HL Deb 15 March 1971 vol 316 cc241-2
LORD SELSDON

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government, in view of the United Kingdom application for membership of the E.E.C., what steps they are taking to ensure that harmonisation of legislation affecting insurance will be fair and equitable to the British insurance industry.]

LORD DENHAM

My Lords, Her Majesty's Government are taking the following action: first, they are keeping a close watch on the progress being made by the E.E.C. over the harmonisation of insurance legislation; and, secondly, they maintain regular contact with British insurers over developments within the E.E.C. which affect their interests.

LORD SELSDON

My Lords, while thanking my noble friend for that reply may I ask in particular what is being done to ensure that there will be no adverse restriction which may affect overseas earnings of United Kingdom insurers?

LORD DENHAM

My Lords, Her Majesty's Government are very much aware of the importance of the overseas earnings of British insurers. As a member of E.E.C., Britain would call the attention of the Community to the need in its relations with the outside world to give full regard to the position of British insurers in the interest of the Community as a whole as well as that of the United Kingdom.

LORD SHEPHERD

My Lords, the noble Lord suggested that once we are members of E.E.C. we should call the attention of the other members to this matter. But in view of its importance, is it not something which we should consider discussing with the E.E.C. prior to entrance?

LORD DENHAM

My Lords, it is not thought appropriate that E.E.C. draft rules or legislation should be discussed while in draft form.

LORD SHACKLETON

My Lords, may I ask the noble Lord how far the Government are consulting the industry on this matter? Insurance is a very complex business, and there are a number of representative organisations; and, obviously, behind the Question of the noble Lord, Lord Selsdon, there is something which implies, perhaps, anxiety. If the noble Lord, Lord Denham does not know the answer now, could be look into it and satisfy us at a later date?

LORD DENHAM

My Lords, the Department of Trade and Industry maintain regular contact with the British Insurers' European Committee which includes representatives both of the British insurance companies and of Lloyds.

LORD SHEPHERD

The noble Lord says that we are in continual contact with the organisation in Europe. Why cannot we discuss with them and make our points of view well known while there is the draft agreement?

LORD DENHAM

My Lords, I am afraid that I may not have made myself clear in what I said. I said that we are in regular contact with the British Insurers European Committee. Of course everything the noble Lord, Lord Shepherd, has said will be considered by my right honourable friend.