HC Deb 21 January 1981 vol 997 cc253-4
28. Mr. Spearing

asked the Lord Privy Seal when he intends to make a statement concerning the matters discussed at the European Economic Community Foreign Affairs Council held on 19 and 20 January.

Sir Ian Gilmour

The member States agreed to the appointment of Mr. Poul Dalsager to take the place of the late Mr. Gundelach.

The Council approved a flat rate increase of 1,030 Belgian francs per month for officials in Brussels and Luxembourg, which is 3.3 per cent. for the lowest paid, and much less for senior staff. It also agreed to decide on the new method for reviewing staff pay by 15 April.

Ministers discussed arrangements for trade in baby beef between Greece and Yugoslavia, following Greece's accession to the Community; and also a draft regulation for the Community's programme of aid to non-associated developing countries.

I am circulating a fuller account of yesterday's Council in the Official Report.

Mr. Spearing

Will the Lord Privy Seal tell the House whether the British budget package was discussed? Can he go further than his written answer of 19 December, which says that the return package is to be distributed among a number of sewage works, telephone exchanges and bypasses throughout Britain? Does that package have to be approved by the Council, and when will the full programme be announced to the House and to the people of Britain?

Sir Ian Gilmour

No, it was not discussed because things are moving satisfactorily at present. As the hon. Gentleman knows, we received the first advance of nearly £100 million last year, and the programmes that have been put forward by the Government are being considered. We expect to receive 80 per cent. of our refund under article 235 by the end of the financial year, and 75 per cent. by refund under the financial mechanism.

Mr. Renton

Bearing in mind that there appear to be increasing tensions between the Polish Government and leaders of the Solidarity union, did the Council discuss yesterday what further measures the EEC might take to ease some of the immediate economic difficulties of the Polish people?

Sir Ian Gilmour

I do not think that it did so yesterday, but, as my hon. Friend knows, there were discussions at the previous Council, and there have been discussions in between council meetings, whereby the programme of food aid to Poland was agreed. We have probably agreed—depending on how it is spent—on the sum of £15 million, and there have been other discussions about further aid to Poland.

Mr. Moyle

Will the Lord Privy Seal tell the House whether the opportunity was taken to discuss the supply of arms to Iraq and Iran, since one of the Tehran Government's reasons for releasing the hostages was the hope that it might stimulate tha flow of arms and spare parts? Will the Government take every opportunity to persuade our EEC colleagues not to supply arms to either country in the present situation?

Sir Ian Gilmour

The right hon. Gentleman will have seen the communiqué that was issued after the meeting on political co-operation, which referred to the hostages, but not to arms sales.

Following is the statement: My right hon. and noble Friend represented the United Kingdom on 20 January at this first meeting of the Foreign Affairs Council under the Netherlands Presidency. The member States agreed to the appointment of Mr. Poul Dalsager to take the place of the late Mr. Gundelach. The Council accepted a Presidency compromise proposal awarding staff in Brussels and Luxembourg a flat rate increase of 1,030 Belgian francs per month from 1 July 1980. This is based on a 3.3 per cent. increase for staff on the lowest salary point, and so represents much less for more senior staff: it is a considerable reduction from the Commission proposal for an overall increase of 3.3 per cent. It was also agreed that the Council should discuss the method for reviewing staff pay on 17 February, and that it should reach decisions on the revision of the method by 15 April. The Council agreed on an autonomous regime for Greek imports of baby beef from Yugoslavia, to run for three months while a permanent protocol adapting the provisions of the European Commission—Yugoslavia Agreement to take account of Greece's accession to the Community is negotiated. The Council once again discussed a draft regulation to govern the Community's programme of aid to non-associated developing countries, but no conclusions were reached. This programme has grown rapidly, from £12 million in 1976 to £95 million this year, and a proper regulation is overdue.