HC Deb 01 December 1998 vol 321 cc660-2
7. Mr. Bernard Jenkin (North Essex)

If he will state his objectives for the Austrian EU presidency in respect of EU enlargement. [61386]

The Secretary of State for Foreign and Commonwealth Affairs (Mr. Robin Cook)

The screening process for the first six candidate countries has now been completed for half of all the chapters of European law. Substantive negotiations have now begun on a quarter of them. At the Vienna European Council, we shall review the recent report of the Commission on all the dozen candidate countries, which concluded that most candidates were making good progress with their preparations for membership.

We must not underestimate the real problems in achieving the biggest-ever enlargement in the history of the European Union. Nevertheless, the Government firmly believe that the problems of enlargement are much less important than the benefits from strengthened prosperity, stability and democracy in central and eastern Europe.

Mr. Jenkin

It is now nine years since the Berlin wall came down; since then, some 20 to 30 former Soviet bloc states have been crying out for full inclusion in the institutions of western democracy. Has the EU not failed those countries, which are struggling to emerge from poverty and misrule, by continuing to apply protectionist policies? Is it not clear that the European Union's real agenda is not enlargement, but monetary union, tax harmonisation and the Franco-German agenda of a single European state? A date is still to be set for the admission of a single former Soviet bloc state.

Mr. Cook

I gently remind the hon. Gentleman that I can take ministerial responsibility only for the last 18 months of those nine years. He might like to address his remarks to those who served on the previous Conservative Government's Front Bench. If he wishes to draw a parallel, he should look at what occurred during the last enlargement involving Austria, Finland and Sweden. It took three years to negotiate enlargement for only three countries, all of which were wealthy and were net contributors to the European budget. It is a bit rich for the hon. Gentleman to complain that we have not completed enlargement in nine months for 12 countries, all of which are poor and will be net recipients from the European budget.

Ms Rachel Squire (Dunfermline, West)

Does my right hon. Friend agree that this Government have demonstrated a far more positive commitment to Europe in the past 18 months than the previous Government demonstrated in 18 years? As a result, this Government have far more credibility in arguing for progress on European enlargement than the previous Government who, for 18 years, adopted a narrow, isolationist approach to everything European.

Mr. Cook

The proof of my hon. Friend's point is borne out precisely by the fact that this Government have managed to start beef exports to Europe while the previous Government started a beef war with Europe.

However, there is room for further improvement. I can report to the House that the Minister of State, Foreign and Commonwealth Office, my right hon. Friend the Member for Gateshead, East and Washington, West (Ms Quin), is convening a new ministerial group to co-ordinate our policies on Europe. It will tomorrow hold its first meeting, which will be chaired by my right hon. Friend, and is an excellent advertisement for joined-up government.

Mr. Menzies Campbell (North-East Fife)

Will the Foreign Secretary take this opportunity to state to candidates for membership of Europe and to existing members that the Government have no intention of proceeding down the road of tax harmonisation and that there is everything to be gained, and nothing to be lost, from concerted European-wide action against tax evasion?

Mr. Cook

The hon. and learned Gentleman will be aware that a Treasury Minister is leading the work within ECOFIN to take action on unfair tax breaks, which attract industry and investment from our country as well as from others in the European Union, in areas where we have a clear national interest in ensuring that there is a level playing field.

There are no proposals to harmonise either the zero rate on value added tax or income tax, for that matter. I do not believe that any such proposals could muster majority, never mind unanimous, support. We should all try to deal with the reality of Europe rather than with the fantasies that some people are trying to sell.

Dr. Norman A. Godman (Greenock and Inverclyde)

Does my right hon. Friend agree that reform must precede enlargement? For example, there can surely be no enlargement before the common agricultural policy and the common fisheries policy are reformed. We should perhaps also examine the modus operandi of the European Parliament and the European Court of Justice.

Mr. Cook

My hon. Friend is absolutely correct: the onus for preparing for enlargement does not rest entirely with the candidate countries. The European Union must also do its work. A particularly important part of that work is reform of the CAP, which the European Union is committed to completing by next March. We believe that the 30 per cent. cut in intervention prices on beef, the 20 per cent. cut on cereals and the 15 per cent. reduction in milk quotas will have a major impact on the CAP and will save British consumers £1 billion a year. That is a prize well worth fighting for in the interests of Britain and of enlargement.