§ 6. Mr. Ottawayasked the Secretary of State for Trade and Industry whether he is satisfied with United Kingdom firms' access to the German insurance market.
§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Michael Howard)No, Sir. In common with most other member states of the European Community, Germany imposes restrictions on trade in insurance services which we do not consider to be justified. We regard removal of these restrictions as an important element in the Community's programme for the completion of the internal market.
§ Mr. OttawayIs it not deplorable that a citizen in a non-United Kingdom Common Market country cannot place an insurance policy in London? Is that not contrary not only to the spirit of the Common Market but to the treaty of Rome?
§ Mr. HowardI agree with my hon. Friend. All Community members, except the Netherlands, impose restrictions on the writing of insurance service business across national frontiers, but the Commission has brought cases in the European Court of Justice against four member states that impose such restrictions. We hope that the judgment of the Court will open the way to the continuing genuine freedom of trade in insurance services, to which we consider member states are entitled under the treaty.
§ Mr. FallonWould a common market in insurance effectively add a 5 per cent. tax to household, car and life premiums in this country? Will my hon. and learned Friend undertake to make the creation of a common insurance market a top priority during the forthcoming British presidency?
§ Mr. HowardWe certainly intend to do all that we can to remedy the situation, and to obtain further progress towards the creation of an internal common market to include a common market in insurance services.
§ Mr. GouldWhy should we be compelled, week in and week out, to comply with EEC rules which govern a free market in goods from which we often suffer a disadvantage, when our EEC partners, in particular the Germans, have got away with 15 years of foot-dragging in the one area where we might be expected to derive benefit? Is it not time that the Minister and the Government stopped talking and demanded effective action?
§ Mr. HowardThe matter is now before the court. When the court's decision is made known we shall take action.
§ Mr. LyellHow many of the 320 internal barriers to trade in the Common Market are in the financial services sector? Will my hon. and learned Friend keep a chart on his wall and tick them off one by one?
§ Mr. HowardThe answer to the first part of my hon. and learned Friend's question is too many. I shall adopt his suggestion about the chart and try to reduce the number as speedily as possible.