South Africa (Code of Conduct) (Hansard, 25 May 1978)

§ Mr. Dell

The Government have today published a White Paper which commends the new code of conduct to British companies with interests in South Africa.

Successive Governments have stated their total opposition to South Africa's apartheid policies. We are committed to work by peaceful means to assist the evolution of a new and fairer society in South Africa.

We are more closely involved in South Africa than any other country outside Africa. Our economic position in South Africa, because of historic links, is still very large. The Government have therefore been working with our European Community partners to find ways of using existing economic links with South Africa in a constructive and positive way to assist the progress of internal change.

Last September the Government reached agreement with our European partners on a code of conduct for companies in the Nine with interests in South Africa.

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The new code is a development of the earlier United Kingdom code of practice recommended by the Trade and Industry Sub-Committee of the Expenditure Committee in its admirable report published in March 1974, and subsequently accepted by the Government. It goes further than the earlier code in placing greater emphasis on enabling black African employees to take part in collective bargaining, and on the development of trade unions representing black workers. The code aims to encourage the abolition of all forms of discriminatory practice at the place of work and is intended to promote substantial improvements in pay, fringe benefits and working conditions for employees. The White Paper published today contains not only the text of the code but also explanatory guidance and a reporting format. Both the guidance and the reporting format take into account suggestions made by the TUC and the CBI.

Under the code companies are asked to publish detailed annual reports on the progress they have made in implementing the code. These reporting procedures are intended to give parliamentary and public opinion the opportunity to scrutinise and question, and thus to influence, company policy. Companies are asked to send copies of these reports to the Government who will then have an opportunity to make an annual assessment. The other members of the European Community are expected to take similar action and will then jointly review their own national assessments. The Nine are in touch with other major trading nations and the Government hope that other countries will adopt similar codes. Canada's recently published code reflects the influence of the code of the Nine.

British companies with interests in South Africa bear a vital responsibility in their approach to the standards set by the code. The CBI has shown that it recognises this by its helpful attitude in the discussions. Company performance will be watched closely not only by all those concerned in this country and our European partners but by the international community as a whole. If the code is not implemented fully and no changes in racial discrimination at the work place follow, then the pressure for further action, already strong, will become 652W stronger. The Government believe that it is in companies' own interests that the code is faithfully applied and upheld. I am today writing to the chairmen of all the companies concerned to seek their co-operation in this important task.