HC Deb 20 October 1982 vol 29 cc360-1
32. Mr. Teddy Taylor

asked the Secretary of State for Foreign and Commonwealth Affairs what are his objectives for EEC reform in 1983.

Mr. Pym

Our aims are to work with our partners to develop existing Community policies, to seek new policies which will benefit Britain and the Community, to try to change the CAP and to solve the budget problem.

Mr. Taylor

As we have been trying for 10 years to get a new, permanent solution to the budget problem, and as the latest estimate, if there is no reform, is that we may have to pay £1,000 million net next year, will the Government make it clear that, in the absence of a firm agreement on a new fair contribution system, they would be willing to withhold contributions from the EEC?

Mr. Pym

Our objective is a reorganised budget that is fair not only to Britain but to every member of the Community. That is fundamentally necessary to the health of the Community. We shall seek to achieve that in negotiations for 1983 and later, which have not yet begun. I would not expect the Commission to put a proposal before us for a few weeks yet. That proposal will be the beginning of the negotiation that ensues. I shall bear in mind during the negotiations the points that my hon. Friend raises.

Mr. Leighton

In view of the Prime Minister's statement yesterday that the level of employment in this country depends on our share of home and overseas markets, and bearing in mind that our current deficit in manufactured goods with the original EEC Six is running at £5.5 billion compared to a surplus of £6.6 billion with the rest of the world, will the right hon. Gentleman estimate how many jobs have been lost in this country by the trade deficit now inflicted upon us by the Common Market?

Mr. Pym

Not as many as would have been lost if we were not members of the Community.

Sir John Biggs-Davision

Is my right hon. Friend aware of the concern of many people in the country who are favourably disposed towards the Community over the degree of European discriminaton against Commonwealth persons and products? Will my right hon. Friend see what can be done in the interests of the Community to bring the whole Commonwealth closer to Europe?

Mr. Pym

That is an objective that I certainly have in mind. I am a strong supporter of the Commonwealth and wish to do whatever I can to further its interests within the context of the Community. I shall keep in mind the important point that my hon. Friend has raised.

Mr. Heffer

Has the right hon. Gentleman read the speech of his right hon. Friend the Minister of State, made in Belgium on 20 September, when the right hon. Gentleman talked about future financing of the Community? His speech included the words: makes inevitable an examination by all member States of the future financing of the Community. There can be no preconditions in advance". Does that mean that the Government are in agreement with the upping of VAT? Does that mean that they are prepared to go beyond the 1 per cent.? May we be told precisely what was meant by those words and whether we are to see a trade-off in one direction, but at the expense of the British people?

Mr. Pym

I think it means that we are going into the negotiations with an intelligent and open mind and that we shall not have any preconditions about increasing our own resources or anything else. It is a sensible way to start.