HC Deb 27 February 1975 vol 887 cc680-1
6. Mr. Townsend

asked the Chancellor of the Exchequer when he next intends to meet the other Finance Ministers of the EEC.

The Chancellor of the Exchequer (Mr. Denis Healey)

The next meeting of the Council of Ministers (Finance) will be on 18th March.

Mr. Townsend

Will the Chancellor confirm that it was the backing provided through our membership of the EEC that enabled him to persuade the IMF to adopt his scheme for recycling petrodollars? Is not this a classic example of the reason why we should remain in the EEC if we are to have an important influence over world events?

Mr. Healey

The agreements reached in Washington were due to prior agreement among European Finance Ministers, but I am glad to say that the Finance Ministers of European countries outside the EEC also adhered to our common policy. This is a lesson which proves what can be achieved by European unity in seeking co-operation on urgent matters of practical interest where the Governments concerned recognise the need for a collective policy. I found the same situation in the Eurogroup when Britain was outside the EEC and I was Secretary of State for Defence.

Mr. Skinner

Will my right hon. Friend draw to the attention of the EEC Finance Ministers and any other financial experts the fact that the continuing use of tax havens, particularly the Channel Islands, has now developed to such an extent that already, even before the petroleum revenue tax has been introduced, oil companies are registering in Jersey? I have the names of the companies, and possibly my right hon. Friend has some, too. Surely this means that the expected revenue from PRT, which I regard as derisory, will be even less as a result of these activities. The matter needs to be dealt with immediately.

Mr. Healey

If I can remember everything that my hon. Friend said I will draw the attention of my colleagues to it. As for the use of the Channel Islands and other islands in the world as tax havens, my hon. Friend will be aware that I closed most of those loopholes—where they were open to British residents—in last year's Finance Bill. I am glad to say that the capital transfer tax will apply as much to the Channel Islands as to anywhere else in the United Kingdom.