HC Deb 07 July 1982 vol 27 cc288-90
50. Sir Anthony Meyer

asked the Secretary of State for Foreign and Commonwealth Affairs what progress he has made in pursuit of his policy to achieve any reforms within the European Economic Community.

Mr. Hurd

There has been a reduction in the CAP's share of Community expenditure and an increase in the United Kingdom's receipts from CAP expenditure. We have reached agreement with the Parliament on the classification of expenditure. We are making some progress with our efforts to remove barriers to trade in the Community's internal market for goods and services, including insurance, and also in the negotiations for a common fisheries policy. We have secured substantial refunds of the United Kingdom net contribution, and decisions on future arrangements should be taken by the end of November. There is much still to be done in these and other areas.

Sir Anthony Meyer

I thank my right hon. Friend for that full answer. I accept the Treasury diktat that there can be no increase in the 1 per cent. contribution, even though an increase would be to the net benefit of the United Kingdom. However, will my right hon. Friend consult his colleagues in other Departments on the proposal put forward by the European Commission for a revision in budget contributions—notably for some kind of tax on imported sources of energy? Will he also have consultations regarding a more progressive system for applying VAT contributions? Both proposals would clearly be in the interests of the United Kingdom.

Mr. Hurd

We have noted these ideas, which have been going the rounds for some considerable time, but they are not specific proposals and I do not wish to pronounce on them today.

Mr. Ioan Evans

One of the reforms mentioned in a previous answer was a common foreign policy. Will the Minister put details of the common foreign policy in the Library, as he is unable to enunciate them in the House?

Mr. Hurd

There is not a common foreign policy. We retain our sovereignty—[HON. MEMBERS: "Ah!"]. For the third time, we retain our sovereignty to make our own foreign policy decisions, but we increasingly seek cooperation to make our foreign policy more effective.

Sir David Price

Does my right hon. Friend agree that the most urgent reform needed within the Community is to persuade other member Governments to comply with their obligations under the Treaty of Rome? Is my right hon. Friend aware of the total non-compliance by Germany, Italy and France with the insurance aspects of free trade? Does he realise that our insurers are being obstructed at every stage in those countries?

Mr. Hurd

It is certainly true that progress on insurance has been disappointingly slow. A directive on non-life insurance co-operation was discussed six times by the Finance Council last year, and again last month. It is very much in Britain's interests that the discussions should succeed and we shall pursue them energetically.

Mr. Heffer

Will the right hon. Gentleman give a real answer to the question on foreign policy? Was it the answer given to his hon. Friend the Member for Faversham (Mr. Moate) earlier, or the answer that he has just given? Will the right hon. Gentleman give a clear assurance that, irrespective of political co-operation—I am not opposed to that in Europe—Britain will determine its own foreign policy, in its own interests and on behalf of the British people?

Mr. Hurd

I have given that assurance three times and I am willing to give it for the fourth time.