HC Deb 30 July 1980 vol 989 cc1535-42 4.25 pm
Mr. Tony Marlow () Northampton, North

I beg to move, That leave be given to bring in a Bill to restore to Parliament the right to raise tariffs, set quotas and to make anti-dumping regulations, notwithstanding the provisions of the European Communities Act 1972. In seeking leave to introduce the Bill, which will restore to Parliament the right to raise tariffs, to set quotas, and to make anti-dumping regulations, I have two purposes. First, I wish to give the Government the necessary powers. Secondly, I wish to show the Government that, should they feel inclined to move in that direction, they will have the support of the House—even though the proposals could lead to a change in the nature of our relationship within the EEC.

It would be wrong at this stage to become bogged down in the theology of Europe. It is manifest, however, that we, geographically Europeans, are part of historic Europe. There are vast areas—political, economic and even sometimes military—where we must work together. In 1973 we joined at the wrong time the wrong institution, fashioned not for us but for the needs of others. The momentum of that commitment is such that some of us still continue to deceive ourselves that it is best to persist in damaging tactical activities—pregnant though they are with natural conflict, and thus wildly destructive of any sensible and necessary common strategy. We have fundamental and structural differences from Continental Europe. It is time that we recognised that we do not have a similar industrial or agricultural economy. We damage both ourselves and Europe unnecessarily so long as we pretend that we do.

What of the present arrangement? Despite the great success of my right hon. Friend the Prime Minister, the budget deal struck is far from satisfactory. When will we get back our money? Delay means borrowing, borrowing means interest, and time is cash. What strings are attached? Who holds them and by what authority will they be released? That is an obvious quarry in which my right hon. Friend the Member for Taunton (Mr. du Cann) and his Select Committee could properly excavate.

The criminal waste of the CAP runs on. Last year £4 out of £5 of the whole European budget, 60 per cent. of all Europe's spending, blued on surpluses—50p out of every pound that we sent to Brussels poured alone into milk and beef—butter balls for Comrade Brezhnev and contre-fillet and cutlets for the colonial colonels of Kabul. No Hindus ever cosseted such a sacred cow.

In all this muddle, harmful harmonisation proposals pour out of Brussels overriding the sovereignty of this House and bearing heavily, through cost and administrative burden, on our hard-pressed industry. Harmonisation, whose purpose is to equate trading environments throughout the EEC, is rendered pointless, dwarfed by the massive difference in fuel and financing costs within the different countries of the Community.

I come now the area in which there is an urgent need for legislation. On joining Europe we surrendered our right to an independent trading policy—to tariffs, to quotas, and to anti-dumping measures. Times have changed. The North Sea ensures that we have and will continue to have a strong currency—quite unrelated to our industrial performance or potential. In one year the paradoxical and simultaneous surge in both sterling and wages shattered our competitiveness by 25 per cent. Mr. Speaker, no other industrial economy has ever faced a similar problem, certainly no country bereft of its own trading powers but blessed instead, as we are, with more than its fair share of unproductive and declining industries.

Not surprisingly, the desk of my right hon. Friend the Secretary of State for Trade is smothered with an ever-growing mountain of pleas for help—textiles, footwear, foundries, paper, car components and now even wooden doors. Yet the poor fellow is powerless; there is nothing he can do. He has no authority, and few—and then only limited—voluntary measures at his disposal.

Of course, in our dramatically changing circumstances, some industries will die while others are born. That is evolution. But some need not and should not die. They have a viable future. But first they have to be steered past the rocks and currents that lie ahead. But what can my right hon. Friend do? After all, we have delivered the steering gear to Brussels.

We are threatened in two ways—first, from outside Europe. In nine years we have moved from balance of trade with Japan to a balance of two and a half times in Japan's favour. In such circumstances of imbalance, whatever my right hon. Friend might conceive, there could be no risk of retaliation. But sadly, as his powers are so limited, such conception could not lead to policies, however embryonic.

The men's footwear industry in my constituency, as elsewhere, is threatened by dumping from Czechoslovakia and the Third world. Salvation lies with Brussels. Cruelly, Europe's perception of its interest in trading with Comecon is quite different from our own. After all, Germany has its Ostpolitik. Italian ladies' shoes are unaffected. So the steamroller rolls on. Imports rush in, the industry declines, without the Minister having any direct influence whatever, and without a single European finger being lifted.

We are also threathened by Europe herself—efficient Europe, productive Europe, a Europe of unjustifiably cheap, unfairly cheap, energy, cheap currency and cheap finance; a Europe on a different competitive footing. And should we wish and should the Minister ever wish, there is nothing that he can do to nurse and protect our industries, our jobs and our constituencies from Europe's onslaught, the strength of which is daily reinforced by the necessity for them to seek fresh markets during the international recession.

Finally, a plea from the heart: please, no more bogus statistics. We must remember not that Europe is our fastest-growing market but that it is our greatest threat, the area in which our trade deficit in manufactured goods has become most marked, from balance to £2½ thousand million in eight short years.

This House has one purpose and that is to secure the best interests, long and short term, of the people of the United Kingdom. It has of itself no commitment to Europe save where that commitment enhances this basic function. Where treaties and Acts of Parliament conflict with that function, it has a bounden moral duty to seek all necessary modifications and amendments.

It is for these reasons that I believe that we must urgently return to Parliament the powers to supervise our own trade and return to our Government the ability to act on behalf of our people.

4.35 pm
Sir Anthony Meyer () Flint, West

rose

Mr. Speaker

Is the hon. Gentleman rising to oppose the motion?

Sir A. Meyer

Yes, Mr. Speaker.

My hon. Friend the Member for Northampton, North (Mr. Marlow) is concerned—who of us is not?—about the loss of jobs in many industries facing foreign competition, so he wants this country to set aside its treaty obligations by erecting our own national barriers to trade. This proposition is doubly foolish. It is foolish because, as the Prime Minister so forcefully pointed out yesterday, we do not feel that general import controls really deal with the problem and they could have very damaging effects on exports and on our industry generally. If trade is two-way, barriers also work two ways, and in this country there are a lot of jobs in exports. Indeed, one-third of our manufacturing output goes into export. We export a greater proportion of our GNP than all our major competitors—double that of Japan and four times that of the United States."—[Official Report, 29 July 1980; Vol. 989, c. 1306.] Indeed, after the Prime Minister's speech yesterday, I am astonished that my hon. Friend has not withdrawn his Bill, as the hon. Member for Dunbartonshire, East (Mr. Hogg) so fruitfully withdrew his Bill yesterday.

If import controls have any role in saving jobs, whether in infant industries or in industries threatened by really unfair competition, this can be done only through the mechanism of GATT under article 19. The one field in which the EEC has proved outstandingly successful, even by the admission of its severest critics, has been in conducting negotiations under GATT, where it has been able to deploy, as the world's largest trading bloc, considerable powers for securing for its member States better deals than they could possibly have got for themselves had they negotiated separately.

By far the largest factor causing our terrifyingly high level of unemployment is the world recession. This—and we all know it perfectly well—can be cured only by effective international action to expand world trade. It can only be aggravated and perpetuated if each country takes measures to restrict international trade. For this country, which, as the Prime Minister said yesterday, exports a greater

proportion of its production than all our major competitors—for this country of all countries—to set an example of cutting trade would amount to suicide while the balance of our minds was disturbed.

What my hon. Friend is doing is pursuing his own vendetta against the European Community. He is entitled to his point of view. But membership of the European Community has been the policy of every Government since 1962. It was massively endorsed by the people in the referendum in 1975. It is and it remains the policy of the present Government and of the Conservative Party, and we shall not abandon it because it is temporarily unpopular.

I do not honestly see how any of my hon. Friends can possibly support a Bill which is so clearly contrary to the policy of the Conservative Party and contrary to the country's wider interests. I invite Opposition Members who still believe in international co-operation and in the importance of keeping our pledged word to think very carefully indeed before they enter, even for this one vote, into so dubious an alliance.

I invite the House to reject this foolish and faint-hearted measure.

Question put, pursuant to Standing Order No. 13 (Motions for leave to bring in Bills and nomination of Select Committees at commencement of public business):—

The House divided: Ayes 136, Noes 153.

Division No. 436] AYES [1.40 pm
Aitken, Jonathan Davis, Clinton (Hackney Central) Harrison, Rt Hon Walter
Alexander, Richard Davis, Terry (B'rm'ham, Stechford) Hawksley, Warren
Bagier, Gordon A. T. Deakins, Eric Haynes, Frank
Barnett, Guy (Greenwich) Dixon, Donald Home Robertson, John
Bennett, Andrew (Stockport N) Dobson, Frank Hooley, Frank
Blackburn, John Dubs, Alfred Hughes, Roy (Newport)
Booth, Rt Hon Albert Eadie, Alex Janner, Hon Greville
Brown, Michael (Brigg & Sc'thorpe) Eastham, Ken Jay, Rt Hon Douglas
Budgen, Nick Edwards, Robert (Wolv SE) Jessel, Toby
Callaghan, Jim (Middieton & P) Ellis, Raymond (NE Derbyshire) John, Brynmor
Campbell-Savours, Dale Evans, John (Newton) Johnson, James (Hull West)
Carlisle, John (Luton West) Fitt, Gerard Jones, Barry (East Flint)
Carmichael, Nell Flannery, Martin Jones, Dan (Burnley)
Carter-Jones, Lewis Fletcher, Ted (Darlington) Kerr, Russell
Clark, Hon Alan (Plymouth, Sutton) Fookes, Miss Janet Kilroy-Silk, Robert
Clark, Dr. David (South Shields) Foot, Rt Hon Michael Kinnock, Neil
Cocks, Rt Hon Michael (Bristol S) Forrester, John Lambie, David
Cohen, Stanley Foster, Derek Leighton, Ronald
Cox, Tom (Wandsworth, Tooting) Fry, Peter Lewis, Arthur (Newham North West)
Crowther, J. S. Graham, Ted Lloyd, Peter (Fareham)
Cryer, Bob Grant, George (Morpeth) Lofthouse, Geoffrey
Cunningham, George (Islington S) Greenway, Harry McDonald, Dr Oonagh
Davidson, Arthur Hamilton, James (Bothwell) McElhone, Frank
Davies, Ifor (Gower) Hardy, Peter McNamara, Kevin
Marlow, Tony Powell, Raymond (Ogmore) Straw, Jack
Marshall, David (Gl'sgow, Shettles'n) Prescott, John Summerskill, Hon Dr Shirley
Marshall, Dr Edmund (Goole) Price, Christopher (Lewisham West) Taylor, Mrs Ann (Bolton West)
Marshall, Jim (Leicester South) Proctor, K. Harvey Taylor, Teddy (Southend East)
Martin, Michael (Gl'gow, Springb'rn) Race, Reg Thorne, Stan (Preston South)
Maynard, Miss Joan Rees, Rt Hon Merlyn (Leeds South) Urwin, Rt Hon Tom
Mikardo, Ian Richardson, Jo Varley, Rt Hon Eric G.

Millan, Rt Hon Bruce Roberts, Albert (Normanton) Wainwright, Edwin (Dearne Valley)
Miller, Dr M. S. (East Kilbride) Roberts, Ernest (Hackney North) Walker, Rt Hon Harold (Doncaster)
Mills, lain (Meriden) Robinson, Geoffrey (Coventry NW) Waker, Bill (Perth & E Perthshire)
Mitchell, Austin (Grimsby) Rooker, J. W. Weetch, Ken
Moate, Roger Ross, Wm, (Londonderry) Welsh, Michael
Molyneaux, James Rowlands, Ted White, Frank R. (Bury & Radcliffe)
Morris, Rt Hon Alfred (Wythenshawe) Sheerman, Barry Winnick, David
Morris, Rt Hon Charles (Openshaw) Shepherd, Richard (Aldridge-Br hills) Winterton, Nicholas
Newens, Stanley Silkin, Rt Hon John (Deptford) Woolmer, Kenneth
Orme, Rt Hon Stanley Soley, Clive Wright, Sheila
Palmer, Arthur Spearing, Nigel Young, David (Bolton East)
Parris, Matthew Speller, Tony
Parry, Robert Stallard, A. W. TELLERS FOR THE AYES:
Pavitt, Laurie Stewart, Rt Hon Donald (W Isles) Mr. William Whitlock and
Pawsey, James Stoddard, David Mr. John Fart.
Powell, fit Hon J. Enoch (S Down) Stott, Roger
NOES
Alison, Michael Grant, Anthony (Harrow C) Needham, Richard
Alton, David Gray, Hamish Nelson, Anthony
Arnold, Tom Grieve, Percy Newton, Tony
Atkins, Rt Hon H. (Spelthorne) Griffiths, Eldon (Bury St Edmunds) Nott, Rt Hon John
Atkins, Robert (Preston North) Grimond, Rt Hon J. Osborn, John
Banks, Robert Grylls, Michael Parkinson, Cecil
Beith, A. J. Hampson, Dr Keith Penhaligon, David
Benyon, W. (Buckingham) Hannam, John Percival, Sir Ian
Berry, Hon Anthony Haselhurst, Alan Pollock, Alexander
Bevan, David Gilroy Havers, Rt Hon Sir Michael Porter, Barry
Boscawen, Hon Robert Heddle, John Prentice, Rt Hon Reg
Bowden, Andrew Heseltine, Rt Hon Micnael Price, Sir David
Boyson, Dr Rhodes Higgins, Rt Hon Terence L. Renton, Tim
Bradley, Tom Holland, Philip (Carlton) Rifkind, Malcolm
Brignt, Graham Howell, Rt Hon David (Guildford) Roberts, Michael (Cardiff NW)
Brittan, Leon Howell, Ralph (North Norfolk) Roberts, Wyn (Conway)
Brocklebank-Fowler, Christopher Hunt, David (Wirral) Ross, Stephen (Isle of Wight)
Brooke, Hon Peter Hunt, John (Ravensbourne) Rossi, Hugh
Brotherton, Michael Hurd, Hon Douglas Royle, Sir Anthony
Browne, John (Winchester) Jenkin, Rt Hon Patrick Sainsbury, Hon Timothy
Buchanan-Smith, Hon Alick Johnson Smith, Geoffrey St. John-Stevas, Rt Hon Norman
Butler, Hon Adam Johnston, Russell (Inverness) Shaw, Giles (Pudsey)
Carlisle, Rt Hon Mark (Runcorn) Jopling, Rt Hon Michael Shepherd, Colin (Hereford)
Chalker, Mrs. Lynda Joseph, Rt Hon Sir Keith Shersby, Michael
Channon, Paul Kellett-Bowman, Mrs Elaine Silvester, Fred
Chapman, Sydney Kershaw, Anthony Sims, Roger
Clark, Sir William (Croydon South) King, Rt Hon Tom Skeet, T. H. H.

Clarke, Kenneth (Rushcliffe) Knox, David Speed, Keith
Cockeram, Eric Lamont, Norman Spence, John
Cope, John Lang, Ian Spicer, Jim (West Dorset)
Corrie, John Lawrence, Ivan Stanley, John
Costain, A. P. Le Marchant, Spencer Steel, Rt Hon David
Cranborne, Viscount Lester, Jim (Beeston) Stewart, Allan (East Renfrewshire)
Critchley, Julian Loveridge, John Tebbit, Norman
Crouch, David Luce, Richard Thompson, Donald
Dorrell, Stephen Lyell, Nicholas Waddington, David
Douglas-Hamilton, Lord James McCrindle, Robert Wainwright, Richard (Colne Valley)
Dunn, Robert (Dartford) Macfarlane, Neil Wakeham, John
Dykes, Hugh MacGregor, John Warren, Kenneth
Edwards, Rt Hon N. (Pembroke) McQuarrie, Albert Wells, John (Maidstone)
Emery, Peter Marshall, Michael (Arundel) Wheeler, John
Eyre, Reginald Mather, Carol Whitehead, Phillip
Fairbairn, Nicholas Maude, Rt Hon Angus Whitney, Raymond
Fairgrieve, Russell Mawhinney, Dr Brian Wiggin, Jerry
Fenner, Mrs Peggy Mills, Peter (West Devon) Wilkinson, John
Finsberg, Geoffrey Mitchell, David (Basingstoke) Williams, Delwyn (Montgomery)
Fisher, Sir Nigel Mitchell, R. C. (Soton, Itchen) Young, Sir George (Acton)
Fletcher, Alexander (Edinburgh N) Monro, Hector Younger, Rt Hon George
Forman, Nigel Moore, John
Foulkes, George Morrison, Hon Charles (Devizes) TELLERS FOR THE NOES:
Fox, Marcus Morrison, Hon Peter (City of Chester) Mr. Tom Ellis and
Gardner, Edward (South Fylde) Mudd, David Mr. Robin Squire.
Garel-Jones, Tristan

Question accordingly negatived.