HC Deb 12 March 1986 vol 93 cc930-1
12. Mr. Key

asked the Secretary of State for Trade and Industry what progress is being made towards removing the barriers to trade in goods and services within the European Community?

The Minister for Trade (Mr. Alan Clark)

A large number of directives concerned with the removal of technical barriers to trade in goods and services have been adopted. Steps have also been taken to simplify the movement of goods between member states.

Mr. Key

Does my hon. Friend agree that it is intolerable that there has been so little progress towards a common market within the European Community? Although, this weekend, our eyes will be on France and Spain, where we hope the voice of the sensible Right will prevail, will my hon. Friend cast his mind forward to the end of June, when Britain assumes the presidency of the Commission? What steps is he taking to smooth the transition and therefore make a proper common market more likely?

Mr. Clark

Certainly progress so far has been disappointing. That is natural in a Council where there are varying interests and opinions. We have agreed an action programme with the Dutch presidency. I shall be chairing the Council — [Interruption.] — for the remaining six months of the year. I hope that, in conjunction with my Dutch colleagues, and the Belgian presidency which follows, we will be able to make more rapid progress in freeing the internal market—an objective that is shared by all member states.

Mr. Tom Clark

Does it not worry the Minister that British Steel has saddled itself with quotas that have led to a two thirds reduction in manpower in the British steel industry since the Government took office? Does it not worry the Minister that men are being made redundant by British Steel while markets are being flooded, especially by the Italians, who seem to pay scant regard to the quotas which this Government are meeting with great enthusiasm?

Mr. Clark

The internal market is not really concerned with quotas, but with barriers to the freer movement of trade, the harmonisation of technical standards, a free internal market in financial services and such matters as my hon. Friend the Parliamentary Under-Secretary of State for Trade and Industry digressed on regarding insurance. With regard to steel quotas, I understand that an extremely good deal was reached before Christmas.

Mr. Nicholas Winterton

Does my hon. Friend agree that—[Interruption] It is only a matter of time before I move up a little. Does my hon. Friend agree that there would be a better movement of goods and services in Europe if all countries obeyed the same rules? Does he agree that we should take a robust stance on the renewal of the multi-fibre arrangement? As it is so important for employment in the European Community, does he not agree that the Community, including the United Kingdom, is likely to be happy to work together in greater cooperation in that regard?

Mr. Clark

There is a lot in what my hon. Friend says, but the mandate for negotiating the MFA has been agreed on the basis of unanimity. There was nothing particularly contentious in that regard, hut that could have been traded off. I agree that several barriers remain, especially in financial services and insurance. It is in the interests of all member states, including the United Kingdom, that they should be removed as quickly as possible.

Mr. Norman Atkinson

Does the Minister recall describing as inconsistent nonsense the origin of the report that will be before him when he takes the chair of the committee that is to meet shortly? What will his feelings be when that item comes up?

Mr. Clark

I do not recall that phrase, but I should like to pay tribute to the right hon. and hon. Members, who have been very merciful in not reminding me of some of the more intemperate comments that I made before becoming a Minister.