§ 16. Mr. Maurice Macmillanasked the Minister of Social Security what study she has made of whether Article 101 of the Treaty of Rome would enable the European Commission to enforce the harmonisation of social security systems with the European Economic Community; and if she will make a statement.
§ Miss HerbisonArticle 101 was taken into consideration together with all other relevant provisions of the Treaty of Rome in our studies of its social security implications. The Article gives the Commission no direct power to enforce the harmonisation of social security systems; decisions under this Article rest with the Council.
§ Mr. MacmillanWhat consideration has been given to the fact that in the United Kingdom the main burden of the social security finance falls on the taxpayer while in the E.E.C. it is on the employer and hence on goods? Will this, in her view, lead to an indication of a decision by the Commission that this could interfere with competition, to use the words of Article 101?
§ Miss HerbisonI do not think so, because I understand that in Germany in 1964 the scheme of family allowances was transferred from employer-financing to Exchequer-financing and nothing at all was done at that time by the Council.