidy, as are some British Rail branch lines. What is the difference, in absolute economic terms, between that and a closed railway or a railway which is given some form of subsidy for its infrastructure, or for viaducts or tunnels—on a national network, that is? I am glad to see that the Minister for Public Transport, the right hon. Member for Kettering (Mr. Freeman), is here. In economic or network terms, in terms of service to the community—the British community, rather than the European Community—clear principles link all these matters. In terms of infrastructure and the expensive replacement of capital resources, the Caledonian MacBrayne network, for instance, is surely similar to that of a railway. The hon. Member for Orkney and Shetland cited the Government's parsimony in replacing some capital ships owned by P and O to service Orkney and Shetland. I was thinking of such instances when the hon. Member for Ayr intervened a few moments ago. I will give an extreme example. One of the dependencies still left to this country is St. Helena. Not long ago, a Select Committee of the House had a lengthy discussion about a replacement ship for St. Helena. That is an example of this country's providing a dependency with a capital sum for a super-peripheral area. If a map of the world were drawn, showing how difficult it was to travel to certain places by public means, St. Helena would probably feature prominently: I believe that it takes about a fortnight to get there if the boat connects, and about two months if the connection is missed. I am glad to see that the Foreign Secretary, too, is present. The purpose of the networks, including that for St. Helena, and the shipping which might be subsidised, but probably is not by this Government, is to serve people and communities. Not too much concern is expressed about how to assist the peripheries. We may, however, want to assist them. 3 am The articles of this treaty and those of the treaty of Rome make it clear that competition, the free movement of capital and people, and maximum protection can be achieved by free market forces. Therefore, the assistance that the networks can give will increase competition and allow the strong to become stronger. The disadvantaged will therefore become weaker. They are often at the peripheries. Those hon. Members who represent peripheral areas are being misled into thinking that the networks will be their salvation. Article 129c states that the CommunityWhat is the common interest? I hope that the Minister will tell the Committee what that phrase means. Does it mean the common interest of the Community and not the common interest of the member state? If so, it qualifies the purposes for which European Community money can be used. If no state money is provided for any network project, I understand that the project is ruled out by the European Community. I take it that the phrase "financed by Member States" means some form of public assistance from the Government of the member state concerned. That brings me to last week's topic: the railways and the Government's proposed link from the United Kingdom to the rest of the Community. In an intervention on the fast channel link, the Minister said that the bulk of the investment for the link will come from private funds. There will be some Government money, no doubt. Without it, there would be no Community contribution. I suppose that there could be some justification for such a contribution, though I do not imagine that the fact that £X million was to be spent improving yet another railway link from Dover to London would be welcomed in the highlands and islands."may support the financial efforts made by the Member States for projects of common interest".
Is the hon. Gentleman aware that the direct link from the highlands and islands via the south coast to the channel tunnel is just as important to Scotland as it is to other areas of the United Kingdom?
I rather hope that it is. I have taken a great interest in this matter and was in the House when we were discussing it 20 years ago. Is the hon. Member aware that, at least for the time being, day trains will not run north of Waterloo? Apparently, because of market forces, which he supports, the cost of the trains is so high, with all the safety measures necessary for the tunnel, that they will have to be used intensively between Paris and London or Brussels and London. They are much too expensive to go up to Manchester, let alone Scotland. If I have got that wrong, I am sure that I shall be corrected. I think that there may be plans to deal with that later.
My hon. Friend the Member for Ayr (Mr. Gallie) is right. The construction of a new rail link between Folkestone and London will benefit the whole of the country, and trains will run during the day and night north of London on the existing link. The Government expect those trains to be in service in 1995.
I am grateful to the Minister; I wanted to be absolutely accurate. I take it that trains will run from Paris, Brussels or other capitals perhaps to Manchester and, we hope, as far as Glasgow or Edinburgh.
The only advantage of a link for continental freight —I suggested this 20 years ago, but nobody took much notice—would be if it were cheaper or more convenient than road transport. Let us suppose that a toll is charged to travel through the tunnel. If we instituted a standard charge, as we do for parcels, for every tonne of traffic going to a depot in Cardiff, Swansea, York, Manchester, or perhaps Aberdeen, Inverness or Fort William, that would benefit the whole country without overheating the south-east and would provide a lower cost the further north freight travelled. I do not think that anybody has suggested that, but if he had I do not think that the Government would adopt it. It is perhaps looking too far ahead, but that would surely be a benign use of a rail network. We have been told nothing about a possible tapering of tariffs. The Union Railways line will presumably stop in London and another railway will continue northwards. I remind hon. Members that the tariff for traffic coming in will surely be the same as that for traffic going out. Britain's retail marketing efficiency has been sharply honed by Messrs Tesco, Sainsbury et al, and our retail market would be a much easier way of distributing consumer durables and a wide range of materials than anything going the other way. That is another example of what I described to my hon. Friend the Member for Cunninghame, North: if one builds a technical link for transport, it allows competition to come in as easily as it goes out unless there is a different tariff for traffic in each direction. I shall take a little further the question of Union Railways and the link with the continent. I am glad that the Minister for Public Transport is here because he has always dealt objectively with matters as far as he can. I want to express the disappointment of, I am sure, everyone in the country that that particular network railway link which the Government are contemplating will be not a decent but an indecent railway. I cannot contemplate how anyone looking to the future —as the Government should do, and as they often claim to do—can plan a two-line railway from London to Shorne cliff, which is to be suitable for freight and passengers, international and commuting. The Government plan to reduce the cost by making it a two-line railway with freight loops—the same technique which Victorian railway constructors used and which we thought we had got rid of. As I understand it—the Minister will correct me if I am wrong—the Government are not even reserving sufficient land in the cuttings and tunnels for acquisition or for later construction and eventual enlargement into a four-track railway. That sometimes happens on roads where one side is dualled at a time or on bypasses where one side is developed before the other. I am sure that the hon. Member for Christchurch (Mr. Adley)—the Chairman of the Select Committee on Transport—or any rail operator would assure the House that to run an intensive, 24-hour service properly one needs a four-track main line in order to deal reasonably with breakdowns and maintenance. There is ample proof of that on the railways on Saturday nights and Sundays. A two-line main track means less flexibility. Although I concede that it may be economical for the Government to initially lay down a two-line track in this instance, it is bad planning not to provide for later expenditure on enlargement when required. The Government have not acted efficiently and certainly not speedily. Since Lady Thatcher signed the document in Canterbury in 1985 or 1986—certainly some time ago—there have been so many changes of plan and so much delay that we have already lost any advantages that we might have gained. I say that as one who, as hon. Members will know from the case that I have been advancing, believes that such links will not necessarily be the great boon or blessing that many people believe them to be. They may be a blessing for surface traffic as opposed to air traffic. I hope that some people, including the Ministers, are looking forward to going to Brussels by surface transport instead of experiencing the difficulties of going by air. That is probably a great convenience for people, but whether it will be a great advantage in terms of trade remains to be seen. I now turn to the whole process of obtaining moneys from the EC not only for the rail network, but for anything to do with the networks generally. I referred earlier to a report by the Select Committee on European Legislation on obtaining money. I shall quote from it more extensively because it sets out the fact that the matter is not so straightforward as people suppose. The projects in Scotland which hon. Members mentioned earlier—I have no doubt that the placards on the projects said, "Contributed to by the EC fund"—do not drop suddenly from heaven, as Ministers and some hon. Members will know. There is quite a lot to be done first. 3.15 am Paragraph 42 of the bumper report published on 17 June 1992 summarises "Trans-European Networks". The Committee studied a Commission communication with three draft regulationsI referred a few moments ago to the requirement of European interest rather than of local interest. The report says that the Government"introducing declarations of European Interest to facilitate the establishment of trans-European networks."
If that is the Commission's proposal, there will be many problems. There must be an assessment of the project's impact, and of whether it is good value for money. We can argue a great deal about the impact of a new bridge, a new ferry, a new bypass or a new ship. It will be difficult to assess projects. The next criterion is that the project must"comments that the Commission envisages granting a Declaration only to well-defined initiatives: a project must have passed the design stage and have reached a sufficient level of maturity for a relatively detailed assessment of its impact to be made, but the implementation stage proper must not yet have started."
for a judgment to be made. I am not sure what that means. Does it mean a level of paper planning, or does it mean initial works? I should have thought that it was a question of paper planning rather than of initial works. The next criterion is that"have reached a sufficient level of maturity"
We then have the proposal, the animal to which I have referred:"the implementation stage proper must not yet have started."
The Minister will have much to reply to, but we should know whether the committee is a committee of Ministers, of officials or of the Commission. I suspect that it may be a combination of all three. No doubt the committee will have its consultants as well. I quote again from this very important report, which consolidates three or four other documents. It says:"The Commission proposes to allocate the declaration for transport projects following consultation with the existing Transport Infrastructure Committee."
If the declaration is being gained, does the money come with it, or is the declaration only a qualifying stage before the funds available are shared out? What lies behind the articles is a whole group of bureaucratic—perhaps that is a pejorative word—a whole group of processes which will certainly not take place in public. They should not necessarily take place in public, but it should be known that they exist. I want now to consider the treaty. One of the amendments in the group that we are discussing would delete new article 75, which replaces an existing article in the treaty of Rome. That process involves tracing through the terms of the treaties and I want to do that now for reasons that I will make clear towards the end of my remarks. Article 75 states:"At this stage, the Government sees the main question as being the roles of the Commission and Member States in awarding Declarations."
The article 74 referred to is not article 74 of the treaty of European union. It is article 74 of the treaty of Rome, which the union treaty amends. Article 74 of the treaty of Rome, which is not going to change, states:"For the purpose of implementing Article 74, and taking into account the distinctive features of transport, the Council shall,".
New article 75, and all that follows from it, refers to implementation of a common transport policy. That implies that the networks are to be part of a single policy. One of the lesser known facts of the treaty of Rome is that article 3(e) states:"The objectives of this Treaty shall, with regard to the subject covered by this Title, be pursued by the Member States within the framework of a common transport policy."
I am suggesting that, contrary to what some people suppose, there is almost unlimited competence in the role of transport. If new article 75 is to implement a single policy for transport, under the existing treaty of Rome, into what detail and to what specifications can the Commission go? Subject to correction from the Minister, I would guess that most, if not all, the policies will apply by a qualified majority vote. There cannot be anything other than qualified majority vote—there is no unanimity—in respect of transport. Hon. Members may be surprised to know that not too long ago a series of regulations came before the House about a common transport policy in respect of safety. Safety was referred to earlier and it was felt to be a good thing to have in the treaty. That might be so with regard to a concern for safety, but the safety measures must be harmonised to ensure that there are no rigidities and that one country is not penalised in relation to another. Hon. Members may also have forgotten that a regulation came before the Select Committee on European Legislation not very long ago about the harmonisation of speed limits based on the single transport policy and on the need for safety without prejudicing the single market. Matters went further than that. There was also a draft regulation, which I believe has now been dropped, for the adoption of common blood alcohol limits. A third rather different regulation, which formed the final part of that tripartite arrangement, dealt with the harmonisation of regulations about the depths of tyre treads. It is very sensible to have regulations about the depth of tyre treads for obvious safety reasons. They were to be harmonised throughout the EC. The Select Committee on European Legislation felt that there was something to the tyre tread proposal. At that time, we could not understand why speed limits and blood alcohol limits could not be dealt with under subsidiarity. We had some gentlemen along from the Commission to question in public. They stuck to the principle that because, as I have just read, a common transport policy was in article 3e of the treaty of Rome, so anything to do with transport was fair game. The draft recommendation on alcohol and speed limits has almost certainly been dropped. Clearly, as we have pointed out, social matters, social acceptability, the design of roads, changes in the acceptability of limits and enforcement vary from country to country. Even if the directives were introduced, they probably would not work. If the Commission could introduce matters of relative detail of that nature under the existing treaty of Rome, of course the same could happen under this treaty. I wish to advert to one of the nine networks that I mentioned—the common postal service in which we have an equalisation of costs over parcels. Let us not forget that there is now a proposal for the harmonisation of postal services. The harmonisation of postal rates is very much on tap. No doubt that, too, would come under competition, the single market criteria, or transport. In matters relating to networks, the purpose of transport networks is not the benign purpose of which I have given some examples, but something which might result in disadvantage to those who are already diadvantaged. I wanted to concentrate on transport but I shall make a few quick remarks on some other networks because they might not be mentioned by other hon. Members. A common energy policy is in the treaty, is it not? I tabled a question on how that energy network would affect the national grid. The Official Report states:"The objectives of the treaty shall include the adoption of a common policy in the sphere of transport."
To ask the President of the Board of Trade what are the changes necessary to the national grid for electricity consequent on the current text of the treaty on European union, articles 129 b, c and d.
None."—[Official Report, 8 July 1992; Vol. 211, c. 207]
I am not sure whether that is so. If we are to have a common energy policy, if we are to have a European electricity grid, as distinct from a national grid—I am not sure whether that has yet been put forward—if there is to be a common price for energy, and if we could have perfect competition which one assumes might be on the way, how likely is it that there will be a European grid network such as that which we pioneered in this country? We have already heard about the French link across the channel. What about television? Telecommunication is the communication not only of intelligence but of pictures, noise or codes. Yesterday, the hon. Member for Southend, East (Sir T. Taylor) referred to an article in Saturday's issue of The Independent magazine which drew attention to aspects of freedom of television and television networks and the consequences of certain regulations which were passed in the late 1980s. When I read that article, I thought, "The lady who wrote this article has not realised that anything to do with the single market commercial is by qualified majority." She was blaming Ministers for letting something through at Brussels. I suspect that they would have been outvoted. We have a common network of television programmes and material. The treaty is extraordinarily complex, and is only an amending treaty. The Minister of State, Foreign and Commonwealth Office, who is present, has declined on two or three occasions to print the consolidated treaty as it would be were the treaty on European union to be ratified. 3.30 am None of the volumes that we study constitutes the working constitution of the European Community as it will be if the treaty is ratified. I think that a commercial version may have been produced, but we are using HMSO's version. We would have to try out the treaty for some months and years before we understood how it worked. There are also odd bits of the European single market treaty hanging around. There is a constellation—a library—of treaties that will form the written constitution of the Community if the treaty is ratified. We have a network not only of various communications, but of articles of fearsome complexity. I understand that people can make out all sorts of cases for money, powers or reference to European Court. The treaties contain something for everyone. They contain hopes, promises, possibilities of grants here, something there, and something else for every region, interest group, development and research. If we search in every nook and cranny, we can find something in the treaty to benefit our own interests, regions or towns, through the use of public funds. I fear that the motivation for the treaty is not international co-operation and understanding, as many hon. Members would wish, but the creation of a large pork barrel or honey pot into which various interest groups and Governments think that they can dip. When they do so, they come up with a plum and a prize which is well publicised, particularly in peripheral regions. The money for the transport and communications networks and for research is being silently withdrawn from our national economies without the knowledge of the taxpayers who produce it.The hon. Gentleman mentioned the money that is necessary to implement all the provisions. Who will be paying? Will it be Britain and Germany yet again?
Britain and Germany will probably continue to be net contributors in some measure. The financing of the Community is an extraordinarily complex business. The accounts are not made up until the end of the year—due, in particular, to the British rebate. Even with the British rebate, we receive only about two thirds of what we contribute. If the Fontainebleau arrangement did not exist, we would probably receive only about half of what the taxpayer contributes. The answer to the hon. Member for Stroud (Mr. Knapman) is that it is the taxpayer—someone for whom many Conservative Members have a soft spot—who pays.
One example to quote to inquiring minds is the extent of the contribution supposedly made via VAT. For many years I thought that the VAT-linked contribution to the Community was 1 per cent. That was the ceiling which the erstwhile right hon. Member for Finchley came up against at Fontainebleau. It turns out that that was not the true figure at all. There are three or four main elements in the own-resources budgets, including a GNP element and apart from a common Community tariff, but the VAT one is linked not to the rates in this country but to a notional VAT assessment, rather like the old rates on property. We pay a percentage of that assessment. When I asked the Chancellor of the Exchequer a few years ago for the equivalent amount as a percentage of the VAT take, I was told that it varied between 10 and 15 per cent., depending on movement in the basket of currencies. Conservative Members know only too well that VAT is a highly effective tax, the more so since it was increased. It works invisibly on the whole, and the squillions of pounds that it raises are beyond our comprehension. The equivalent of about 10 per cent. of it goes to the EC automatically—plus the gross national product increases, plus all the customs duties which accrue to the Exchequer. If the alcohol tax is harmonised and the money that the Exchequer receives decreases, the shortfall will have to be made up by other taxes paid into the British Exchequer. To pay for all those networks, which I do not think will have the benign effect that we associate with those known to us at home, we shall have to spend large sums of money of a size that we do not yet know.Because I intend to be brief I shall not give way to anyone except my hon. Friend the Member for Stafford (Mr. Cash). I say that in the sure knowledge that he caught a taxi two hours ago, having made a long speech at the start of the debate.
I have always held that an hon. Member's opinion of regional assistance will almost certainly depend on the constituency that he represents. I admit that, as I have the honour to represent one of the most peripheral areas of the United Kingdom, a part of the country which includes a group of islands, my view of support for transport is probably different from what it would be if I represented a constituency in Greater London or the home counties. I represent the Isles of Scilly, and I notice that article 129b refers not just to peripheral regions but to islands and the need to link them. There has been much discussion of the benefits, real or imagined, for peripheral areas from the European funds. I can only say that the Isles of Scilly have benefited considerably from the Community's structural funds, and I hope that they will continue to do so under all the relevant parts of the treaty. The position of the Isles of Scilly improved greatly when the link with mainland electricity was established. The disparity between charges on the islands and the mainland was done away with. It took a lot of campaigning by myself and others to get the funds for the link, which did away with what I regarded as an injustice. I disagreed with the hon. Member for Newham, South (Mr. Spearing) when he seemed to suggest that Scotland had been badly treated by the Government. I was trying to show that in relation to England the Scottish islands and highlands have had a good financial deal from the Government and the European Community. The hon. Member for Orkney and Shetland (Mr. Wallace) was good enough to admit that some of the ferries to the Scottish islands receive an operating subsidy by way of road equivalent tariff. Such a subsidy is denied to the islands off the coast of England, including the Isles of Scilly. We have never enjoyed an operating subsidy, although we have pressed for one. However, we have received a loan for the replacement of the Scillonian, the ferry to the islands. I hope that when the present vessel, Scillonian III, is replaced we shall get another loan from the Government or the Community to help with the cost. The hon. Member for Orkney and Shetland was correct to say that a ferry linking an island to the mainland is equivalent to a road. Such a ferry should be supported in the way that the Government support the building of roads in the United Kingdom and Europe. That is a proper use of public money. I am not among those who argue for limitless subsidies for transport. However, if we wish to reduce the difficulties and disparities in peripheral areas such as the Scottish islands, the north of Scotland, west Cornwall or the Isles of Scilly, it is proper to use public funds. As a good Conservative I have no hesitation in arguing for proper assistance. [Interruption.] My hon. Friend the Member for Southend, East (Sir T. Taylor) disputes that, but if he still represented Glasgow, Cathcart I suspect that his attitude would be rather different.Will my hon. Friend give way?
No. I said that I would not give way and I will not, even though my hon. Friend was barracking me, as usual, and I mentioned him.
I welcome the treaty's provisions and hope that they will bring some benefit to the peripheral areas of the United Kingdom.rose in his place and claimed to move, That the Question be now put.
Question, That the Question be now put, put and agreed to.
Amendment negatived.
On a point of order, Mr. Lofthouse. Since the Minister spoke there have been other speeches and questions have been asked. Will the Minister reply to those questions?
The hon. Gentleman has been here for a long time and is familiar with our procedures. He has just heard me put the Question.
On a point of order, Mr. Lofthouse. Those of us who are sometimes called sceptics represent about 70 per cent. of the British people. Apparently there was no more time to debate the amendments, which are vastly important. Will there be time to debate other amendments? Some of my hon. Friends have worked to prepare speeches on other groups of amendments and would like to deliver them.
If the hon. Gentleman had not raised a point of order, I should have called the next group of amendments.
3.45 am
I beg to move amendment No. 4, in page1, line 9, after 'II', insert
'(except Article 129 on page 33 of Cm 1934)'.
With this, it will be convenient to consider the following amendments: No. 15, in page 1, line 9, after 'II' insert
'(except Title XVI on page 39 of Cm 1934)'.
No. 31, in page 1, line 9, after 'II', insert
'(except Article 130r on page 39 of Cm 1934 relating to environmental policy)'.
No. 188, in page 1, line 9, after 'II', insert 'except Article 3(k)'.
No. 192, in page 1, line 9, after 'II', insert 'except Article 3(o)'.
No. 238, in page 1, line 9, after 'II', insert 'except Article 130s(2)'.
No. 239, in page 1, line 9, after 'II', insert 'except Article 130s(4)'.
No. 240, in page 1, line 9, after 'II', insert 'except Article 130s(5)'.
No. 246, in page 1, line 9, after 'II', insert 'except Article 130r(1)'.
No. 247, in page 1, line 9, after 'II', insert 'except Article 130r(2)'.
No. 388, in page 1, line 9, after 'II', insert
'except Article 130t as referred to in Article G on page 40 of Command Paper Number 1934'.
No. 54, in page 1, line 10, after '1992', insert
'but not Article 129 in Title II thereof'.
I shall shortly—I hope very shortly—be succeeded by my hon. Friend the Member for Islington, South and Finsbury (Mr. Smith). I am sure that we are all anxious to continue—
I am sure that the Committee is grateful to the hon. Gentleman for moving amendment No. 4 to article 129 on the public health provisions. I presume that he will also speak to amendments Nos. 15 and 31 on the environment. I dare say that, when the hon. Member for Islington, South and Finsbury (Mr. Smith) joins us, he will be able to tell the Committee whether those are probing amendments, as I suspect they may be. The Committee can then have a debate on the public health and environment provisions of the treaty.
The Minister is right. As I made clear about the previous amendment when I moved it, the amendments in the group are probing amendments. As the Minister said, they deal with public health issues and related matters. I hope that he accepts that we should have a debate on those important matters. I am, however, in some difficulty.
Perhaps I can help the hon. Gentleman. Why does he not just read out the brief that he had for the previous debate, and that was used in the debate before that? He can say that, although he is speaking to the amendments with great vigour, he disagrees with them all the way along the line. That is what has happened in the past three debates, and we understand will happen in the next 17 debates, and he could quietly get on with doing that. The position of the Labour party is becoming absurd.
I am pleased to say that I do not need a brief to read out what the hon. Gentleman has suggested I say. I could make it up. However, he does us an injustice. I made it clear at the start of the previous debate that the amendments were probing ones. If one removes that absurdities from the debate on those amendments—I shall be fair at this hour of the morning, and say that at least as many came from Opposition Benches as came from Tory Benches, and my speech was concerned entirely with real issues—we had a sensible debate. It is reasonable that, under the headings, we should debate the issues properly.
There are procedural manoeuvrings going on, and some procrastination, as everyone knows. I assure the hon. Gentleman that procrastinations are not in my interest —quite the contrary.I am sure that the Committee appreciates the difficulty that the hon. Gentleman is in. I know that several of my hon. Friends are anxious to discuss health and the environment. After the hon. Gentleman has made some general remarks, I would wish to respond, if that is for the convenience of the Committee. Having done that, the Committee can go forward and debate these matters.
The Minister has made a helpful suggestion.
I shall deal now with the substance of the amendment. Under article 1, we are dealing with Community policy on the environment and how it should contribute to"pursuit of the following objectives:
—preserving, protecting and improving the quality of the environment;
—protecting human health;
—prudent and rational utilization of natural resources;
I am sure that no one on either side of the Chamber could dissent from these blameless objectives. Community policy on the environment is dealt with in title 16. The aim is a "high level of protection". I see that my hon. Friend the Member for Islington, South and Finsbury is with us. I was just getting into my stride. With your consent, Mr. Lofthouse, I will hand over——promoting measures at international level to deal with regional or worldwide environmental problems."
No, carry on.
I shall continue.
Community policy on the environment is aimed at achievingI am sure that we all agree that that is a sound one."a high level of protection taking into account the diversity of situations in the various regions of the Community. It shall be based on the precautionary principle"—
I am sure that the Committee is grateful to the hon. Gentleman for having so effectively moved the amendment—
On a point of order, Mr. Lofthouse. As a matter of information, is it right that the hon. Member for Cunninghame, North (Mr. Wilson) was reading a Government brief? Are we taking collusion to that extent? Is that what is going on? It certainly looked as if that was happening.
I do not know what the hon. Member for Cunninghame, North (Mr. Wilson) was reading.
It is fairly well known to the Committee where collusion exists, and it is not between the two Front Benches.
I would not wish the record to go uncorrected. I do not think that the "Treaty on European Union including the Protocols and Final Act with Declarations" is a Government brief.
I am sure that the Committee is grateful to the hon. Gentleman for having made it clear that the Opposition's purpose in moving the amendment is to allow the Committee to have a debate on health and the environment. I shall make some brief introductory remarks to set the debate in context and thereafter listen to what hon. Members have to say.
The chapter on public health is helpful in defining the scope of Community action, and will be of considerable benefit. Britain needs a sound legal basis for Community action in this area, and that is something for which we fought. The chapter on public health in the Maastricht treaty accomplishes that, laying out clearly the legitimate areas for Community action. The chapter reflects the principle of subsidiarity both in general and in specific exclusion of any harmonisation of the laws and regulations of member states. The chapter gives the Community a role in disease prevention, not in the provision of health care, through the encouragement and promotion of research, information and education. It hence provides the basis for the Community to support member states in the area of public health. Closer European co-operation is clearly beneficial both to the United Kingdom and to the other member states. I would find it difficult to believe that anyone in the Chamber wouuld wish to question the objective. I would say the same of the changes introduced into the existing environmental provisions of the Maastricht treaty. Environmental policy has become an essential part of Community action since the environment title was incorporated in the treaty by the Single European Act. The environment is a prime example of an area in which Community action makes sense. Environmental problems are not respecters of international boundaries. There is widespread support for Community action on the environment in this country and other countries. Maastricht represents a significant strengthening of the Community's environmental policies and I am sure that every member of the Committee welcomes that. It is beneficial not only to Britain but to Europe. We believe that there is a role for the Community in protecting the environment, because many of the problems can be tackled only through international co-operation. Maastricht strikes the right balance on Community action in that sphere, upholding the principle of subsidiarity while placing environmental concerns at the heart of Community decision making. I think that I have said enough to put the debate in context, and I now want to listen to what hon. Members have to say.I support the remarks so ably made by my hon. Friend the Member for Cunninghame, North (Mr. Wilson). As he explained, these are purely probing amendments. We strongly support the two relevant titles in the Maastricht treaty, but we tabled the amendments to draw attention to them and to provide an opportunity to discuss them and some of the issues they raise.
Title X deals with public health. It is worth saying that it is purely permissive. It deals with the encouragement of co-operation, with the lending of support to individual member states by the Community, with research, with information and with education. It does not require any member state to carry out anything, and it does not give the Commission undue power to interfere in the workings of any member state. It casts the Community in a supportive role in public health, which I am sure the Committee welcomes. One of the main public health issues across the Community is the spread of HIV and AIDS, and that is directly addressed by title X. In being able to pick up examples of best practice across the Community, the Commission can use the permissive powers of title X to encourage the spreading of the best practices in treatment, care and education across the member states. In facing new public health challenges such as HIV, it is important that we learn by example. Britain has done an enormous amount with public education about the threat of HIV. That example can be followed by other member states. I am sure that, in many respects, they too have things that they can teach us. The provisions of the public health title in the treaty are entirely praiseworthy. They open scope for improved provision across the Community, and they provide an opportunity for it to support the individual actions of member states. I want to dwell at greater length on title XVI, which relates to the environment. It is one of the most important titles in the treaty. As the Minister rightly observed, the environment is no respecter of national boundaries. It is a truism that pollution crosses continents. That the air that passes over Chernobyl will eventually pass over the hillsides of Wales and that the sea that washes the coast of East Anglia is the same as that which washes the coast of Germany is so obvious that it does not need restating—but it is vital in constructing environmental policy. 4 am In protecting our environment, we must understand that is a common environment—common to many nations and not the property of a single nation. That makes title XVI especially important. Article 130r(1) sets out important environmental principles, but I note that amendments in the name of the hon. Member for Stafford (Mr. Cash) seek to delete both that and article 130r(2). I hope that the hon. Gentleman—who, remarkably, is not in his place, though I am sure for good reasons—does not demur from the principles that both paragraphs enshrine.I am reliably informed—if I am wrong, I will apologise tomorrow—that my hon. Friend the Member for Stafford (Mr. Cash), who normally takes a great interest in such matters and whose speeches have detained the Committee for a long time, went home some time ago, even though an amendment in his name is before the Committee tonight.
I bow to the hon. Gentleman's better knowledge.
Before the hon. Member for Islington, South and Finsbury (Mr. Smith) bows to that better knowledge, does he accept that my hon. Friend the Member for Stafford has attended consistently throughout our debates; has almost lost his voice; and has a cold or flu? For one hon. Member to attack another for going home at 2 o'clock in the morning because he is unwell and has lost his voice is one of the most sickening examples of hypocrisy that I have encountered in 28 years.
I hesitate to enter into a debate between two Conservative Members. I hope that the hon. Member for Stafford did not table his amendments to delete article 130r(1) and (2) by way of contesting the basic principles that they enshrine, because they are extremely important.
I entirely agree with the hon. Gentleman that caring for the environment knows no boundaries. Does the hon. Gentleman believe that tension will be created between that excellent principle and the principle of subsidiarity, of which much is made?
The hon. Gentleman touches on an important point. It is conceivable—I cast no aspersions —that a Government wanting to diminish environmental protection might seek the cloak of subsidiarity as an argument for drawing attention away from the need to protect the environment, and to allow the level of that protection to fall from the high European standards to lower national standards. I must confess, however, that some months ago I feared for a time that the Government might indeed embark on such a course. The Secretary of State for the Environment, for instance, said on television that some aspects of environmental protection might be dealt with more appropriately at national level.
On the whole, the European Community's environmental protection record is considerably better than the British Government's. Any attempt to draw power away from the Community and back into the hands of the Secretary of State is likely to diminish environmental protection rather than enhancing it. I hope that the Government do not intend to do that; but the hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston) has raised an important point, and it is a pity that the Secretary of State for the Environment is not here to deal with it. I was dealing with the important principles enshrined in paragraphs 1 and 2 of article 130r. Paragraph 1 sets out four basic reasons why environmental protection is important. First, there is the quality of the environment —the quality of the water we drink and the air we breathe. Secondly, there is the protection of human health. Thirdly, there is the prudent and rational utilisation of natural resources—the husbanding of the raw materials of the earth, which we must not exhaust at the expense of future generations. Fourthly, there is the need to promote measures at international level: this is not just a local or national issue, but a global issue. Paragraph 2 refers to two particularly important environmental principles which Opposition Members have consistently supported, and which the Government claim to support strongly as well. They were drawn to the attention of the world by the earth summit at Rio. I refer to the precautionary principle and the "polluter pays" principle. The precautionary principle is very simple: even when we are not certain that a particular environmental consequence will result from a particular course but merely suspect that it might, we must act to prevent any such occurrence. An example that is now at the forefront of our minds is the maritime transport of oil, which may have arisen earlier in the context of transport policy but which also has important environmental implications. We may know that strengthening the construction of oil tankers will not necessarily guarantee that a tanker that runs aground will not spill large quantities of oil into the marine environment. Even though there is no absolute certainty that it will help, none the less it might, and because it might help, the importance of the precautionary principle needs to be taken into account. We do not know for certain that to route a tanker to the north of Shetland rather than through the channel between Shetland and Fair Isle will inevitably be a safer route. We do not know for certain that to route large tankers carrying large quantities of oil through the Minch between the Hebrides and Skye will inevitably provide a safer passage. None the less, we know that to take such courses of action may prevent an accident, and because it might do so, the precautionary principle comes into play. In those circumstances, it is important for us to make sure that all tankers go to the west of the Hebrides and that no tankers go through the channel between Shetland and Fair Isle. These are important issues. Therefore, the precautionary environmental principle adumbrated in the second paragraph of this article of the treaty ought to lead us to take important decisions about the routeing of oil tankers in order to prevent occurrences that might damage the environment. The precautionary principle is a sensible one to adopt when important issues such as these are involved. About eight years ago, the Select Committee on the Environment studied the destruction caused by acid rain. The European Community published recently a report on forest damage in all the member states of the European Community. Its staggering and awesome conclusion is that forest damage and leaf loss is at its worst in the United Kingdom. About 57 per cent. of all trees in the United Kingdom have suffered damage through acid rain. I should have thought that any Government would want to consider that stark conclusion. Eight years ago, the Select Committee on the Environment studied the acid rain issue, looked at sulphur dioxide and nitrogen dioxide emissions from our power stations and reached a set of conclusions. It said that the science was not totally proved, that it could not say for certain that sulphur dioxide, nitrogen dioxide and hydrocarbons mix in the atmosphere and then come down again in the form of acid rain, but that it thought that that was likely. Therefore, the Select Committee made a series of proposals, including proposals for the retrofitting of power stations in the United Kingdom with—Is the hon. Gentleman suggesting that the dash for gas, the combined cycle turbines and the nuclear programme are desirable so as to ensure that there are no consequences such as those he describes?
No, I am not suggesting that. I am suggesting that the cleaning up of emissions from coal-fired power stations is sensible in order to ensure that we can continue to burn coal cleanly.
I want to do something very unusual and ask the hon. Gentleman a genuine question. I was surprised to hear the hon. Gentleman say that our trees suffer far more from the effects of acid rain than those in other member states. However, we have fewer trees than, for example, the Federal Republic of Germany, where I had always understood the worst damage had been experienced. When the hon. Gentleman says that our trees are the worst affected, does he mean as a proportion or in total volume?
As a proportion. The hon. Gentleman rightly notes that Britain has less tree cover than some other Community countries. I remember as a member of the Environment Select Committee visiting part of the black forest, where devastation had been acute. The landscape that five years previously had been verdant tree cover had become a devastated wilderness, with a few bare stumps of trees in the middle. That had been caused simply by air pollution. Having witnessed that, many members of the Committee changed their minds fundamentally about the nature and importance of the problem.
4.15 am
Is the hon. Gentleman aware that a 10-year study of acid rain in the United States showed that highly acidic water could be poured over trees for that period without causing devastation? Is he aware of the work of Professor Beament at Cambridge, who concluded that the effects are caused by underground and water conditions not related to acid rain? There is plenty of evidence that slightly acidic rain has a helpful effect on the soil. The theory of acid rain that the hon. Gentleman is advancing has been discredited for a number of years.
I think that it is the hon. Lady who has been discredited rather than the theory that I am advancing. She advances the common lay fallacy that acid rain is acidic water; it is not. The effect that we call acid rain is a photochemical smog created by a combination of sulphur dioxide, nitrogen oxide, hydrocarbons and ozone. It does not come down in the form of water. If the hon. Lady had done a little wider reading on the subject, I suspect that she might have known that.
I do not want to be unfair to the hon. Lady, for whom I have great affection, but she is on record as saying that there is no such thing as global warming, and that carbon dioxide is good for people. If she persists in adopting such attitudes, she is going very much against the grain of the overwhelming bulk of scientific opinion in the world. I am sure that, at some stage, she will come to her senses. Eight years ago, the Select Committee took the precautionary principle to heart. At that stage, the science was not totally proved, whereas it is now, but none the less it is said that we should start a retrofitting programme for our power stations, because the signs were that damage was caused, and we should take precautions. Sadly, the Government did not listen. Subsequently, they decided to retrofit three power stations in Britain. Work is in progress on one. It has not started on the other two yet, but none the less the contribution is too little, too late. If, like Germany, we had retrofitted virtually all our power stations in the past 10 or 15 years, we would be in a much better position with regard to sulphur dioxide and nitrogen dioxide emissions. Sulphur dioxide emissions are rising in Britain, despite international agreements which the Government have signed and which are supposed to ensure that we reduce such emissions.I accept what the hon. Gentleman says about sulphur dioxide and nitrous oxide, but what about CO2 emissions in comparison to those of Gennany? Germany abandoned its nuclear programmes. That means that our CO2 emissions are proportionately not as high as Germany's. Surely that is a problem.
I am afraid that the hon. Gentleman is wrong. At the moment, Britain contributes about 3 per cent. of global carbon dioxide emissions although we have only 1 per cent. of the world's population. Per unit of industrial production, Germany generates less carbon dioxide than we do. One of the most dramatic statistics of the global environment is that, per unit of industrial production, Germany and Japan generate half the quantity of carbon dioxide generated by the United States. The hon. Gentleman needs to consider the fact that Germany performs quite well on carbon dioxide.
I remind him that Britain's carbon dioxide emissions have risen by 2 per cent. in the past two years, even in the depths of a recession. Many of us find that extremely worrying, although the hon. Member for Billericay (Mrs. Gorman) probably does not. However, she is probably not a progressive thinker on this matter.I am very interested in the hon. Gentleman's remarks about my competence or otherwise to pronounce on these matters. I do not know how much science he knows, but he knows an awful lot of fairy stories. Is he aware that less than 2 per cent. of the earth's inhabitable surfaces are industrialised and that the greatest part of the earth's surface is covered with water? The generation of carbon dioxide must be seen in proportion to how much of the earth is industrialised.
Is the hon. Gentleman also aware that historical evidence from ice cores shows that there have been times when life has existed happily on earth when the percentage of carbon dioxide in the atmosphere has been eight or 10 times greater than it is now, with no apparent harmful effect on plant or animal life? Is he further aware that green plants photosynthesise at less than 50 per cent. of their capacity, the limiting factor being carbon dioxide? Therefore, carbon dioxide is a fertiliser in plant terms and does no harm, whether it increases or decreases.The hon. Lady is wrong in a number of respects. First, she is wrong to describe facts as fairy tales. She also claimed that there have been periods of intense carbon dioxide production. There have been occasions, especially in connection with volcanic eruptions, for example, when, in a reasonably localised area, carbon dioxide has increased sharply for a brief period and then decreased.
However, the hon. Lady must realise that we are now experiencing a global increase in carbon dioxide levels in the world's atmosphere as a whole. Far from supporting her argument by pointing to the relatively small area of the world's surface which carries industry, that fact makes the position far more alarming, because as much of the rest of the world becomes industrialised, so the generation of carbon dioxide, which has already increased dramatically, will continue to increase. I fear that the hon. Lady's points, far from supporting her arguments, help to destroy them. I was distracted down that road by the hon. Member for Billericay. The point that I was trying to establish was the importance of adopting the precautionary principle. Eight years ago, the Select Committee on the Environment adopted the precautionary principle. I wish that the Government had done so at that time in relation to sulphur dioxide emissions. Because they did not do so, we are now too late. Although, I hope, the Government may still see the light, it is eight years behind the time at which they should have done so. The precautionary principle is an extremely important aspect of environmental policy and I am delighted to see it enshrined in the paragraph. The other important principle that is enshrined is that the polluter pays. The Government have advanced that principle in recent days and the Opposition certainly assent to it. However, let us consider the recent disaster on Shetland. The Government's attitude, quite rightly, is that it is the polluter—the tanker owner—who should pay. International arrangements are in place for compensation to be made available arising out of the liability for the accident. However, the present compensation arrangements have a limit. There is an international scheme under which compensation will be paid for the costs of the clean-up operation, for the immediate response, and for the long-term loss of livelihood of fishermen, farmers and crofters, but there is a limit on that fund of £50 million. What happens if that £50 million is found to be insufficient to compensate the people in Shetland, whose livelihoods have been dramatically affected by the grounding of the Braer? At the moment, there is no provision for either the polluter—the tanker owner—the liability fund, the insurers or the Government to pay anything above that £50 million. That limit on liability worries me considerably, and it certainly worries many people in Shetland with whom I was able to talk only a few days ago. If we are serious about enshrining "the polluter pays" as a proper principle in environmental policy, we must ensure that the full liability—not just a limited liability—falls on the polluter in an incident such as the grounding of the Braer. There is a further issue. Not only is there an overall limit on the amount available for compensation: there are limits on the type of expenditure for which compensation will be available. The cost, for example, of long-term monitoring and research is not met by the compensation fund. Long-term monitoring and research has to take place. Never before have we had oil blowing in such quantities over agricultural land. No one knows what the long-term impact on crops and on grazing land will be. It is important, therefore, that detailed research is done consistently over a long period to ensure that we know exactly what is happening to the soil in the parts of Shetland affected. There is no money in any fund or from anywhere to carry out that research work. No liability exists in the international protection fund to ensure that that work can be paid for. Similarly, we have little knowledge about what happens to light crude oil when it enters the marine environment in the quantities that poured from the Braer. We must ensure that we look intensely at what is happening to the elements at the very beginning of the food chain when they are contaminated by oil and hydrocarbons. That important scientific exercise should be carried out consistently for months to come. Once again, however, there is no specific liability for that work and there should be. If we are serious about the "polluter pays" principle, we should ensure that when an accident like that involving the Braer occurs the body that causes the pollution should pay for the cleaning up, for the compensation for loss of livelihood and for the long-term research and monitoring work.Is the hon. Gentleman suggesting that when Saddam Hussein set fire to the oil wells across Kuwait and polluted the atmosphere for months on end the United Nations should have required him to pay?
4.30 am
The short answer is that the United Nations did that. The principle is enshrined in several United Nations resolutions that concluded the ceasefire after the Gulf war.
The first point that I want to make about the title is that it enshrines very important, sound environmental principles. The Opposition strongly support the "precautionary" and "polluter pays" principles. Secondly, the title includes provision for majority voting in relation to the environment and the Opposition support and welcome that. I note that the hon. Member for Stafford (Mr. Cash) wishes to delete the exceptions from the title. I do not know why he wants to do that. The exceptions are rather strong. They rule out anything to do with taxation, town and country planning, the use and management of water resources, the management of waste and a member state's choice between different energy sources. Those remain issues which must fall within unanimous voting procedures if the Community is to take any steps. Other areas of environmental policy are available for majority voting and we welcome that. We should be aiming for the highest possible standards of environmental protection and not at the lowest common denominator. When we enable majority voting to take place, member states should not always proceed at the pace of the slowest.My hon. Friend has rightly said that qualified majority voting decides such issues. He said that we all believe in that and that it is a good thing. If a member state has been outvoted and must then carry out the wishes of the majority, what would happen if it could not afford to do that? Assuming that there is no money in the cohesion fund, how does one surmount that difficulty?
The answer to that can be found in paragraph 5 of article 130s which makes provision for contributions from the cohesion fund and for temporary derogations for a member state where financial difficulties are incurred. I believe that it is simple to opt for temporary derogation rather than permanent derogation.
One of the things that we all, including my right hon. Friend, would wish to avoid is environmental dumping, with certain member states seeking, by means of a permanent derogation, to undercut the other member states of the Community in terms of environmental protection standards. My right hon. Friend would not wish to see provisions of that nature in such a treaty.I understand that, but temporary derogation presumably means that the member state, after the temporary period comes to an end—my hon. Friend has not said how long that period will be—has to find the money. That means that there are public expenditure choices and that they are restricted, so other forms of public expenditure in that member state after the period of temporary derogation has come to an end will have to be forsaken and sacrificed as a result.
My right hon. Friend makes one mistake in assuming that good environmental practice inevitably means public expenditure being brought into play. It might, of course, mean that the private sector has to improve its standards and find the necessary funds. But even if it is a case of public expenditure being brought into play, I believe that ensuring that high environmental standards are maintained across the Community as a whole is an entirely valid purpose for the Community to insist on those standards.
Paragraph 5 refers to disproportionate costs for public authorities and member states, so I was referring to a public cost. If, at the end of the period of temporary derogation, the public authority has to find the money, given the constraints of public expenditure on taxation, that must be at the expense of something else, be it a hospital or a school. In other words, a further restriction is placed by qualified majority voting on the power and authority of a member state to spend its money as it wills.
Of course I understand my right hon. Friend's point. I am simply drawing his attention, in my initial response to him, to the fact that environmental protection measures are not necessarily solely taken by sovereign Governments. They can also be required of commercial enterprises. However, taking my right hon. Friend's point that a sovereign Government might be required by a majority vote of other member states to take a certain course of action and might find it difficult to fund that action immediately from its own resources and might secure a temporary derogation—it is of course noteworthy that the treaty is silent on the subject of how long such a temporary period is—we are speaking in entirely hypothetical terms.
If, by the time we get to the end of such a temporary period, and if the cohesion fund does not necessarily apply in those circumstances—there is a big string of ifs, Mr. Lofthouse—my right hon. Friend might be right, but there is an enormous amount of negotiation and discussion to be had throughout that process, not the least of which involves the length of period for which a derogation would apply.My hon. Friend is very patient with me. Of course the cohesion fund does not apply to the United Kingdom, so that subsection is out. My hon. Friend implied that he did not want the temporary period to be very long or other countries could dump in this country. The reality is that the temporary period would be short, we would have to find the money, and that would be a constraint on public expenditure.
I am tempted to observe that, judging by the way the British economy is going at the moment, Britain might soon qualify for the cohesion fund, but I certainly hope that that will not occur.
At present, only four member states qualify for assistance from the cohesion fund. My right hon. Friend must not put words in my mouth and assume that I want an extremely short temporary derogation period. Whether or not a longer derogation period is required depends entirely on the circumstances and is a matter for amicable negotiation between the countries involved. I believe that my right hon. Friend has used an entirely hypothetical example that will not occur and cause problems in reality. The important principle enshrined in the title is that we should aim at high and consistent environmental protection standards across the Community. What happens to the environment of other Community countries affects us. Therefore, my right hon. Friend should take account of the fact that the environment should not merely be the responsibility of a member state alone. The pollution generated in one member state may well affect the citizens of another. It seems absolutely right that the treaty should aim for the establishment of high environmental standards across the Community.Does not the hon. Gentleman think that, in order to prevent pollution, it would be better to have a Europe-wide organisation, not merely a European Community or union of 12 countries? For example, the pollution of the Rhine cannot be properly prevented unless Switzerland—which is not a member of the European Community—is included. Prevention of pollution of the Mediterranean cannot be achieved properly unless Turkey is included. Should not the Council of Europe be responsible for such matters, not the European union? If so, why do we need the treaty of Maastricht?
The hon. Gentleman attributes to the Council of Europe powers and procedures which do not exist and would be difficult to create. Of course, it would be more appropriate to deal with some environmental issues on the basis of ad hoc gatherings of certain nations. The most obvious example is that of the nations that come together for the Oslo and Paris conventions on pollution in the north-east Atlantic. In that case, a number of states that are not members of the European Community are included in the discussions. That fact does not invalidate the argument that strong environmental protection across the European Community—as a community—can benefit the citizens of individual member states.
Further to the issue raised by my hon. Friend the Member for Twickenham (Mr. Jessel), if the hon. Member is concerned about the state of the atmosphere, is it not also true that, before lumbering our industries with extremely costly requirements to reduce pollution, we should consider that countries such as China—with a population of more than 1 billion—produce vastly greater amounts of industrial waste and gas into the atmosphere? We can do nothing about such pollution, but we set standards for our industries that will inevitably make the goods and services that they produce more expensive, thus making us less competitive. How does the hon. Gentleman think that such factors will help the citizens of Europe?
There are three differences between the hon. Lady and myself. First, I am concerned about the condition of our atmosphere and the hon. Lady is not. Secondly, I realise that, despite its large population and its growth rate of 10 per cent. a year, China still produces considerably less carbon dioxide than the industrialised north. Even at its present rate of industrialisation, it will take China a number of years to catch up. The third is that, although I recognise the potential for pollution generation in the developing world, I believe that the developed countries of the north should provide assistance in the form of technology transfer to ensure that best environmental practices are encouraged, supported and facilitated in the developing countries. That is better than criticising those countries, as some—not, I am sure, the hon. Lady—would do.
Europe's environmental record is rather good, largely because the Commission has taken action in the form of the drinking water directives, the sea bathing directives, the protection of Oxleas Wood and the items in the fifth action programme on the environment, which includes the drawing up of new measurements of economic progress to set beside GDP—throughout the Community and within the next few years. All these important European initiatives have helped to protect the British environment. 4.45 am The one item which the Commission proposed and which I am sad to say the British Government did not accept was the proposal that an environmental impact assessment should be made of all items of Government policy in member states. Of course, the definitions would have to be well and creatively drawn, but it is unfortunate that the British Government exerted every effort to remove a directive of this nature from the list. In general, however, the record of Europe has been far better than that of the British Government in matters of environmental protection. It is also important to adopt a regional approach to many of these issues. Of course the hon. Member for Twickenham (Mr. Jessel) was correct: for some environmental issues a particular gathering of countries that does not fit neatly into the Community box may be needed. Still, the European Community is a major economic and trading bloc; it is a regional entity. Some environmental matters clearly apply right across the Community, so it makes sense to ensure that many of them are dealt with at Community level. There is a great task to be done in assisting the countries of central and eastern Europe to clean up their environment, which has been so devastated over the past 40 or 50 years. No country in the EC can undertake that job on its own, but the Community can exercise its strength to help these countries to clean up. That in turn will help to clean up our environment, too. It is worth noting that article 130t states that if any member state wants to go further to improve its environmental protection even more than the Community proposes, it should be enabled and encouraged to do so. That is an important provision, and I hope soon to see a Government who will push environmental protection further than the rest of Europe rather than lag behind.Before my hon. Friend completes his comprehensive survey, will he mention the enhanced powers in this area of the European Parliament? Does he agree that, although it is not solely confined to the environment, article 189b is important?
I had not intended specifically to address that issue, but as my hon. Friend raises it I shall do so. I strongly believe in the need for a strengthened European Parliament that can monitor and hold to account the European Commission. The record of that Parliament's environment Committee, which is chaired by my Labour colleague the MEP for Strathclyde, is extremely good. It has pursued the Environment Commissioner to make sure that he is accountable and has pushed environmental issues in the Community. I am sure that my hon. Friend welcomes that. I should like to see it further developed.
My hon. Friend and I are keen to see monitoring of the environment. However, I would like to see it monitored even more keenly in this place, in all European nations, and in the Council of Europe. My hon. Friend has still not mentioned article 189b, which states that if there is a disagreement between the Council of Europe and the European Parliament on a proposal that may have been approved by the Council, the proposal goes no further. Such a provision is unlikely to be used in this area, but my hon. Friend will agree that it is a backward step vis-a-vis the European Parliament's powers over the Council.
I suspect that my hon. Friend is right to say that that power is unlikely to be used in this area. However, the European Parliament will wish to push it in relation to the environment.
The Opposition welcome the titles on public health and on the environment. We welcome the introduction of qualified majority voting and the attention that the Maastricht treaty pays to the environment. We hope that progress on environmental protection can be made in Britain and in the Community, because wherever we live in Europe the environment belongs to us all. We must insist through Governments, the Community and the European Parliament on the highest possible environmental standards.I apologise to you, Mr. Lofthouse, and to the Clerk for speaking at all at seven minutes to 5 o'clock. I hope that the Government will consider whether it is fair, reasonable, proper and democratic to ask us to debate important issues affecting the whole of our country when one party has departed from the Committee on the instructions of its Whips. Other hon. Members are sleepy and probably not fit to discuss these matters.
My hon. Friend will be aware that, when progress is reported, we have an hour and a half in which to debate those matters if we wish to.
I am well aware of that, and the Government should accept that.
We have just had a long speech from a Labour Front-Bench spokesman. I hope that he realises just how long he has been talking. He was the third such spokesman to tell us that the Opposition supported the measure. They were meant to be probing amendments. Like my hon. Friends, I have been here hour after hour, hearing the shadow Ministers saying that they are moving probing amendments, but then not probing. They never ask questions. It makes me wonder what they are at. The hon. Member for Islington, South and Finsbury (Mr. Smith) was asked three specific questions on the clauses, which he did not seem to understand. He talked about the cohesion fund without realising that it did not apply to Britain. I must move on because I want hon. Members who wish to ask questions to have the opportunity to do so. However, I reiterate those two points. First, it is shameful that the Maastricht treaty, which takes away fundamental powers from the people of Britain and from their children and grandchildren, is being debated by a bunch of sleepyheads at five to five in the morning. Secondly, I do not know what the Opposition are playing at.Was that the reason why my hon. Friend voted against the suspension of the debate earlier on—so that we could debate the matters at a sensible time when people were awake?
I should like the matters to be debated sensibly, without delay. I am amazed by all this business about precautionary principle. It is a bit like having three roofs in case the rain comes through the top one. It is a load of rubbish and nonsense. Let us get on to facts.
At the end of the long list of amendments grouped together comes my amendment No. 54, in which I propose that we take out the public health clause. I have not tabled it because I am against public health or because I think that money spent on that is wasted but because the whole clause is a load of hypocrisy. Hon. Members should be aware of that, and the Government should think about it. Apart from some splendid sentiments about how the Governments hope that public health will improve and that all countries will co-operate—we heard how we shall co-operate over HIV and other issues, although why it has to be European countries and not others, I do not know—the treaty does nothing at all except set out nice words, including statements that there will be more health information and education and co-operation on the massive subjects such as drug dependence and tobacco. I should like the Government to tell us how they can approve that nonsense when they know that the EC is spending more and more every year—this year it will be £1 billion—on growing high-tar tobacco, which is nasty stuff, and dumping that not in Europe, because it is illegal to smoke it here, but in the third world, east Europe and places in Africa where people do not understand language and danger. We keep hearing that something will be done about tobacco growing, but nothing is done. All that happens is that, every year, the expenditure increases. Who is suffering as a result? As with all the other Euro-policies, the poor, the ignorant and those who do not understand suffer. We are growing high-tar tobacco that we are not allowed to smoke because it is too dangerous. We are giving piles of subsidy—it is subsidised more than anything else in the EC—but the Government have the cheek to approve a public health policy saying how wonderful it is that we can all work together to improve public health. I just wish that, instead of all those wonderful words about co-operation, getting rid of bad things and everyone working together, they would face up to some of the basic issues. That is never done. We are always told that improvements are around the corner, but we never see any. The second issue is the environment. What does article 130t on page 40 mean? That brings in something that, as an obsessive reader of Euro-treaties, I have not seen before. It says that the European nations will get together to form their common rules. That means, for example, that the polluter will pay, unless he is a farmer. Many people are facing higher water rates because of nitrate pollution —nitrate pollution is shoved in under subsidy—but farmers do not pay for the pollution that they cause because they are, in effect, a separate category of people. 5 am We are told that we shall have a lot of new rules and many new ideas and that individual member states can have "more stringent protective measures" if they wish. That is our freedom. We are told for the first time, however, that such additional measures must be compatible with the treaty and that theyWhat does that mean? Does it mean that if a British law happens to be tighter or tougher than European law or a European decision for reasons that suit us, we must go to the Commission to be given its assurance, and that of the Council, that our law is compatible with European law? I have never seen such a provision before."shall be notified to the Commission."
The hon. Gentleman has said more than once that article 130t is new. In fact, it comes from the original treaty. It was added to the treaty by the relevant provisions of the Single European Act. The hon. Gentleman is right to say, however, that the additional phrase in article 130t is the reference to the Commission. He should probe to ascertain why that has been added to the original treaty of Rome, as amended by the Single European Act, which otherwise represents the whole of article 130t.
The hon. Gentleman is right. So much of this stuff is from previous treaties. Indeed, it goes right back to the treaty of Rome. The feature that is new is the requirement to notify the Commission. The Commission's officials are meant to act as our civil servants. Does the provision mean that any new laws that we enact—they might be additional laws—must be reported to the Commission and approved? Does it mean that our existing laws must be reported and approved? The matter is far from clear and I hope that my right hon. Friend the Minister of State will make a short and simple statement on what is meant by
Does that mean our existing laws, which might be more European than European laws, or does it mean new laws? Thirdly, is it wise to give so many additional powers in respect of the environment to the EEC? In the previous debate, I should have liked to ask some important questions—for example, whether the new transport policy would apply to the channel tunnel to bail it out of near bankruptcy and to stop it heading for disaster. I should like the Government to explain the value of all these additional measures with additional expenditure. We know that whenever the EEC has taken new powers and responsibilities there have been additional burdens for the British taxpayer and more damage to the poor people here whom no one seems to bother about. During the previous debate—my right hon. Friend the Minister of State must have heard this—hon. Members said that the new transport subsidies were wonderful. They seemed to think that the subsidies would bring new ferries, roads and goodness knows what. Most of the money would come from the cohesion fund, which means that nothing would come to us. At the end of the day, however, approval seems to be obtained. Does it make sense to introduce huge additional powers over the environment for the EEC, which will cost a great deal of money and take money from the cohesion fund? That is spelt out clearly at the foot of article 130s. What is the point of it all when it will mean that less money will be available to the Government to do the things that need to be done? Unfortunately, we get the impression time and again that the Government are hiding things from us. I believe that that is so when it comes to cash. My right hon. Friend the Chancellor of the Exchequer was asked time and again recently how much money we were paying in to the EEC. We were given a straight answer—£2.6 billion. That is quite a lot of money. It is £4 per week per family in Britain. Just over a week ago when "Britain in Europe" was published—copies were available in the Vote Office—I found that the sum had changed. Instead of £2.6 billion it had become £1.5 billion. Did other hon. Members notice that? I tabled a question asking why that had happened and I was told that it all depended on how one looked at the sums and added them up. I have a sneaking feeling that, because Maastricht will cost us a great deal more money, the figures are suddenly being changed. Something very funny is happening. After Edinburgh, the Prime Ministers of all the other countries went back to their people and said, "Look, we are going to be very wealthy because of Edinburgh. We will have lots more money—billions of pounds or dollars". However, both our Government and the German Government told us that it would cost us very little. The sums do not add up. It would be infinitely better if, instead of introducing silly new provisions that will simply add to expenditure and complexity and will not help the people of Europe or of Britain, the Government tried to persuade the EC to concentrate on solving real problems and on stopping the absurdity of spending £1,000 million of our money this year on growing high-tar tobacco and dumping it in Africa, the third world and eastern Europe."shall be notified to the Commission."
I wish to speak to the amendments relating to article 130s, which was dealt with ably and comprehensively by our environment spokesman, my hon. Friend the Member for Islington, South and Finsbury (Mr. Smith). I do not know whether the Minister of State, Foreign and Commonwealth Office, the right hon. Member for Watford (Mr. Garel-Jones) intends to reply to this debate on the environment. The Minister for Public Transport was present throughout our previous debate, but unfortunately the Government Whip moved the closure motion and the Chair accepted it before the Minister could reply. I thought that to be extremely strange behaviour.
With no disrespect to the Foreign Office Minister, I wonder whether the Government intend to have an Environment Minister here during this debate. We are dealing with a fairly specialised article. I do not suggest that I am an expert on the environment; I intend merely to examine the words of the article. Should not an Environment Minister—it does not have to be the Secretary of State—be present to reply to the debate, especially as a Transport Minister was here for the previous debate, even though he was not given the opportunity to reply? If an Environment Minister were here, with the courtesy of the Government Whip he might be allowed to say something. That would do this important debate the justice that it deserves. The Foreign Office Minister is looking at his notes, no doubt thumbing through the brief from the Department of the Environment with some trepidation. Obviously, he intends to reply to the debate. I hope that he will be given the opportunity to do so. As a former Whip, I do not think that the Government Whips would dare to move the closure and deny the right hon. Gentleman that opportunity. Who knows? As the Bill progresses, that may happen. The Chair has already made some strange decisions, although I will not go into the detail now.Order. I am afraid that the hon. Gentleman's remark is not acceptable to the Chair. The Chair's position on the acceptance of a closure motion is simply what we might call an emergency power to stop absolutely blatant abuse. It is for the Committee to reach a decision on whether it wishes to curtail debate.
I may be wrong, but I have always understood that the Chair has a discretion as to whether to accept a closure motion.
Order. It is quite true that the Chair has a discretion, but it is of a particular nature and is intended to stop absolutely blatant abuse. It is not intended to indicate when the Committee should end discussion; that is for the Committee to decide.
My understanding is that the Chair has a discretion as to whether initially to accept a closure motion. Am I or am I not correct?
Yes, but I tried to describe the circumstances in which the Chair exercises that discretion.
But there is discretion and, having sat through these debates, my belief is that it has not been exercised once, in respect of any one of a large cluster of amendments. I do not think that there has been blatant filibustering every time.
Order. The right hon. Gentleman's remarks are bordering on criticism of the Chair, which is unacceptable. I ask him to move on to the substantive part of his speech.
I will, Dame Janet. I am sorry that my remarks are unacceptable, but, having listened to this debate, they reflect my point of view.
Article 130s is good in parts. We are all in favour of a sound, proper and clean environment, and one country cannot decide matters without the co-operation of others. Pollution knows no frontiers or boundaries within the EEC, or further east, with Poland, Czechoslovakia and other countries. It obviously makes sense for the countries of Europe which enjoy economic and trade co-operation to collaborate in respect of environmental matters. I welcome the article's provision for unanimity because I see no reason why Europe should not develop on the basis of co-operation between nations. That is a healthier, better, more sensible and more democratic way. The article recognises that. I refer to those paragraphs dealing with the establishment of some form of tax or another fiscal measure, the choice of different energy sources by member states, and the general structure of energy supply. I infer from paragraph 2 that such matters must be decided by the Council,perfectly properly—"acting unanimously on a proposal from the Commission and"—
I have no objection to that sensible way of proceeding. I cannot understand why we cannot proceed in that way in respect of other parts of the treaty and of co-operation between member states in general. That would provide the Community with the democratic base that it will desperately need over the next few years, as the problems of both eastern and western Europe mount and worsen. The rest of article 130s—here I differ from my hon. Friend the Member for Islington, South and Finsbury—refers to qualified majority voting. It is nothing new and has existed for a long time. The votes are, of course, weighted in favour of the larger countries, but qualified majority voting has been extended over the years. The Single European Act considerably extended the spheres of qualified majority voting. I am not sure whether article 130s also does so—perhaps they always existed in the treaty of Rome, in respect of the environment. Certainly the article reiterates and re-emphasises qualified majority voting in those areas of Community action described in paragraph (1). It is all very well to say that we favour qualified majority voting, but, as I tried to emphasise when intervening on my hon. Friend the Member for Islington, South and Finsbury, it is not only a restriction on sovereignty in theory but imposes a constraint on public expenditure. Once the Council of Ministers has voted by qualified majority for a course of action, a member state that considered that it was unable to adhere to that course of action but which lost the vote would have to conform. My hon. Friend the Member for Islington, South and Finsbury valiantly tried to suggest, "It will be all right— back to negotiations: those guys in the Commission are nice chaps—we can ask for a temporary derogation." When such a derogation is requested, it must be shown that the cost is deemed disproportionate for the public authorities of a member state. I do not know who does the deeming, although I am sure that the Minister of State can tell us: he has his brief with him. Governments like to deem: they do it all the time in Finance Bills. They deem black to be white, and male to be female. Will the Government deem the cost disproportionate? Will the judgment be purely subjective, or will the Government have to prove their case to the Council of Ministers, the Commission or some other body? 5.15 am Let us assume that the cost is shown to be disproportionate. What does "disproportionate" mean? "Proportionality" is one of the vogue words that have recently crept into general policy. It was originally confined to lawyers, and has been used in judicial review cases: if a Minister's action is disproportionate, a court may strike it down. But what does the word mean in its present context? Is 1 per cent. disproportionate? Is 0.5 per cent? Is it, indeed, a question of percentages? Only lawyers like myself would begin to consider such pedantic matters at 5.15 am. Faced with the broad sweep of the treaty, no one bothers about them much; but we scream and shout when faced with a problem about which we can do nothing. Even if the cost can be shown to be disproportionate, all that will result is a temporary derogation. My hon. Friend the Member for Islington, South and Finsbury suggested that I had put words in his mouth. I did not do so. He said that he was pleased that the derogation would not be permanent. That, of course, would make no sense: as my hon. Friend himself pointed out, a permanent derogation would allow one country to act as a dumping ground while others had to bear the costs—proportionate costs, presumably—of its heinous polluting action. The derogation cannot be too temporary: it cannot be like income tax, which was apparently supposed to be temporary when Addison introduced it long ago. If all the countries have voted by qualified majority that a certain action is a heinous polluting action, any derogation is likely to be allowed for only a short period. Ultimately, a public authority will have to pay. It says here that the polluter should pay. That is another of those glib, politically correct phrases that are currently in vogue. What does it mean? It means that the polluter writes the cheque, but not that he pays. The taxpayer—the ultimate consumer of goods—will pay, because the cost is handed down. I am sorry to criticise my hon. Friend the Member for Islington, South and Finsbury, but when he says from the Dispatch Box, "We are in favour of the polluter paying", he does not seem to realise that "the polluter" is all of us. We pay through taxation and the prices that we pay in the shops. Eventually, the costs of the tragic accident in the Shetland islands will be paid not by the polluter—the person who steered the ship—but by those who purchase petroleum or use it in the manufacture or distribution of products."after consulting the European Parliament and the Economic and Social Committee".
I sympathise with my right hon. Friend's point, but he is wrong in one respect. All of us have already paid for the Shetlands event: the cost of compensation, and of covering the tanker's liability, comes out of the international fund to which the tanker owners contribute, and which is levied on the ultimate cost of oil. My right hon. Friend is wrong to attribute future costs to that event.
My point is that eventually a cheque has to be paid by the people who own the tanker. That does not mean, however, that they will bear the cost. It will be handed on, either to an international body or to those who purchase the product. Clarity of language, even in politics, is always useful.
We ought to drop this nonsense phrase. We are all in favour of the polluter pays principle, but the polluter does not pay. We all pay. We shall have to clear up our environment, and that will cost money.Earlier my right hon. Friend asked where that phrase came from. It was the Single European Act which introduced that phrase in respect of the environment.
I am grateful to my hon. Friend. He reads the treaties assiduously.
Qualified majority voting is rather like a charge on the Consolidated Fund. One can do nothing about judges' salaries or payments to the European Community in the public expenditure review, as some of us found out years ago, to our chagrin. One cannot say, "We'll cut judges' pay, or sack a few of them." Years ago it was suggested that we should cut some of the payments to the European Community—that we should stop the cheque, as it were. I see that the Minister of State is aghast at the suggestion. I am obviously breaking the Official Secrets Act by saying that some of us suggested that we should stop the cheque. But we cannot do that, either. The Treasury always used to frighten junior Ministers with the word "hypothecated." If one made a suggestion of a radical nature, it was hypothecation and therefore not allowed. We find nowadays that more and more public revenue is hypothecated, with 10 per cent. taken out here and 10 per cent. there, with another bit going off to the European Commission and something else going off to NATO. That leaves only a bit to spend on the poor British public—for example, on building schools and hospitals, on social welfare and pensions. The part that is left over grows smaller and smaller. We are all in favour, so it is said, of qualified majority voting on the environment, but the Government should he allowed to exercise choice. We might decide that we want to put up with some pollution so that a new hospital can be built. A democratically elected Government ought to be allowed to make that choice. They should not be outvoted by other countries, on the basis of qualified majority voting. That is what I believe to be democracy. It is not an old-fashioned desire to cling to the nation state.Does my hon. Friend accept that it is not just a case of making our own decisions about putting up with our own pollution but that the problem with pollution is that, because it spreads across national boundaries, we might end up having to put up with somebody else's pollution that we, as an independent and sovereign nation state, would be unable to do anything about?
Indeed, but that is a decision for us to take. The veto should be available so that we can balance the one against the other. My argument is that the unanimity rule should be there to protect the democratic process in this country. Without the unanimity rule, we lose our control. Ministers can hide behind the principle of qualified majority voting. No doubt they have already done so. Ministers of whatever party can say, "We tried very hard at 3 o'clock, 4 o'clock or 5 o'clock in the morning, but the terrible Germans and French outvoted us; however, we did our best." Then we have to pay for it, unless we obtain a temporary derogation.
My hon. Friend the Member for Islington, South and Finsbury was not here for our earlier debate on the cohesion fund, so he can be forgiven for not appreciating immediately that the cohesion fund is restricted to certain countries. Only Spain—the Minister of State is nodding and endorsing this—Portugal, Ireland and Greece can get money from the cohesion fund. GDP figures suggest that, after 10 years of Conservative government, Wales is the poorest region of Britain. It is possible that Wales is poorer than some parts of Spain; I do not know. The Minister of State probably knows that income per head in Spain is approaching 90 per cent. of the United Kingdom average. I imagine that in the major conurbations of Spain income per head is much higher than in parts of Britain, but a clause on the cohesion fund was slotted in to buy Gonzalez off. We in Wales, however, cannot get money to tackle pollution. The Government do not have the money, but my hon. Friend the Member for Merthyr Tydfil and Rhymney (Mr. Rowlands) and I represent constituencies which have experienced considerable pollution.My right hon. Friend is making an important point. The GDP of the communities that we represent in mid-Glamorgan is 72 per cent. of the United Kingdom average, which is lower than Northern Ireland. Some parts of wealthy Spain must be better off, whereas we have had a history of pollution and dereliction, which we have been steadily clearing.
If we take 72 per cent. of the United Kingdom figure, we get close to the overall Spanish figure, let alone a figure for the wealthier parts of Spain. It is extremely unfair that the article allows only four countries to benefit from the cohesion fund when often the poorer regions suffer most from environmental pollution, as we know to our cost.
The article is good in parts. With the unanimity rule, it offers a better way forward for Europe. Later, we shall deal with articles that limit the deficit on borrowing to 3 per cent. of GDP. The Government will have to make progress in that direction. Yet we are being asked to approve an article which, in effect, imposes higher expenditure on the Government.And the article on transport.
Yes, indeed.
Quite a few of the articles will impose additional costs on the Government because they lost a vote in the Council of Ministers. That means an increase in public expenditure.My right hon. Friend is being very practical. Does he agree that the Council rarely has a vote? The inter-European, round-the-table opinions, the work that is done beforehand and the informal and semi-informal discussions usually make the line-ups very clear. If a country or Minister wants to make a stand on something, the others usually give way on something else. The merits of the matter may be the last consideration. Sometimes, it is not a matter of being outvoted but perhaps of giving something away to gain something else.
5.30 am
My hon. Friend makes an important point. I do not know how often what he has outlined happens, but there is presumably a voting procedure which may be followed. My hon. Friend is in fact arguing that the unanimity rule is not perfect because, despite a veto, there is a trade-off. Perhaps even the unanimity rule can be watered down because of the way the bargaining is carried out. However, the unanimity rule is in theory written into the article.
My right hon. Friend is dealing with an important point. Although the former Prime Minister, Lady Thatcher, was an enthusiast in the end—or so she said—for the Single European Act, does he recall that at the Heads of Government meeting that preceded the treaty, she said that she did not think that one was needed, but her veto was not enough?
Clearly, the veto cannot always be exercised.
I conclude by referring to the provisions which areand which, of course, need unanimity. As I understand it, the Commission currently proposes to levy a carbon tax which presumably comes under paragraph 2 as it is a provision"primarily of a fiscal nature"
I see that my hon. Friend the Member for Merthyr Tydfil and Rhymney is agreeing with me. I hope that I shall not be out of order if I say that I hope that there will be complete resistance to the nonsense of a carbon tax. We are trying to save our coal mines while the Commission makes such a foolish proposal. Being an irresponsible body—I use the word "irresponsible" in its true sense—the European Parliament will no doubt pass it. However, I hope that the Government—I know that my hon. Friends will support them and I can even speak for the Opposition Front Bench—will be wholly opposed to any suggestion of a carbon tax, which would go against all that we are trying to do to save the coal industry. That reinforces my argument that the unanimity argument, which is in paragraph 2—at least in theory—is sensible because it prevents nonsense such as a carbon tax being imposed on us to the considerable detriment of the mining industry and of our industry in general. Article 130s is good in parts, but let us have more about unanimity and proper democratic co-operation between states."primarily of a fiscal nature".
I agree with much of what the right hon. Member for Llanelli (Mr. Davies) said, especially with regard to the notion that the polluter pays; in the end, it is the consumer who pays. He cited the example of the tanker—if there is a claim on the insurance company, the premium is increased, which affects the price of the product. That is eminently sensible, and I am sorry that the Labour Front Bench cannot understand that.
I have been examining the provisional selection of amendments, which cover so many important subjects— industrial, consumer, commercial, agricultural, market, network, transport, telecommunications, energy, health and environmental issues. However, we did not know that that they would all be debated in one day. For those people who read the more serious newspapers, I wonder what the British public will make of today's business when they see the House of Commons trying to debate all those issues in one day and starting a fresh group of amendments at 4 am. I draw a few issues to the Minister's attention. One could not accuse our European leaders of thinking small —article 3 states that they wish forIf we add to that article 130r, we have quite a lot on environmental policy and the cost of it. Paragraph 4 of article 130s says:"a policy in the sphere of the environment".
Every time I look at the treaty, I see expense, yet I see no money resolution. Can my right hon. Friend the Minister give us any idea of what the costs of the environmental programme will be? If he cannot give us costs for the whole programme, perhaps he can give us the costs for parts of it that may have been discussed recently. The proposals go far. Article 130r says:"Without prejudice to certain measures of a Community nature, the Member States shall finance and implement the environment policy."
"Community policy … shall contribute to … the following objectives:
—preserving, protecting and improving the quality of the environment;
—protecting human health;
whatever that means——prudent and rational utilisation of natural resources"—
No aspect of human life is left out of the title. Every nook and cranny is invaded. What will the cost be, especially to the British taxpayer? If it is necessary to put up taxes in a few weeks' time, I shall support it as an unfortunate necessity. But if my constituents think that their taxes will go up to pay for these proposals, there will be a very much more difficult message to sell. I was totally quiet on the first group of amendments. I presume that the dawn is breaking over the Thames, so it seems a suitable time to discuss the ozone layer. I believe that I am right in saying that under the Maastricht treaty, EC policies for the environment will be decided by qualified majority vote by the Council of Ministers. I sometimes wonder—my hon. Friend the Member for Billericay (Mrs. Gorman) is right—whether the state of the environment in the Community is rather better than the Commission likes to suggest. I recently read a newspaper article that suggested that just as the biggest nuisances in the 19th century were the Luddites, there is every chance that the biggest nuisances in the 20th century will be the greens. Already a large volume of environmental law has been passed, which is likely to be added to. The new proposals could prove to be an excuse for protectionism. We have so many environmental projects, especially in the Mediterranean countries. To me and to many of my hon. Friends, many of those projects look like bribes for support through the cohesion fund. The enforcement of EC environmental policy is geographically uneven and unfair. The policy is both bureaucratic and over-influenced by pressure groups. Most of us can look at our postbags and agree that that is so. The Community does not have a civil service as we do. We find that the vast sums are dominated by the bigotry of centralised planning and control. Under the Maastricht treaty, environment becomes a sector of policy decided by qualified majority, as we have already decided. That was to be expected because the environment was a natural target for Community action. Pollution knows no frontiers. I was much intrigued by the intervention by my hon. Friend the Member for Twickenham (Mr. Jessel) who asked about pollution on the Rhine. The polluter will pay there, although it will be difficult to make Switzerland pay. I gather that there is quite a lot of pollution on the Rhine because pollution apparently does not all occur in the British Isles. If there were pollution on the Rhine, how would the responsibility for that pollution be split up? In any particular case, how would the problem be dealt with? How would the responsibility be split up if Switzerland were not prepared to pay? The Single European Act assumes that the increased output anticipated as a result of the falling of economic barriers at the end of last year should correspondingly add to pollution. That assumption is not justified on the record of the 1970s and 1980s when the pollution of all market economies fell substantially. The best way to achieve improvements is through market forces. In respect of unleaded petrol, we have seen that the only way in which one needed to make an environmental improvement was to make unleaded petrol cheaper and leaded petrol dearer. Very shortly afterwards, that did the trick."promoting measures at international level to deal with regional or worldwide environmental problems."
The hon. Gentleman said that that did the trick. It certainly helped, but it did not achieve the objective of changing people's consumption of petrol to unleaded. It raised the consumption of unleaded to 30 per cent. of the market, but it did not do the trick.
The two choices are to allow market forces to settle the matter or to pass laws. By making unleaded petrol cheaper, a large proportion of demand opted for unleaded. As newer cars come onto the market, even more cars will run on unleaded petrol. I believe that that is a very sensible way to approach matters. However, from the intervention of the hon. Member for Islington, South and Finsbury (Mr. Smith), I assume that he does not believe that that is a sensible approach.
The hon. Gentleman must not misunderstand me. I simply entered a slight caveat to his apparent implication that there had somehow been a wholesale switch to unleaded petrol as a result of the price differential. The price differential has undoubtedly helped. It is a good thing and something which we have supported consistently. We have urged, and continue to urge, the Chancellor of the Exchequer to widen the differential still further to increase the use of unleaded petrol.
I am grateful to the hon. Gentleman for making that clear. My colleagues and I are often not sure whether to accept what the hon. Member for Islington, South and Finsbury says from the Opposition Front Bench or to read the amendments in the name of Labour Front-Bench spokesmen. However, I was very glad to hear that the hon. Gentleman has such faith in market forces.
A more telling reason for increased interest in Brussels in the environment is its increased popularity and emotive appeal. That was reflected in an opinion poll in 1988 which showed that three quarters of EEC citizens believed that environmental problems were immediate and urgent and then reaffirmed that view by the election of 30 members of the Green party in 1989. By then, the greener approach to Community policy was already enshrined in an environmental impact directive of 3 July 1988 which called for ecological awareness to be part of the planning and decision-making process in all sectors and notably in agriculture, oil, energy, transport, tourism and regional development. The practical effect of that was that certain categories of project—for example, crude oil refineries and new motorways—were made subject to impact assessments to identify their affects on human beings, fauna and flora, soil, water, air, landscape and the cultural heritage. European Commission information handouts suggest that its citizens suffer from serious environmental problems. However, I suspect that, as my hon. Friend the Member for Billericay said, some of those warnings should be taken with a large pinch of salt. With the election of the Greens and all the advice, we must be very careful where we go from here if we are not to make some industries totally uncompetitive. The Commission has a vested interest in exaggerating the problems as justification for extending its own powers. However, an official 10-year inquiry in America concluded that there was no definite causal link between acid rain and dying forests—indeed, the damage to German forests is now thought to have been done by drought—that acid rain has no apparent effect on lakes, buildings, human health or agriculture and that it might even contribute to soil fertility. The impact on rivers of the growing use of nitrogen fertilisers by farmers, though, seems to be genuine enough, but the blame should be placed squarely on the production incentives built into the common agricultural policy. 5.45 am We need to examine the legal position which perhaps the right hon. Member for Llanelli is better qualified than I to examine. Until 1987, when the Single European Act came into effect, there was no explicit legal provision for Community action. In spite of that, more than 100 directives and other legal instruments were adopted in the 15 preceding years under article 100 of the Rome treaty and the catch-all article 235. The Single European Act spells out the need for the Community to achieve a high level of environmental protection, but its insistence that it must be combined with free trade has a somewhat hypocritical ring and should sound a warning that protecting the environment could become an excuse for restricting trade. There was a case before the European Court of Justice on 20 September 1988. In this respect, the outcome of the Danish bottle case, as it is known, looks ominous. The court found that the Danish system of requiring returnable containers for beer was indeed a restraint on trade, but that it was justified on the ground of environmental protection. Even to the mildly cynical, that looks more like protection of the bottle industry against competition from aluminium cans than environmental concern. The powers of revision granted to the European Parliament where proposals are submitted under article 100a are likely to favour a radical environmental policy. That has been the record to date. On finance, I asked my hon. Friend the Under-Secretary of State for Health to give a few figures to sleep on tonight. I understand that about 1.2 billion ecu was earmarked for environmental projects in 1989–93. Of course, much of that will be channelled through the European regional development fund and the European investment bank. It would be interesting to know the cost of the environmental ranking of the current EEC engineering project in the Missolonghi marshes in Greece, where Byron died. That project is widely considered to be a scandalous devastation of one of the finest wetlands and wildlife sanctuaries in Europe. Numerous other programmes have been designed for the depressed coastal areas of the Community. Although those schemes are claimed to be intended to improve the quality of life of the inhabitants, that aim is perhaps subordinate to the political need to bribe the Governments of those countries to support federalist initiatives. Nor should we forget the enforcement that we have had to date. In 1989, there was considerable annoyance in Britain at the Commission bringing us before the European Court of Justice for infringing EC standards of purity of drinking water. Britain was not alone in being arraigned. Currently, there is even more concern that although our drinking water is actually purer than bottled water sold in supermarkets, we are required to make it still purer, and that will double water charges to the householder over 10 years. That is largely due to EC regulations. The worry, as with other directives, is that British officials—in this case, the National Rivers Authority— take compliance much more seriously than their continental counterparts in Europe do. It is difficult for those of us who travel in Italy, Portugal and elsewhere to think that those countries regard such directives in the same serious—not to say pedantic—way. It is absolutely absurd for Britain to be treated as the dirty man of Europe when the local river in Brussels, which takes away untreated sewage from the Commission's headquarters, flows on totally unchecked. Nor is the European Commission free from its own propaganda. It evidently considers it its duty to mobilise public opinion behind a forward policy for the environment. To that end, it organised and financed the European Year of the Environment and provided support for the European Environmental Bureau—a Brussels-based lobby group linking more than 100 organisations in member states. The Commission also encourages citizens to make complaints. It is the Commission's practice to accept drafts from interested parties helping to frame laws. That is dangerous territory and verges on a conspiracy of bureaucrats, bootleggers and baptists to promote legislation to further their mutual interests and powers at the taxpayers' and consumers' expense. Those of us who voted against the Ten o'clock motion need make no apology for keeping the Committee up until this time of night. Given the amount of amendments that we had to discuss, we should be being extremely generous were we not to insist on a further hour and a half's debate on the motion to adjourn the consideration of the Bill. We have to rely entirely on your protection, Dame Janet, to ensure the number of hours that the Committee sits. If such a number of amendments come before the Committee again, it should be taken for granted that we shall discuss any adjournment motion on the Bill in detail for 90 minutes, whatever the time of day or night.One of the most mundane and wearying, but essential tasks that the Committee has to conduct is to check what we are passing, and test what we are buying when we buy the Maastricht treaty, rather than the previous treaties. The best evidence to justify that statement has been presented, I am sorry to say, by some Conservative Members who have all but quarrelled among themselves over what they did or did not buy when they agreed to the Single European Act.
If we were honest with ourselves, we would have to admit that, with notable exceptions—I was not one of them—no one suspected the truly radical character of that Act. A large majority of hon. Members did not fully appreciate the coach and horses that would be driven through in the name of that Act, which was mainly presented—I think, by both the Front-Bench teams—as more of a technical measure to stimulate the market and clarify the position. I know that there were exceptions—I am sure that my hon. Friend the Member for Hamilton (Mr. Robertson) was one of them—but I cannot remember heavy three-line Whips or cases being put as strongly as they have been in our present discussions.I sat through discussions on both the Bills. As I said earlier, I must have committed a horrible crime to have been landed with dealing with this one. I led from the Front Bench on discussions on the Single European Act, and made it absolutely clear that we were debating a matter of considerable importance—a trail blazer. I made it clear that the decisions that we were taking in relation to the Single European Act would formidably change the Community's nature. I remember speaking in the guillotine debate with my right hon. Friend the Member for Bethnal Green and Stepney (Mr. Shore) when we both made precisely that point. My hon. Friend the Member for Merthyr Tydfil and Rhymney (Mr. Rowlands) should exonerate the Labour Front-Bench team.
Given my hon. Friend's observations, I exonerate our Front-Bench team. If the Act was trail-blazing, it was obvious that a number of hon. Members—particularly Conservative Members—did not know which trail was being blazed. They are now discovering the trail's destination.
While I accept what the hon. Member for Hamilton (Mr. Robertson) says—he was present through the night when we discussed that Bill— and as it was, as he said, a matter of great importance, will he give us an explanation at some time as to why only 46 Labour Members turned up to vote against its Third Reading? I accept that that was more than the number of Conservative Members who voted against it, but I should have thought that as it was such an important Bill, more than 46 Labour Members would have turned up for the vote on the Friday morning after the all-night sitting.
The hon. Gentleman reminds us of an important event. I was only drawing attention to my guilt—and that of others—and to my decision that on no account would I make the same mistake again. One of our tasks in this historic Committee stage is to make sure that we understand the text to which we are agreeing. I want to speak, therefore, not about the general principles of these articles but about the differences between them and the articles in the two previous treaties of the past 30 years.
The Single European Act and the Maastricht Bill are amending treaties. This Bill is short but dense. Amendments tabled to it refer to a treaty that already amends another treaty. Quite properly, the amendments are grouped under subject headings, but they are not easy to follow, the more so since articles in this treaty often refer to articles in other treaties. All in all, it is impossible to know what we are voting for.
My hon. Friend describes the peculiar legislative labyrinth through which we must pick our way. Unlike proceedings on a normal Bill, with this one we cannot see how amendments will alter the text of the main or previous Acts. We must plough our way back through three treaties in the course of considering a three-clause Bill that seeks to incorporate a treaty lock, stock and barrel in our legislation. There is, therefore, a special case for scrutinising the Bill even more closely than we usually would.
For the purposes of this discussion I shall refer for comparisons to Cmd. 455, published in September 1988. it incorporates the treaty of Rome as well as the Single European Act amendments to it—they are helpfully provided in footnotes to each page. I should like to compare the treaty of Maastricht with the treaty of Rome and the Single European Act so as to identify what has been included, what omitted and what added. Once we let these articles through they will automatically become part of our legislation. Comparing article 130r with the relevant article, as amended by article 25 of the Single European Act—as it, in turn, amended the original treaty—we find that at least the first three listed objectives are exactly the same as those in the Single European Act treaty. But let us immediately note that the fourth objective is an addition. The article refers to,That is a perfectly desirable additional objective. I hope that the Minister who replies to the debate will provide answers to our questions. The Minister of State, Foreign and Commonwealth Office, the right hon. Member for Watford (Mr. Garel-Jones), is carrying the major part of the burden for the Bill. 6 am In the debate on the article dealing with industry, the Minister did not identify what was new and what was old in the article. We later discovered that the article contained a key element that was different. This time we shall ask specific questions and hope that we get specific answers. My first question is how the fourth objective was included in the Maastricht treaty. Secondly, what is its parentage and who was behind it? Thirdly, was it based on a collective view? It is obviously compatible with the mood of Rio. Obviously, it is desirable to promote"promoting measures at international level to deal with regional or worldwide environmental problems."
But what suddenly caused that to enter the Maastricht treaty when it was not in the Single European Act that was passed five or six years ago? Paragraph 2 of the new article 130r includes half of the relevant section of the Single European Act. My hon. Friend the Member for Oxford, East (Mr. Smith) spoke forcefully last week about the precautionary principle which is additional to the Single European Act. However, the principle of preventive action is not. Article 130r states:"measures at international level to deal with regional or worldwide environmental problems."
My hon. Friend gave the impression that the notion that the polluter should pay was a new doctrine, but it was in the Single European Act. Paragraph 2 of article 130r contains a revised version of what was in the Single European Act. It states:"environmental damage should as a priority be rectified at source and … the polluter should pay …".
What does that mean? The original text simply said:"Environmental protection requirements must be integrated into the definition and implementation of other Community policies."
I am sure that, like me, many hon. Members wonder why words are changed. What is the significance of changing a rather simple sentence about environmental protection requirements being a component to,"Environmental protection requirements shall be a component of the Community's other policies."
Was it done for clarification, does it incorporate a supplementary thought or does the wording introduce a slightly different principle? I am not sufficiently qualified to decide, but I should like the Minister to explain the alteration. I am curious about that, but I am much more curious about the remaining part of paragraph 2, because the addition compared with the Single European Act is completely new. It is almost gobbledegook. It states:"Environmental protection requirements must be integrated into the definition and implementation of other Community policies"?
That is new. May I have illustrations of the type of problem that Ministers or the distinguished Heads of State who put those words in the draft treaty envisaged? May we have an illustration of "non-economic environmental reasons" why member states should undertake measures? What was the driving force behind putting those words into a sombre draft treaty? What about the tacked-on bit:"In this context, harmonization measures answering these requirements shall include, where appropriate, a safeguard clause allowing Member States to take provisional measures, for non-economic environmental reasons, subject to a Community inspection procedure."
What will be the nature of such an inspection? I cannot find anything in the Single European Act about such inspection powers, let alone a procedure. Where is it laid down? Who describes it? What happens when the Commission turns up to conduct its inspection? Those questions arise because the wording is completely new, and adds something to the functions and tasks of the Commission. Given that we have been sold the treaty as something which will strip down the powers of the Commission through subsidiarity, I am surprised to find, running right through chunks of it, the Commission being given new responsibilities for investigating every nook and cranny, particularly on the economic and monetary side. Even leaving aside those two paragraphs of article 1 30r, we have questions to which I do not know the answers. We should not approve the article until we get answers from responsible Ministers who understand the meaning of it, and can explain why the extra provisions had to be made in the treaty in 1992, which will be incorporated into our legislation if we agree to the Bill. Those are my initial queries on article 130r. There are also amendments to article 130s. My right hon. Friend the Member for Llanelli (Mr. Davies) scrutinised the substance of the article, and I shall deal with the wording and presentation of it. There are huge differences between it and the original article 130s in the Single European Act. That simply says:"subject to a Community inspection procedure"?
"The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, shall decide what action is to be taken by the Community.
The huge new article 130s sets out a whole new ball game. My right hon. Friend has already touched on some of its paragraphs. They pave the way for fiscal provisions and forThe Council shall, under the conditions laid down in the preceding subparagraph, define those matters on which decisions are to be taken by a qualified majority."
Has paragraph 2 got a parentage? Does any part of it come from any other parts of the previous two treaties? I find it difficult to discover from where the provisions come. Are they new provisions? If so, why do we need them? Why should there be introduced into the treaty additional provisions which were deemed not to be necessary four or five years ago? I am not opposing them; I am not suggesting that they are wrong. I merely want to know why we are being asked to adopt them and to identify the true nature and import of the proposed changes that we are being asked to endorse. The Minister of State is now in his place on the Government Front Bench, but he missed my initial request. I hope that the Under-Secretary of State for Health took a note of it to pass to the right hon. Gentleman. We need a line-by-line explanation, which we were not given during our consideration of the industry and transport articles. The Minister of State failed to give us a full explanation of why certain articles have been added to and changed since they appeared in the previous two treaties."measures concerning town and country planning, land use with the exception of waste management and measures of a general nature, and management of water resources".
Does my hon. Friend agree that the comparative exercise to which he is drawing our attention, which involves articles 130r and 130s, should have been put before us in a White Paper? When we consider domestic Bills in Committee, notes on clauses tell us why a section in earlier legislation is being amended or changed and what the effect of the amendments or changes will be. In other words, they would have provided us with a full commentary, as it were, and set out the comparisons to which my hon. Friend is drawing our attention. I agree that it is right that my hon. Friend should ask the Minister to justify the Government's position, but surely the explanation should have been given to the nation six months ago.
My hon. Friend has introduced an important consideration. Over the years, when considering Bills in Committee, I have found that the quality of notes on clauses varies. Sometimes they are almost repetitions of the clauses themselves. They are of variable quality and value. Their quality varies from Department to Department and from Minister to Minister, but in some instances I have found the notes to be of value. My hon. Friend has made a suggestion which I think we should take up with the Minister, even at this late stage. The production of such assistance might curtail much of the textual analysis to which I have been driven. That might well happen if we have notes on articles that explain why some provisions differ from those that are set out in the Single European Act.
It is far better, however, for the explanation to be in Hansard where it belongs, so that it is the property of everyone. It would promote discussion, however, and possibly expedite it, if the Minister of State took on board the constructive suggestion of my hon. Friend the Member for Newham, South (Mr. Spearing). When we draw stumps on this group of amendments, or on later ones the right hon. Gentleman might then endeavour to produce a note on each article to identify the character and nature of the changes that are being made. A modest amount of detail would save the laborious textual analysis that I have had to undertake.The hon. Gentleman has been kind enough to suggest that if that information were available it would be quite likely to curtail debate. Perhaps he will discuss the matter with his right hon. and hon. Friends and then take it up with the usual channels. It is not a matter for me, but I dare say that the usual channels would be extremely interested if he were able to deliver a curtailment of debate of the sort that he is talking about.
I can only speak for myself. I would not have undertaken the exercise in which I have been engaged for some minutes if I had had a note on the article that gave me the information for which I am asking the Minister. Instead, I have to ask the Minister to explain the meaning of and the background to the changes before we can reach a judgment.
6.15 am
As my right hon. Friend the Minister has made a sensible and useful offer, should those of us who have been asking questions—not holding up the Committee—ask him to start with the words in article 130s:
Does the hon. Member for Merthyr Tydfil and Rhymney (Mr. Rowlands) agree that that is a good starting point to say to the Minister, "Tell us what that means"? Does it mean a tax on the environment? Should we tell him that we are interested in deals to help to speed up the Bill's passage? In return, he could tell us what those six words actually mean. What is the scope and what is involved? If he can answer that, it will be a great start."provisions primarily of a fiscal nature"?
It would be a good start, but I have a further important request relating to paragraph 2 of article 130s. I am alarmed by the statement:
Where did that proposal come from; what is behind it? Is it included in either of the two previous treaties? I cannot find those words in them. What do they really mean? We must remember that they are in the context of a good environment. Does the proposal mean that the EC is trying to restrict the choices of member states in which energy policies they pursue? Is it suggesting that, for example, there is dirty brown coal in some parts of the Community that should not be mined and used to create power? Has it any nuclear connotation? Perhaps my hon. Friend the Member for Islington, South and Finsbury (Mr. Smith), who is so knowledgeable in these matters, will enlighten me."measures significantly affecting a Member State's choice between different energy sources and the general structure of its energy supply."
I am sure that my hon. Friend recognises that the paragraph ensures that all the choices about the balance between coal, nuclear and other forms of energy production will remain matters for unanimous voting in the Council of Ministers, rather than simply majority voting. Therefore, an individual member state can preserve its individual decisions in all those matters.
I had not come to the question of how the choices would be ultimately decided. We have been asked to endorse a power over the way that we exercise our choice. I remind my hon. Friend of the operative words of the paragraph:
Therefore, once again, the Commission is to initiate the member state's choice—not some collective European choice—between different energy sources. It is first to be reported on and recommended by the Commission. I thought and believed that, if nothing else, until today we had managed to decide ourselves whether we wanted to build coal-fired or nuclear power stations, whether we wanted to continue with the new range of gas licences or whether we wanted to embark on exciting new energy conservation measures and combined heat and power schemes. If I am wrong, perhaps someone will correct me, but I had thought that those had been very much at the heart of the energy argument. When I served as a Front-Bench energy spokesman for six years, we debated the relative merits of our respective energy resources, but that was never deemed to be anything but a matter of democratic choice. It was not for others to tell us what we should do. Occasionally, Energy Commissioners would produce the odd discussion paper, but no one believed that the choice was anything but our own. Given the crucial decisions that the Government and Parliament will have to make in the next few weeks and months, which could have a profound effect on jobs in many of our communities and those communities' futures, we are entitled to ask whether this is a new power to be vested in the Council, albeit by unanimous decision, so that it will determine the respective balances of energy requirements and needs within the United Kingdom."acting unanimously on a proposal from the Commission".
My hon. Friend is making an extremely good speech, but it will be helped by a dialogue. Surely the answer to his last question is yes. Both Parliament and the public have failed to grasp that a veto and unanimity do not necessary afford the protection that people imagine. Conservative Members and the Government may agree to the balance of energy that they apparently now favour at a meeting of the Council of Ministers subsequent to the passing of the treaty, but if a subsequent Government took a different view—or even if the present Government were converted by experience or persuasion—they could not change that balance back again. Although unanimity is projected as a protection, it only works once, and then it becomes a ratchet.
My hon. Friend is extremely knowledgeable in such matters, and rightly issued a warning. I am deeply concerned about the extent to which it is a new responsibility. I cannot find the same words in the treaty of Rome or the Single European Act. If the Minister tells me that they are not new but are provisions common to the treaty of Rome and to the Single European Act, I shall reconsider.
Given my understanding of the potential import of that wording, and coming as I do from communities that have been deeply involved in the debate, dilemmas and choices of energy supply, I do not believe that we can let those words, and the additional requirements in article 130s, go through on the nod if they introduce a new aspect to the balance between the environment and energy supply that is not to be found in the treaty of Rome or the Single European Act. The Minister may say, "You've gone overboard with this argument. This is a common form of wording that we have lived with for the past 30 years." If he does, at least I will be satisfied. However, I will not be satisfied without a proper explanation, and I am not prepared to vote for and support article 130s, if, as I fear, it is a new bridgehead that will infringe or damage in any shape or form the democratic choice and decisions of the Government of the United Kingdom and of other member states in deciding the balance of their energy supplies and their relationship to the environment.Having listened to and enjoyed this debate for more than 14 hours, I am glad to have this opportunity, for the first time, to participate briefly. I do not intend to speak for any length of time. There are rumours going around the Tea Room and other places that it is the fault of my hon. Friends and myself that right hon. and hon. Members are having to stay up all night. The contrary is true. We voted in favour of bringing the debate to a close at a reasonable time, at 10 o'clock—some six and a half hours ago. It is unacceptable that such important debates should be taking place at this late hour. There has been no filibustering, and there have been no over-lengthy speeches on either side of the Committee. I have been here throughout the debate. I do not know why the Government did not report progress earlier, so that we could hold our debate at an appropriate time and allow others to join in.
I should also have liked to vote on amendment No. 4. Imagine my shock when I found that the Opposition not only did not plan to vote, but had been speaking against their own amendment! I should not have been shocked, of course; they did exactly the same on amendments Nos 1 and 2. My shock turned to horror, however, when I observed that Labour Members were to lead debate on the next 15 groups of amendments. In view of the nature of some of those amendments, I suspect that the same thing will happen. It is all a bit of a farce: what is the Labour party up to?What the Labour party is up to is ensuring that we can have good-quality, considered debate on essential parts of the Maastricht treaty. Because of the way in which the procedures of the House operate, the only way in which we can debate parts of the treaty that we support is by tabling amendments that seek to delete them. This is purely a device to ensure that we can debate, for example, important environmental considerations which Labour strongly supports. It is the only way of securing a public airing of such matters where it ought to take place—here in the House of Commons.
I find Labour's whole strategy very mysterious, not only in regard to amendments but in regard to voting. Labour seems to be on a three-line whip, while managing to slip people mysteriously into the night when the going gets rough.
I can understand the position of other parties. For instance, the Liberals' support for a federal Europe is entirely understandable, although I do not agree with it. The position of Conservative Front Benchers saddens me, but I understand it. However, I cannot understand the chicanery that is going on in the Labour party. I should have liked to vote on the amendment, because I think that removing article 129 is a good idea. I am also opposed to the shift in environmental provisions. As the hon. Member for Merthyr Tydfil and Rhymney (Mr. Rowlands) pointed out, those provisions are fairly obscure ; the hon. Gentleman asked a number of worthwhile questions, which I hope will be answered fully. For many years, the Community has been experiencing a shift of emphasis. I accept that the amendments do not relate to a black and white change: we are not discussing issues such as, for instance, the single currency, which represents a generic jump forward. I remember going to the Council of Ministers as an Energy Minister. My hon. Friend the Member for Coventry, South-West (Mr. Butcher) made an enlightening speech about his experience as a Minister. When I was the Minister for Aviation and also when I was the Under-Secretary of State for Energy there were four points on the agenda. The first was the British position: to try to develop a freer trading common market. That was shot down as anti-communautaire. The second point was, typically, either Commission inspired or Franco-German inspired. It related usually to directives concerned with the environment or safety regulations. In the case of energy, it related particularly to environmental matters. That was considered to be pro-communautaire and was readily accepted. The third point tended to be the press release in which we pointed out that we were shifting the emphasis away from the market-oriented matters towards directives—in this case towards environmental matters—as against trying to obtain a freer flow of energy between countries. The fourth point concerned the bribes or handouts to the Portuguese, the Greeks, the Irish and so on who had supported the Franco-German position. That was the way in which Council of Ministers meetings tended to function. One could argue about how pure the British position was, and about the genesis of the move towards political union, but for many years the British position was that the trading possibilities within the European Community should be emphasised. For some time, however, others have been shifting the emphasis away from trade, the freer movement of goods and competition, towards an emphasis that has little to do with trade. I could not agree more that co-operation on environmental matters between countries makes sense. I agree wholeheartedly with what my hon. Friend the Member for Twickenham (Mr. Jessel) said—that we are considering boundaries wider than those of the European Community. The point was made that the former eastern bloc poses a particular environmental problem.6.30 am
Does my hon. Friend agree that that applies also to the control of drug trafficking, an extremely serious matter which is referred to in article 129 of the treaty? How can we control drug trafficking if we confine it to the countries of the European union? It is nonsense that the European union should be concerned with the prevention of drug trafficking. A much wider international organisation is required to deal with that problem.
My hon. Friend has made two extremely good points. I agree with him completely. It is germane to argue that there should be a new, centralised competence for the environment and for drug trafficking, on the basis that it is ridiculous to exclude boundaries beyond the competence of the European Community, especially in the case of the environment when it comes to the former eastern European countries.
I must point out that article 130r specifically does not exclude the interests and needs of other countries. If the hon. Gentleman looks at paragraph 4 he will see that it says:
The provisions of the treaty, as drafted, clearly permit and encourage the Community and its constituent member states to provide the sort of assistance to eastern Europe that the hon. Gentleman has in mind."Within their respective spheres of competence, the Community and the Member States shall co-operate with third countries".
That is perfectly true, but one must differentiate, as the hon. Gentleman did, between competence and co-operation. Anybody can agree about co-operation. Most members of the Committee would accept a statement of co-operation, but there is all the difference in the world between increased competence and co-operation. That distinction must be drawn to hon. Members' attention. My concern is that the treaty proposes a further shift of emphasis from market methods to matters that have little to do with the market.
In an intervention at the beginning of the debate, my right hon. Friend the Minister of State accepted that shift of emphasis. He then said that it was balanced by the issue of subsidiarity. That was the point which I thought he was making.Fortunately, I have my speaking note here. I said not that it was a minor shift but that it represented a significant strengthening of the Community's environmental policies. I did not mention subsidiarity, although article 3b applies across the treaty. I do not want my hon. Friend to be in any doubt about that. It represents a significant strengthening of the Community's environmental policies.
That is fine. At least my right hon. Friend is not making the point that he made in previous debates, when he said that there was no change. On this group of amendments, he is saying that there is significant change. That gives me further cause for concern. His notes may be better than my memory, but I was fairly certain, although Hansard will confirm tomorrow, that he went on to say that the shift was countervailed by questions of subsidiarity. If he did not say it, I have heard others argue that we can afford this shift to centralisation of competence on environmental, health and other matters because it is counteracted by subsidiarity.
Was not it unfortunate that the Minister referred to the "strengthening" of environmental powers? Should not he have said the "extension" of environmental powers? Will he be a little more careful with his language? If we are to make further rapid progress, Ministers must say things as they are. We are talking about not the strengthening but the extension of powers, and there is a big difference.
That is a good point, to which my right hon. Friend will reply if he feels it appropriate to do so.
I wish to say two further things about subsidiarity. First, if the Government feel that they developed a new approach to refining subsidiarity at Edinburgh, should not they include the new concepts and refinements in the terms of the treaty, because the article that currently refers to subsidiarity is acknowledged to be inadequate in legal and other terms? Do they not have a duty, if they feel that they made progress on subsidiarity, to include this matter in the terms of the treaty? Secondly, and more fundamentally in the context of environmental issues, where subsidiarity has been used as a counterpoise to the new trend toward greater centralisation, the Government have a duty to respond more than they have, and to argue carefully why subsidiarity does not mean greater centralisation. Someone will have to explain how or why one view is taken about, for example, the Winchester bypass and another is taken about the EC's involvement in Oxleas wood. It seems that subsidiarity applies differently even within the competence of environmental issues. The question immediately arises, "Who is to determine how subsidiarity is to be applied?" The answer can be found only in the treaty, and the only people to determine such matters are the institutions of the European Community—the court and the Commission. In that case, subsidiarity compounds the trends towards greater centralisation on environmental issues instead of leading to a devolution of power of a balancing of those trends, and the Government should come clean about it. I have not heard anything that counteracts my view. Indeed, the Minister confirmed my worst fears of a shift towards centralisation on matters on which, until a few years ago, it was British policy to say that we were not party to the EC's overall objectives. We have moved so far and so fast, and the Minister has confirmed that the treaty merely exacerbates the process. For that reason, I should have liked the Labour party to press its amendments, because it is on the right track. It is extraordinary that the Labour party has tabled such good amendments, against which it then argues.It might save time later and save the hon. Gentleman making the same speech again, if I say that there is no possibility of the Labour party pressing the amendments, because they would remove from the treaty the very things that it campaigned hardest to get in, to which the Government were most resistant before copping out when they got to Maastricht. The hon. Gentleman should not be so disingenuous as to pretend that the amendments are anything other than pegs on which to hang debates; he is making careful use of them. We are certainly not going to press amendments which would remove from the treaty what we most sincerely want to keep in it.
That sounds as if the Labour party was rather lazy in drafting its amendments: it was not really interested in trying to improve the treaty but merely sought to table large groups of probing amendments. It is a very easy trick, and I have used it myself. One simply copies a chunk of the Bill and tables an amendment, which can be debated. It is a sloppy way of trying to initiate a debate. I might repeat my speech—it depends on how the Labour party performs in the following 20 or so debates resulting from the strange amendments against which they will now argue. I have said enough, and made my point.
May I say en passant—as they might say in the Community—that I am surprised that my hon. Friend the Member for Worcestershire, South (Mr. Spicer) should be so shocked by the device of the probing amendment. In my brief experience of Committee work, it is a standard practice. I am grateful to the hon. Member for Islington, South and Finsbury (Mr. Smith) for having made it clear that these are probing amendments which have given us the opportunity for a debate.
I assume both from the speech by the hon. Member for Islington, South and Finsbury and from the fact that no hon. Members have dwelt for long on it that the health chapter meets with the acquiescence of the Committee. In essence, the amendments would dilute the very positive gains that the treaty represents for the environment. Those gains were commended by the hon. Member for Islington, South and Finsbury and I think that they would be commended by most right hon. and hon. Members. The highest possible level of environmental protection is the very least that our citizens expect. That is what the Maastricht treaty will provide when it is ratified. We would not wish—I am delighted that this is the position of the Opposition, including the Liberal Democrats—to see the important principles established in the treaty removed or compromised.Will the Minister give way?
6.45 am
Not for the moment.
Maastricht maintains the existing objectives of Community environmental policy, and refers to"—preserving, protecting and improving the quality of the environment;
—protecting human health;
It adds a new objective:—Prudent and rational utilization of natural resources".
That recognises the significant contribution that the Community now makes to global environmental issues, such as last summer's conference in Rio. Community environmental policy hitherto has been based on the principle that preventive action should he taken, that environmental damage should be rectified at source and that the polluter should pay. Maastricht builds on those principles, providing for"promoting measures at international level to deal with regional or worldwide environmental problems."
and ensuring that the principle of a high level of protection of the environment is extended from internal market measures to environmental policy generally. Maastricht has also added—the hon. Member for Islington, South and Finsbury welcomed this— the precautionary principle. That wise step will ensure that measures may be taken to avert a potential environmental threat, although there may be some uncertainty concerning the nature of the threat or its effects. The inclusion of the principle means that there has been a shift of emphasis from whether action should be taken to considerations of which measure should be taken and when. A particular concern during the British presidency was to promote the idea of the integration of environmental concerns into other areas of Community policy. Maastricht reinforces the existing commitment under the Single European Act so that environmental protection requirements will no longer simply be a component of other Community policies, but must now be integrated into the definition and implementation of other Community policies. That may, from time to time involve difficult decisions in, for example, balancing economic needs with environmental ones. The treaty represents a major step forward. We are especially keen to see the principle put into practice. We firmly believe that environmental policies must be built into other policies, such as agriculture and transport, if we are to tackle the world's environmental problems effectively. We welcome the extension of qualified majority voting to the majority of items to be adopted under article 130s, as that will allow the European Parliament a greater voice. Unanimous voting by the Council is, however, retained for fiscal measures, for certain land use, planning and water management issues, and for matters affecting a member state's choice between different energy sources and the general structure of its energy supply. That is as it should be. These issues are predominantly national concerns, so it is appropriate that the unanimous voting should be retained."sustainable and non-inflationary growth respecting the environment",
rose in his place and claimed to move, That the Question be now put.
Question put, That the Question be now put:—
The Committee divided: Ayes 209, Noes 12.
Division No. 114]
| [6.48 am
|
AYES
| |
| Adley, Robert | Cope, Rt Hon Sir John |
| Ainsworth, Peter (East Surrey) | Cormack, Patrick |
| Alexander, Richard | Couchman, James |
| Alison, Rt Hon Michael (Selby) | Currie, Mrs Edwina (S D'by'ire) |
| Alton, David | Curry, David (Skipton & Ripon) |
| Amess, David | Davies, Quentin (Stamford) |
| Ancram, Michael | Davis, David (Boothferry) |
| Arnold, Jacques (Gravesham) | Day, Stephen |
| Arnold, Sir Thomas (Hazel Grv) | Deva, Nirj Joseph |
| Atkinson, Peter (Hexham) | Devlin, Tim |
| Baker, Nicholas (Dorset North) | Dickens, Geoffrey |
| Baldry, Tony | Douglas-Hamilton, Lord James |
| Banks, Matthew (Southport) | Dover, Den |
| Bates, Michael | Duncan, Alan |
| Batiste, Spencer | Dunn, Bob |
| Beresford, Sir Paul | Durant, Sir Anthony |
| Booth, Hartley | Emery, Rt Hon Sir Peter |
| Bowden, Andrew | Evans, Jonathan (Brecon) |
| Bowis, John | Evans, Nigel (Ribble Valley) |
| Brandreth, Gyles | Evans, Roger (Monmouth) |
| Brazier, Julian | Evennett, David |
| Bright, Graham | Faber, David |
| Brooke, Rt Hon Peter | Fabricant, Michael |
| Brown, M. (Brigg & Cl'thorpes) | Fenner, Dame Peggy |
| Browning, Mrs. Angela | Forman, Nigel |
| Burt, Alistair | Forsyth, Michael (Stirling) |
| Butler, Peter | Fox, Dr Liam (Woodspring) |
| Carrington, Matthew | Freeman, Roger |
| Channon, Rt Hon Paul | French, Douglas |
| Chaplin, Mrs Judith | Gale, Roger |
| Clappison, James | Gallie, Phil |
| Clarke, Rt Hon Kenneth (Ruclif) | Garel-Jones, Rt Hon Tristan |
| Clifton-Brown, Geoffrey | Garnier, Edward |
| Coe, Sebastian | Gillan, Cheryl |
| Congdon, David | Goodlad, Rt Hon Alastair |
| Coombs, Anthony (Wyre For'st) | Goodson-Wickes, Dr Charles |
| Grant, Sir Anthony (Cambs SW) | Martin, David (Portsmouth S) |
| Greenway, Harry (Ealing N) | Mawhinney, Dr Brian |
| Greenway, John (Ryedale) | Merchant, Piers |
| Grylls, Sir Michael | Milligan, Stephen |
| Hague, William | Mitchell, Andrew (Gedling) |
| Hamilton, Rt Hon Archie (Epsom) | Mitchell, Sir David (Hants NW) |
| Hamilton, Neil (Tatton) | Monro, Sir Hector |
| Hanley, Jeremy | Montgomery, Sir Fergus |
| Hannam, Sir John | Moss, Malcolm |
| Hargreaves, Andrew | Needham, Richard |
| Harris, David | Nelson, Anthony |
| Haselhurst, Alan | Neubert, Sir Michael |
| Hawkins, Nick | Newton, Rt Hon Tony |
| Hayes, Jerry | Nicholls, Patrick |
| Heald, Oliver | Nicholson, David (Taunton) |
| Heathcoat-Amory, David | Oppenheim, Phillip |
| Hendry, Charles | Ottaway, Richard |
| Hicks, Robert | Page, Richard |
| Higgins, Rt Hon Sir Terence L. | Paice, James |
| Hill, James (Southampton Test) | Patnick, Irvine |
| Horam, John | Pattie, Rt Hon Sir Geoffrey |
| Howarth, Alan (Strat'rd-on-A) | Peacock, Mrs Elizabeth |
| Hughes Robert G. (Harrow W) | Pickles, Eric |
| Hunt, Rt Hon David (Wirral W) | Rathbone, Tim |
| Hunter, Andrew | Redwood, John |
| Jack, Michael | Renton, Rt Hon Tim |
| Johnson Smith, Sir Geoffrey | Richards, Rod |
| Jones, Gwilym (Cardiff N) | Robathan, Andrew |
| Jopling, Rt Hon Michael | Roberts, Rt Hon Sir Wyn |
| Kellett-Bowman, Dame Elaine | Robertson, Raymond (Ab'd'n S) |
| Key, Robert | Robinson, Mark (Somerton) |
| Kilfedder, Sir James | Rowe, Andrew (Mid Kent) |
| Kirkhope, Timothy | Rumbold, Rt Hon Dame Angela |
| Knight, Mrs Angela (Erewash) | Ryder, Rt Hon Richard |
| Knight, Greg (Derby N) | Sackville, Tom |
| Knight, Dame Jill (Bir'm E'st'n) | Sainsbury, Rt Hon Tim |
| Knox, David | Scott, Rt Hon Nicholas |
| Kynoch, George (Kincardine) | Shaw, David (Dover) |
| Lait, Mrs Jacqui | Shaw, Sir Giles (Pudsey) |
| Leigh, Edward | Shepherd, Colin (Hereford) |
| Lennox-Boyd, Mark | Sims, Roger |
| Lester, Jim (Broxtowe) | Smith, Sir Dudley (Warwick) |
| Lidington, David | Smith, Tim (Beaconsfield) |
| Lightbown, David | Soames, Nicholas |
| Lilley, Rt Hon Peter | Speed, Sir Keith |
| Lloyd, Peter (Fareham) | Spencer, Sir Derek |
| Luff, Peter | Spicer, Sir James (W Dorset) |
| MacKay, Andrew | Spink, Dr Robert |
| Maclean, David | Spring, Richard |
| McLoughlin, Patrick | Sproat, Iain |
| Madel, David | Squire, Robin (Hornchurch) |
| Maitland, Lady Olga | Stanley, Rt Hon Sir John |
| Malone, Gerald | Steen, Anthony |
| Mans, Keith | Stephen, Michael |
| Marshall, John (Hendon S) | Stern, Michael |
| Streeter, Gary | Wardle, Charles (Bexhill) |
| Sykes, John | Waterson, Nigel |
| Taylor, Ian (Esher) | Wells, Bowen |
| Temple-Morris, Peter | Wheeler, Rt Hon Sir John |
| Thomason, Roy | Whitney, Ray |
| Thompson, Patrick (Norwich N) | Widdecombe, Ann |
| Thornton, Sir Malcolm | Wiggin, Sir Jerry |
| Townsend, Cyril D. (Bexl'yh'th) | Willetts, David |
| Tracey, Richard | Wolfson, Mark |
| Tredinnick, David | Wood, Timothy |
| Trend, Michael | Yeo, Tim |
| Trotter, Neville | |
| Twinn, Dr Ian | Tellers for the Ayes:
|
| Tyler, Paul | Mr. Sydney Chapman and
|
| Viggers, Peter | Mr. James Arbuthnot.
|
| Ward, John |
NOES
| |
| Barnes, Harry | Skinner, Dennis |
| Campbell-Savours, D. N. | Smith, C. (Isl'ton S & F'sbury) |
| Cryer, Bob | Taylor, Sir Teddy (Southend, E) |
| Davies, Rt Hon Denzil (Llanelli) | Thompson, Jack (Wansbeck) |
| Davis, Terry (B'ham, H'dge H'l) | |
| Foster, Derek (B'p Auckland) | Tellers for the Noes:
|
| Robertson, George (Hamilton) | Mr. Nigel Spearing and
|
| Shore, Rt Hon Peter | Mr. Ted Rowlands.
|
Question accordingly agreed to.
Amendment negatived.
Committee report progress; to sit again this day.
Representation Of The People
Ordered,
That the draft Parliamentary Constituencies (Wales) (Miscellaneous Changes) Order 1992, which was laid before this House on 25th November, be approved.— [Mr. Greg Knight.]
Scottish Grand Committee
Ordered,
That in the course of its consideration of the Matter of Local Government Reform in Scotland, the Scottish Grand Committee may meet in Edinburgh on Monday 1st February at half-past Ten o'clock.— [Mr. Greg Knight.]
Consolidation &C, Bills (Joint Committee)
Ordered,
That Mr. Peter Ainsworth, Mr. Kevin Hughes, Mr. Terry Lewis, Mr. David Lidington, Mr. Peter Luff, Mr. Andrew Mackinlay, Estelle Morris, Mr. Richard Tracey and Mr. John Whittingdale be members of the Joint Committee on Consolidation &c., Bills.— [Mr. Greg Knight.]
Water Incidents (Lowermoor)
Motion made, and Question proposed, That this House do now adjourn.— [Mr. Greg Knight.]
7.2 am
I do not think that I have occupied my seat in the Chamber for quite so long as you during the night, Madam Deputy Speaker, but I am delighted to reach this stage, as I am sure you are.
In raising the sad saga of the Lowermoor water treatment works, my purpose is threefold. First, I seek an assurance from the Government—I am delighted to see that the Minister for the Environment and Countryside has arrived, having been summoned by his bleeper—that they will meet their residual responsibility for the actions of what was then a public organisation, the South West water authority. Secondly, I wish to impress on the privatised water company the folly of procrastination when meeting realistic compension claims. Thirdly, I wish to urge immediate attention to a number of lessons of national significance to be learnt from the incident. I wish to make it clear to the House and anyone who may read our proceedings that the water in north Cornwall is now the best-monitored drinking water in the United Kingdom. Anyone who might have any doubts on that score can rest assured that it is a wonderful place for a holiday and in no way a health risk. It is a long time since the incident occurred so I hope that I shall be forgiven for briefly reminding the Minister and the House of what happened. On Wednesday 6 July 1988 at about 4.30 pm, 20 tonnes of aluminium sulphate were mistakenly discharged into the wrong tank at the Lowermoor treatment works in north Cornwall by a relief driver. Within a matter of hours, 20,000 people, from Crackington in the north to the Camel estuary further west, were receiving poisoned drinking water. However, the water company responded with confusion and complacency, partly because of a previous pump failure and partly because of obsessive concern to minimise bad publicity. Hon. Members will recall that this took place during the run-up to privatisation. I quote an extract from the Lawrence report, commissioned by the authority itself:Referring to the lack of information, he continues:"On Friday 8 July it was finally discovered that the incident was the result of the misdelivery of aluminium sulphate. Some of the staff were clearer about the implications but, on the evidence given to me by the public, information given out by different individuals in the Fowey District, in Exeter, and through the media continued to be confusing and contradictory".
These criticisms applied not just to the first two days after the incident but to the next two months. Misleading advice on the extent of the problem and its likely health effects, and on sensible precautions, was given out. During this period residents at the extremities of the network were never even told that they could be affected by the incident or that their supply was part of the system fed by Lowermoor. Not surprisingly, when those residents began to experience the same inexplicable symptoms, they could not understand what had happened. The symptoms were often exacerbated by the flushing of the mains which continued for many weeks, dislodging both chemicals and metals. The Lawrence report went on:"I have observed two reasons why this was not done. No manager took charge in the way implied and there seems to be a culture in which the public are told as little as possible and expected to trust the authority to look after their interests."
They were not. It was only on 5 November 1991, three years later, that the then Minister at the Department of Health sent a letter to all households in the whole area of the Lowermoor water distribution system, in which, speaking of the Clayton report, he said:"A general statement about the problem having been aluminium sulphate was published by the Authority on 22 July. Amongst the contradictory advice that was given was the opinion that the water was safe. At the time data on toxicity had not been checked. Advice should have been given on what was known on the basis of the monitoring that was by then being done. But it is obvious that for a long time there would be contaminated water in the byways of the system and in such places as the tanks of holiday homes. Precautions should always have been advised."
In my contention the original incident was a terrible failure, but the failure to explain, inform and warn was worse. The confusion, contradictions and cover-up were despicable and deplorable. We are approaching the fifth anniversary of this regrettable incident and still South West Water has not settled the majority of major claims. It has settled a large number of minor claims with what many regard as derisory sums, but the big claims are still outstanding. The company's claims to have achieved great benefits for the community are belied by the evidence from many of my constituents. Yesterday I received a letter from a couple to whom, for obvious reasons, I shall refer as Mr. and Mrs. M:"The report concludes: 'We do not expect lasting physical harm from the toxicity of the contaminated water itself … We still have no doubt that the accident itself and subsequent events have led to real mental and physical suffering in the community."
From meeting them, I know that that was all too often the experience of those who suffered in the incident. That is confirmed by one of the solicitors who has been acting on behalf of many of the claimants. In the past few days he has written:"The truth is that they have been settled solely for the reason that the large numbers of persons involved did not have the funds to carry on the very just fight, were not eligible for legal aid by only a slight margin or were so tired, frustrated and worried by the amount of legal bumpf that was being presented to them, a lot of which they were unable to understand, that they decided to take the pittance they were offered and continue to suffer."
The same solicitor demonstrates all too clearly the pettifogging attitude of the water company when he writes:"One of the interesting features about the cases is the enormous number of people suffering from anxiety and stress. I have arranged for approximately two thirds of my clients to be examined for anxiety and stress and every report confirms that they are suffering from such symptoms. The general conclusion of the reports is that people have suffered from a threatening event for which no adequate explanation was given at the time nor has any adequate explanation been given since … The anxiety and stress of the claimants is being compounded by the litigation itself which is taking a considerable length of time. This is particularly because of what I see as the obstructive attitude of the solicitors acting for South West Water and also because the case itself is unique which means that a considerable amount of additional work needs to be undertaken before the cases can be brought before the court."
Another firm of solicitors acting on behalf of 170 plaintiffs—there are upwards of 200 in all—writes:"in the light of the comments by South West Water that they are anxious to settle cases, it does seem rather odd that their solicitors should appear to be taking the opposite point of view. As an example, only last week, South West Water's solicitors wrote to say that they were not prepared to accept medical reports from GPs in support of clients' claims and were insisting that there had to be reports from consultants. Obviously while this is not a problem so far as those people who are legally aided are concerned, it does present a problem for people who are not legally aided because then they have to fund the costs of further medical reports."
The letter explains the legal process that has taken place and states:"Many of the Plaintiffs suffered short term acute symptoms such as vomiting, diarrhoea, mouth and skin ulcers and nausea. In addition, many of them have developed long term problems such as aching in their joints, poor concentration and lack of judgment. Understandably, many of the Plaintiffs have felt extreme anxiety about the pollution incident itself and their subsequent poor health."
All that is greatly at variance with repeated assurances in the press and elsewhere by the directors of the company that they are seeking an early settlement of all liabilities. On 16 November 1992, no less a person than the Master of the Rolls said in the Court of Appeal:"the Defendants formally admitted that they were liable in damages but only for short term acute symptoms proven to be caused by exposure to the water and in respect of which they accepted damages should be payable. However, the Defendants disputed, and continue to dispute, that the pollution incident could have given rise to any longer term health problems and insist that the Plaintiffs establish the link between the contamination and the alleged long term symptoms."
I say, "Hear, hear" to that. 1 shall give a tiny sample from the shoal of letters, notes and interviews that I have had. Mr. A, a salesman, who used to drive 50,000 miles a year on business, found that because of memory loss he simply could not do that. He found himself driving on the wrong side of the road, he could not remember whether he had stopped at traffic lights, he cannot remember where he is and he sometimes forgot to charge his customers. Ms C was off work for 18 months and, after many hospital tests, including two bone biopsies, has had so much time off work that her employment is now under review. Perhaps the most significant example is Mr. G whose personality has completely changed. His business has declined, he has lost his motivation, and the business is now in serious trouble. His grandchildren have gone from calling him Gramps to calling him Grumps. I could refer to others, but I wish to make progress and allow the Minister as much time as possible. The interesting point about so many of the examples is that the sufferers are able to quantify the effect of health deterioration in terms of employment, their businesses or direct financial consequences. However, the company still says that it is not prepared to entertain what it calls "pure economic loss." The legal adviser says that this is not recoverable as a matter of law. There are a number of questions. First and foremost, the Government having refused a public inquiry, despite requests from all parties and a huge number of residents, when they could have dissolved uncertainty and suspicion once and for all, we must ask what they are doing now to ensure that their citizens are receiving redress. There does not seem to be a citizens charter for those who are poisoned by the public water supply. Secondly, given the sorry saga of lack of information, and the fact that the Departments of the Environment and of Health never explained what had happened, what steps have been taken to prevent a repetition? Thirdly, the drinking water inspectorate, which, in the Conan Doyle phrase, was the dog that did not bark in the night, is shown up by the incident to be a toothless watchdog. The fish in the river are better protected by the National Rivers Authority than we poor human consumers. Fourthly, what about compensation claims? The whole legal process—the gladiatorial contest; the adversarial system—is inadequate in such circumstances. Wealthy institutions can grind down the individual citizen over years of expensive litigation. There must be a better way. Would not payment into court of an agreed minimum amount at the outset be more acceptable? Perhaps something along the lines of the industrial tribunal would be a better forum for such discussions. Does the Minister believe that this could ever have happened while the water industry was still publicly accountable, and could it happen again now? Now that it is in private hands, such an incident would be even worse. It is alarming that there is even less control of the industry than there was when the accident happened. Those of us who lived through the incident and now see the way in which the company is wriggling believes that its lawyers, insurers and directors are as slippery as eels. It is time that the Government pinned them down."The defendants having admitted liability, the parties wish to settle but cannot do so while they continue to differ on the appropriate measure of damage. It is desirable that they should be guided on the appropriate measure to facilitate the negotiation of early settlements … Both cost and delay are better avoided."
7.17 am
The incident that occurred at the Lowermoor water treatment works on 6 July 1988 has given rise to a great deal of public concern, and attracted considerable media attention. It continues to do so four and a half years after it took place. It is noticeable that as well as the hon. Member for North Cornwall (Mr. Tyler), my hon. Friend the Member for St. Ives (Mr. Harris) is here.
Initially, concern centred on how the mistake could have been allowed to happen, and the speed and accuracy with which information was communicated to the public. I think that all agreed—and indeed the then South West water authority accepted—that the incident should not have occurred. However when it did, it would have been sensible to provide the best information to the public as quickly as possible. Following any such incident, consumers must know that the problem is being rectified and that their interests and safety are considered paramount. Such information will help to restore that vital ingredient—confidence—in the quality of their water supply. This was one of the lessons of Lowermoor, to which I will return. I start by saying a few words about responsibilities, and how they have changed considerably following Lowermoor and privatisation. Before privatisation and the Water Act 1989, the regional water authorities in England and Wales were the main bodies responsible for water supply. Local authorities ascertained the sufficiency and wholesomeness of that water, but it was not a criminal offence to supply water unfit for consumption and any dispute about the insufficiency or unwholesomeness of supplies was determined by the Secretary of State. The Lowermoor incident occurred in 1988, but the case against the South West water authority did not come to court until December 1990, after privatisation. Thus it was the residuary water authority which was charged with the common law offence of causing nuisance by supplying, without warning, water liable to endanger public health or comfort, and also for causing poisonous matter to enter the River Camel. The prosecution was undertaken by the Director of Public Prosecutions after investigation by the Devon and Cornwall constabulary. The residuary water authority was found guilty of causing nuisance, but not guilty of causing poisonous matters to enter controlled waters. The judge made it clear that the authority was not answerable for the act of putting aluminium sulphate into the wrong tank. Responsibilities are different today. There is a parallel in that the Water Act 1989 put a duty on the Secretary of State to take enforcement action against a water company that fails to supply wholesome water. And local authorities are still required to keep themselves informed about the supply situation in their area and liaise with the water company if they suspect something is wrong. But for the first time, the 1989 Act made it a criminal offence to supply water that is unfit for humans to drink. Regulations made under the Act set strict standards for drinking water quality and a new and active drinking water inspectorate has been created. That dog did not bark, as it was not even conceived in 1988. The inspectorate has since been created. It ensures that companies are complying with regulatory requirements and checks that they have proper procedures in place for dealing with all types of incident or emergency. If a water contamination incident should occur now, the enforcement bodies that would undertake any prosecution would be either the drinking water inspectorate, acting on behalf of the Secretary of State, or the National Rivers Authority. But I consider that, following the steps that the water companies and Government have taken, which I shall be describing, an incident like the one in 1988 at Lowermoor is most unlikely to recur. If, nevertheless, a similar type of incident were to occur now, the water company concerned would be under an obligation to inform the Secretary of State as soon as possible, and in writing within 72 hours, of any significant drinking water health risks or matters of national importance or consumer concern. When the Secretary of State is notified of an incident, the company is required to include details of the event and its cause, an assessment of the effect, the action taken, the persons notified and any press notice. Within one month a full report must be provided, giving details of the results of water sampling and an assessment of action already taken or proposed. The company must provide copies of reports and advice in support, for example from its medical advisers. Acting on behalf of the Secretary of State, the drinking water inspectorate would consider whether a breach of the water quality regulations had occurred and in particular whether it appeared that water unfit for human consumption had been supplied. The inspectorate would take into account the quality of the water supplied, whether any illness resulted and whether the company had acted with due diligence and taken all reasonable steps to prevent the supply of unfit water. It would then advise the Secretary of State whether to prosecute the company. The drinking water inspectorate may also decide to disseminate information about the lessons learnt, so that all water companies—not only those directly concerned—can make the changes that seem to be necessary in the light of experience. Of course, the companies have duties and responsibilities immediately an incident happens. These have been set out clearly in the regulations and in guidance published by my Department and the Welsh Office. Water companies must take all reasonable steps to restore the supply of wholesome water, and they must advise customers quickly and appropriately if water is unsuitable for consumption, or whether it should be boiled if that would make it safe, or whatever. If necessary, action must be taken to supply potable water by tanker or other means, paying particular attention to the needs of special groups such as kidney dialysis patients and bottle-fed babies. I started by mentioning that one effect of the Lowermoor incident was to highlight the importance of good communications between those responsible for supply and the local and district health authorities. So now, under our current regulations, companies must notify local authorities and district health authorities as soon as possible of any event that gives rise, or is likely to give rise, to a significant health risk to the community in those authorities' areas. That is an important provision which is now enforceable by the Secretary of State. Various inquiries and investigations have taken place since the Lowermoor incident. They are well known, so I shall refer to them only briefly. First, the South West water authority commissioned Dr. John Lawrence, director of ICI's Brixham laboratory and non-executive director of the water authority, to investigate the circumstances surrounding the incident. Dr. Lawrence identified a number of management and systems failures and his criticisms were accepted by the water authority. His report was published a month after the incident in August 1988. In the light of the Lawrence report, the then Secretary of State asked all water utilities to carry out a thorough review of their management and operating procedures at water treatment works, especially unmanned installations. My right hon. and learned Friend the Member for Folkestone and Hythe (Mr. Howard), then Minister of State, reported to the House in April 1989 that a number of improvements had been made to procedures in the water industry following the Lowermoor incident. Those improvements covered such matters as waterworks site security, procedures for receiving chemicals at works, remote monitoring of the final treated water, internal reporting arrangements for incidents, and emergency procedures including liaison with all those concerned with public health issues. Following continuing public concern, the then Parliamentary Under-Secretary of State for Health established the Lowermoor incident heath advisory committee, headed by Dame Barbara Clayton, to inquire into the public health implications of the incident and to advise the Cornwall and Isles of Scilly district health authority. That group was staffed by acknowledged and independent experts in the areas of pathology, the health effects of aluminium, epidemiology and water quality. The group has produced two reports. In July 1989, it found that it was not possible to attribute the very real health complaints to the toxic effect of the incident, except as a consequence of people's anxiety. It concluded that much of that anxiety was attributable to the press prominence given to alarmist statements for which there was no scientific evidence. The group made a number of recommendations regarding management and communications to the public in the event of any such incidents. Those have been taken on board by the companies as standard procedures and, where appropriate, incorporated into regulations. A further important recommendation was to set up an expert organisation to provide directors of public health with authoritative medical and toxicological advice. As a result, the formation of the independent health advisory group on chemical contamination incidents, under the chairmanship of Professor Sir Eric Stroud, was announced in October 1990. The second report of the reconvened Clayton group in November 1991 followed up on complaints by residents of the Lowermoor area that their health had suffered as a result of the incident. The group concluded:It continued:"The research reported to us does not provide convincing evidence that harmful accumulation of aluminium has occurred, nor that there is a greater prevalence of ill-health due to toxic effects of the water in the exposed population".
As a result of that concern, the Cornwall and Isles of Scilly district health authority will continue to monitor the general health of people in the area. The Government welcomed the second report of the Lowermoor incident health advisory group and everyone with an interest in the consequences of the incident has reason to be grateful to Professor Dame Barbara Clayton and the members of the group for producing such a thorough and authoritative report. As a result of the Lowermoor incident, civil claims have been made by some 700 people. The Water Act 1989 made the privatised water companies responsible for any residual civil liabilities of the old regional water authorities. In consequence, those claims are against South West Water. I was pleased to learn that the majority of them have been settled, but about 170 are left outstanding. In respect of the outstanding claims, I understand that South West Water has made payments into court calculated on the basis of short-term symptoms that have been substantiated. However, there are those who claim damages for not only short-term symptoms but long-term symptoms such as loss of memory and for aggravated and exemplary damages. They are pursuing their claims together, through their solicitors, as a class action. I feel sure that the hon. Member shares South West Water's concern that those outstanding claims should be resolved as soon as possible—although he has been sceptical about its claims in that regard. However, I stress that those matters are for the parties and the courts to decide. A legal case is in progress, and neither the Government nor I have any locus in those matters. In summary and conclusion, the investigations, reviews and reports that I described amply demonstrate that both the South West water authority and the Government treated the incident very seriously indeed. My Department, including the drinking water inspectorate, and the Department of Health are satisfied that appropriate action has been taken in the light of the independent reports of experts to ensure that the lessons of Lowermoor have been learnt. Moreover, legislation has been framed to ensure that if incidents nevertheless occur, all parties are in a position to react quickly and effectively."We still have no doubt that the accident itself and subsequent events have led to real mental and physical suffering in the community. We emphasise that we do not believe that people in the Lowermoor area are imagining symptoms. The physical problems associated with all the worry and concern and the psychological harm could last for a long time for some people. Such a situation is well recognised following major accidents".
Question put and agreed to.
Adjourned accordingly at twenty-nine minutes to Eight o'clock.