HL Deb 03 December 1974 vol 355 cc60-2

2.44 p.m.

Lord SHINWELL

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 whether the countries associated with the EEC are taking united action to deal with the increasing cost of oil from Arabian countries, and what measures are being taken.

Lord JACQUES

My Lords, arising out of the increasing cost of oil, the united action of the EEC countries is taking three forms. First, they made joint representations to the Organisation of Petroleum Exporting Countries on the inflationary consequences of oil price increases. Second, they are formulating a scheme under which the Community would borrow funds from external sources and re-lend to members who are in difficulty. In addition to its value to EEC countries, the scheme could play a part in meeting the worldwide problem of recycling oil surplus funds. Third, ways and means of reducing the EEC's dependence on oil imports are under discussion. These will be one of the items to be discussed at the Summit proposed for this month and the meeting of the Council of Energy Ministers on December 17.

Lord SHINWELL

My Lords, may I ask my noble friend whether he is aware that what he has just told your Lordships' House sounds all very well, but what have been the beneficial results so far? If there is unity in the EEC on the subject of an approach to the solution of the oil problem, is it not somewhat strange that the right honourable gentleman Mr. Lever has proceeded to Iran to discuss the matter with the Shah? Is that united action, or a more desirable unilateral action?

Lord JACQUES

My Lords, the countries of the EEC are taking two different kinds of action. Some actions arc collective and united; others are actions which they take on their own account. I was asked about collective action, and I have answered the Question on these grounds.

Lord SHINWELL

My Lords, do we understand from that answer that this unity is variable in its operation, that it is possible for any country in the EEC to take unilateral action without dissent from the EEC?

Lord JACQUES

My Lords, as I understand it, none of the countries of the EEC has taken any unilateral action to which there could be strong objection by the other members of the EEC.

Lord CARRINGTON

My Lords, would not the noble Lord, Lord Jacques, and the Government agree that in any united action taken by European countries it should not be a question of confrontation between Europe and the Arabs? It should be presented as a genuine effort between the consuming countries and the producing countries to find a solution to a problem which may have the severest repercussions on all of them.

Lord JACQUES

My Lords, I wholly agree with the noble Lord, Lord Carrington.

Lord BLYTON

My Lords, is my noble friend aware that tonight in another place there is a debate on an EEC Regulation which lays down that through an agency they will take over British coal, British oil and the natural gas in the North Sea? Does not my noble friend consider this monstrous?

Lord JACQUES

My Lords, that is another question, but if it is true I would consider it to be monstrous.

Lord SHINWELL

My Lords, has my noble friend seen the report in yesterday's issue of The Times which indicates that a House of Lords Select Committee after considering the Energy Report from the EEC has expressed doubts about its validity? In effect, the House of Lords Select Committee have rejected it. What has my noble friend to say about that?

Lord JACQUES

My Lords, I have not seen the report to which my noble friend Lord Shinwell refers, so I can make no comment.

Lord SHINWELL

My Lords, would my noble friend mind if I sent him the report? I have it in my hand now.

Lord JACQUES

My Lords, I never mind receiving reports.

Lord HAWKE

My Lords, can the noble Lord tell us when Her Majesty's Government are to play their part in starting to give a lead on the saving of oil in this country?

Lord JACQUES

My Lords, in relation to the EEC, they may well do so at the meeting that is to take place on 17th December.

Lord HAWKE

But, my Lords, has not the crisis been with us for nearly a year?

A Noble Lord: My Lords, another Government was in power then.