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Sir John Stanley: The key point is that, when those changes were conceded in the Single European Act--that did take place as the right hon. Gentleman pointed out--it was done in return for real gains in completing the single market. The right hon. Gentleman has made the concessions on the social chapter and got absolutely nothing in return.

Mr. Prescott: It is more to do with the fact that the right hon. Gentleman was a Minister in the Government at the time and he could not vote against the Second Reading. Knowing how he voted, I had to treat his speech about qualified majority voting with a certain amount of contempt.

We want a fresh start in Britain's relationship with the rest of the European Union. My right hon. Friend the Foreign Secretary did that when he signalled that he wanted a sensible balance between social responsibility and economic efficiency. There are crucial issues in that.

Too much has been made of the threat of the social agreement. It does not constitute a threat to jobs. It means that social justice should be seen alongside economic

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prosperity. I have never been able to understand why the British owners of a Europe-based company in Hull will not allow the British seamen to take part in discussions on conditions of work while the Belgian and German seamen in the same company can take part. Is it right that British seafarers have to ask the Belgians and the Germans to take up their case with the company? That is wrong and stupid and should not apply. With the signing of the social agreement, we shall get a little more justice on consultation within that firm. That is just one example.

I was curious when the shadow Chancellor said that the Netherlands was beginning to adopt our successful economic formula and deregulation. He argued that the social chapter would contribute to higher levels of unemployment and inflation, but I wondered about the position in the Netherlands. I asked for the information from the Library and discovered that the Netherlands has a lower inflation rate and a lower unemployment rate than Britain. Holland has achieved that, although it has signed up to the social chapter and provided decent working conditions. Conservative Members' argument on the social agreement is a load of nonsense. We have no hesitations about implementing it. We believe that a successful economy has as much to do with social justice as it has to do with economic prosperity, and that the two objectives should be combined, as Holland has managed to do.

Our European policy priorities were stated in Labour's election manifesto and in the Prime Minister's speech in Manchester on 21 April 1997. Those key priorities, which have been reiterated in this debate, are: to complete the single market, to encourage considerable enlargement of it, to reform the common agricultural policy, to tackle unemployment and to ensure effective co-operation in foreign policy. Those are proper objectives for the Government to pursue, and my right hon. Friend the Foreign Secretary, with considerable panache, has been doing just that in Europe. A co-operative attitude--instead of constant threats of retaliation--has already made a difference in negotiations on fish and beef.

The Government believe that substantial progress can be made by a common approach to transport and environment issues. We shall embrace change when it is in Britain's interests to do so, but we shall stand firm when the national interest demands it. That is our position. We have stated clearly the matters in which we shall retain the veto: frontier controls, taxation, social security, defence decisions, the budget and treaty changes. Those are essential issues in which the national interest is involved.

The United Kingdom, like other member states, is committed to completion of the intergovernmental conference at the Amsterdam European Council, which will meet in a few weeks. We think that the IGC will present an opportunity to make Europe more relevant to ordinary men and women and to prepare for enlargement.

The shadow Chancellor emphasised the importance of unemployment in the European Union--but so do we, because it is right that the European Union should play its part in tackling unemployment. Therefore, we shall join our partners in supporting the employment chapter in the new treaty, because we believe that economic prosperity and social justice can be combined, helping us to reduce unemployment levels in Europe.

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On 1 January 1998, Britain will hold the presidency of the European Union, which will provide us with an excellent opportunity to lead from the front in making progress on the business of the European Union. We want Britain to be one of the leading countries in Europe and not one that is lagging behind. We can do much more--it is in Britain's interest to do so--by building a supportive majority among our partners than we can by shouting from the sidelines.

I said that the Government have made a flying start in foreign policy, and that sentiment applies also to other spheres, such as education, employment, health, social security and home affairs. There is a new spirit of aspiration and achievement throughout the Government. That spirit is evident also in the legislation proposed by my own Department, which I shall be proud to introduce.

I listened to the comments on transport made by the right hon. Member for North-West Hampshire(Sir G. Young). He has, however, left us in a situation in which our roads are collapsing, our buses are older and our services are declining. I have had to call in representatives from South West Trains to talk about service cuts, and the rail services regulator has said that he has insufficient powers to ensure that investment is made in rail. That is not the transport system that the right hon. Gentleman described in his speech, but it is the one that I have seen. People have been coming to my door to complain about the privatisation of a transport system with which he was involved.

Let us be clear about it. I am proud that the programme that the Government will introduce will involve co-ordination of regional economic development and regional development agencies. Over 18 years, I fought hard for that principle, and I am now proud to find myself in a position in which I can provide the English regions with English regional development agencies that have power that is equal to that of agencies in Scotland and Wales. Those regions will gain advantages that they were denied by the Conservative party when it was in government. It is an important issue, and there will be a great debate on it.

The right hon. Member for North-West Hampshire mentioned capital receipts. The Government plan to introduce a Bill dealing with local authority capital receipts, and he said that we can do so only because the previous Government left us the money to do so. The previous Government, however, did not build houses with that money--they denied the public 100,000 houses. At Christmas, he made much of homelessness. At the same time, however, he was denying an opportunity to build new houses. That is the difference between the two parties and the two Governments. We shall get on with getting people back to work and building houses for people. It is a scandal that the situation has been allowed to continue.

We are delighted to introduce legislation to give London a government that will make decisions for it and be accountable to Londoners. It is a disgrace that there has been no strategic authority for London during the past two decades and our legislation will put that right.

The debate has reflected the differences between the two parties, but it has also reflected something else. While we have been debating with the Opposition our different views on the Queen's Speech, they have been conducting a debate among themselves about who will be their next Leader. The Conservatives will have to make the sort of

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changes that the Labour party did. It took us 18 years; some Conservatives say that it will take them twice as long, which will be 36 years. I wish them well in that process and I look forward to them making the sort of radical democratic changes that the Labour party did. The electorate recognised those changes and elected us on a different set of values, which we shall present to the country in the next five years.

In contrast to the Opposition, we have a Prime Minister who has the demonstrable support of his party. This is a Government with a clear economic agenda.

Mr. Peter Bottomley (Worthing, West): On a point of order, Madam Speaker. If a speech has continued past 10 o'clock, what happens to the Loyal Address?

Madam Speaker: I shall put the Question on the Loyal Address.

Question put, That the amendment be made:--

The House proceeded to a Division--

Sir Peter Emery (East Devon) (seated and covered): On a point of order, Madam Speaker. How is it that, when the motion on the Loyal Address falls at 10 o'clock, you put the motion to the House at 20 seconds past 10? The motion should have fallen, because the Government failed to decide whether they wished to have a vote on it. The Division should not be allowed now, because the motion fell at 10 o'clock, not 20 seconds past 10.

Madam Speaker: As a former member of the Procedure Committee, the right hon. Gentleman should understand the answer to his question. Will hon. Members now proceed to vote? I am in a hurry to get the vote through.

Sir Peter Emery (seated and covered): Further to that point of order, Madam Speaker. I am sorry, but I do not understand what you have said to me. Are you trying to say to the House that you may put a motion 20 seconds after it has fallen? If that is so, it is entirely contrary to both "Erskine May" and the normal procedure of the House.


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