HL Deb 31 October 1984 vol 456 cc593-6

8.16 p.m.

The Minister of State, Foreign and Commonwealth Office (Baroness Young) rose to move, That the draft order laid before the House on 22nd October be approved. [38th Report from the Joint Committee.]

The noble Baroness said: My Lords, I beg to move that the draft order be approved. I should like to draw the attention of your Lordships to the treaty which is referred to in the schedule to the order. The purpose of the treaty is to give effect to Greenland's wish to make the transition from membership of the Community—as a part of Denmark—to association with it. The treaty does this by removing Greenland from the scope of application of those provisions of the EEC treaty which apply to the European territory of members of the Community in general.

The EEC treaty is amended by the inclusion of Greenland within its Part IV, relating to the association of overseas countries and territories within the Community. In addition, the new treaty removes Greenland from the geographical scope of the treaties establishing the European Coal and Steel Community and the European Atomic Energy Community.

Annexed to the treaty is a protocol, which provides for duty-free access to the community for fish and fishing products coming form Greenland in return for satisfactory arrangements for access by the Community to Greenland's fishing zones. Arrangements were also agreed between Greenland and the Community to provide for a framework fisheries agreement. This established principles governing Community fishing in Greenland waters, with a protocol setting the initial quotas for Community fishermen for the first five years.

The Community's fishing opportunities under the agreement are to be balanced by the annual payment to Greenland from the Community budget of 26.5 million ecu—about £15 million. Greenland will not, however, receive aid from the European Development Fund by virtue of her overseas countries and territories status during the validity of the fisheries protocol.

There is also provision for procedures under which the Community may act in the event of the overall agreement being disturbed. The regulations providing for these arrangements are not listed in the schedule to the order, but it is nevertheless right to mention them your Lordships, as they are intended to form one package with the treaty and protocol. The draft texts making up the complete package were submitted to the scrutiny of the Select Committee on European legislation in another place on 24th February 1984. I shall have more to say about the fisheries arrangements later. The protocol to the treaty provides also for the application to Greenland of the Community's detailed arrangements on tariff treatment and other matters for the OCTs in relation to products covered by both the EEC and the European Coal and Steel Community Treaty.

Your Lordships will be aware that the effect of the order is that the treaty with attached protocol will be able to operate in the law of this country in accordance with their provisions.

It may be helpful to your Lordships if I briefly describe the background to Greenland's desire for a change in status. Greenland, though geographically distinct from the continent of Europe, was at the time of Denmark's entry into the Community fully integrated with the Kingdom of Denmark, of which it was and is a part. It was therefore obliged to join the Community with the rest of Denmark, though 60 per cent. of the Greenland population voted against membership in the referendum in which Denmark voted to accept membership. In 1979, however, there came an important change in Greenland's relationship with the rest of Denmark. She received a substantial degree of home rule, and in elections in 1979 the Greenland party opposed to EC membership won a majority.

Fisheries are Greenland's major economic activity, accounting for half of her exports. The Greenlanders have always seen disadvantages in the application of the Community's fisheries policy for which, as a territory remote from other member states and with relatively little industry or agriculture, they saw few compensating advantages. In a referendum on the membership issue in February 1982, Greenland opted for withdrawal by a small majority and sought associated status under the Community's arrangements for OCTs.

In May 1982 the Danish Government therefore submitted a memorandum to the Council of Ministers proposing that Greenland should cease to be within the geographical scope of the treaties establishing the European Coal and Steel Community and European Economic Community and be added to the list of OCTs in Annex IV to the EEC treaty. But as the treaties contain no provision for the withdrawal of a member state, or a part of one, the precise terms of Greenland's change in status had to be negotiated within the Community in order to provide appropriate amendments to the treaties. In the course of negotiations it was also agreed that Greenland should cease to be within the geographical scope of the treaty establishing the European Atomic Energy Community. After discussion in the Council on a request from Denmark the treaty referred to in the schedule to the order was signed in Brussels on 13th March 1984, subject to ratification.

The treaty is to come into force on 1 st January 1985 if all member states have ratified it by then. Otherwise it will come into force one month after the last state has ratified. Subject to the views of this House, we expect to have completed the necessary procedures for ratification by 1st January 1985 deadline.

Before I conclude, I should say a brief word to your Lordships about the agreement on fisheries to which I referred earlier. The agreement, which was laid before the House on 14th August, has several interlocking elements intended to balance the interests of Greenland and those of the Community. For its part, Greenland will continue to benefit from duty free access to the Community market for fish and fishery products in return for her commitment to the fisheries agreement with the Community. Under the protocol to the agreement, taking into account catches by Greenland vessels, the basic quotas set for Community fishermen for the first five years represent an overall level virtually equivalent to the quotas set by the Council of Fisheries Ministers for all the major Greenland fish stocks.

It is important to note that the Community is not being asked to alter its current fishing opportunities significantly. Any major reduction in current Community fishing efforts at Greenland would have led to claims for compensation from Community fishermen elsewhere in Community waters, and could have upset the entire balance of the common fisheries policy—established with such difficulty only last year. This has been avoided and the quotas between member states, including the United Kingdom, will be allocated in accordance with the normal procedures and criteria.

All in all, the Community's fishing opportunities in west and east Greenland waters, including those quotas which may be allocated to Norwegian and Faroese vessels under the relevant reciprocal fisheries agreements, amount to some 100,000 tonnes of cod equivalent—mainly cod, red fish, Greenland halibut and shrimps. These opportunities are balanced by the annual payment to Greenland to which I referred earlier. The Community's fishing rights in Greenland waters will not, however, end at the beginning of 1995. Although the agreement is concluded for 10 years, there is provision for successive six-year periods, thus providing a solid basis on which Community and Greenland fishermen can plan for the future.

I hope I have given sufficient general explanation of the background to the order and its objective for the order to commend itself to your Lordships as representing a fair and balanced deal for the Community and for this country. I beg to move.

Moved, That the draft order laid before the House on 22nd October be approved.—(Baroness Young.)

Lord Elwyn-Jones

My Lords, the House will be grateful to the noble Baroness, Lady Young, for steering us through the complex field of the withdrawal of a part-time member state from the European Community. On the face of it, from one point of view, this would seem a portentous event because, after all, Greenland is the second largest island in the world, representing half the land mass of the EC. However, with the assistance of my noble friend and of Whitaker's Almanack I discovered that in 1976 its population was 49,666; so that introduces a certain sense of proportion to the gravity, significance and importance of this debate.

The Greenlanders are admirable people. They have, in their wisdom or unwisdom, decided upon withdrawal from the EC and acceptance of an associate status. We wish them every prosperity in the consequence which will flow from the general acceptance of these orders. There are obvious legal difficulties in withdrawing from the EC, but this exercise will have taught the lawyers a good deal. I have no points of technical criticism to make. We welcome the decision of the Greenlanders and wish them good fortune in their future.

Lord Diamond

My Lords, I, too, want to thank the noble Baroness for having fully explained the matter. It is an important matter. The population is small, but the principle is not as small. Indeed, the principle is quite large. We on these Benches hear with regret the departure of any member from the Community and we regret the departure of Greenland. We are grateful to the noble Baroness and we understand a good deal of what has happened.

There is only one question I want to ask and that deals with fisheries, which seem to be the main point of contention. Am I right in understanding that the rights of British fishermen are unaffected?

Baroness Young

My Lords, I should like to thank the noble and learned Lord, Lord Elwyn-Jones, for his welcome to this order. The negotiations with Greenland were long and far from easy, coinciding as they did with the closing stages of the Community's negotiations on a common fisheries policy. But we believe that this order is fair.

The noble Lord, Lord Diamond, said that he regretted that any country should wish to withdraw from the Community. He is right to say that it raises an important principle. But I am happy to confirm that we believe that the rights of British fishermen have been safeguarded. It is a complex matter, coming as it does at the same time as the negotiation of the common fisheries policy, but we believe that the rights of British fishermen and the rights of Community fishermen, as well as the rights of the Greenlanders, have been safeguarded by the proposals contained in this order.

On Question, Motion agreed to.