HC Deb 21 November 1984 vol 68 cc289-90
9. Mr. Alan Howarth

asked the Secretary of State for Trade and Industry what progress he has made on the removal of restrictions on trade in services within the Community.

Mr. Channon

My right hon. Friends and I continue to press in the Council for the liberalisation of services in the Community. Progress so far has been disappointingly slow, but we shall continue to press the case as hard as possible.

Mr. Howarth

I congratulate my right hon. Friend on his efforts, but does he agree that one of the principal reasons why the economic strength of the United States of America has outstripped that of Europe is that for the past 200 years the United States has been a common market? Does my right hon. Friend accept that the way forward for Europe lies not in increased expenditure and bureaucracy but in removing the internal barriers to a true common market so that, for example, in future, Frenchmen, Germans and Italians will be able to buy British insurance, as we can buy theirs?

Mr. Channon

Absolutely I entirely agree with my hon. Friend. The issue goes far wider than just the point about insurance raised by my hon. Friend. It is a major priority for the British Government and the British people that the Community should function as an internal market, as a real market, so that British goods and services can flow freely. We would therefore save vast sums of money that are wasted at present. The insurance situation is disappointing at present. We are continuing to press other Community Governments and there are cases pending. I am grateful to my hon. Friend for drawing attention to the matter.

Mr. Gould

To say that progress is disappointingly slow is a gross understatement. It has been outrageously and unacceptably slow. At a time when our trade in manufactured goods is running at an annual deficit of £10,000 million, is it not time that the Minister insisted that we have the opportunity to trade in those areas in which there is at least some chance of making good that deficit?

Mr. Channon

With respect, that is a bit rich from an hon. Member whose party opposed the Common Market at almost every stage. It is monstrous for the hon. Gentleman to imply that if he had been in office he would have made the Common Market work better. The whole world knows that that is absolute rot.