HC Deb 18 December 1997 vol 303 cc474-5
7. Mr. Robathan

What representations she has received from business about the effect of a single currency. [19874]

Mrs. Beckett

I receive a variety of representations from business about a wide range of issues, including the single currency.

Mr. Robathan

From those representations, does the right hon. Lady agree that the overwhelming majority of small businesses oppose the single currency, as do the overwhelming majority of people in Britain? Can she tell the House exactly how many representations she has received for and against the single currency?

Mrs. Beckett

I cannot give the hon. Gentleman figures, although we will endeavour to, if it is easy to do. Of course there is great anxiety among small businesses about the potential impact of the single currency, and that is understandable. It is particularly unfortunate that the previous Government left everyone in so much ignorance and gave small businesses in particular the impression that they did not have to consider the issues unless and until Britain made a decision to join. That was a profoundly mistaken way of conducting the debate and has left many small businesses at the mercy of misinformation and lack of planning.

The hon. Gentleman says that there is evidence of hostility. I am well aware that the Institute of Directors, for example, has expressed concern about the potential costs to small business. [Interruption.] Although the hon. Member for Buckingham (Mr. Bercow), with his usual inaccuracy, says that the IOD is against, it, like the Confederation of British Industry, believes that in the long term, it is in Britain's interests to join economic and monetary union. It merely takes the view that in the short term, there could be considerable costs, particularly for small business. Those are exactly the sort of issues that we are addressing.

Mr. Llew Smith

Will the Minister confirm that if we join the single currency, under article 107 or 109 of the Maastricht treaty, it will be illegal for democratically elected Parliaments to try to influence the European central bank on issues such as unemployment or, indeed, general economic policy?

Mrs. Beckett

My hon. Friend should recognise that the criteria that were decided for the statutes of the central bank, which underlay the moves towards economic and monetary union, were discussed before the new Government came to power. We have to live with our legal inheritance. Given that, we have always taken the view, and it is now being argued strongly by my right hon. Friend the Chancellor, that the economic advantage and disadvantage to Britain, the balance involved in how those issues are handled, and how and whether we get sustainable convergence, retain flexibility to operate and address employment issues, are exactly the issues about which the Government are concerned and which we are seeking to consider.

My hon. Friend must also be aware that most recently, particularly since we came into office, we have brought the issue of employment and employability high up the agenda of the European Union.

Mr. Breed

Does the Secretary of State agree that not only is a great education programme about the single currency needed for business during next year, but that it should be widened to include the whole country because from 1999 that change will affect every person? It is clear that there is extreme ignorance about how the single currency will affect all our lives.

Mrs. Beckett

The hon. Gentleman is entirely right. Among the many damaging legacies that we inherited from the previous Government is the utterly mistaken assumption that if economic and monetary union goes ahead and Britain is not a member, that is a matter of indifference to us. It will have a huge impact on our financial services, on the competitiveness of our companies and on the way in which we trade. Some British-based companies are already proposing to do many of their transactions in euros. The single currency will have an impact on people's lives. I know that the retail sector, for example, is increasingly aware of that and is beginning to cope with it. It is sad that it was not encouraged to do so by the previous Government.