HC Deb 24 April 1978 vol 948 cc1000-7
The Minister of State, Foreign and Commonwealth Office (Mr. Frank Judd)

With your permission, Mr. Speaker, I shall make a statement about business to be taken by Ministers of the European Community during May. The monthly written forecast was deposited on Thursday 20th April.

At present, six meetings of the Council of Ministers are proposed for May. Foreign Ministers will meet on 2nd May, Finance Ministers on 22nd May, Agriculture Ministers on 22nd and 23rd May, Research Ministers on 29th May, Environment Ministers on 30th May, and Energy Ministers also on 30th May.

Foreign Ministers are expected to discuss the Commission's general survey of the implications of enlargement, regional policy, problems in the steel sector, footwear imports, GATT multilateral trade negotiations, relations with Australia and the form of company accounts.

Finance Ministers are expected to resume their discussion on the economic situation and to discuss the co-ordination of national economic policies, Community lending facilities, the life insurance directive and the sixth directive on value added tax.

Agriculture Ministers are expected to discuss support for Mediterranean agriculture, rules governing producer groups and the market organisation for mutton and lamb. In addition, it may be necessary to continue discussion of the future of the Milk Marketing Boards, and also CAP prices and other related issues, to the extent that these are not resolved in the Council this week. An additional Council meeting may be arranged in early May for this purpose.

Research Ministers are expected to review the guidelines for Community research and development projects and to discuss the establishment of the Joint European Torus project.

Environment Ministers are expected to discuss the measures against sea pollution following the "Amoco Cadiz" disaster, disposal of waste at sea, lead content of petrol, atmospheric polution by sulphur compounds and chlorofluoro-carbons—which are, of course, gases commonly used in aerosol sprays—the implications for the Community of the United States Toxic Substances Act, water quality for freshwater fish, and bird conservation.

Energy Ministers are expected to resume their discussion of energy policy objectives for 1985, oil refining problems, assistance to the coal industry, and projects demonstrating energy saving. They are also expected to discuss joint hydrocarbon exploration projects, demonstration projects of alternative energy sources, policy for fast breeder reactors, and the reprocessing and the disposal of radioactive wastes.

Mr. Blaker

May I put three questions to the Minister of State, arising out of the statement? The first relates to enlargement. We recognise the many difficulties referred to in the Commission's survey, not least the problem of Mediterranean agriculture. But will the Minister of State give an assurance that the Government will make every effort to ensure that momentum on the subject of enlargement is maintained?

Secondly, will the Foreign Secretary be reporting to his colleagues on progress in relation to the internal settlement in Rhodesia? Will the Minister of State give an assurance that the Foreign Secretary will not prejudice his colleagues against the internal settlement, as appears to have happened in Copenhagen?

Thirdly, will the Minister of State confirm that there is a clear understanding on the part of our fellow members of the Community of the value of the milk Marketing Boards, and that, far from wishing to abolish them, they may now wish to take them as an example?

Mr. Judd

I am grateful to the hon. Gentleman for his three questions. Con- cerning enlargement, I can assure him that the Government are deeply committed to maintaining momentum and, indeed, are rather anxious that, for example, the Commission's opinion on Spanish accession should come forward as soon as possible. We are rather concerned that it is taking so long to prepare it.

I can assure the hon. Gentleman that my right hon. Friend has been at pains, ever since taking office, to keep his Community colleagues, in the context of the Nine, fully apprised of developments in Rhodesia. There are some very useful discussions, exchanges of opinion and analyses taking place in that context.

I can assure the hon. Gentleman that the Community is in no doubt about the importance which we attach to the Milk Marketing Boards. We certainly hope that their significance will be understood and underwritten in the context of the discussions taking place this week.

Mr. Spearing

When the Finance Ministers discuss the co-ordination of national economic policies on 22nd May, is it possible that they will also discuss the proposal for a new EEC reserve currency? In any case, will my hon. Friend assure the House that, if such a proposal is put forward, this House will have the opportunity to debate it before it is finally approved?

Secondly, will my hon. Friend tell the House when the Government told both the country and the dairy farmers that the present Milk Marketing Boards would be illegal under EEC rules?

Mr. Judd

I can inform my hon. Friend that the attention of the Finance Ministers will be concentrated on preparing the ground for the next European Council, which in its turn will have discussions in preparation for the economic summit, and that its attentions will primarily focus on the need to generate growth and to tackle the agonising problems of unemployment, which concern us all deeply in this House.

It is not, in our view, the case that Milk Marketing Boards are illegal. As we understand the position, the Commission supports the importance that we attach to them. We wish to see them continuing to play their role in Britain.

Sir D. Walker-Smith

In the context of the enlargement of the Community, will British Ministers draw to the attention of Spanish Ministers and others concerned that Article 48 of the treaty prescribes the free movement of workers for member States and that Gibraltar is entitled, as a dependency of the United Kingdom, to free movement vis-à-vis other member States, and that it follows, therefore, that a condition of Spanish entry is freedom of movement between Spain and Gibraltar?

Mr. Judd

My right hon. Friend has made it perfectly clear that this is not the time at which to start talking about the conditions of entry. We are in favour of Spanish entry to the Community, but we are absolutely convinced that, as the right hon, and learned Gentleman has pointed out, it would be quite unthinkable, in the context of Spanish membership of the Community, for the present situation to continue.

Mr. R. C. Mitchell

When does the Minister expect the discussion on the farm price review to be concluded? Do the British Government support the majority view of the European Parliament that there should be no price increase for those products in structural surplus?

Mr. Judd

On the first part of my hon. Friend's question, the answer is, as soon as possible, but only on the basis of getting the right answer. We understand the strength of feeling in the European Assembly—and, indeed, in this House—about the amount of funds within the Community which, in our view, is being wrongly diverted to producing still further surpluses. We can certainly appreciate the strength of the argument that there should be nil increases in prices for those agricultural products already in surplus.

Mr. Hugh Fraser

In view of our very special relationship with Australia, will the Foreign Secretary, at the meeting of Foreign Ministers, press that there should be direct negotiations between Australia and the Common Market, rather than that the matter should be shuffled off into a GATT negotiation?

Mr. Judd

We take very seriously our own relationship with Australia, and also our relationships in the context of our membership of the Community, and there- fore the relationships with Australia of the Community as a whole.

We are glad that Mr. Garland, the Australian Minister with special responsibilities for relations with the Community, will soon be coming to Europe for discussions. We are determined that we should clear the lines in Council discussions in advance so that we can have the best possible relationship with Australia.

Mr. James Johnson

On the common fisheries policy, may we assume that the Government are either so optimistic that they believe that today's talks are the beginning of the end of this matter or so pessimistic that they think that the Minister of Agriculture will keep on stone-walling until the end of this year?

Mr. Judd

The Government are deeply conscious of the need for an effective common fisheries policy. This is important, if for no other reason than that without such a policy there is a real danger that fish stocks could be damaged irreparably. We may find ourselves in a position where instead of discussing how to manage fish stocks we shall be discussing the fact that there are precious few fish stocks to manage. However, we are also conscious that it would be quite wrong to ignore the special need of the British fishing industry and the special contribution that we are making to the common fish stocks of the Community. We want to make progress on the CFP and we shall do everything we can to get progress, but we are not willing to throw away fundamental British interests.

Mr. Jim Spicer

When the Environment Ministers discuss the "Amoco Cadiz" disaster, will they put forward firm proposals from the Government to tighten up Community control, particularly of super tankers? Will they put forward ideas for a Community information and control centre which can move into action when such disasters take place in the future?

Mr. Judd

We can see certain value in the suggestion that the hon. Member has made for a Community information and control centre, but we have two other priorities. These are the effective enforcement of international agreements that exist already—because there is an altogether effective enforcement—and the recognition that whatever part the Community can play is obviously a matter of wider significance than to the EEC alone. We must be prepared, therefore, to follow through effective measures in wider circles than the Community alone.

Mr. Hooley

When the Foreign Ministers meet will they discuss the Middle East? If so, will they press for a total and unconditional withdrawal of Israeli forces from the Southern Lebanon?

Mr. Judd

Naturally, in discussions on political co-operation Ministers constantly monitor the situation in the Middle East. The concern of the EEC was well expressed by the presidency after the last European Council, and we have made clear our opinion that it would be most helpful if Israel would withdraw from occupied territory in the Southern Lebanon as rapidly as possible.

Mr. Biffen

Is the Minister aware that many farmers believe that the Milk Marketing Boards are the agencies whereby imports of liquid milk from Continental countries and Southern Ireland have been excluded? Is that the Government's view, and are they hoping to secure the status of the boards in that respect?

Mr. Judd

I am well aware of the hon. Member's concern on this matter. As far as we are concerned, the primary significance of the Milk Marketing Boards is in support of the British dairy industry, and that is the role that we hope to see them continue to fulfil.

Mr. Marten

May we have a firm assurance from the Government that they will resist the proposal for a Community sheepmeat regime, which would gravely affect New Zealand exports to this country and would put up the price of lamb to the housewife? As only 1.3 per cent. of sheep in this country are exported, we have no need for a sheepmeat regime.

Mr. Judd

I must gently take the hon. Member to task. I am trying to dispense with language such as "sheepmeat regime" and substitute instead "lamb and mutton marketing arrangements". This sort of language is much more easily comprehensible to the British people. Under the Treaty of Rome and the CAP there must be some system, but we are determined that whatever system is agreed it will take account of the points that the hon. Member has made.

Several Hon. Members

rose—

Mr. Speaker

Order. I shall call those hon. Members who have been standing since the beginning of the questions.

Mr. Christopher Price

Will the Minister tell us the latest position on an autonomous regime in the economic relationships between the EEC and Cyprus, particularly on potatoes?

Mr. Judd

I am glad to tell the House that, after far too long, at the last meeting of the Council we actually reached agreement on this matter. It is not all that we and the Cypriots would have wished but it is a significant advance on what was originally proposed last autumn. The hon. Member and others deserve a certain amount of congratulation for the pressure which they have brought to bear.

Mr. Costain

The Minister's support for the Milk Marketing Boards is appreciated. Is he aware that milk was delivered to the doorsteps of British homes before the boards were formed and that if they were discontinued it would not automatically mean that milk would stop being delivered to the housewife?

Mr. Judd

I note this and will convey it to my right hon. Friend the Minister of Agriculture. We believe that the Milk Marketing Boards have had a good and effective role to play in Britain and we do not want to see them put to one side.

Mr. Molloy

Is the Minister aware that the massive surpluses being created have been condemned by Members of the European Parliament and all constituent parliaments of the EEC but that this has had little effect on the Commissioners? Will he draw to the attention of Ministers this aspect of relationships with the EEC, because many of us believe that the views of the European Parliament and constituent Parliaments count for nothing with the Commissioners. They should be told to mend their ways rapidly.

Mr. Judd

My hon. Friend is being uncharacteristically depressed about events. He is usually more optimistic. The arguments that we have deployed have had some effect. Increasingly the Community recognises that the interests of consumers must be taken more fully into account as well as those of producers. However, we must do something to stop the madness whereby the resources of the Community are used to encourage wasteful surpluses. We believe that it is important to encourage a policy of permitting reasonable access for third-country produce where this has a role to play. We have pressed these views and increasingly the Community is beginning to understand their significance.

Mr. Skinner

Is the Minister aware that all these meetings are producing little for this country apart from a lot of Continental waffle? Is he aware that since the referendum we have been selling less coal to the Common Market than we were at the time of that referendum, despite all that Joe Gormley and Derek Ezra may say? Will he agree that when miners are urged to produce more coal, the EEC should be buying some of it, as we have to buy a lot of their trash?

Mr. Judd

I believe that the Community will be judged in history not by abstract statistics but on the contribution it makes to the quality of life of people living in the member countries. From this standpoint, the interests of workers in the coal industry are important. Energy Ministers, when they meet next month, will be discussing measures to encourage inter-Community trade in steam coal and also to encourage the construction of coal-burning power stations, which obviously will have significance for our coal industry.