Multinational Companies

HC Deb 12 December 1977 vol 941 cc28-9

32. Mr. Edwin Wainwright

asked the Secretary of State for Industry if he will raise in the Council of Ministers of the EEC the problem of the economic power of multinational companies, and its conflict with national obligations.

The Under-Secretary of State for Industry (Mr. Les Huckfield)

The Commission has already raised the issue.

In is communication to the Council, "Multinational Companies and Community Regulations"—COM(73)1930 of November 1973—the Commission surveyed the field and proposed a number of general measures which could help to alleviate concern which might be felt about its activities. Work is in progress on matters such as employment, competition, harmonisation of company law and taxation. Members of the EEC also play an active part in the work on multinational companies in the OECD, ILO and the United Nations.

Mr. Wainwright

Is my hon. Friend quite satisfied that the regulations or the action that it is intended to take will be strong enough to control multinational corporations? Is he aware that multinational corporations which carry on massive business are not directly accountable to any country or to any Government throughout the world? Does he not think, therefore, that strict control ought to be directed to multinational corporations to ensure that no harm is done to other countries?

Mr. Huckfield

I shall bear in mind what my hon. Friend has said, because I realise that there is a great deal of concern about some of the aspects which he has mentioned. However, the EEC's attitude towards multinational companies is based upon the same fundamental principle as that of the United Kingdom Government, namely, that there should be no discrimination on grounds of nationality. My Department feels that this is the best basis on which to make progress.

Mr. Rhodes James

Is the Minister aware that the rôle of multinational corporations can be of considerable benefit to developing countries—a fact which has been recognised by the United Nations and by the OECD? What is the Government's approach towards the OECD code of conduct?

Mr. Huckfield

As I have said, the Government are playing their part in organisations like the OECD to make progress along the lines to which the hon. Gentleman has referred.