HC Deb 04 July 1977 vol 934 cc884-9
The Minister of State, Foreign and Commonwealth Office (Mr. Frank Judd)

With your permission, Mr. Speaker, I will make a statement about business to be taken in the Council of Ministers of the European Community during July, the first month of the Belgian Presidency. The monthly forecast for July was deposited on 22nd June.

At present four meetings of the Council of Ministers are proposed for July. Finance Ministers will meet on the 18th; Agriculture Ministers on the 18th and 19th; Budget Ministers on the 20th; and Foreign Ministers on the 25th and 26th July, or possibly only on the 26th July.

At the Finance Council, Ministers will have their second quarterly examination of the economic situation in the Community.

Agriculture Ministers will be considering fisheries matters, together with proposals for a potato régime, the labelling of milk products and aid for producer groups.

At the Budget Council, Ministers will establish the draft Community Budget for 1978.

Foreign Affairs Ministers will discuss the outcome of the European Council on 29th and 30th June, relations with Spain, Cyprus and Malta, the accession negotiations with Greece and possibly fisheries matters.

Mr. John Davies

I thank the Minister of State for his statement. I have several questions to put to him.

First, will it be the meeting of Finance Ministers or that of Budget Ministers which will deal with the very critical question of the conversion rate used from units of account to sterling for the purpose of the budget?

Secondly, concerning the two meetings which will deal with fisheries matters, are we right in supposing that there is now some intention on the part of the Government to abandon their stand on the up-to-50-miles limit and to adopt a different system, a quota system, in their discussions of these matters, which would be against the generally expressed wish of the House?

Thirdly, we had understood from the European Council report that Foreign Ministers would be seeking to find a solution to the very important and as yet frustrated issue concerning the Joint European Torus. The Minister's statement makes no mention of that. Will he assure us that that matter will not be left aside?

Finally, I assure the Minister that, even for those of us who believe very deeply in the future of the Community, the essential need to re-characterise our well-known ice cream as something else does not seem to us to justify the great effort that the Commission might make.

Mr. Judd

I thank the right hon. Gentleman for the spirit of his questions.

The Finance Ministers have the European unit of account well on board.

Our policy on fisheries at future meetings will be as set out clearly by my right hon. Friend in the context of the debate on 23rd June.

The position relating to JET is, of course, well known. The Government are very anxious to have JET at Culham. This has remained our position consistently for some time now. We believe that it is high time that we had a European institution in this country. This is an ideal opportunity. The Prime Ministers have charged the Foreign Ministers with the task of continuing discussions on this at the next Council of Foreign Ministers.

I know the strength of feeling on both sides of the House concerning our ice cream. That is an issue which we are pursuing vigorously.

Mr. Thorpe

Will the hon. Gentleman say whether we may expect a further initiative to be taken in regard to the Middle East, following the Council declaration in that regard?

Will the hon. Gentleman say a little more about JET? Are there further technical matters which are required to be ascertained, or is it merely a political agreement?

On a minor domestic matter, some of us think that it would be rather more honest if ice cream were ice cream and not filthy vegetable fat masquerading under that name.

Mr. Judd

The right hon. Gentleman is entitled to his views on ice cream. Some of us have a degree of personal sympathy with what he said, but there is a great deal of feeling in this country about British ice cream and the traditions of it, and we shall make sure that these are not thrown lightly aside.

The right hon. Gentleman will agree that one statement at a time on such a sensitive issue as the Middle East is right. It was a significant statement. Time should be taken to digest it, to let the parties concerned consider what is at stake and also what is the position of the Community. The Community constantly monitors this situation carefully. It is not only of concern to the people of the Middle East but has implications for the international community as a whole.

There are two elements in the JET problem. One is a Community management problem. We believe that the management arrangements for JET should reflect the fact that it is genuinely a Community enterprise. There is also the more political issue of where it is to be situated, and this is the issue with which we are principally grappling.

Mr. Spearing

Does my hon. Friend recall that on Friday 24th June the House debated Regulation No. 2655 of 1976 concerning the harmonisation of rules for immigrant workers? Can he tell the House whether this will be discussed at the Council next month, if it has not already been discussed, and whether this will be reported back to the House?

Mr. Judd

The position of immigrant workers is constantly before the Council of Ministers and it is something that we shall continue to watch carefully. I am able to tell my hon. Friend that agreement was reached at the meeting of the Council of Ministers on social affairs on 28th June with regard to the directive on the education of migrant workers' children. This will assist the free movement of workers within the Community by providing for the special educational needs of their children.

Mr. Dykes

Now that the presidency of the Council of Ministers is in more capable hands than the British Labour Government, does the Minister think that in the next six months there will be a new economic impetus particularly for the reinforcement of economic policy guidelines? What has happened to the proposal to form a European export bank?

Mr. Judd

As I have just said, Finance Ministers will be continuing their discussion this month and will be looking at the forthcoming budget. With regard to the first part of the hon. Gentleman's question, I am bound to say that if he reads all the commentary—and there has been a great deal of it in recent weeks—one continuing theme time and time again is about the professional efficiency with which the presidency was handled.

Mr. Crawford

Leaving out the sellout of the Scottish fishing industry by the Conservative Party, may I ask the Minister whether the Council of Ministers will be discussing the Community's new approach to the regional fund? If so, can the Government spell out precisely what the net gain will be for Scotland?

Mr. Judd

This will be a matter which continues to receive careful attention.

Mr. Greville Janner

What steps will be taken to review the meetings going on at Belgrade at the moment concerning the attitude of the Nine with regard to the Helsinki Agreement? Will my hon. Friend confirm that there can be no question of our delegation agreeing to the meetings taking place in October until there is a clear and full discussion on the implementation of the Helsinki Agreement thus far?

Mr. Judd

I can assure my hon. Friend that the Nine have been putting a great deal of effort and time into coordinating their position and are determined to approach these talks with as much common ground as possible between them. We ourselves are not interested in charades at the Belgrade talks. We are interested in some probing of what progress has been made towards the fulfilment of what was agreed at Helsinki.

Mr. Biffen

In view of the recent European Court decision to disallow the quota marking of broiler chickens, is it the view of the Minister that the British Government will be able to secure a revision of the Potato Marketing Board, with its existing powers, at the meeting of the Agriculture Ministers on 18th and 19th July?

Mr. Judd

I can assure the hon. Gentleman that there is no immediate prospect of the demise of the Potato Marketing Board. This is something on which we shall have to await the decisions about the whole potato régime, which are still not yet finalised.

Mr. Arthur Latham

Will my hon. Friend clarify his reference to potatoes, because it is a matter which is leading the British housewife to believe that Brussels will now be responsible for potato supplies?

Mr. Judd

It is certainly our intention that whatever emerges as an EEC potato régime will preserve all that is best in our own approach and policy towards potatoes.

Several Hon. Members rose—

Mr. Speaker

I propose to call those hon. Members who have been standing and also the Opposition Front Bench spokesman, if he wishes, at the end.

Mr. Forman

With regard to the meeting on 25th and 26th July, what reason is there to suppose that the Foreign Ministers will be able to reach agreement on this most important matter of JET any more easily or speedily than the Heads of Government? Secondly, will the Foreign Ministers be looking into the proposal of Roy Jenkins to set up slightly modified institutional arrangements in the Community to cope with an enlarged Community?

Mr. Judd

We were determined to try to reach a Community solution to the JET project. But, as we have made very plain, the British Government believe that we have a strong claim for JET in this country. There are other countries in the Community with more than one EEC institution already established. We do not have one.

It is not a matter of seeking one to come here. If we did not have the project here it would remove the one already established in embryo. That is the basis on which we are going into the discussions. With regard to enlargement, this is one of the problems that we shall be discussing over the months ahead, but the British Government's general attitude towards enlargement and the importance of underwriting and strengthening democracy in this process is well understood.

Mr. George Gardiner

Will there be any opportunity in July for the member Governments to review their commitment to holding direct elections to the European Assembly in May or June next year, since it is becoming increasingly obvious that the United Kingdom will not be able to meet this deadline, whichever system in the Bill dealing with European Assembly elections is approved?

Mr. Judd

Not for the first time, the hon. Gentleman must speak for himself. With regard to the general position, as my right hon. Friend the Prime Minister made very clear after the recent meeting of Prime Ministers, we seem to be as well advanced as most other members of the Community.

Mr. Watt

When the budget is being discussed in the Council of Ministers, will the Government point out that their contribution to the budget is grossly excessive and that unless and until the CAP is greatly revised this money will be largely wasted?

Mr. Judd

The hon. Gentleman will recognise that on a number of occasions I have made quite clear what our position is with regard to the CAP and with regard to the need for reform.

Mr. John Davies

Can the Minister clarify his remarks on potatoes? He left us with the unhappy impression that as the discussions evolve he would be perfectly prepared to jettison the Potato Marketing Board. That would be a very dangerous situation for this House to accept.

Mr. Judd

As someone who regards himself as a connoisseur of potatoes, no one has greater respect for the Board than I have. I can assure the right hon. Gentleman that we shall not lightly cast aside the distinguished rôle of this important British institution.