HC Deb 14 May 1986 vol 97 cc692-3
5. Mr. Stern

asked the Secretary of State for Trade and Industry if he is satisfied with the progress towards the harmonisation of the provision of financial services throughout the European Economic Community; and if he will make a statement.

Mr. Alan Clark

My aim is freedom to offer a diversity of services. Progress towards the full achievement of this objective has been disappointingly slow. I hope it will now quicken, given the high priority attached to it by Community Heads of Government.

Mr. Stern

Does my hon. Friend agree that one of the greatest barriers to a true market in financial services throughout the EEC is the restrictive practices that exist in so many of those services in Britain and in other EEC countries? Will he bend his efforts towards persuading individual providers of services to reduce those restrictive practices as much as possible?

Mr. Clark

My hon. Friend makes a valid point. We have already made progress in unit trusts. Recent judgments in the European Court will make it easier to advance in non-life insurance. My right hon. Friend the Chancellor of the Exchequer hopes to carry forward the mortgage credit proposals that will allow building societies to invest in property outside their territory.

Sir John Farr

What attention is my hon Friend's Department giving to the unfair protection laws that exist in many Community countries, especially in Germany in respect of its domestic insurance markets?

Mr. Clark

My hon. Friend has identified a market that is proving to be especially difficult. The matter must be agreed in the Council of Ministers. Perhaps when majority voting is introduced it will be easier to make progress in that area.

Mr. Gould

Will the Minister bear in mind in any harmonisation exercise our unfortunate experience with the EEC listing particulars directive and ensure that any future harmonisation is attuned to the needs of our financial services industry, which is, after all, the most powerful in Europe?

Mr. Clark

I shall do my best to advance and nurture the interests of our financial services industry, but, as the hon. Gentleman well knows, each Minister will be endeavouring to achieve the best result for his domestic industry and it is that contest which makes these councils sometimes such a labourious business.