HC Deb 25 April 1984 vol 58 cc728-30
60. Mr. Knox

asked the Secretary of State for Foreign and Commonwealth Affairs what further proposals he intends to place before his European Community colleagues for the development of Community policies.

Mr. Rifkind

The European Council reached a large measure of agreement on new policies in March, reflecting the Government's priorities. We are pressing for the necessary follow-up action to be taken as soon as possible in the relevant specialist Councils.

Mr. Knox

Can my hon. Friend say what progress has been made towards the creation of a genuinely free market in goods and services within the Community, as outlined in the Government publication, "Britain and the European Community—A Positive Approach"?

Mr. Rifkind

My hon. Friend is right to draw attention to the fact that the organisation usually referred to as the Common Market has achieved such a description in terms of its agricultural policy rather than its internal markets. The Government have given high priority to achieving a more genuine internal market, especially in insurance and service industries. Encouraging progress has been made in the Stuttgart negotiations and we have achieved broad agreement on the need for a liberalisation of trade and services, notably in transport and insurance.

Mr. Rogers

The Minister said that he was struggling through negotiations on internal budgetary discipline and a new formula. The Government have set out the grounds for an increase of own resources to 1.4 per cent. in 1986 leading to 1.8 per cent. in 1988. The deadline for the conclusion of negotiations for the entry of Spain and Portugal will be in August. As those policies are incumbent upon the increase in own resources, will the Minister say to what extent he has committed the country to such an increase to develop them?

Mr. Rifkind

I do not accept the preamble to the hon. Gentleman's question. The Government are not committed to an increase in own resources. Their attitude remains that outlined by the Prime Minister at the Dispatch Box.

Mr. Bowen Wells

On the question of the increase in own resources, does my hon. Friend agree that the British Government's negotiating stance is that own resources will be increased if our budgetary requests are acceded to? Would it not be helful in those negotiations, and to the House, if my hon. Friend spelt out the purposes for which the increases in own resources will be used?

Mr. Rifkind

We have said that we understand that certain arguments have been used to explain why an increase in own resources would be appropriate. They relate to the likely accession of Spain and Portugal to the Community, to some appropriate new policies and to possible increases in the regional and social funds. I must emphasise that an increase in own resources can be considered only if satisfactory agreement is reached on the British budget contribution and if there is proper control of agriculture and Community expenditure.

Mr. Maclennan

What progress have the Government made in the liberalisation of air transport within the European Community? Can the Minister say what prospect he sees for bringing down the unacceptably high level of air fares within the Community?

Mr. Rifkind

My right hon. Friend the Secretary of State for Transport has said that the liberalisation of air transport is an important objective of Government policy. He will bring forward proposals later this week, to be discussed at subsequent meetings of Community Ministers.