HC Deb 13 April 1983 vol 40 cc798-9
47. Mr. Teddy Taylor

asked the Secretary of State for Foreign and Commonwealth Affairs if he will restate his objectives for European Community reforms in 1983 in light of the Council of Ministers meetings on 21 and 22 March.

Mr. Pym

We have put forward proposals for developing European Community policy over the whole range of its activities. These include proposals for extending the internal market in goods and services, for reform of the operation of the common agricultural policy, for building on the agreed framework for an energy strategy, for a lasting solution to the Community's budget problem and for extending the regional and social policies. Our objectives have not changed as a result of the most recent meeting of the European Council, though progress was made towards achieving them.

Mr. Taylor

Will my right hon. Friend give a rather fuller explanation of the rebate issue, which is pretty vital for Britain when we consider that Britain, in the absence of a rebate, will have to pay about £1,500 million net, which is about £5 million a day? Is it not serious if the Council of Ministers agrees that we should get a rebate fixed in June, yet the chairman of the Commission announces yesterday in Strasbourg that the Commission is not bound by the recommendation of the Commission? What do we do if we do not get a rebate from our extraordinarily large net contribution?

Mr. Pym

Last month we received a rebate of £568 million for 1982, and more is to come. As I have announced, the European Council agreed that the United Kingdom refund would be included in the budget for 1984. There is a commitment to solve the immediate problem by June and I believe that that will be adhered to as an interim solution until a permanent one can be found.

Mr. Leighton

Does the Foreign Secretary agree that we are as far away as ever from a permanent solution to the budgetary problem? Is it not true that, during our period of membership, we have handed over £4 billion, which shows that we are being greatly exploited by our richer neighbours? Why, in equity, should we make any contribution? Why, as one of the poorer members, should we not be a net beneficiary, as most other member countries are?

Mr. Pym

Had it not been for the negotiations that have been carried out by the Government, the rebates that we have received recently would not have been received. That was the situation that we inherited from the Labour Government. I disagree with the hon. Gentleman about our being further away than ever from a lasting solution, precisely because, as a result of action that has been taken by the European Parliament, the Council has now decided to go for a lasting solution. That has always been the British objective. We are, therefore, much nearer to attaining it than before, so I disagree with the hon. Gentleman.

Mr. Crouch

Does my right hon. Friend agree that the first objective for reform in the EC is for the EC at all levels, from the summit downwards, to begin to consider foreign affairs problems as a first priority and to turn its attention once again to the problems in the middle east? It is one thing to blame Israel or the PLO, but does he agree that an international approach is now essential if we are to stop the descent into war, or terrorism, which might occur if an initiative is not taken in Europe?

Mr. Pym

The political co-operation within the Community recently has been one of its most successful achievements. We have made statements or declarations about the middle east several times. Most recently, the European Council published the conclusions of our discussions on the subject, which were international. We use the influence of the Community as best we can on issues of that kind. We regret that, so far, we have not been successful in reaching a solution to that problem, which we believe would be in the best interests of the Palestinian people. However, the co-operation for which my hon. Friend asks is definitely present.

Mr. Heffer

As the interim agreement has meant that the European Parliament has now decided how we should spend the money that we get back from the European budget, will the right hon. Gentleman consider my party's commitment as it was recently expressed in our policy document, which, I understand, a Minister threw across the Floor. I hope that he will read it. In it we say clearly: British withdrawal from the Community is the right policy for Britain—to be completed well within the lifetime of the parliament.

Mr. Pym

I think that the hon. Gentleman is on to an election loser there.