HC Deb 28 June 1978 vol 952 cc1384-6
47. Mr. Dykes

asked the Secretary of State for Foreign and Commonwealth Affairs when he last visited the European Economic Commission.

Dr. Owen

Yesterday, at the Council meeting in Luxembourg, I met many of the Commissioners. The Council discussed preparations for the European Council at Bremen, approved a negotiating mandate for the opening of the renegotiation of the Lomé Convention and also adopted a set of conclusions to serve as guidelines to the Community negotiators in the next stage of the multilateral trade negotiations. I am circulating a fuller account in the Official Report.

Mr. Dykes

I thank the right hon. Gentleman for that reply. Should he not pay a visit to the Commission proper so that among the assembled members of the Commission and their senior officials he can say how distressed he was that the Errol Flynn of British politics—namely, the Minister of Agriculture, Fisheries and Food—unwittingly and quite accidentally misled public opinion in this country by misreading the original Commission proposals on the Milk Marketing Board and assuming that the Commission actually wanted to abolish it? Should not the Foreign Secretary now take this opportunity to say how sorry he was that the Minister misunderstood what the Commission was getting at?

Dr. Owen

I must tell the hon. Gentleman that the other day I was in Wales and the concern felt by Welsh farmers about the Milk Marketing Board was total and genuine. The issue was that the Commission was only prepared to postpone the review for a period of years and was prepared to give an extended life, but not a permanent life, to the Milk Marketing Board. The achievement of my right hon. Friend was to achieve a permanence for the Milk Marketing Board. That is a very formidable achievement, and people in milk production, whose monthly cheque from the Milk Marketing Board is utterly crucial to them, strongly welcome my right hon. Friend's achievement.

Mr. Heffer

When my right hon. Friend next meets the Commission, particularly the President, will he draw its attention to the editorial in the Daily Express the other day which was very much in line with the views of the Labour Party conference that either fundamental changes should be made in the CAP and the interests of Britain should actually be taken into consideration or we get out of the Common Market?

Dr. Owen

As hon. Members will know, I have some difficulty in endorsing editorial comment in the Daily Express. But I note the fact that there is still a considerable body of opinion in this country which does not feel that we have benefited from our membership of the Community. [HON. MEMBERS: "Hear, hear"] That is a fact which any Government must take into account, and take seriously. I believe that is why it is crucially important that a country which is the second largest contributor to the EEC budget, although only sixth in the level of GNP, should have a rearrangement of the financial contribution.

Following is the information: Prior to the Council, the seventh ministerial session of the Greek accession negotiations was held. Ministers noted that progress had been made in the capital movements, coal and steel and Euratom chapters; and the Commission reported that it planned to propose draft mandates for the major outstanding chapters before the summer break. In the context of discussion of the common economic strategy, the Council noted that progress had been achieved in both national and Community energy policies. The draft resolution on energy policy objectives for 1985 was remitted to officials for further consideration. The main outstanding points were settled in the regulation setting up the new Regional Development Fund. The United Kingdom stands to benefit from the new, more flexible rules governing the projects that can be financed by the fund. On relations with Japan, the Council reaffirmed the importance it attached to the Japanese Government meeting their targets for increased growth and a reduced external surplus, and instructed the Commission to continue its consultations with the Japanese Government to this end. A report will be made to the European Council in July in this sense. The Council agreed that the pragmatic development of co-operation with EFTA countries should be pursued. We welcome this. On steel, the Council agreed that more work was needed before conclusions could be reached on the Commission's paper on revised general objectives for steel or on the Commission's draft decision regulating State aids. The Council will discuss the draft decision again in July. The Council also discussed the Commission's proposed decision on sanctions against those infringing the Community's minimum price regime for steel products. There was general agreement on the substance of the decision, which the Council hoped could soon be adopted. The Council had an exchange of views on the general approach proposed by the Commission in its communication to the Council on the reorganisation of the European shipbuilding industry. The Council will hold a further discussion in July. A number of proposals for Community action in respect of marine pollution were agreed. Agreement was reached on the fourth directive on company law which provides for the uniform preparation, presentation and publication of company accounts. The Council agreed on a communication to the Assembly on preparations for direct elections, confirming the Council's view on the proposed dates now that the relevant Act has been ratified by all member States. Directives were approved concerning the mutual recognition of formal qualifications in dentistry, to facilitate the exercise of the right of establishment and dentists' freedom to provide services within the Community. The United Kingdom delegation stressed the political and economic arguments which require an early reopening of Community markets to beef exports from Botswana. In a discussion of the levels of textile imports from Mediterranean suppliers, it was agreed that these matters should be pursued urgently. My right hon. Friend the Secretary of State for Trade emphasised the importance we attach to adhering to the conclusions of the 20th December Council.