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Column 255

Walden, George

Walker, Rt Hon P. (W'cester)

Waller, Gary

Ward, John

Wardle, Charles (Bexhill)

Warren, Kenneth

Watts, John

Wells, Bowen

Wheeler, Sir John

Whitney, Ray

Widdecombe, Ann

Wilkinson, John

Wilshire, David

Wolfson, Mark

Wood, Timothy

Woodcock, Dr. Mike

Yeo, Tim

Young, Sir George (Acton)

Tellers for the Ayes :

Mr. David Lightbown and

Mr. John M. Taylor.

NOES

Abbott, Ms Diane

Alton, David

Barnes, Harry (Derbyshire NE)

Beggs, Roy

Beith, A. J.

Bellotti, David

Benn, Rt Hon Tony

Bennett, A. F. (D'nt'n & R'dish)

Bonsor, Sir Nicholas

Brown, Ron (Edinburgh Leith)

Browne, John (Winchester)

Bruce, Malcolm (Gordon)

Campbell, Menzies (Fife NE)

Carlile, Alex (Mont'g)

Carr, Michael

Clay, Bob

Cohen, Harry

Corbyn, Jeremy

Cousins, Jim

Cryer, Bob

Douglas, Dick

Dunwoody, Hon Mrs Gwyneth

Ewing, Mrs Margaret (Moray)

Fairbairn, Sir Nicholas

Fearn, Ronald

George, Bruce

Godman, Dr Norman A.

Grant, Bernie (Tottenham)

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Column 256

Heal, Mrs Sylvia

Home Robertson, John

Howells, Geraint

Hughes, John (Coventry NE)

Hughes, Simon (Southwark)

Johnston, Sir Russell

Kennedy, Charles

Kilfedder, James

Kirkwood, Archy

Lambie, David

Lamond, James

Livingstone, Ken

McCrea, Rev William

Maginnis, Ken

Mahon, Mrs Alice

Meale, Alan

Michie, Mrs Ray (Arg'l & Bute)

Molyneaux, Rt Hon James

Monro, Sir Hector

Nellist, Dave

Primarolo, Dawn

Redmond, Martin

Robinson, Peter (Belfast E)

Ross, William (Londonderry E)

Salmond, Alex

Sillars, Jim

Skinner, Dennis

Smyth, Rev Martin (Belfast S)

Steel, Rt Hon Sir David

Taylor, Matthew (Truro)

Trimble, David

Turner, Dennis

Walker, A. Cecil (Belfast N)

Welsh, Andrew (Angus E)

Wiggin, Jerry

Winterton, Mrs Ann

Winterton, Nicholas

Wise, Mrs Audrey

Tellers for the Noes :

Mr. Eddie Loyden and

Mr. Bill Michie.

Question accordingly agreed to.

Resolved,

That this House approves the Statement on the Defence Estimates 1991 contained in Cm. 1559.

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Column 257

European Coal and Steel Community

10.35 pm

The Parliamentary Under-Secretary of State for Industry and Consumer Affairs (Mr. Edward Leigh) : I beg to move

That this House takes note of European Community Document No. 5577/91 relating to the future of the European Coal and Steel Community ; supports the Government's view that early termination is to be preferred ; but considers that, in the event that the Treaty is not terminated early, the flexibility contained within the Treaty should be used to bring about a less interventionist application of its provisions and to reduce burdens on business.

Mr. Speaker : I have selected the amendment standing in the name of the Leader of the Opposition.

Mr. Leigh : The treaty establishing the European Coal and Steel Community expires in 2002. The European Commission has produced a document which identifies three principal options. The first is to extend the treaty beyond 2002, either as it stands or in an amended form. The second is early termination of the treaty, with the coal and steel industries then becoming subject, like other industries, to the provisions of the EEC treaty. The third option is to allow the treaty to expire in 2002. In that case, the interim period could be used to repeal or modify certain ECSC provisions and to incorporate others into the EEC treaty if that should prove to be necessary. Early termination of the ECSC treaty is the Government's preferred option. But we recognise that such a solution may not be attainable. It would require unanimous acceptance by the Council and ratification by the national Parliaments of all member states ; and that seems unlikely. We would, therefore, be prepared to allow the treaty to continue until it lapses in 2002, provided that the interim period is used to bring about a less interventionist approach and to reduce burdens on business.

I will explain why the Government have reached that conclusion. The ECSC treaty entered into force in 1952, five years before the treaty of Rome. At that time there was a world shortage of steel and a need to expand steel- making capacity to assist in the reconstruction of post-war Europe. There was a shortage of coal, and coal accounted for a dominant share of energy supplies. Against that background, it is not difficult to understand why the original six founder members of the Coal and Steel Community established a regime which provided for a high degree of intervention in the running of those industries. In 1991, those conditions no longer apply. The plain fact is that the ECSC treaty is no longer in tune with the way in which modern market economies operate. The coal and steel industries are not special cases in the sense that they were when the Coal and Steel Community was established.

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