HC Deb 24 March 1981 vol 1 c800
12. Mr. Teddy Taylor

asked the Secretary of State for Employment if he will initiate an inquiry into the impact on employment in the United Kingdom of membership of the EEC.

Mr. Waddington

No, Sir. Such a study would hold value only if it were possible to quantify with certainty the separate effects of the many different factors influencing employment levels. We can, however, be certain that withdrawal from the Community, into which at present we sell over 40 per cent. of our exports, would generally have a most adverse effect on employment.

Mr. Taylor

As Britain's performance on employment and growth under Governments of both parties since 1973 has, on the Minister's own figures, been a lot worse than that of our EEC partners, and considerably worse than those European countries which did not join the EEC, would it not be wise to have such a study to enable us to identify the changes we need to make to promote employment and growth?

Mr. Waddington

If my hon. Friend considers the matter, I am sure that he will recognise the changing patterns of trade that have taken place, not just since we joined the Community but for many years before that. Not so many years ago, 40 per cent. or more of our trade was with the Commonwealth and America. Today, only 20 per cent. of our trade is there and 40 per cent. is with Europe. How can we contemplate cutting ourselves off from that market?

Mr. Roy Hughes

Does the Minister appreciate that the loss of cheap food to the British housewife has had the effect of driving up wages in this country, which in turn has made our products less competitive in the markets of the world? In addition, we have had to get rid of our small tariff barriers which were effective. Is he aware that their loss has driven many industries to the wall? As regards trade with the Common Market, will he bear in mind that many of our imports are being paid for by North Sea oil?

Mr. Waddington

I do not accept for one moment that the abolition of tariff barriers against imports from European countries has led to the present unemployment. The truth is that we have free access to the most rapidly expanding consumer market in the world, into which at present we sell well over 40 per cent. of our exports.