HC Deb 08 May 1973 vol 856 cc197-9
Ql. Mr. Ridley

asked the Prime Minister if he will propose to the Heads of the Governments of the European Economic Community that all State aids to industry should be replaced by funds from the Community, allocated on the basis of a Community policy designed to put subvention to companies, industries and regions on a European basis.

The Prime Minister (Mr. Edward Heath)

The Community's policy on State aids for the regions will be determined this year in the course of implementing the regional policy objectives agreed at the summit meeting last October. The remainder of the area covered by my hon. Friend's Question is governed by the competition provisions of the Treaty of Rome.

Mr. Ridley

Would that be a worthwhile European initiative which the British Government could take which would lead to much fairer industrial competition throughout the whole of the Common Market and which would perhaps go some way to correct the impression which is gaining strength on the Continent that?nous ne sommes ici que pour la bière?

The Prime Minister

We took the initiative at the summit as far as regional policy was concerned. I think that the other Heads of Government would agree that it was because of the action which we took in preparation for the summit that the objective was included in the communique. The Commission has now been working on this matter. The Commissioner responsible, a former Member of this House, has produced the initial proposals. These are now being examined by the other Governments. This is the initiative which my hon. Friend wanted.

Mr. Benn

Will the Prime Minister assure the House that there is no link between regional support, and the proposals brought forward by Mr. Thomson, and British membership of the economic and monetary union that might prevent the British float from continuing, thus endangering the growth of the economy?

The Prime Minister

I have always emphasised, and I did so at the summit, that there is a direct link. However, I think that it is the reverse of what the right hon. Gentleman has in mind. The direct link is that it is not possible to move to a satisfactory position vis-à-vis economic and monetary union unless one has a satisfactory regional policy which will allow a proper balance to be created throughout the whole of the Community on the basis of which economic and monetary union could work.

Mr. Rost

If the Labour Party is interested in more regional aid through Europe, why is it that only the hon. and learned Member for Lincoln (Mr. Taverne) represents that party? Even the hon. and learned Member for Lincoln has had his path blocked in an underhand way by the Leader of the Opposition.

The Prime Minister

I am not sure that the Leader of the Opposition would entirely agree with my hon. Friend's premise.

Mr. Fernyhough

Can the Prime Minister assure us that, whatever conclusions the Commission may arrive at, the needs of the development areas will continue to be met by the Government until unemployment in those areas is substantially brought down?

The Prime Minister

It is in the interests of these areas that we should have a Community policy which meets their needs. That will be the objective of Her Majesty's Government in working out a policy for the Community as a whole with the Commissioner responsible and in the Council of Ministers.