PROCEEDINGS OF THE COMMITTEE RELATING TO THE REPORT
Another Amendment proposed, in line 6, after the
word "outset" to insert the words "Indeed
the evidence points in the opposite direction, that the City benefited
from Britain's current position outside the euro".—(Sir
Michael Spicer.)
Question put, That the Amendment be made.
The Committee divided.
| Ayes, 4 | Noes, 6
|
| Mr Michael Fallon | Mr Nigel Beard
|
| Mr David Ruffley | Mrs Liz Blackman
|
| Sir Michael Spicer | Mr Jim Cousins
|
| Sir Teddy Taylor | Mr David Kidney
|
| Mr James Plaskitt
|
| Mr Brian Sedgemore
|
Paragraph agreed to.
Paragraph 43 read, as follows:
We commented in 1998 that the employment test, like
the investment test, is likely to be satisfied if the first two
tests are met. Mr Christopher Johnson has written that "it
has become increasingly difficult to argue that the UK needs EMU
to promote employment, since unemployment, at under four per cent,
is at its lowest level for twenty years ... However, it can hardly
be claimed that joining EMU would increase British unemployment.
Employment levels are not much influenced by whether a country
is inside or outside EMU". Business for Sterling, on the
other hand, argued to us that "joining the euro in the foreseeable
future would ... increase unemployment in Britain substantially"
because "the Eurozone is chronically over-regulated and over-taxed".
Amendment proposed, in line 9, at the end, to add
the words "That was clearly not the view expressed by BMW
in considering the future of Rover, or Ford's when considering
the future of motor car manufacture in Dagenham. Nor was it the
view expressed to the committee by Mr Cushnaghan, Managing Director
of Nissan UK, when referring to the prospects for expansion of
the Nissan factory in Sunderland. Investment has come to the UK
whilst there is an expectation of the country joining EMU in the
near future but there could be a serious threat to manufacturing
employment if there appeared likely to be an indefinite delay
in Britain joining."—(Mr Nigel Beard.)
Question put, That the Amendment be made.
The Committee divided.
| Ayes, 1 | Noes, 9
|
| Mr Nigel Beard | Mrs Liz Blackman
|
| Mr Jim Cousins
|
| Mr Michael Fallon
|
| Mr David Kidney
|
| Mr James Plaskitt
|
| Mr David Ruffley
|
| Mr Brian Sedgemore
|
| Sir Michael Spicer
|
| Sir Teddy Taylor
|
Another Amendment proposed, in line 9, at the end,
to add the words "We agree with Business for Sterling".—(Sir
Michael Spicer.)
Question put, That the Amendment be made.
The Committee divided.
| Ayes, 4 | Noes, 6
|
| Mr Michael Fallon | Mr Nigel Beard
|
| Mr David Ruffley | Mrs Liz Blackman
|
| Sir Michael Spicer | Mr Jim Cousins
|
| Sir Teddy Taylor | Mr David Kidney
|
| Mr James Plaskitt
|
| Mr Brian Sedgemore
|
Paragraph agreed to.
Paragraphs 44 to 48 read and agreed to.
Paragraph 49 read, as follows:
The British Chambers of Commerce's survey showed
that only 16 per cent of its members had "already made the
majority of the preparations that would be needed" for UK
membership of Stage Three during the next Parliament; 31 per cent
had made some preparations; and 51 per cent had made no preparations
at all. A number of witnesses shared the concerns of the Federation
of Small Businesses that, given the uncertainty about whether
or not the UK might join Stage Three in future, "the business
community cannot make any long-term investment decisions in regard
to the single currency and it is not surprising that small businesses
in particular are unwilling to consider the potential impact that
the euro could have on their business, let along actually make
any preparations for it". Ms Lea, in oral evidence, did not
envisage firms which had yet to prepare for possible UK membership
of Stage Three of EMU "lifting a finger until they have got
a definite date" of entry. Mr Sweeney thought that "ideally"
banks would wish to prepare for possible UK entry, and particularly
the transitional period when both sterling and euro would be legal
currency in the UK, before the decision to join was taken, but
"it would be very difficult for banks to justify to their
shareholders expenditure of £1 billion plus ... before they
are pretty confident that it is actually going to be needed because
the Government is going to take a decision to go in". The
BBA's written evidence described how banks mostly process euro
transactions on paper at the moment and said that investment would
be required to automate systems if the UK joined Stage Three.
The Economic Secretary, however, perceived "no evidence of
anything other than continuing progress". It is clear
that many firms are waiting for the Government to decide before
preparing for possible UK membership of the single currency.
Amendment proposed, in line 20, after the word "many",
to insert the words "small- and medium-sized".—(Mr
Nigel Beard.)
Question put, That the Amendment be made.
The Committee divided.
| Ayes, 5 | Noes, 4
|
| Mr Nigel Beard | Mr Michael Fallon
|
| Mrs Liz Blackman | Mr David Ruffley
|
| Mr Jim Cousins | Mr Brian Sedgemore
|
| Mr David Kidney | Sir Michael Spicer
|
| Mr James Plaskitt |
|
Paragraph, as amended, agreed to.
Paragraphs 50 and 51 read and agreed to.
Paragraph 52 read as follows:
An important aspect of the Changeover Plans is an
illustrative timetable for the steps that would need to be taken
from the Government's decision to recommend joining Stage Three
to the withdrawal of sterling as a unit of currency. It is envisaged
that the whole transitional period would span between 34 and 40
months. The Economic Secretary told us that the timetable was
"a result of the discussions that we have had with a number
of bodies, both public and private sector, to map out what seemed
realistic" and she said that she had received no representations
that the timescale was either too long or too short. Most witnesses
questioned about the timetable were content for there to be a
transitional period of around 40 months. Mr Williams, of Canford
Group plc, thought that "it could be done a lot quicker than
40 months. Inevitably there are going to be a large number of
businesses who leave it until the last minute". BASDA concluded
that the "proposed UK transition period is likely to be inadequate"
without greater Government commitment, including extra funding,
to public sector changeover issues.
Amendment proposed, in line 12, at the end, to add
the words "The next edition of the changeover plan will
need to target SMEs. The points being made by BASDA will also
need to be addressed.".—(Mr Nigel Beard.)
Question put, That the Amendment be made.
The Committee divided.
| Ayes, 3 | Noes, 6
|
| Mr Nigel Beard | Mr David Kidney
|
| Mrs Liz Blackman | Mr James Plaskitt
|
| Mr Jim Cousins | Mr David Ruffley
|
| Mr Brian Sedgemore
|
| Sir Michael Spicer
|
| Sir Teddy Taylor
|
Paragraph agreed to.
Annex agreed to.
Summary of Conclusions and Recommendations amended
and agreed to.
Question put, That the Report, as amended, be the
Eighth Report of the Committee to the House.
The Committee divided.
| Ayes, 6 | Noes, 4
|
| Mr Nigel Beard | Mr Michael Fallon
|
| Mrs Liz Blackman | Mr David Ruffley
|
| Mr Jim Cousins | Sir Michael Spicer
|
| Mr David Kidney | Sir Teddy Taylor
|
| Mr James Plaskitt |
|
| Mr Brian Sedgemore |
|
Ordered, That the Chairman
do make the Report to the House.
Several papers were ordered to be appended to the
Minutes of Evidence.
Ordered, That the Appendices
to the Minutes of Evidence taken before the Committee be reported
to the House.
Several papers were ordered to be reported to the
House.
Motion made, and Question put, That the Committee
do hold a Press Conference on the Report on Friday 28 July.—(Mr
David Ruffley.)
The Committee divided.
| Ayes, 6 | Noes, 4
|
| Mr Nigel Beard | Mrs Liz Blackman
|
| Mr Michael Fallon | Mr Jim Cousins
|
| Mr David Ruffley | Mr David Kidney
|
| Mr Brian Sedgemore | Mr James Plaskitt
|
| Sir Michael Spicer |
|
| Sir Teddy Taylor |
|
[Adjourned till Tuesday next
at Eleven o'clock.
|
