European Central Bank (Hansard, 23 February 1995)

§ Q4. Sir Teddy Taylor
To ask the Prime Minister if he will raise at the next meeting of the European Council the level of contributions by member states to the administrative costs of the proposed European central bank.

§ The Prime Minister
Although the administrative costs of the proposed European central bank will he of concern to the Government if the bank is established, the relevant provisions of the Maastricht treaty are not yet in force and are unlikely to be so for some years to come.

§ Sir Teddy Taylor
As the European Monetary Institute, which is the embryo central bank, on 6 February levied a capital charge on national banks of £500 million, including £75 million paid by the Bank of England, is the Prime Minister aware that some consider, rightly or wrongly, that the process of monetary union from which we are only partially exempt will forge ahead?
As many people consider that we are now near the irreversible end on Europe, would the Prime Minister, whose integrity I genuinely greatly respect, consider whether it might be appropriate to ask the people of Britain if this is the way that they want to proceed? Would not such a referendum now help to resolve the damaging splits on both sides of the House and give the Prime Minister real authority at the 1996 intergovernmental conference?

§ The Prime Minister
On my hon. Friend's first point, let me assure him that, if the House wishes, we have a full, 484 not partial, exemption from monetary union. The opt-out which I secured at Maastricht, approved by this House, provides that we will not enter a single currency at any time unless we take a specific decision to do so. That is not a partial but a complete exemption.
As to the money made available to the EMI, to which my hon. Friend referred, that which has been provided by the Bank of England will be returned when the EMI is, in due course, liquidated. It is not a non-returnable payment.
On my hon. Friend's third point, a single currency of course raises serious political, economic and other issues. I have never ruled out a referendum and, again on this occasion, I do not rule out a referendum, but I believe that whether or not it is appropriate is something that we would need to consider at the time.