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Sir David Madel (South-West Bedfordshire): What the Prime Minister said on green issues at Denver will considerably affect the car industry and employment unless those matters are handled carefully. I remind the Prime Minister of the extreme anxiety on the Benches behind him when Ford threatened the production of the Escort at Halewood. The thing to do is to change the tax system so that car manufacturers are encouraged to produce more fuel-efficient and pollution-free engines. That is the way to guarantee jobs and satisfy environmentalists.

The Prime Minister: I agree that incentives have a role to play, although I cannot comment on any particular taxation proposals. Most people accept that it will be a matter of choice whether people use their cars. We should try to give them a better choice than they have at present. There are plenty of people who, in certain instances, would use public transport if it were there and available to them. The evidence from abroad as well as here, in certain instances, is clear.

I agree that this has to be done in co-operation with the car industry. That is absolutely essential. The hon. Gentleman will remember that when the debates about catalytic converters and unleaded petrol were taking place, the car industry came on side after a time to help develop those initiatives and they were successful. I commend to him the speech on the environment and business made by John Browne, the head of British Petroleum, a few weeks ago. He will see from that that many people in business see environmental measures as having a positive effect on business, not a negative one.

Mr. Ted Rowlands (Merthyr Tydfil and Rhymney): I welcome the acknowledgement that limitation of arms and military expenditure in sub-Saharan Africa is extremely important. Were there any specific proposals to achieve it?

The Prime Minister: The initiative is one which I announced in relation to our own programmes. As the money is allocated, my hon. Friend will be able to see the conditions on which the aid is given. We are anxious to ensure that the money is spent on education, health care and sanitation; it is important that we ensure that no aid is being siphoned off into what is effectively military expenditure. He will see that developing. On the multilateral side, we intend to carry on working with other countries to get those principles accepted by them, too.

Mr. Graham Brady (Altrincham and Sale, West): Does the Prime Minister agree that it is vital that we seek

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to move freight from roads to railways? Will he join me in congratulating the privatised rail industry on the measures that it has taken to encourage that process?

The Prime Minister: I am happy to congratulate anyone who contributes to solving the problem. My right hon. Friend the Secretary of State for the Environment, Transport and the Regions is in touch with the rail operators at the moment, to consider how they can help to make the system more integrated. One of the worries that people always had about privatisation was that it would break up and fragment a unified system. It may be possible within the existing system to try to mitigate some of those problems. That is precisely what we want to work on. If the rail operators help us to achieve that, I shall be the first to congratulate them.

Mr. Barry Sheerman (Huddersfield): I congratulate my right hon. Friend on the stand that he took on the environment. I am sure that at Denver he spoke of the link between solving the problems of the environment and jobs and employability. Will he ensure that we in this country start to make that link? I am sure that he has seen the dispiriting league table showing that the investment record of the private sector over the past year was down yet again under the previous Government. If we are to tackle the environment and make jobs out of tackling it, we must lead in research. I hope that my right hon. Friend will lead a crusade on that.

The Prime Minister: I can certainly assure my hon. Friend that we will make the link between jobs and employability and the environment, as we recognise that it is important to do so. Recent estimates by independent international organisations suggest that environmental technology could be one of the growth areas in employment over the next few decades.

It is tremendously important that we also recognise that those companies with the most advanced technology, capable of producing greater energy efficiency, are among the most successful anywhere in the world. Companies find that if, for example, they introduce proper measures for waste recycling, and engage properly with energy efficiency, they not only contribute to the overall impact on the environment of business but reduce their costs. It is extremely important to make the connection, and we will certainly do so.

Mr. James Clappison (Hertsmere): I welcome the Prime Minister's frankness in acknowledging that the previous Government's policies, such as the energy efficiency best practice programme and the home energy efficiency scheme, enabled this country to be one of the minority of developed nations that met and surpassed their targets on greenhouse gases. Does he favour a switch to coal-fired power stations?

The Prime Minister: On the latter point--as the hon. Gentleman knows, because we agreed with it when it was the previous Government's policy--I favour a balanced energy policy. We have been perfectly happy all the way through to agree on the energy efficiency measures that were introduced under the previous Government and which we will develop. Indeed, the environmental task force will be a development of existing policies.

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In respect of renewable energy, we are encouraging the greater use of solar energy and wind power, particularly through the non-fossil fuel obligation, which encourages power suppliers to make use of renewable energy sources. We will introduce a Bill to ensure that the levy continues, as it would otherwise expire next year. I am perfectly happy to accept that good work was done before; it was done with the Labour party's consent and we look forward to developing it further. If that can be done on the basis of political agreement, so much the better.

Mr. Peter L. Pike (Burnley): I welcome everything that my right hon. Friend the Prime Minister said about the conditions for giving overseas aid, but is it not vital that we recognise that developing nations have so much poverty, on scales that we can hardly envisage, to eliminate that they sometimes find that the less environmentally advantageous way is the easy way? It is essential that overseas aid and the environment are linked, because environmental problems never recognise national boundaries.

The Prime Minister: My hon. Friend is right. That is one reason why it is important that, when we increase our aid to sub-Saharan Africa, we do so on the basis of programmes that will be environmentally beneficial as well as assisting the development of those countries. During the UN special session, we also announced measures that will assist forestry. There is a range of issues where we can link aid and the development assistance that we are giving to measures that will improve the environment. That should be read in conjunction with the measures to reduce the level of debt. For many of those countries, the level of debt is the single biggest problem that they face.

Mr. Ian Bruce (South Dorset): On greenhouse gas reductions, the right hon. Gentleman knows that much of Europe, and certainly his party, was wedded to carbon taxes. Was that raised at the Denver summit or later at the environment summit? How did the Prime Minister persuade people that his Government were keen on reducing greenhouse gases when it is their policy to reduce the cost of domestic fuels by taking money off VAT?

The Prime Minister: We have no proposals to introduce carbon taxes and that was not discussed at Denver. We believe that the measures that we have outlined will give us the very best chance of meeting the targets that we have set ourselves. The single best thing that we can do in relation to that is to improve energy efficiency. VAT on fuel harmed a lot of people, particularly those living in poverty, who faced rising fuel bills and sometimes, in the case of old age pensioners, a choice between heating and eating in winter. That is not acceptable.

Dr. Norman A. Godman (Greenock and Inverclyde): My right hon. Friend made passing reference to international fisheries management. Has Japan made any promise to impose tougher restraints on its tuna fishing fleet? May I remind him that that fleet has imposed severe economic damage on numerous coastal or littoral nations in the third world and that its vessels are beginning to appear in the north Atlantic?

The Prime Minister: I am not aware of any particular moves by the Japanese on international fisheries

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management. Perhaps I could write to my hon. Friend on the tuna fishing fleet, because I am afraid that I cannot give an answer off the top of my head.

Mr. Cynog Dafis (Ceredigion): I understand that there will be a further statement this week on earth summit 2, but, meanwhile, could the Prime Minister tell us more about the evolving American position on greenhouse gas emissions? America is responsible for 25 per cent. of global CO 2 emissions. Is it likely that the United States will agree to significant reductions in Kyoto in December? Does he agree that environmental sustainability must become a major foreign policy issue and that countries that refuse to take it seriously should be regarded as a threat to global security?


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