HC Deb 16 July 1980 vol 988 cc1489-90
52. Mr. Straw

asked the Lord Privy Seal what constraint he anticipates the continuation of common financial responsibility for Community policies will have upon the EEC's examination of structural charges, agreed at the Foreign Affairs Council on 29 and 30 May.

Sir Ian Gilmour

The Commission has been invited to consider how the necessary structural changes in the budget can best be achieved without calling into question the common financial responsibility for Community policies. It is to bear in mind the agreed aim of preventing the recurrence of unacceptable situations for any member State.

Mr. Straw

In the light of that answer, will the Lord Privy Seal now acknowledge that when, on 2 June, he told the House that the EEC had agreed that there should be a fundamental restructuring of the Community budget he got it wrong and that he misled the House, because the only thing that was agreed at Venice was a review of the budget structures, without tackling the fundamental problems of the budget, which are both the own resources system and the common agricultural policy?

Sir I. Gilmour

Some Labour Members are a bit free in their allegations about misleading the House. In no way have I misled the House. It is common knowledge that it was agreed at that Council that there should be a restructuring of the budget. If the hon. Gentleman will be good enough to read the speeches of Chancellor Schmidt and President Giscard recently, he will see that they also agreed.

Mr. John H. Osborn

Does my right hon. Friend agree that a common energy policy would be of value to this country, which has coal, gas and oil, and whose coal miners need protection? Would it not be appropriate to demand a levy on imported natural gas from the Mediterranean and from North Africa, as well as from the Middle East via the Soviet Union?

Sir I. Gilmour

My hon. Friend has put forward some interesting ideas. He will be aware that the Commission has proposed a combination of energy, price and tax harmonisation, and a programme of investment in energy, financed by a system of energy taxation, possibly combining an oil import levy with an oil production tax. There are many ideas floating around. The Commission has put its proposals forward and we are studying them carefully.

Mr. Jay

Are the British Government to put forward their own proposals for the way in which these structural changes should be made, or are they to sit back and wait for the Commission to do so?

Sir I. Gilmour

No. Obviously, there will be a period of intensive discussion between all members of the Community.

Mr. Farr

Will my right hon. Friend give the House an assurance that, whatever the outcome of these negotiations, the voice of the Community will not be weakened in forming a unified policy to deal with the threat to the British footwear and textile trades from cheap and underpriced imports?

Sir I. Gilmour

Yes, I give my hon. Friend that assurance.

Forward to