HC Deb 29 June 1981 vol 7 cc565-6
14. Mr. Ron Lewis

asked the Secretary of State for Trade if he will make a statement on the current proposals of the European Commission concerning the outward processing trade of textile products.

Mr. Biffen

The Commission proposals currently under consideration by member States would harmonise arrangements for the administration of special quotas for outward processed goods, where such quotas exist. The United Kingdom has no special quotas for outward processed goods, counting them against normal quotas, and therefore would not be directly affected by the regulations.

Mr. Lewis

Are the Government aware of the serious concern in the textile industry generally about the failure of the EEC to adopt a regulation to control outward processing? What discussion took place on that issue at last week's Council of Ministers?

Mr. Biffen

The answer to the hon. Gentleman's first point is "Yes, Sir". To the best of my recollection, the answer to the second point is "None". As the hon. Gentleman will appreciate from the answer that I have given, the United Kingdom industry would not be affected by the regulations which are under consideration.

Mr. Cryer

Presumably it follows from the Government's position of counting outward processing against existing quotas that the Government take the view that they will treat outward processing as an integral part of the MFA renegotiations and not as a separate issue. Will the Secretary of State take this opportunity to confirm that?

Mr. Biffen

That is so. I can do no better than to refer the hon. Gentleman to the recent speech of my hon. Friend the Minister for Trade.

Mr. John Smith

In a recent debate, the Secretary of State and his hon. Friend the Minister for Trade confirmed that outward processing and renegotiation of the multi-fibre arrangement are intimately connected. In the light of the lack of progress at the last Council of Ministers meeting, will the Secretary of State tell us whether there will be any progress at the next meeting? Does he not think that it would be a good idea to report to the House of Commons after the Council of Ministers meeting, and before negotiations start?

Mr. Biffen

I believe that at the next meeting, which will be in July, sufficient progress will be made to proceed with the appropriate negotiating mandate for the Commission to take matters forward to the autumn. I shall draw the attention of my right hon. Friend the Leader of the House to the point made by the right hon. Gentleman about reporting to the House of Commons.