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11.16 am

Mr. Roy Thomason (Bromsgrove): Like some of my colleagues--or, dare I suggest, all of them--I approached the inquiry by the Select Committee on the Environment with some preconceptions. First, I believed that trade is necessarily advantageous to all nations. History teaches us that a country goes through a period of prosperity when it is active in trade. The like applies to regions and, presumably, to the world as a whole. It follows that, if greater prosperity is to be generated, trade should be encouraged; and that nothing should be done to interfere with that, because that prosperity will trickle down from countries that generate wealth to poorer nations, just as, in individual countries, wealth trickles down from those who generate it to the poorest people.

Some Opposition Members have argued that wealth generation should be restricted because it benefits those who create it to a proportionately greater extent. That is now a rejected tenet, but antagonism to wealth creation

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still lurks within the Labour party. The fact is that the poor cannot be helped unless there are those who are able to give assistance. Of course, I do not deny that the state has a role in helping to protect the weakest members of society, but it is undeniable that the generation of wealth leads to improved prosperity for all.

It follows that, by the development of trade, the same can occur internationally: trade brings prosperity and wealth. Inevitably, that will not fall evenly, but the generation of international wealth will lead to a more prosperous world and help poorer countries. Much prosperity for some nations leads to benefit for all through demand for raw materials, the use of tourist facilities and, above all, industrial development. Those processes can be helped by encouraging the distribution of overseas aid, but it cannot be expected that such aid will be given at a level that would weaken the strong--that would be self- defeating. The development of world trade is, therefore, desirable in providing improving world living standards. It is also clear that living standards in less-developed countries improve dramatically with industrialisation, which is invariably trade related.

It is always comfortable to have one's prejudices confirmed and I believe that the Select Committee's inquiry confirmed the views that I have just expressed. Environmental considerations must remain important--indeed, of the essence of responsible development--even to the extent of sometimes shaping the form of world trade, but never preventing it, for to do so would be a breach of our responsibility to less-developed countries and to deny them opportunities to better the lives of their people.

My second concern--a nagging doubt--was that, in a complex commercial world where the negotiating position of less-developed countries, and companies based within them, was inevitably weaker than those of the developed world, opportunities for exploitation existed and were sometimes taken.

Mrs. Helen Jackson (Sheffield, Hillsborough): I am sorry that I cannot stay for the whole debate as I have a meeting with Ministers. Does the hon. Gentleman agree that one of the issues that makes a difference in recognising whether environmental impact is sufficiently taken on board in trading regulations is the openness and availability of better researched information on environmental impact? A strand that ran throughout the investigation was the need for better environmental information on the range of projects, developments and movements taking place worldwide.

Mr. Thomason: The hon. Lady is right. There is clearly a lack of information in some less-developed countries, but that is an inevitable product of development advancement. Obviously, less-developed countries do not have the calibration equipment to measure properly air and water quality. It follows that testing mechanisms are not therefore available properly to compare the quality of their environment with that of the developed world. That, however, must be seen in perspective as part of the development process.

As I was saying, I was concerned about exploitation, by which I do not mean trying deliberately to trap a poorer country in that status indefinitely, for few in our present world would sustain such a position for long, but simply

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utilising weaker regulatory powers that must exist in such less-developed countries. That follows the points made by the hon. Member for Sheffield, Hillsborough (Mrs. Jackson) about equipment for testing and proper research. Improvements in standards might be discouraged to improve profit margins.

I am glad to say that our inquiry has led me to conclude that my fears were almost entirely, but not quite completely, groundless. Fast development in a country that may have little regulatory provision is often haphazard, uncontrolled and damaging. Sometimes it is the product of deliberate exploitation but more often, I suspect, it simply arises from the need to provide opportunities for those who previously had little. It is as much a product of a nation's internal pressures as of pressures from outside. What seems to happen is that factories are constructed with little regard to the protection of water or air quality; transport infrastructure is disregarded, with all the environmental consequences that flow from that; and the prospect of factory sites becoming contaminated is not even weighed in the balance.

Development opportunities will give a community the chance to fill empty stomachs--the environment can wait when people are starving. It was apparent to us, however, that that stage does not last long. A less-developed nation's people will soon appreciate that the quality of their life is suffering. As they move towards relatively better prosperity and, above all, education, an interest in the environment develops. It is a slow process, but it happens. The pressures often are as much external as internal, which is why the production of the Select Committee's report and the work of many international organisations and of our own and many other Governments is essential if environmental responsibility is to be encouraged to grow.

I also thought that companies might seek to take advantage of less-developed nations. There is some evidence that that takes place, but British companies can be proud of their position. We found that they generally take an extremely responsible attitude to development of plant overseas. Naturally, they must comply with local law, subject to its capacity to be enforced, but when that local law is of a lower standard than ours, they usually do much more than that. We heard and saw evidence that British companies create plant of as high a standard as they would expect to be built in this country, and operate it at standards that compare with those in the United Kingdom and other parts of the developed world. New plant in the less-developed world is often built to the latest standards, which may even be in advance of plant being operated in the developed world.

We hear too often criticism of British companies as alleged exploiters. Although there may be occasional exceptions, all our evidence showed that this is simply not the case. We should be proud of the work that British-based companies are undertaking throughout the world.

It is clear that the Government must give a higher priority to international environmental issues. That is not a criticism of what has been undertaken to date but a statement of what must be the objective for the future. If our Government, who generally have an extremely good environmental record, do not seek to lead the world,

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others cannot follow. The negotiations in Singapore, as well as past and future international discussions on trade, are the responsibility of the Department of Trade and Industry. That Department must, however, reflect the policies of the Department of the Environment in pursuing environmental objectives. This is a case where the seamless robe of government must be seen to be operating without flaw.

We must remind our alleged partners in the European Union, the United States, developed countries within the Commonwealth and others that the development of good environmental practices is not a hindrance to trade but a benefit. Ultimately, the degeneration of the environment leads to decay, as sure as cancer spreads through a body. To create long-term prosperity and improve quality of life globally, we need good environmental conditions. Just as a healthy human body can develop better if it lives in clean conditions, so the world community will be able to flourish if it is in environmentally good form.

I do not seek to argue that we should over-regulate--perish the thought, for that could kill business. However, seeking to achieve reasonable environmental objectives throughout the world should be a fundamental aim of Government policy. I am glad that the Government broadly accept that position. I am concerned, however, that issues of employment law may divert attention from environmental aspects. Of course, certain aspects of employment law may be appropriate to be considered at international level, but the environment takes greater priority in the natural order of advancement of the less-developed countries and we should respect their agendas.

Nor should we forget that a deteriorating quality of life in one corner of our planet has a direct impact on ourselves. No country or continent can lock itself away from the rest of the world. What happens thousands of miles away affects the air that we breathe, the food that we eat and the oceans that lap our shores. The international environmental agenda must be ours; it is not just for someone else.

It has been a privilege to serve on the Environment Select Committee during this Parliament and, in particular, to be involved with the preparation of the report, which should be a significant contribution to developing the Government's position and continuing our nation's call for improved environmental standards without attacking the creation of wealth and the generation of new industry.


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