HL Deb 10 November 1988 vol 501 cc728-31

3.5 p.m.

Lord Rodney asked Her Majesty's Government:

What is their assessment of British industry's awareness of the programme to complete the European single market by 1992, and what steps are they taking to encourage this in preparation.

Lord Strathclyde

My Lords, nine out of 10 firms in this country are aware of the significance of the single market challenge. Now they have to examine the implications for their business and consider what action to take accordingly. The Department of Trade and Industry's Europe Open for Business Campaign aims to encourage firms throughout the country to prepare for the single market. Preparing for the market is above all a task for business. This is why I have welcomed the CBI's Initiative 1992, which provides clear evidence that British business is ready to seize the new opportunities.

Lord Rodney

My Lords, I should like to thank my noble friend for that encouraging reply. I believe Her Majesy's Government should be congratulated on the efforts they have made to make British industry aware of the challenges that will arise in 1992. But does he agree that there is a considerable difference between being aware and taking the necessary steps to meet this challenge? Will he say whether Her Majesty's Government have further plans to monitor British industry to ensure that it takes the necessary steps to meet the challenge? Are there any sections of British industry that particularly need to be followed up, like the smaller companies?

Lord Strathclyde

My Lords, although I said that nine out of 10 firms in the country were aware of the campaign, so far only one firm in three has taken steps actively to prepare for the single market. This shows that a great deal of work needs to be done, which will be done by the Government, trade associations, professional advisers and others to stimulate a response. The specific areas that need to be encouraged arc marketing, sales and distribution, training, recruitment and language skills.

Lord Taylor of Blackburn

My Lords, how does the Minister arrive at the figure of one firm in three? How does he know that people are not doing a great deal on their own without approaching the department?

Lord Strathclyde

My Lords, I am sure that the noble Lord is quite right. There are many people doing things on their own, and this is something which the Government seek to encourage. The one in three figure has been derived from those people to whom we talk in the department and I assume that it is correct.

Lord Williams of Elvel

My Lords, does the noble Lord agree that it is not just a question of firms being alerted to the possibilities and problems of the 1992 arrangements, but also of employees? What arrangements have the Government made with the Trades Union Congress to make sure that through the trade union movement employees are so alerted?

Lord Strathclyde

My Lords, I am sure that the Trades Union Congress is well aware of 1992 and is making its own decisions on how to inform its members. However, the Commission also has views about employees and, while the Government are happy to develop measures to combat unemployment and to use structural funds to help the labour market to work better, we tend to oppose the idea of mandatory worker participation in companies.

Lord Jenkins of Hillhead

My Lords, following my noble friend's question—

Noble Lords

Oh!

Lord Jenkins of Hillhead

—can the Minister assure us that the Government, and in particular the Prime Minister, welcomed the appearance of Monsieur Jacques Delors at the Trades Union Congress, the terms in which he spoke and the reception which he received?

Lord Strathclyde

My Lords, my right honourable friend the Prime Minister has not told me her response.

Lord Harmar-Nicholls

My Lords, is my noble friend aware that the speech made by Jacques Delors at the Trades Union Congress bore no relation to 1992 separately? We can and should support the 1992 initiative but that should not interfere with the independent sovereignty of the 12 countries which make up the Community and that should always be borne in mind.

Lord Strathclyde

My Lords, my noble friend is right. I commend to the House as necessary reading the Prime Minister's Bruges speech.

Lord Taylor of Blackburn

My Lords, is the Minister aware that many firms are making private arrangements for 1992 and that they are concerned that they are not receiving answers from this and foreign governments to questions about tariffs?

Lord Strathclyde

My Lords, the Government are aware that there are problems. We are trying to solve them as quickly as possible.

Lord Williams of Elvel

My Lords, is the Minister saying that the Government have had no contact with the TUC in regard to this matter? Although the Prime Minister may not tell him all her thoughts on various matters, is the Minister satisfied that the Secretary of State for Trade and Industry is telling him all his thoughts?

Lord Strathclyde

My Lords, I am not aware whether there has been contact between the Department of Trade and Industry and the TUC. I shall be pleased to inquire and let the noble Lord know.

Lord Diamond

My Lords, does the Minister agree that there would be more enthusiasm in the approach of industry in preparing for 1992 if there was more enthusiasm in the approach from on high?

Lord Strathclyde

My Lords, if by the phrase "on high" the noble Lord means the Government, my reply is that the Government have made their position clear. They are most keen in their approach to 1992 and they are doing a great deal to make people aware of the challenges.

Lord Chalfont

My Lords, is the Minister aware that the efforts of the Government, especially the Department of Trade and Industry, to raise the level of awareness of business and industry in this country are much admired and appreciated? Nevertheless, can he assure the House that the Government will try to ensure that our eyes are not taken off the ball of the single European market in 1992 by irrelevant arguments about European federalism?

Lord Strathclyde

My Lords, I could not agree more with the noble Lord.

Lord Lucas of Chilworth

My Lords, does my noble friend agree that the two videos and the literature made available by his department to trade associations, chambers of commerce and so forth are most instructive and illuminating? Does he also agree that they point in the right direction those who do not know the direction in which to go and that they therefore answer some of the questions which the noble Lord opposite believes to be left unanswered?

Lord Strathclyde

My Lords, I am grateful for my noble friend's interjection.