Clause 1

Part of Orders of the Day — European Communities (Amendment) Bill – in the House of Commons at 12:15 pm on 27 June 1986.

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Photo of Mr Jeremy Hanley Mr Jeremy Hanley , Richmond and Barnes 12:15, 27 June 1986

I would normally bow to my hon. Friend's excellent judgment, but it is precisely because existing directives have been proved to be ineffective that we need the Bill and must take this brave new step forward to create the common market that I believed we were introducing when we joined.

We need a more competitive climate in many sectors, particularly industry and business. The priorities are greater vigilance in preventing protectionist use of state aid and making sure that the requirements of Community law do not impose unreasonable burdens on smaller enterprises. We need growth for smaller enterprises, and the Bill will help to derestrict many of the pressures against it. We also need to create the framework for greater collaboration between companies and member states. As my right hon. and learned Friend the Foreign Secretary said, our industries will never flourish to the extent that they should, and we shall not create employment to the extent that we could, nor compete effectively with the United States and Japan, without the completion of a genuine common market.

So far, most matters concerning the internal market have been subject to unanimity voting, but now qualified majority voting should apply. As this will include a policy for sea and air transport and the right to provide services freely in other member states and an agreement on common standards of industrial products, which is the key to export growth, I must support it. Unanimity will still be required for all decisions on taxation. Some of the recent lies and rumours about the effect on taxation, such as VAT on food and so on, are the arguments of the desperate. It is not in the interest of the House or of the people whom right hon. and hon. Members claim to represent to exaggerate the effect of the Bill and of the Common Market.

Unanimity is still required for taxation and for measures relating to the free movement of persons and the rights and interests of employees. Therefore, the Bill will create a more common market. As my right hon. Friend the Prime Minister said, the Bill is an important step towards enabling the United Kingdom to realise more fully the benefits of our membership of the EC.

Much of the criticism of hon. Members about the failure of the Common Market has been that it has not been a common market, as it needs to be if it is to succeed. The legislation takes us one step further towards a successful Common Market. Perhaps that is why right hon. and hon. Members on both sides are opposing the measure tooth and nail. The simple reason is, perhaps, that they do not want to see the Common Market succeed and would rather see Britain isolated and losing its trade. I remind the Committee that 48 per cent. of our exports go to the Common Market. Perhaps hon. Members would like us to lose our exports, which would mean lost jobs, lost confidence and lost position and authority in the world. The Bill will help to create the Common Market that we need for Britain to succeed in future.