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Mr. Shore: The significant difference though, is that those rather few references of an encouraging kind are in

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general terms. They are not in quantifiable figures as are the convergence criteria, which are in the treaty, the protocols and other associated documents. There really is a world of difference between just a reference to the desirability of growth and strict criteria of a quantitative kind which impose strong deflationary obligations on member states.

Ms Quin: I greatly respect my right hon. Friend, but I should point out that article 2 is right at the beginning of the treaty of Maastricht. It is one of its basic commitments. I am glad that my hon. Friend the Member for Livingston referred to the way in which article 2 could be supplemented by other action in the EU. He specifically referred to the proposals of the Swedish Government and others.

Obviously, in the European Union, there will be a very keen debate between people who favour different economic approaches. It is true that in Germany they have talked about tightening up the criteria even further, although the treaty would not provide any great solace in that respect. At the same time, there are genuine concerns among countries that have always been in the vanguard of the European project, such as Italy, France and Belgium, that the criteria could cause difficulty.

During the intergovernmental conference and beyond, there will be some very pertinent debates on those subjects. I would certainly closely align our views, as did my hon. Friend the Member for Livingston, with those of the Swedish Government and others who are supporting them on the subject, to try to give much greater priority to the all-important task of fighting unemployment.

We also believe, as my hon. Friend the Member for Livingston said, that it is important to build on some of the initiatives in the Delors package, which were agreed by countries, although, sadly, they were watered down, largely at the insistence, or at least the keen encouragement, of the British Government and their representatives.

Many hon. Members on both sides of the House have referred to enlargement to include the countries of central and eastern Europe. Like all hon. Members who have spoken, the Labour party and I are very much in favour of it. It is important, however, to go beyond the general expressions of welcome for the idea of enlargement and to start to grapple with some of the practical problems that it brings with it.

Despite the fact that the Foreign Secretary's speech was controversial--at least, half of it was--we all felt great sympathy with him on one matter: some of the petty and mean-minded protectionist instincts that certain countries have shown towards the countries of central and eastern Europe. I noted that most of the examples, if not all, that the Foreign Secretary gave related to agriculture. That shows that the battle over the accession of countries of central and eastern Europe will largely be fought over agricultural policy.

We certainly consider that battle an opportunity to reform the common agricultural policy in the way that we have argued for a long time--to give agricultural support to those who actually need it, and not encourage large-scale production at very high consumer prices. We should find a way forward which is much more respectful of the natural environment, the future of which concerns us all, right across Europe. We should also try to ensure

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that the policy operates in such a way that it does not distort world markets and harm the exporting possibilities of developing countries, as has happened for far too many years. The discussions about enlargement to the countries of central and eastern Europe provide an opportunity.

We share the Government's keenness to pursue this approach. However, I agreed with my hon. Friend the Member for Ilford, South (Mr. Gapes) when he said that enlargement should not be seen as a dilution of the European Union into a free trade area. We are talking not about a free trade area but about trying to construct a system of co-operation across Europe which suits the citizens of our countries and Europe as a whole.

There have been sharp divisions on certain aspects of European policy in this debate. That was especially evident in the interventions during the Foreign Secretary's speech, especially those by Conservative Members. The intervention by the right hon. Member for Mid-Sussex (Mr. Renton) contrasted sharply with those by the hon. Member for Wolverhampton, South-West (Mr. Budgen) and the right hon. Member for Wokingham (Mr. Redwood).

Today seems to have been an active day for each Euro-tendency within the Conservative party. As my hon. Friend the Member for Livingston said, we started the day with the announcement by the Euro-sceptics of a White Paper whose existence has seemed to become more dubious during the day, but which still seems to be on track to be published at some time in the future.

We have also heard today about pro-European Conservative Members of the European Parliament challenging the Government's increasingly sceptical approach with a series of policy papers calling for a substantial move towards integration. Those co-ordinated publications are intended to reinforce the attempts by Members of the European Parliament to challenge what they see as a dangerous drift towards isolationism by the Conservative Government. The challenge seems somewhat doomed because, as other hon. Members have pointed out, it seems to be the Euro-sceptics who have the upper hand in the Government's deliberations. As has also been pointed out, we have the prospect next week of the right hon. Member for Wokingham launching his new campaign to try to extract from the Government specific commitments against the moves towards a single currency.

Throughout it all, the Prime Minister remains steadfastly and resolutely indecisive. He tries to be at the heart of Europe while pursuing an actively isolationist stance, no doubt ending up somewhere in the middle of the Atlantic.

There are different points of view on both sides of the House, as we have seen in this debate; I accept that. What concerns us, however, is that the divisions within the Government ranks, even within the Cabinet, are weakening Britain's position in Europe. They are losing us influence in Europe and we seem continually to be negotiating with one hand tied firmly behind our back.

I reiterate the point made by my hon. Friend the Member for Livingston about the strong and solid support which our white paper on the future of the European Union and the preparations for the intergovernmental conference received at the Labour party conference in October. That is in stark contrast to the disunity shown by Cabinet Ministers on this important issue.

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The debate has allowed us to clear up some deliberate misconceptions about Labour's policy expressed by Conservative Ministers. It was good to hear the right hon. Member for Old Bexley and Sidcup (Sir E. Heath) talk in sensible terms about the social chapter. He did not talk with what the hon. Member for Wycombe (Mr. Whitney) rightly described as the frenzy and froth of European debates. The social chapter is important; it is a general commitment to giving people at work and citizens in the European Union a fair deal at their place of work. That is extremely important.

However, the social chapter does not represent a huge raft of specific measures, although more measures may be proposed under it. At present we are talking about no more than two specific measures, and so far the chief legislative measure has been the European works council directive.

We must draw the contrast between what the Government are saying and what British businesses are doing. Today, we read in one of the newspapers that the Engineering Employers Federation is to urge its members to adopt the European works council directive in spite of Britain's opt-out from the social chapter of the Maastricht treaty.

The federation has found that none of its member companies intends to exclude its British workers from any procedures or systems that it is bound under the directive to introduce in its operations elsewhere in the European Union. That gives the lie to many of the extravagant claims made by the Government about the directive.

Reference has been made to the speech by my right hon. Friend the leader of the Labour party at the Confederation of British Industry conference, and to me the words that he said there represented common sense. He talked about considering the proposals that come from Europe, which we do in any sphere--social, environmental, economic or whatever--anyway, and about negotiating about them with our European partners. That is the route that virtually all proposed legislation in Europe already takes.

Of course it is sensible to consider the proposals closely and to consult the various people who will be affected by them. If we do so, it is more likely that the legislation passed will be in people's interests, and will be workable and easy to implement in our different countries.

The world prosperity league has been mentioned many times lately, and I must point out that countries that have done well in recent years and also over a longer period, ever since the end of the second world war, have on the whole, although not always, been those that have treated their work forces well in many different ways. It is absurd to demonise European social policy and the social chapter, as Conservative Members so often do.

Today at Question Time, the Prime Minister said that Labour favoured massive new powers for the European Parliament. Nothing in our document backs up that idea. Members of the European Parliament themselves have not been calling for massive new powers. They know that they were given new powers under the Maastricht treaty, and that it will take time for those to be fully tested and tried out. The proposals in our document for streamlining the European Parliament and making it more effective are largely welcomed by them.

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We feel that there are areas in which the European Parliament and national parliaments should work together to complement each other in the important scrutiny in which they are both involved. My hon. Friend the Member for Newham, South (Mr. Spearing) said how inaccessible to the House are some of the matters considered under the third pillar, dealing with justice and home affairs.

The Labour party firmly believes that that important pillar should remain intergovernmental, but the issues covered by it should be debated in our national parliaments, and we should know what is going on in that important aspect of policy. We should not suddenly be surprised at the last minute by a fundamental decision that the Council of Ministers may have taken in that area.

I strongly support what my hon. Friend the Member for Ilford, South said about the disgraceful conduct of the Home Secretary in vetoing action at European level against racism and xenophobia. Those are important matters. We know that there are problems of increased racism and xenophobia in many parts of the European Union. We believe that, just as the EU has a good record in opposing discrimination against women in the large single market, it should be similarly vigorous in trying to prevent discrimination on racial grounds. It is simply unforgivable for the Government to be smug about the fact that we have some good provisions in this country and to say that therefore there is no need to take any further action at a European level.

The Minister of State, the hon. Member for Boothferry (Mr. Davis), has become known as Mr. No in Europe because of his obstructionist and negative attitude; yet, as my hon. Friend the Member for Livingston pointed out, last week at Foreign Office questions the Minister--who had said that he was against qualified majority voting on principle--said that he favoured the massive extension of qualified majority voting when we accepted the Single European Act because it was in Britain's interests. That is precisely the point. The Opposition think that in the rather modest areas where we favour qualified majority voting--such as social and environmental issues--it is in Britain's interests. In that sense, we are taking exactly the same point of view as the Minister of State. He seems to accept that the single market is in Britain's interests, but that no social or environmental policy is. I am afraid that I cannot agree with him on that.

Finally, Labour firmly believes that its approach to the European Union will give the British people a better deal out of our European Union membership. We believe that our approach to economic, social, environmental and agricultural questions in Europe will give the British people that fairer deal, and will also--happily--be in the interests of the long-term development of Europe as a whole. The sooner we are in a position to deliver that good deal to the British people and end the European failures of the present Government, the better.

I did not agree with the prediction of the hon. and learned Member for Harborough (Mr. Garnier) that the present Government will still be in power at the end of the intergovernmental process. We very much look forward to helping to complete that process when we are in government. I believe that, once again, the points that have been made in this debate have shown clearly that Britain's influence and position in Europe will only be improved under Labour.

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