HC Deb 11 May 1983 vol 42 cc782-3
48. Mr. Renton

asked the Secretary of State for Foreign and Commonwealth Affairs what main issues he expects to discuss at the European Community summit meeting in June.

53. Mr. Teddy Taylor

asked the Secretary of State for Foreign and Commonwealth Affairs if he is submitting proposals to the Commission of the European Communities on the issues which are to be discussed at the meeting of the Council of Ministers early in June.

54. Mr. Haselhurst

asked the Secretary of State for Foreign and Commonwealth Affairs what subjects he expects to be raised at the next meeting of Community Heads of Government.

Mr. Pym

We expect Heads of Government to review economic and social developments in the Community as well as international economic and political developments, and to discuss the subjects set out in the conclusions of their March meeting, namely, the long-term financing of the Community and the solution of the United Kingdom budget problem for 1983 and later; the enlargement negotiations; youth unemployment; energy, research and development policy; completion of the internal market; and environmental questions. We have been in regular contact with the Commission on all these matters.

Mr. Renton

I thank my right hon. Friend for that detailed reply. Can he count on maximum support from Chancellor Kohl and other European leaders at the Stuttgart summit for himself and the Prime Minister? Is it not clear that if the Labour party were to win the election two days after that summit and if, Heaven forfend, the Member for Liverpool, Walton (Mr. Heffer) were to find himself in my right hon. Friend's shoes, this would lead to Britain's withdrawal from the Community, the break-up of the Ten and Britain becoming the most despised country in Europe?

Mr. Pym

Nobody knows how the Labour party—if it ever gets the chance, and I am doubtful that it will—would carry out its undertaking to withdraw this country from the Community. It would not find it very easy. Nor do we know how it would cope with the consequential loss of jobs and all the other resulting problems. My hon. Friend requires a good deal of imagination to think of the events of which he spoke.

Mr. Taylor

As the Common Market may be discussed during the election campaign, will my right hon. Friend make it clear that the net contribution for 1983 of about £1,200 million would be absolutely intolerable to the British Government and that we intend to get a fixed rebate agreed from 6 June?

Mr. Pym

It remains to be seen whether we achieve an agreement on 6 June. Naturally, Britain wishes to reach an agreement, as do our partners. We trust that it will happen. The Government are confident that a settlement will be reached that will be satisfactory to the House and to the British public.

Mr. Jim Callaghan

If, in the discussions on these issues at the EC summit at Stuttgart on 6 and 7 June, there is no agreement on the cash rebate level to be paid to Britain from the massive sums that we have put in, will the Prime Minister risk a legal and constitutional confrontation with the EC by unilaterally withholding Britain's budget contributions, or will she continue to thump the table?

Mr. Pym

We are confident that we shall achieve an agreement with our partners that will make that unnecessary. That is what we are working towards.

Mr. Nicholas Winterton

Will my right hon. Friend confirm that on 6 June Britain will receive a rebate from the EC in excess of £500 million, which will bring the amount brought back to this country by the Government to £2.5 billion? Does he agree that the enlargement of the EC to include Portugal, and ultimately Spain, will place great strain on the finances of the EC and that that may cause further problems for Britain unless a proper budget arrangement is reached in the very near future?

Mr. Pym

On the first point, the payment that results from the agreement that is reached will come some time later. The payment would not be immediate. That has been the position for 1980, 1981, 1982 and will certainly be the case for 1983. My hon. Friend is correct on his second point. He stated one of the factors that inspired the Community to look for a fundamental change in the financing system and to go for a long-term solution that will iron out the problems. Spain and Portugal's applications to join the Common Market are incentives for examining such a fundamental issue, as they will have to be accommodated one way or another. It is clear to everybody that a revised, financial system will be necessary.

Mr. Foulkes

Does the Secretary of State not think that Britain's position at the summit will be seriously undermined by the failure of the Foreign Affairs Select Committee to produce a report on the future of the Falklands because of the deliberately obstructive tactics of certain Conservative hon. Members? Further, what part did the Foreign and Commonwealth Office have in inspiring such an obstructive tactic?

Mr. Pym

Those questions are not relevant to the topic under debate.