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Mr. John Biffen (North Shropshire): May I welcome my right hon. Friend's statement and in so doing commend the remarks of my right hon. Friend the Member for Kingston upon Thames (Mr. Lamont) about the importance of developing national institutions for guarding and developing what are essentially national issues? In that context, is it not clear that the price for European partnership cannot be purchased by the danegeld of recurring European bureaucracy, recurring European integration and, above all, long-term aspirations for European uniformity? Will my right hon. Friend convey those homespun comments to his friends at the intergovernmental conference?
Mr. Lang: I shall gladly convey my right hon. Friend's comments; he is right to put his finger on the recurring
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nature of the problem identified by the working time directive. It is not merely the directive with which we are threatened, damaging though that would be to British industry. There is also the social chapter--two of the directives under that are already in place and many more are under consideration, discussion or negotiation. It is clear that the Labour party would accept all of them. It is what is coming down that pipeline that would be so damaging to us. This directive would be the thin end of the wedge and that is why we are right to stand on principle and to insist that, as was agreed at Maastricht, those are matters that should be decided by us and not by Brussels.
Mr. Nick Harvey (North Devon): Why are the Government so keen for Britain to compete economically by making employees work longer hours and miss out on the holiday entitlement that our European competitors are prepared to grant? As Secretary of State for Trade and Industry, does not the right hon. Gentleman have the confidence that the British economy is strong enough for us to compete on the quality and innovation of our goods and services? Do we not have higher priorities at the IGC on which to use what is left of Britain's bargaining position and credit in Europe, rather than trying to jettison such a measure, which the majority of the British people will regard as a sensible guarantee against abuse in the workplace?
Mr. Lang: The best way to secure good working conditions for the British work force is to have a successful economy, growing, expanding and creating jobs. If one compares our unemployment rate of 7.4 per cent. with the rate of more than 10 per cent. in Germany, more than 12 per cent. in France and more than 20 per cent. in Spain, one begins to see the contrast between our approach, of a flexible labour force seeking to be competitive, and the burdens imposed on all those countries in Europe, which are so damaging their economic performance.
Sir Michael Neubert (Romford): Is not the problem for the rest of Europe the fact that, as Jacques Delors correctly predicted, with our flexible labour laws, Britain has become a paradise for investment? Is not the essential and inescapable point that we are part of a world market? Our competitors overseas must be rubbing their hands with glee to see Europe tying itself in knots over this issue.
Mr. Lang: My hon. Friend is right. The very fact that we secure 30 per cent. of all the inward investment coming to Europe, including 40 per cent. of that from the United States of America and Japan, shows the contrast between our approach to competitiveness and that of our European counterparts. More tellingly, the fact that 300 German companies are now manufacturing in Britain underlines the fact that we have the right approach to those matters.
Mr. Peter Shore (Bethnal Green and Stepney): I am in favour of the sensible limitation of working hours, but there is no doubt in my mind that legislation affecting social conditions, including working hours, is a matter for
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this Parliament and not for the European Council of Ministers or the European Court of Justice. However, is the Minister not aware that the great chink in our armour turns out to be acceptance of qualified majority voting over a wide area of European affairs--an agreement reached under the Single European Act and passed by the former Conservative Government? Is the right hon. Gentleman not aware that the big threat to our competitiveness is not the virtually empty social charter, but the danger that Britain will find itself part of a single currency in Europe?
Mr. Lang: The real danger would come from a Labour Government willing to accept all these social imposts--through the social chapter, the working time directive, and all the other burdens that could be imposed through article 118A under health and safety considerations. We must resist that in order to remain competitive.
Sir Michael Spicer (South Worcestershire): As the Prime Minister accepted earlier, this is a question not so much of the details of the directive but of whether this country is to be ruled by an unelected court or by Parliament. Will my right hon. Friend say a little more about what the Government intend to do about that?
Mr. Lang: I agree with my hon. Friend. That is why, in the Maastricht treaty negotiations, the Prime Minister secured the opt-out, which was designed to protect us from the kind of social burdens now being sent down through the back door via article 118A. My right hon. Friend has made it clear that, at the IGC, we shall insist that this matter is dealt with and that the spirit of the social opt-out is honoured. He also made it clear that no progress on other issues can be made at that conference until this is agreed.
Mr. Giles Radice (North Durham): Is it not out of all proportion for the Government to say that they will block the outcome of the IGC and damage relations with our European partners for a measure that the director general of the CBI said today will not substantially change current working patterns, and which the Government did not even vote against in the Council of Ministers?
Mr. Lang: This is an issue of principle: whether the social opt-out agreed at Maastricht should be sustained and honoured, or whether it will be abused and circumvented. It is not just the impact of the working time directive; there are other proposals under the social chapter and under the medium-term social action programme being developed by Commissioner Flynn. We know that the Labour party would accept all those measures; that would be immensely damaging to this country and would remove our capacity, as a country and a Parliament, to be responsible for working conditions.
Mr. Peter Bottomley (Eltham): Does my right hon. Friend agree that if a health and safety measure will have a serious impact on reducing casualties at work, it should not be made optional? If it is said to be optional, the case that it concerns health and safety is given away.
Will my right hon. Friend confirm that the directive will not apply to most people who are paid salaries, and that it could really apply only to those who are paid hourly? Will he find out whether European
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Mr. Lang:
My hon. Friend makes a good point. It is clear that the relationship between working hours and health and safety is at best unproven. We defer to no other country in our commitment to having in place sound, relevant health and safety provisions. Indeed, we already have them under the Health and Safety at Work, etc. Act 1974 and the 1992 regulations. The head of the EU's representation in the United Kingdom has already emphasised the progress on flexibilities developed in the negotiations; and it is clear that the final state of the directive bears no relation to health and safety considerations. It is in fact a piece of social engineering.
Mr. Martin O'Neill (Clackmannan):
On health and safety, do not the Government have a good case in respect of offshore workers, for whom the dangers are twofold? A reduction in working hours would require more helicopter flights and the development of new and high-quality safety habits. So why have the Government been so singularly inept in advancing those two strong arguments? Is it because they are so isolated in Europe that even when they have a good case, they cannot advance it because no one wants to listen to them?
Mr. Lang:
There are already exemptions in the directive, one of which includes offshore workers. Commissioner Flynn made it clear today that he intends to bring out a White Paper to reduce the exemptions, to tighten the ratchet and to diminish the derogations and easements available. We are right to stand firm on the principle and to insist on reversing the position and restoring our capacity to control our own employment conditions.
Mr. David Heathcoat-Amory (Wells):
Does my right hon. Friend agree that the importance of this court judgment has nothing to do with how many hours may be worked in Britain; rather, it has to do with who makes the laws, this House or a foreign jurisdiction? As my right hon. Friend has rightly promised to see off the directive by treaty change, and as that treaty change will require the agreement of all other member states, we shall have to invest a huge amount of negotiating capital to achieve that. Why has my right hon. Friend such a narrow objective? Will he not use this opportunity also to see off the innumerable other ways in which the powers of this House have already been lost to the European legal system, and tell us what other directives and measures he will seek to repeal?
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