HC Deb 06 February 1981 vol 998 cc236-7W
Mr. Skeet

asked the Secretary of State for Employment (1) whether it is intended that the Community draft directive (COM(80)423 final) will control multinational or transnational undertakings moving their manufacturing balance from one member country to another or outside the perimeter of the European Economic Community;

(2) what progress has been made by the European Commission on its draft directive for informing and consulting employees of multinational undertakings (COM(80)423 final); and what is the Government's approach thereto;

(3) whether the draft directive (COM(80)423 final) applicable to transnational undertakings also applies to multinational companies operating only within the EEC; and what are the reasons for discrimination against the former;

(4) what are the reasons for his acceptance of the Community directive covering some 20 articles (Com(80)423 final) on some but not all EEC companies; and whether he will consider the adoption of national legislation on the subject.

Mr. Waddington

The draft directive has been referred to the European Parliament and to the Economic and Social Committee for their opinions, and preliminary consideration by officials has also begun in the working groups of the Council. The question of acceptance therefore does not arise, and for a statement of Government policy, I would refer my hon. Friend to the reply my predecessor gave to the hon. Member for Glasgow, Maryhill (Mr. Craigen) on 16 December.

The current proposals cover complex undertakings within a single member state, EC-base transnationals operating exclusively within the Community and other EC and non-EC-based transnationals operating both within and outside the Community. The draft Directive does not seek in any way to control movements by transnational undertakings of their manufacturing activities. However, if the draft Directive were to be adopted, the costs imposed by its obligations would doubtless be a relevant factor for undertakings in decisions about whether to invest within the Community.