HC Deb 05 March 1979 vol 963 cc466-9W
Mr. Hoyle

asked the Secretary of State for Industry what discussions he is currently engaged in with the EEC Commission on industrial and related matters; and if he will give a detailed breakdown of each topic under discussion with special reference to EEC proposals, actual or envisaged, and their status within the Community's legislative machinery.

Mr. Les Huckfield

My Department is currently engaged in discussions with the EEC Commission on a wide range of industrial topics. Some of these are geared to the consideration of specific proposals, whilst others form part of a continuing exchange of information. My Department is also involved in a number of discussions with the EEC Commission on topics where the primary interest lies with other Government Departments, but where industrial interests are involved.

A summary of the main discussions in which my Department is currently engaged is set out below. Details of all the draft and adopted directives under Article 100 of the Treaty of Rome, which have a bearing on industrial matters, are published regularly in the journal Trade and Industry. The most recent list of their current status is contained in the issue dated 16 February 1979.

Data Processing

A draft four-year programme of support for the data processing industry was drawn up by the European Commission in 1976. Discussions at working level on the Commission's proposals have been prolonged largely because of the different priorities accorded to the various sections of the programme by the member States. A revised programme taking account of these various priorities has not yet been agreed, although it is hoped that significant progress will be made in the next few months.

Telecommunications

Discussions have been held at official level in connection with the Commission's study of possible measures to open up to competition at Community level the procurement of telecommunciations equipment by the bodies in member States responsible for telecommunication services. This study was requested by the Council of Ministers, but as yet no proposals have been submitted to the Council by the Commission.

Aerospace

The Commission was notified of the decision to launch the British Aerospace 146 feeder airline last July, and the Commission's request for additional information is being considered.

Electrical Engineering etc.

My Department is actively involved with other Departments in discussion with the Commission of proposals regarding electrical energy meters, electrical equipment, pressure vessels, lifts and lifting appliances, building and civil engineering equipment and machines, noise from domestic appliances and rational use of energy.

Machine Tools and Mechanical Engineering

My Department continues to have informal discussions with the Commission on imports from COMECON and non-EEC countries, and on steel prices for steel consumers.

Chemical and Textiles

Together with my right hon. Friend the Minister of Agriculture, my right hon. Friend is engaged in the negotiation of an EEC alcoholic regulation under the common agricultural policy.

The Commission is discussing with all member States its communication on general guidelines for a textiles and clothing industry policy, reference R/2118/78. For information on the contents of this document, I would refer my hon. Friend to the explanatory memorandum submitted by my Department on 12 October 1978. The communication has not so far been considered by the Council. Further discussions with member States are expected, after which it is envisaged that the Commission will bring forward specific proposals to the Council.

We are also in discussion with the Commission on the agreement between EEC producers of certain synthetic fibres, which is intended to resolve the problems caused by severe excess capacity in the industry. We are urging the Commission to find means of reconciling this agreement, which it has itself promoted, with the Treaty of Rome.

We are also discussing with the Commission and other member States the Commission's draft proposals for a regulation on the conduct of outward processing trade in textiles. This would provide a special regime for textiles and clothing products re-imported into the Community after processing in certain Mediterranean countries. The Commission has not so far made any formal proposals to the Council.

Paper, Minerals and Metals

My Department continues to have informal discussions with the Commission in the ad hoc working group on the pulp and paper sector, and to discuss with the Commission EEC policy on international matters affecting minerals, including copper, lead and zinc, tungsten and nickel.

Shipbuilding

Negotiations are currently taking place with regard to an extension of the Shipbuilding Intervention Fund.

Industries in Crisis

My Department is involved in discussions concerning a proposed regulation, reference R/2821/78, for financial aid to be granted to industrial undertakings in selected sectors in crisis to assist the financing of re-structuring programmes or programmes for conversion to other sectors. For further information on this document, I would refer my hon. Friend to the explanatory memorandum submitted by my Department on 11 December 1978. We are also considering two supplementary draft regulations, both under reference 4301/79, designating the shipbuilding and textiles industries as eligible to receive aid under the proposed crisis industries scheme. These were the subject of an explanatory memorandum submitted by my Department on 19 February 1979.

Public Undertakings

The Commission has produced a draft directive under Article 90 of the Treaty of Rome governing the allocation of State resources to public undertakings. For details of this, I would refer my hon. Friend to the answer given to the hon. Member for Bedford (Mr. Skeet) on 25 January 1979.—[Vol. 961, c. 223–4].

Steel

My Department is currently considering a draft decision on the ECSC budget, reference 4866/79. A supplementary contribution from member States toward the 1979 ECSC budget is proposed. The total sum to be raised is 28 MEUA (£18.7 million) of which the United Kingdom will contribute 17.4 per cent. or £3.3 million. The unanimous consent of the Council is required.

In correspondence with Commissioner Davignon, my right hon. Friend is actively seeking an extension of Davignon style anti-crisis measures to certain special steels but legislative action is not envisaged at the moment. My Department is also involved in consideration of a draft decision on State aids for steel, reference 4627/79. This decision would require member States to give prior notification to the Commission of any finance for steel undertakings which they judge contains an element of specific aid. The Commission could then require that the finance be withheld or, if necessary, be repaid. The decision requires the unanimous consent of the Council in order to become law. The Council is committed to making a decision on the Commission proposals by 1 April at the latest. The last Council meeting before this self-imposed deadline is on 5–6 March, when the United Kingdom is due to maintain its legal objections to the decision.