HL Deb 09 December 1980 vol 415 cc638-9

2.42 p.m.

Lord Chelwood

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

The Question was as follows:

To ask Her Majesty's Government why tenderers in the EEC bidding for contracts under the Public Works and the Public Supply Contracts Directives are not free to buy the relevant insurances in the markets of their choice; and when they expect this anomaly to be ended.

Lord Lyell

My Lords, a draft directive which would liberalise the provision of insurance services across national frontiers within the European Community has been under discussion in Brussels for a considerable time. Until that directive is adopted, the EEC Treaty permits member states to maintain their own national requirements for matters covered by the directive, provided that those requirements are not discriminatory. At present all member states restrict to some degree the freedom of their nationals to insure abroad. The Government are doing all they can to bring the negotiation of the insurance services directive to an early and successful conclusion.

Lord Chelwood

My Lords, I am grateful for that reply. May I ask my noble friend whether he agrees that the prevarication and delay which have dogged this draft directive for direct insurance services, other than life assurance, really do fly in the face of the spirit and the letter of the treaties? Is he still reasonably confident that his prediction on 13th October, that it would be "months and not years"—it has been seven years already—before this directive is agreed, is still valid, and, should the estimate prove to be overoptimistic, would not the only thing be for us to appeal to the court?

Lord Lyell

My Lords, I am very grateful for what my noble friend has said. In answer to his question as to months and not years, I would reiterate and emphasise again what I said to the noble Lord, Lord Bruce, on 13th October this year, that we are taking a very grave view of the prevarication. It is just under two months since I last mentioned this matter to the noble Lord, Lord Bruce. We hope to have something more to report at the end of next year, when I understand that it will be our turn to have the presidency of the Commission.