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Sir Teddy Taylor (Southend, East): I greatly welcome the determination shown by the Prime Minister at Dublin and, in particular, by the final sentence of today's statement, but will he outline the importance that he places on the elimination of quota hopping? Is it

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something that the Government are merely hoping to achieve or something that they will demand be achieved if we are to have a new treaty?

The Prime Minister: As my right hon. and learned Friend the Foreign Secretary made clear at the weekend, we think that it is essential to achieve the necessary change.

Mr. Giles Radice (North Durham): The Prime Minister talked about vetoes, but is it not the case that the only veto that really counts with this Government is that exercised by the Europhobic malcontents on the Government Back Benches and their fellow travellers in the Cabinet?

The Prime Minister: The hon. Gentleman should ask more sensible questions than that with his knowledge. If he had chosen to look around him, he might have directed his remarks about Europhobism in quite a different direction.

Mr. Robert Key (Salisbury): Does my right hon. Friend accept that many of my constituents to whom I spoke this weekend were delighted that he was negotiating hard in Dublin and that they are more worried than they have been for 25 years about our future relationship with Europe, but that the cruellest delusion would be to suppose that we could terminate our membership of the European Union at a stroke and that everything would then be all right?

The Prime Minister: I agree entirely with my hon. Friend. That is a delusion, and the people who peddle that delusion are certainly not considering what the British national interest would be or what the implications of leaving the European Union would be. Our position must surely be the one that I sought to set out a few moments ago: we are not prepared to move towards what I called an embryonic super-state across Europe, but we agree that our relationship with the European Union is more than a simple trading relationship, as indeed it has been since the day we signed the treaty of Rome.

Mr. Tam Dalyell (Linlithgow): Did I hear the Prime Minister aright in his opening statement, saying that, in his opinion, it was a vital British interest, whether we were in or out, that the single currency should succeed? If he believes that, is there not a strong case for getting in and influencing it as soon as possible? Are we correct in believing that Michael Patijn, on behalf of the Dutch Government, has made various statements about what the 14 nations would do if, as they saw it, there was a lack of co-operation from a British Government? What would we do then?

The Prime Minister: The treaty cannot be agreed without 15. I have not heard the threats to which the hon. Gentleman refers, and I have no idea whether they were made. They have been made by people in the past, and I regard them as dismissible.

If a single currency goes ahead and fails, the impact across the European Union will be dramatic, not just for those who are in the currency. That is the point that I was seeking to emphasise to the House. If it looks as if it will not succeed--because the convergence criteria will not be

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met, or for some other reason--we shall urge everyone not to go ahead. If it went ahead and failed, I believe that the implications for this country would be profound--less profound, perhaps, than if we were in it, but certainly profound.

Mr. John Redwood (Wokingham): Given our worries about the attitude of some of our partners and the deal that they have offered us, what benefits did the Government secure for waiving our vetoes over the stability pact and the legalisation of the euro? Is the Prime Minister worried about Franco-German domination of the agenda, and does he not think that we need to offer an alternative?

The Prime Minister: On the stability pact, as I have just said to the hon. Member for Linlithgow (Mr. Dalyell), we think that if the euro zone goes ahead, it is essential that it succeeds. One of the mechanisms for making sure that sensible policies are carried out is the discipline of the stability pact, so we favour the stability pact. On that basis, it was unlikely that I would exercise a veto over it.

The veto is a necessary weapon that we have to use in areas of great national interest to the United Kingdom. When necessary, I will use the veto. I do not intend to abuse it and I do not intend to use the veto every time I have a disagreement with my European partners, but on matters of significant national interest, it must be clear to them that we will use it, because that would be the wish of the House and in the interests of this country.

Mr. John McAllion (Dundee, East): The Prime Minister welcomed what he described as progress on subsidiarity. Will he explain to the House why, in his view, the principle of subsidiarity must be applied within the European Union, but must not be applied within the Union that is the United Kingdom? Surely it is wholly inconsistent to raise the banner of subsidiarity in one multinational union while simultaneously lowering it in another multinational union. Why cannot the Scots have their own elected parliament? Why cannot the Welsh have their own elected assembly? Why must subsidiarity always stop short in this unreformed place?

The Prime Minister: A great deal of responsibility and devolution has gone to Scotland, to Wales and to my right hon. and learned Friend the Secretary of State for Northern Ireland. If the hon. Gentleman cannot see the difference between 15 historic and sovereign nations and one United Kingdom, where a voluntary association has been entered into for so long, he should look more carefully.

Mr. Nigel Forman (Carshalton and Wallington): Is my right hon. Friend aware that probably the most important thing that he said in his statement was that he intends to be obdurate about the so-called flexibility pact from France and Germany? He is right to cling to the safety catch of unanimity. Will he guarantee that he will continue that approach in Amsterdam and beyond?

The Prime Minister: I agree with my hon. Friend. A flexible approach set out solely to provide a mechanism for a small core of countries to go ahead on their own,

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perhaps against the interests of the rest of the European Union, would not be acceptable. Any flexibility of that sort would need to be agreed by unanimity.

Mr. Alex Salmond (Banff and Buchan): The Prime Minister needs to be reminded that Scotland is a historic and sovereign nation. Did the Prime Minister see the remarks attributed to a member of the Irish presidential delegation that, given that the Prime Minister has kept the rest of us waiting for six months before honouring the commitments on the Florence agreement, it is difficult to take seriously any sense of urgency that he now expresses on BSE? How can the right hon. Gentleman cite maternal transmission as evidence for the delay, when the selective cull to be announced today does not include those animals? Who is responsible for the botch-up and the delay, and does the right hon. Gentleman accept any responsibility for the lost livelihoods throughout rural communities?

The Prime Minister: We have provided about £2.5 billion precisely to protect the beef industry across the United Kingdom after the health scares that arose following the scientific evidence about BSE. [Hon. Members: "The cull?"] I shall come to that.

What no one anticipated at Florence or afterwards were two factors. First, there was the changed scientific evidence to which I referred a moment ago. Secondly, I do not believe that the hon. Gentleman or anyone else realised the sheer weight of animals that would need to come forward under the over-30-month scheme. More than 1 million animals have now been slaughtered--a figure that no one anticipated at the time. The fact that it has been possible to achieve that is the result of a remarkable feat of organisation by my right hon. and learned Friend the Minister of Agriculture, Fisheries and Food and my right hon. Friend the Chancellor of the Duchy of Lancaster. What we have done throughout the exercise is to put first and foremost the long-term interests of the beef industry. That we continue to do.

Rev. Ian Paisley (North Antrim): As the Prime Minister has told the country that he is in Europe to get a good deal for the people of this country, does he not recognise that the lobbying by his Minister recently in Brussels for the destruction of Sunday as a special day and his success in getting written into the health directive that Sunday would no longer be a special day outrage many working-class people who have always observed Sunday as at least a family day? What does the Prime Minister think about the overwhelming vote in the Strasbourg Parliament, which said this week that Sunday should be returned to being a special day? What has he to say about that?

The Prime Minister: Many people believe that Sunday should be a special day. That is an article of faith for them and I do not wish to destroy that article of faith. It is a choice made by literally millions of people, as the hon. Gentleman said. I assume that his earlier remarks related to the concerns about the 48-hour working week. The hon. Gentleman is wrong to attribute to that the statement that the Government have not had the same respect for Sunday as he has.


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