HC Deb 02 December 1971 vol 827 cc643-6
Q1. Mr. David Stoddart

asked the Prime Minister whether he will seek to convene a meeting of heads of Government to seek agreement in principle for intergovernmental action to supervise the activities of multinational and international companies.

The Prime Minister (Mr. Edward Heath)

I see no need for such a meeting of Heads of Government. Her Majesty's Government are, however, represented on a Working Party of the Organisation for Economic Co-operation and Development in which member countries exchange information on their policies towards multinational companies.

Mr. Stoddart

Is the Prime Minister aware that that is a most unsatisfactory answer? Is he further aware that his complacency on this and on other matters frightens many of us—[HON. MEMBERS: "Reading!"] Well, the Prime Minister was reading, was he not? Does the Prime Minister not agree that these organisations, which recognise no rôle other than that of maximising profits, represent one of the greatest social evils of the present day and have already been responsible for factory closures and widespread unemployment—[HON. MEMBERS: "Too long."]—and that their activities in under-developed countries have viciously exploited the poor and unorganised people in those areas? Will he not reconsider—

Mr. Speaker

Order. The Prime Minister.

The Prime Minister

The hon. Gentleman made a series of unsubstantiated allegations which are completely unjustified. This is an important and, for some of us, an extremely interesting subject, but it is ridiculous for the hon. Gentleman to make the wide statement that these international companies know no laws. Many areas of this country, especially those which suffer from heavy unemployment, owe a great deal to foreign investment. They will not be encouraged by the hon. Gentleman's attitude. Similarly, the invisible exports of this country benefit very much from our own international companies based here. This has a tremendous effect on our balance of payments, for which the hon. Gentleman should be grateful.

Mr. Tapsell

While we on this side of the House would wish to dissociate ourselves from the irresponsible remarks of the hon. Member for Swindon (Mr. David Stoddart), will my right hon. Friend accept that there is a real problem here which is of crucial importance to international trade and the level of our prosperity and employment? Is my right hon. Friend aware that, particularly in the operations in the Eurodollar market, some of these great international companies have more influence than any decision made by central banks and that some degree of control by Governments over this market is overdue?

The Prime Minister

I am prepared to examine any problem arising out of the existence of great international companies. This is the reason that the O.E.C.D. Working Party has been set up and for our being represented on it. The matter to which my hon. Friend refers is one aspect of the leads and lags in international trade. It is obvious that any company with great trading income and capital assets is able more than others to influence international movements of currency. But this is not a matter where Governments usually exercise control over companies of any kind. Every Government knows the problems of dealing with leads and lags. This is one aspect of that problem.

Mr. Thorpe

Is the Prime Minister aware—

An Hon. Member

Why is the right hon. Gentleman not in his usual place?

Mr. Thorpe

Discounting any geographical positioning in which temporarily I may find myself, is the right hon. Gentleman aware that the complexities of international corporations are the sort of problem which we shall be able to tackle more effectively on a multinational basis when we are members of the enlarged European Community?

The Prime Minister

I very much agree with the remarks of the apparently former Leader of the Liberal Party. It is also true that entry will immediately bring us into the area of European company law through which we shall be able to deal with European international companies.

Later—

Mr. Stoddart

On a point of order, Mr. Speaker. I wish to give notice that, in view of the unsatisfactory nature of the reply given to my Question No. I to the Prime Minister, I shall seek to raise the matter on the Adjournment—

Mr. Speaker

Even had that intimation had any real significance, it is too late.