HL Deb 03 February 1987 vol 484 cc135-7

2.55 p.m.

Lord Brougham and Vaux

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

The Question was as follows:

To ask Her Majesty's Government how many measures relating to the completion of the internal market by 1992 were adopted during the United Kingdom's presidency of the Council of Ministers of the European Community.

Lord Lucas of Chilworth

My Lords, 44 internal market measures were adopted and another four agreed during the United Kingdom presidency. This represents a substantial acceleration in progress towards completing the internal market. We hope that the momentum now established will be sustained under subsequent presidencies.

Lord Brougham and Vaux

My Lords, I thank my noble friend for that excellent news that he has given us. Perhaps we can speed up the process whereby we get the presidency again quicker than normal. Can the Minister give us some idea of the areas in which progress has been made?

Lord Lucas of Chilworth

My Lords, the items cover a wide spectrum. About half were agreed in the Internal Market Council dealing with mutual recognition of national standards for industrial products of particular interest. Perhaps I may tell my noble friend that the consumer credit directive, a regulation with regard to counterfeit goods, a further regulation with regard to hotel fire safety and a directive on good laboratory practice are four that come very readily to mind.

Baroness Burton of Coventry

My Lords, the Minister has mentioned those 44 measures and the wide spectrum covered. Can he tell the House whether those measures included one for the liberalisation of air transport within the European Community? Specifically can he tell us whether there has been any adoption of the aviation competition regulation under Article 87 of the Treaty of Rome?

Lord Lucas of Chilworth

My Lords, I am not surprised at the noble Baroness's supplementary question. I can tell her that member states failed to agree on the package of measures intended to liberalise air services, and this was a disappointment. However, it remains one of the United Kingdom's highest priorities.

Lord Williams of Elvel

My Lords, can the noble Lord tell us what progress has been made in completing the internal market on services, particuarly financial services?

Lord Lucas of Chilworth

My Lords, I regret to have to tell the noble Lord that not as much progress has been made as anticipated, but ECOFIN adopted an important directive in November on the liberalisation of capital movements. I think what lies behind the noble Lord's question is the fact that a genuinely free market in financial services, insurance and so on would give our firms wide and new opportunities to market their services throughout the Community.

Lord Williams of Elvel

My Lords, I am grateful to the noble Lord. But can he assure us that this is a government priority, because we are told that we are very good at selling services and perhaps not so good in other respects? If that is the case, will the Government make it a priority that we should try to get a free market in services?

Lord Lucas of Chilworth

My Lords. of course priorities have in themselves priorities. But it remains an important matter for us to pursue through the Community at every opportunity we have.

Lord Gladwyn

My Lords, may we perhaps know how many measures for the completion of the market are now outstanding?

Lord Lucas of Chilworth

Not without notice, my Lords. The noble Lord will recall that the White Paper produced by the noble Lord, Lord Cockfield, as commissioner had some 290 measures. I cannot recall how many of those have been adopted since the White Paper was produced.

Lord Nugent of Guildford

My Lords, may I ask my noble friend, reverting to the question about financial services and particularly insurance, whether it is not a fact that the Single European Act which we recently approved is our best hope, by the introduction of majority voting—which will still be difficult and delayed—of getting freedom in this very important field?

Lord Lucas of Chilworth

My Lords, I really have to agree with my noble friend Lord Nugent of Guildford. The Single European Act is an important step towards enabling the United Kingdom to realise more fully the benefits of our membership of the Community, and a greater use of majority voting will, I think, lead to much faster and more effective decision-taking in all areas.

Lord Bruce of Donington

My Lords, is the noble Lord aware that the provision of insurance, other than life assurance services, has been in the form of a draft directive since 1975, and that it has been a government priority to achieve that for the past 10 years? Can the noble Lord inform the House whether Germany and France are still exercising their vetoes against the introduction of' the directive?

Lord Lucas of Chilworth

My Lords, I think that the true answer to the question of the noble Lord, Lord Bruce of Donington, lies in the fact that the European Court judgments in the non-life insurance test cases became available too late in the presidency to allow us to make progress. We hope to make better progress in the future.