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Official Visits
Q3. Mr. Hinchliffe: To ask the Prime Minister when he intends to pay an official visit to Wakefield. [7883]
The Prime Minister: I have no plans to do so.
Mr. Hinchliffe: Has the Prime Minister had the opportunity to study the correspondence that I sent him last week concerning my constituent, Mr. Wayne Hood of Wakefield, who was recently sent to prison for four years for the attempted murder of his former foster parent who seriously sexually abused him over a seven-year period during his childhood and adolescence? Bearing in mind the fact that the foster parent has been gaoled for seven years for those serious offences against Mr. Hood and other children in his care, will the Prime Minister support the call for a review of Mr. Hood's sentence? While I do not condone Mr. Hood's actions, has he not been treated very harshly by the courts in view of his background and circumstances?
The Prime Minister: I have seen the correspondence that the hon. Gentleman sent to me, and I am grateful to him for giving me notice of his question. I am aware of the hon. Gentleman's deep interest and concern about this case. I made inquiries, and I understand that an application for leave to appeal to the Court of Appeal has been lodged. The hon. Gentleman will know that, in those circumstances, it is not appropriate for me to say anything further now. I believe that that is the correct way to pursue the matter. If the hon. Gentleman wishes to discuss it with me privately, I will be happy to see him.
Mr. Robert G. Hughes: Does my right hon. Friend agree that the people of Wakefield would not want us to leave this year without congratulating Damon Hill on winning the sports personality of the year award? Would not they be amazed to know that he achieved that without an audience participation unit?
The Prime Minister: I should like to congratulate Damon Hill on his success. The whole country took a great deal of pleasure in his many wins throughout the year. He is a very deserving winner of that poll. In the spirit of amity at Christmas, I shall not respond to the latter part of my hon. Friend's question.
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World Trade Organisation Conference
3.30 pm
The President of the Board of Trade and Secretary of State for Trade and Industry (Mr. Ian Lang): I should like to make a statement to the House on the outcome of the first ministerial conference of the World Trade Organisation held in Singapore last week, at which I led the United Kingdom's delegation.
The Government are convinced that free trade offers unparalleled opportunities to enhance prosperity, not only in the United Kingdom, but around the world. Accordingly, we had three objectives for the conference. The first was to agree a substantial programme to carry forward trade liberalisation in the WTO, including, in particular, forward-looking work on trade facilitation, standards, Government procurement, tariffs and investment, which is a key priority for British business.
The second objective was the completion, in outline, of an information technology agreement aimed at the progressive elimination of tariffs on information technology products, with the widest possible participation by WTO member countries. The third was to make real progress on negotiations to liberalise basic telecommunications, which are scheduled to conclude by February 1997. I am glad to say that I have positive news to report on all three objectives.
There is now provision in the WTO's new work programme for many of the United Kingdom's priorities for tackling the trade barriers that still remain outwith WTO rules. On trade facilitation--or the simplification of import and export procedures, which was a British-led initiative--the programme agreed opens the way to new co-operative work between the WTO and other relevant international organisations to reduce burdens on trade. Those procedures currently add some 10 per cent. to the costs of goods in international trade.
On Government procurement, all WTO member countries will now engage in work on transparent procedures, which should help to open a much wider range of opportunities for exporters and save taxpayers' money around the world, by encouraging more competition in public tendering procedures. That is an important step forward. Again, it was a British-inspired initiative.
On technical product standards, the way is open under the WTO's work programme to increase co-operation between the WTO and international standards organisations so as to concentrate work on priorities that are of real practical importance to trade, and to reinforce the use of international standards.
The Singapore ministerial declaration contains a renewed commitment to the progressive liberalisation and elimination of tariffs and non-tariff barriers generally. A working group will be established to look at the range of issues that arise in the relationship between trade and investment. That is vital to Britain as the world's second largest overseas investor.
A working group will be established to study the relationship between trade and competition policy. We will want to promote the development of competition regimes in countries that do not have them, and to reduce any barriers to markets created by anti-competitive practices.
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The biggest immediate trade liberalisation achievement of the week was an agreement in principle to phase out tariffs on a wide range of information technology products by the year 2000. Our aim is maximum country participation and maximum product coverage. The deal was instigated by the European Union and the United States, but was joined by 11 other countries. Overall, the participating countries represent about 83 per cent. of world trade. Definitive conclusion of the agreement is scheduled for 1 April 1997, subject to increasing country coverage to the equivalent of 90 per cent. of world trade and reaching satisfactory final arrangements on the staging of tariff reductions in the run-up to the year 2000.
The value of this to Britain will be significant. It will eliminate tariffs facing British exporters in a number of key overseas markets; it will reduce the cost of vital IT products which we import, such as semiconductors; and it will stimulate new growth and enterprise, as there is no British industry that does not rely on IT products in its operations. In money terms, the value to the United Kingdom is estimated at £250 million on tariff cuts alone, setting aside the enormous potential of increased global trade in information technology. As the US trade representative has said, this is
Good progress was also made in the on-going WTO negotiations to open up world telecommunications markets. As the House knows, Britain has benefited greatly from having one of the most liberal telecommunications markets in the world. Nine countries pledged new or better offers, in addition to the 34 commitments already made. That has improved the prospects of an agreement by February 1997, which could be worth $20 billion per annum to Britain by the year 2010.
The United Kingdom was also influential at the conference in helping to keep the WTO focused on trade liberalisation issues. Ministers agreed that economic growth and development, fostered through increased trade and trade liberalisation, offered the best prospect of raising labour standards. The relevant passage in the ministerial declaration also makes it clear that the International Labour Organisation is the competent body to deal with labour standards, while noting that the existing limited collaboration between the WTO and ILO secretariats will continue. In practice, that means that, as has been the case for some time, the two secretariats will send observers to each other's meetings. I am sure that that approach, through trade liberalisation, offers the right way forward, rather than an approach based on sanctions or other restrictions.
In this context, the United Kingdom also pushed hard for specific market access commitments for products from the least developed countries. Those countries account for only about 0.4 per cent. of world trade. I therefore
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I am happy to say that for the United Kingdom and, I believe, for the world as a whole, the conference was a substantial success. It has enhanced the authority of the World Trade Organisation, and the overriding importance of reducing barriers to trade on a multilateral basis. It represents an important step towards the British Government's objectives of launching a new round of trade negotiations before the end of the century and, in the longer term, achieving global free trade.
Mrs. Margaret Beckett (Derby, South):
Does the President of the Board of Trade understand that Labour Members find some of the things in his statement very welcome? On some issues that he set out before he went to the conference, there is common ground across the House. We certainly welcome, for example, the simplification of procedures for importers and exporters, the extension of greater transparency in tendering for public purchasing, the work on achieving greater conformity in international standards, where Britain has a great potential competitive advantage, and the potential establishment of the working groups, which will consider a range of issues arising between trade and investment and trade and competition. Labour Members certainly share the Government's view that those are all desirable means of progress.
We would identify one issue of slight concern. We might be anxious if we thought that there had been the convergence of view on core labour standards that the President of the Board of Trade has identified, but as it appears that everyone is claiming victory on that front--I understand that Commissioner Brittan said that the discussions had been a breakthrough in dialogue on these matters--clearly there is a certain amount of common ground there and not necessarily a clear victory for the Government's view, as the President sought to suggest.
The President raised the issue of liberalisation of telecommunications, which we welcome in the context of the WTO talks. We want it to be achieved through completion of the single market, to which my party is committed. Will he confirm a report that companies such as IBM are suggesting that, if liberalisation produces real savings, they may be channelled specifically towards research and development? That would be an interesting and useful breakthrough and I would be grateful if he could cast any light on the matter.
"a huge global tax cut".
An important deal was also agreed between the European Union and the United States on the further elimination of tariffs on spirits. That is very good news indeed for our drinks industry, particularly the Scotch whisky industry. Specifically, the EU and the US have agreed to accelerate the elimination of their tariffs on the import of whisky, brandy and other brown spirits. At the same time, they have also agreed to eliminate their tariffs on the import of gin, vodka and other white spirits over the next five years.
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