§ Q3. Mr. Watkinsonasked the Prime Minister when he proposes next to meet Heads of Government in the EEC.
§ The Prime MinisterI met some of my EEC colleagues at the meeting of European Social Democratic Parties that ended in Copenhagen yesterday, Sir. The next meeting of the European Council will probably take place in late February or early March. In the meantime, I shall be seeing the Federal German Chancellor on 7th February and the Netherlands Prime Minister on 16th February, on their visits to London.
§ Mr. WatkinsonWhen my right hon. Friend sees the German Chancellor will he discuss with him the possibility of reflating the European economies? This has been a keynote of Government policy over the past few months. Does he see any hopeful signs, and will he encourage our Continental neighbours to expand and reflate their economies?
§ The Prime MinisterWhen I opened the debate on this mater in Copenhagen yesterday I dealt with these questions in relation not only to Europe but to the United States, Japan, and so on, as was done at Rambouillet. The statement that we made has been issued to the Press and placed in the Library, and if my hon. Friend has any points to raise arising out of it perhaps he will table them to me as Questions.
§ Mr. ChurchillWill the Prime Minister explain how it is that the country of which he is Prime Minister has, apart from the Irish Republic, the highest level of unemployment among the countries of the EEC? Is this not a cruel deception on the people whom he sought to persuade to vote for his party in February 1974 with the slogan
Back to work with Labour"?The rate of unemployment in the North-West has doubled since 1974.
§ The Prime MinisterAt the time of that General Election well over 2 million people were unemployed as a result of the then Conservative Government's confrontation. [Interruption.] There are not 4 million unemployed today. We discussed these matters in the EEC and again yesterday. This problem also hits advanced countries in the world. It hits this country particularly hard, because of the fact that for very long periods previously we have had totally inadequate industrial investment.
§ Mr. Donald StewartWhen next the Prime Minister meets the Heads of EEC Governments, will he undertake to raise with them the question of the common fisheries policy, in view of M. Lardinois' statement that it is not being renegotiated at present, which contradicts ministerial assurances given to the House?
§ The Prime MinisterYes, Sir. The hon. Gentleman will be aware of the fact that my right hon. Friend the Minister 1134 of Agriculture, Fisheries and Food has been pressing this matter very hard in Europe. There is much progress still to be made. The hon. Gentleman will be aware that even though Iceland is not a member of the EEC, there is a particularly urgent problem affecting fisheries, on which there will be a statement later this afternoon.
§ Mr. FernyhoughWhen my right hon. Friend meets the Heads of Government of the EEC, will he discuss with them the great contribution that they are making to our very serious balance of payments problem? Is he aware that from the time when we entered the Common Market our balance of trade deficit with the rest of the EEC has grown year by year, until this year the deficit with the EEC is greater than the overall deficit? Will he discuss with the Heads of Government how they might take more of our goods and thus provide more employment for our people, as we are buying from them commodities at prices that are higher than those that we could obtain from other countries were we not in the Common Market?
§ The Prime MinisterMy right hon. Friend, who always looks on the bright side of things, will have noticed from what I earlier that our overall balance of payments deficit last year was less than half what it was in the previous year. I think that that is a remarkable achievement. [Interruption.] Our balance of payments deficit last year was half of what is was the previous year, and less than it was when the Conservative Party was responsible, even though oil price rises had not then hit us. We have now a surplus on normal trade and we are covering part of the oil deficit. I am sure that my right hon. Friend will be delighted about that, and that he could not contemplate what the deficit would have been if the Conservative Party had been in power.
§ Mr. PriorWhen the right hon. Gentleman discusses matters of employment with the Heads of Government of the EEC, how will he reconcile the statement that he made on 9th October 1974—that unemployment was falling—with the remarks that he made this afternoon, and presumably to EEC leaders, about the problems of unemployment and inflation being with us long before October 1135 1974? Was it that he tells the truth now and told us something rather different during the General Election campaign?
§ The Prime MinisterWhat I said was that our vulnerability was greater than that of other countries because of what we had been left with by the Conservative Party. That is certainly true. During the period when our exports were improving, unemployment was holding fairly steady, but once the world depression arising from oil price rises hit the whole world, we were very vulnerable to it as a result of what we inherited.
§ Mr. HefferDoes my right hon. Friend recall the posters that were put up during the referendum campaign by the Common Market supporters— posters that said "Jobs for the boys"? Does that not look somewhat sick at this moment, when unemployment is growing at a much more rapid pace than we have known for a long time? Does my right hon. Friend agree that trying to seek solutions in the Common Market, or hiding behind the fact that the capitalist system in Western Europe is collapsing, is not the answer for a Socialist Government, who ought to begin to put into effect Socialist policies to deal with rapidly rising unemployment, beginning with import controls and the control of the export of capital abroad, and a general reflation to ensure that our people obtain employment?
§ The Prime MinisterMy hon. Friend sometimes underrates the importance of this country as an exporter. He certainly underrates the achievements of this country in exports over the last year or two, when, for the first time, we have stopped the rot, in terms of the decline in world trade which our exports represent. I am not responsible for any posters that were put up during the referendum campaign. I did not put up a single poster. I made a number of speeches, and I stand by them. My hon. Friend suggests that the rise in unemployment coincided with the referendum result and the months afterwards, but he must sometimes ask himself—indeed, he used to do so at one time—what would have been the consequent unemployment if the referendum result had gone the other way.
§ Mr. HefferWhat about these figures now?
§ The Prime MinisterIn my view—[Interruption.] Sweden? When I discussed this with the Prime Minister of Sweden yesterday, he was able to point out—[Interruption.] I was asked about Sweden. The Swedish Prime Minister was able to point out that there is a very large—
§ Mr. SkinnerSave the steel jobs.
§ The Prime Minister—thriving, high-priced market for Sweden's principal products—forestry products—timber, pulp and paper.
However, I say finally in regard to my hon. Friend's question, in which he said that we should not seek solutions solely in Europe, that he knows that we are not doing that. He knows, for example—[Interruption.] When the extremists on both sides have finished their laughing, I shall finish the answer. We are not seeking the solution solely within Europe. The Rambouillet Summit included the six leading industrial nations, covering three continents. My hon. Friend will know of the conference that we had with the Commonwealth, and our proposals there. He is totally wrong in saying that we are seeking a solution solely within Europe. But if we try to seek a solution without Europe, we shall not find one.
§ Mr. SpeakerOrder. I have a short statement to make to the House.