HC Deb 26 July 1971 vol 822 cc1-2W
1. Mr. Bruce-Gardyne

asked the Secretary of State for Trade and Industry what discussions his Department has had with the representatives of the European Commission regarding the compatibility of investment allowances with membership of an enlarged European Community.

Mr. John Davies

I take it that my hon. Friend is referring to investment incentives generally. Informal talks have been held with officials of the Commission who are concerned with these matters.

25. Mr. Heffer

asked the Secretary of State for Trade and Industry what discussions the Government have now had with the European Economic Community Commission regarding regional policy; whether he will accept the Commission's proposals that investment in certain schemes should be abolished and that investment grants should be limited to 20 per cent.; and what is his estimate of the effects of such a policy on future employment prospects for Merseyside.

Mr. John Davies

Our officials have had informal talks with the Communities on these as on other matters. As my right hon. Friend the Prime Minister told the hon. Member on 13th July, the Community is in the early stages of formulating a policy and we would be able to influence that policy if Parliament agreed that we should join the E.E.C. I know of no reason, as I indicated to the House on 22nd July, to suppose that entry would limit our ability to pursue vigorous regional policies on Merseyside or elsewhere—and, of course, entry should improve rather than diminish the employment opportunities available in the United Kingdom.

45. Mr. Molloy

asked the Secretary of Slate for Trade and Industry if he will arrange for an addendum to be issued to Command Paper No. 4715 showing the detailed calculations upon which he has based his judgment that the response of British industry to membership cannot be quantified in terms of its effect upon the balance of trade, with particular reference to loss of exports in industrial trade with the Commonwealth Preference Area and the European Free Trade Association.

Mr. Noble

No. It was decided not to put forward estimates in this field because they would involve too many very large assumptions about all the factors which would be operating on our balance of trade, many of which are totally unpredictable.

Mr. Clinton Davis

asked the Secretary of State for Trade and Industry (1) what is his estimate of the effect of Great Britain's entry into the European Economic Community on trade with each of the countries of the Commonwealth;

(2) what is his estimate of the effect of Great Britain's entry into the European Economic Community on trade with each of the European Free Trade Association countries.

Mr. Noble

For the reasons given in paragraphs 44–45 of the White Paper (Command 4715) it is not possible to make valid estimates of the effect of our entry into the Community on our overseas trade in general. It is, therefore, quite impossible to give estimates in respect of trade with individual countries.