HC Deb 05 April 1971 vol 815 cc10-4
12. Mr. Grylls

asked the Secretary of State for Trade and Industry whether he will make a statement about the prospects for British industry in the event of Great Britain's entry to the European Economic Community on the acceptable terms now envisaged.

Mr. John Davies

Provided we can get terms which will allow us to take full advantage of the opportunities offered, I am confident that British industry will benefit from the wider home market and the scope for specialisation and economies of scale.

Mr. Grylls

I thank my right hon. Friend for that answer. Would he continue to point out to industry the very good opportunities to which he has drawn attention in his answer?

Mr. Davies

Yes; my Department is continually in contact with industry and we discuss these matters. My hon. Friend should not imagine that industry is lethargic in coming forward. On the contrary, it is studying its own possibilities with great attention.

Mrs. Renée Short

Is the right hon. Gentleman aware that more and more people on both sides of industry are becoming more and more aware of the grave disadvantages to Britain of entry to the Common Market? Is he further aware that his right hon. Friend's announcement—or threat, I should call it—of a value-added tax to prepare us for entry will bear heavily on everybody?

Mr. Davies

I cannot say that my inquiries at all confirm that industry more and more regards membership of the Community as a grave disadvantage. Quite the contrary: it is simply not the case. I keep carefully in contact with industry on the subject. Equally, it would be wrong to imagine that, at least among the industrial community, the effect of V.A.T. is regarded as a disadvantage.

Mr. Biffen

Without being drawn into the merits or otherwise of British membership of the E.E.C., could my right hon. Friend arrange for either an edition of the Board of Trade Journal or a supplement to it to be published, listing all the Community regulations which would have to be adhered to by British industrialists were we now to join the Common Market, since this has considerable consequences for individual industries like footwear and brewing?

Mr. Davies

I am, of course, very well aware that there are many regulations which would have to be introduced here, but it would be unwise to list these at the moment until the negotiation has been completed and we see exactly what the requirement upon us is. But I will consider doing so, as my hon. Friend suggests.

Mr. Dell

Is the right hon. Gentleman aware that grants are being increasingly used in aid of investment in E.E.C. countries? What would be the effect of this on the competitiveness of British industry, taking into account the fact that the Secretary of State has withdrawn investment grants in this country?

Mr. Davies

My own belief is that the system which we have devised will in due course produce a very effective basis and will be an incentive for British industry to invest. I do not think that the introduction or reintroduction of grants in any substantial form would add materially to that incentive.

13. Mr. Grylls

asked the Secretary of State for Trade and Industry when he proposes to discuss with the Trades Union Congress the effect of Great Britain's entry into the European Economic Community on the terms so far envisaged.

Mr. John Davies

If the T.U.C. wishes to hold a meeting with me on the subject, I would be very willing to see it.

Mr. Grylls

Would my right hon. Friend not agree that, on past experience, certainly the employment and wages prospects within the Common Market are very advantageous?

Mr. Davies

There is no doubt that the evidence during the life of the Common Market is that both real wages and employment prospects have been greatly improved within the Community. I entirely assent to that.

Mr. Molloy

But if the right hon. Gentleman is in favour of entering the Common Market, why is he attacking the steel industry and dealing it what could be a very serious blow, even before negotiations are completed? Could he explain his behaviour on this aspect?

Mr. Davies

I do not think that that question really arises in this context, but in any case, I shall, with your permission Mr. Speaker, be answering a Private Notice Question on the steel industry later in the day.

27. Mr. Hornby

asked the Secretary of State for Trade and Industry what recent consultations he has had with the Confederation of British Industry about the progress of negotiations for entry into the European Economic Community.

Mr. John Davies

My Department has regular contact with the C.B.I., and all aspects of the approach to Europe are discussed.

Mr. Hornby

Can my right hon. Friend confirm whether it is still the view of the C.B.I., representing a great many interests of employees and shareholders in very many businesses, that the advantages of those concerned would be very much served if successful entry into the Economic Community can be achieved?

Mr. Davies

Yes, I can confirm that to be the case. The C.B.I. has said that the substantial balance of advantage, as seen by many, would be for membership of the Community.

Mr. Leadbitter

When will the Secretary of State indicate when his Department or the Government will consult the Trades Union Congress? When will the Government or his Department discuss this matter with the many organisations in this country representing serious points of view on the subject? When will the Government consult the people?

Mr. Davies

There was an earlier Question on this subject which I answered specifically about the T.U.C. I should be pleased to consult the T.U.C. at any time that it wished. I would simply mention to the hon. Gentleman that the T.U.C. has made its views on membership of the Community well known. One is not in ignorance of them.

28. Mr. Hornby

asked the Secretary of State for Trade and Industry what are his latest estimates of the effect on the growth of investment in industry in the United Kingdom which would be likely to result from Great Britain's entry into the European Economic Community.

Mr. John Davies

The effect would depend upon industry's response to the opportunities that membership of the E.E.C. would offer. Industry generally welcomes the prospect of Britain joining the Community.

Mr. Hornby

Is it not true that investment from overseas sources has eased off very considerably in this country since we failed on the last occasion to get into the Common Market? Is it not also true that if investment prospects from this and other quarters improved, the prospects for future increases in employment in this country would be greatly improved and eased?

Mr. Davies

I cannot confirm that statistics bear out that inwards investment has materially abated. But, equally, I have no doubt that membership of the Community would stimulate inward investment considerably and would create employment opportunities in this country.