§ 28. Mr. Deakinsasked the Chancellor of the Exchequer if he will make a revised estimate of the balance of payments cost of entry into the European Economic Community in view of the higher farm prices proposed for 1972–73 in the European Economic Community and the reductions in some world food prices since Command Paper No. 4715.
§ Mr. Maurice MacmillanThe Council of Ministers has not yet decided on the level of farm prices for the coming year, and we are in close touch with the present members of the E.E.C. to ensure that the British interest in these proposals is taken fully into account. The general trend in world food prices has been upwards since Cmnd. 4715 was published.
§ 47. Mr. Scott-Hopkinsasked the Chancellor of the Exchequer whether he will negotiate with the European Economic Community countries in order to narrow the margins of fluctuations between the £ sterling and the European Economic Community national currencies to limits of 2½ per cent.
§ Mr. Maurice MacmillanWe are working closely with the Community on this and other matters concerned with monetary developments.
§ 48. Mr. Kenneth Clarkeasked the Chancellor of the Exchequer what representations he has made to the European Economic Community Council of Ministers on behalf of the British Government about the West German Government's proposal for an economic policy orientation committee at present being considered by the Council of Ministers.
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§ Mr. Maurice MacmillanWe are in close touch with the Finance Ministers of the E.E.C. My right hon. Friend has just returned from a meeting with them in Brussels—and all aspects of economic and monetary integration are covered in our discussions.
§ 58. Mr. Scott-Hopkinsasked the Chancellor of the Exchequer whether he will seek in conjunction with the European Economic Community countries and other West European countries to establish a common European unit of working capital to replace the present use of the dollar.
§ Mr. Maurice MacmillanSeveral units of account already exist in the E.E.C. Progress towards economic and monetary union in Europe is under consideration in all its aspects, in consultation with the United Kingdom.
§ Mr. Deakinsasked the Chancellor of the Exchequer on what statistical evidence he arrived at the calculation in paragraph 57 of the Common Market White Paper than an extra growth of ½ per cent. per annum would, by the fifth year of European Economic Community membership, enable the United Kingdom to meet the extra balance of payments cost of entry in that year.
§ Mr. HigginsThe calculation given in paragraph 57 of the White Paper (Cmnd. 4715) is given as an example to illustrate the additional resources which would be available to Britain at the end of a five-year period, if the rate of growth of national income had, in each of five years, been ½per cent. higher as a result of entry into the E.E.C. We have always made it clear that a reliable quantified assessment of the overall economic effects of entry, including those on the balance of payments, is impractical. But the improvements in the efficiency and competitive power of British industry resulting from entry should enable the United Kingdom to meet the balance of payments costs of entry as they gradually build up over the next decade.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will give details showing to what extent, on Great Britain's entry into the European Economic Community under present conditions, he will be able to undertake to 272W review the provisions of the Customs and Excise Acts whereby tax on fuel oil used in power stations for the manufacture of chemicals is paid in full, if 50 per cent. of the energy is used for refinery purposes and remitted in full if less than 50 per cent. is so used.
§ Mr. Maurice MacmillanMy right hon. Friend's discretion will remain unfettered.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent, under the present rules and regulations of the European Economic Community if Great Britain enters, he would be able to extend depreciation allowances to cover the fabric of hotel buildings and structures.
§ Mr. Patrick JenkinI am not aware of any rule or regulation of the European Economic Community which would prevent such an extension of our present system of depreciation allowances.