HC Deb 06 December 1979 vol 975 cc606-7
17. Mr. Leighton

asked the Chancellor of the Exchequer when he expects to meet his West German counterpart.

Sir Geoffrey Howe

I meet my West German counterpart regularly at EEC Finance Councils and at the twice-yearly bilateral consultations with the German Government. I expect to see him next at the Finance Council on 17 December.

Mr. Leighton

When the right hon. and learned Gentleman next meets his counterpart, will he take up with him the exorbitant cost of running the British Army of the Rhine? Is he aware that it now costs well over £1 billion per annum? I understand that if the troops were kept in this country we would still have to pay for them. However, does he not agree that it is worrying that the foreign exchange costs are about £600 billion to £700 billion per annum, which is equivalent to a loss of exports of £700 billion? The Germans are well able to pay—we are not. If they are not prepared to offset those costs, does the right hon. and learned Gentleman agree that we should consider bringing the troops back to Britain?

Sir G. Howe

I would not consider the remedy suggested by the hon. Gentleman. Indeed, we have no plans for raising the question of offset with the German Government. I agree that the burden of defence costs arising outside the United Kingdom is considerable. It is another substantial reason for wishing to end the inequitable burden of our net contribution to the Community.

Mr. Eldon Griffiths

Since the Germans have an economic structure similar to ours and a similar population but no oil, a gross national product two and a half times greater than ours and higher productivity per head in steel, coal and so on, will my right hon. and learned Friend emulate the German practice of a free market economy—even one run by Socialist Ministers?

Sir G. Howe

Many aspects of the West German economy and the way that it is managed give us cause for admiration. Perhaps the most fortunate aspect of the German political system is that its Social Democratic Party has acquired so much more wisdom than ours.

Mr. R. C. Mitchell

In answer to a question from the hon. Member for Eastleigh (Mr. Price), the Chancellor said that we must have regular consultations with our economic friends and allies. Will he tell me who are our economic friends and allies? Are they our EEC partners?

Sir G. Howe

Our economic friends and allies include our partners in the Community, certainly, but they include all those who share our interest in the effective operation of liberal economies in the free world.