§ 40. Mr. Moateasked the Lord Privy Seal when he expects the European Economic Community Foreign Ministers to be considering formal proposals for the reform of the European Economic Community.
§ 41. Mr. Rentonasked the Lord Privy Seal what discussions he has had with his European Community colleagues regarding the Commission's various proposals for reform of Community practices.
§ Sir Ian GilmourThe Foreign Affairs Council agreed on 22 and 23 June that the Committee of Permanent Representatives should set work in hand with a view to clarifying the report which the Commission has presented in accordance with the 30 May 1980 agreement and should draw up a work programme for the Council to consider at its meeting in September. The European Council had a preliminary exchange of views on the Commission's 318 report on 29 and 30 June and agreed that this would be a major topic for its meeting in London in November, and that appropriate conclusions should be reached then.
§ Mr. RentonDoes my right hon. Friend agree that four months, which is all that will be available after the August holidays, is a very short time in Community politics, but that at the end of that time the British public will he most anxious to see that a first major step has been taken during our Presidency towards reform of Community practices, and notably towards restructuring the European budget?
§ Sir Ian GilmourI entirely agree with my hon. Friend's every word. As he rightly said, because of the holidays we have a short time—four and a half months. However, we expect considerable progress by the rime of the European Council at the end of November.
§ Mr. Denzil DaviesI revert to the previous answer given by the Lord Privy Seal on the matter when he said that if there was no agreement on budget restructuring, the formula laid down in the Council of Ministers meeting of 30 May 1980 would apply to 1982. If that formula applies, what will be our net contribution to the budget in 1982, bearing in mind that our net contribution this year is £570 million?
§ Sir Ian GilmourAs the budget has not yet been formulated or passed, how can I possibly say exactly how much we shall contribute to it?
§ Mr. Cyril D. TownsendDoes my right hon. Friend agree that one Community practice that it would be wise to adopt would be some form of proportional representation when we next have European elections?
§ Sir Ian GilmourThat is a very controversial matter. It has been discussed in the European Parliament, but until recommendations are produced I do not wish to comment on what it may or may not decide.
§ Mr. FauldsIn terms of the reform of Community practices and in view of Israel's international brigandage, would it not be advisable for the EEC Foreign Ministers to consider an abrogation of the trade and financial agreements that the EEC has with Israel?
§ Sir Ian GilmourThere is a danger of European questions becoming Middle Eastern questions. Of course the Middle Eastern question is of deep importance. The hon. Gentleman knows that our approach is based on the Venice declaration and the European initiative. I cannot say now that the approach that he advocates would be likely to further a settlement.
§ Mr. MarlowWhatever may or may not be the policy of the Labour Party with regard to Europe, does my right hon. Friend agree that there is a growing disenchantment and sense of unfairness in this country with our arrangements, and that, without major reforms, there will be a growing move within the country—whichever party is in power—to break away from the present European arrangements?
§ Sir Ian GilmourNo, I do not agree. As my hon. Friend is aware, we were dissatisfied with the previous arrangement, and, unlike the previous Labour Government, we succeeded in changing it. The result was the 30 May agreement. We are now discussing the mandate that the Commission produced to prevent unacceptable circum-stances arising in future. As my hon. Friend knows, our objective is to reach conclusions on that as soon as possible.