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European Union: Areas Subject to European Law

Lord Pearson of Rannoch asked Her Majesty's Government:

Further to the Written Answer by Baroness Symons of Vernham Dean on 17 June (WA 90–91), what policy areas became subject to European law upon the entry into force of the European

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Communities Act 1973 and the United Kingdom's accession to the European Economic Community.[HL3569]

The Minister of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean): The task of the EEC was:

"by establishing a common market and progressively approximating the economic policies of member states, to promote throughout the Community a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the states belonging to it."

For those purposes, and as set out elsewhere in the Treaty, the activities of the Community were:

(a) the elimination, as between member states, of customs duties and of quantitative restrictions on the import and export of goods, and of all other measures having equivalent effect;

(b) the establishment of a common customs tariff and of a common commercial policy towards third countries;

(c) the abolition, as between member states, of obstacles to freedom of movement for persons, services and capital;

(d) the adoption of a common policy in the sphere of agriculture;

(e) the adoption of a common policy in the sphere of transport;

(f) the institution of a system ensuring that competition in the common market is not distorted;

(g) the application of procedures by which the economic policies of member states can be co-ordinated and disequilibria in their balances of payments remedied;

(h) the approximation of the laws of member states to the extent required for the proper functioning of the common market;

(i) the creation of a European Social Fund in order to improve employment opportunities for workers and to contribute to the raising of their standard of living;

(j) the establishment of a European Investment Bank to facilitate the economic expansion of the Community by opening up fresh resources;

(k) the association of the overseas countries and territories in order to increase trade and to promote jointly economic and social development.

West Bank: Security Walls

Lord Hylton asked Her Majesty's Government:

What they consider to be the status in international law of the security wall and fence now being built by the Government of Israel in the occupied West Bank; and whether there are procedures under international law whereby Israelis and Palestinians thus adversely affected may claim compensation.[HL3585]

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Baroness Symons of Vernham Dean: While the building of a separation wall for security reasons does not necessarily contravene international law, we do consider some aspects related to the construction of the "security fence" in the West Bank to be illegal. We do not believe that the route of the fence is determined by security requirements. We therefore conclude that much of the demolition and confiscation of Palestinian property associated with its construction violates the Fourth Geneva Convention, which prohibits such measures unless absolutely necessary. We are concerned that the lack of access for Palestinian owners to land on the west of the security fence results in the de facto appropriation of this territory by Israel.

The military orders, which requisition land for the fence, allow the owners of the property to request rental fees or compensation.

Lord Hylton asked Her Majesty's Government:

Whether they will propose to the Quartet that Israel's security fence be moved back to the Green Line and that full access be restored to all towns and villages.[HL3586]

Baroness Symons of Vernham Dean: Our embassy in Tel Aviv has raised with the Government of Israel our concerns about the location and impact of the "security fence". We deplore the seizure of Palestinian land, the isolation of Palestinian villages, and the creation of a further physical obstacle to the two-state solution. My right honourable friend the Foreign Secretary conveyed the UK's concerns to the Israeli Foreign Minister on his visit of 15 May. Quartet members share our views. The Quartet road map calls on the Government of Israel to take no actions undermining trust, including the confiscation and/or demolition of Palestinian property. Lasting peace can only be achieved through a negotiated settlement and not unilateral actions.

Chechnya: Human Rights Monitoring

Lord Hylton asked Her Majesty's Government:

Whether, following President Putin's visit to London; they have discussed with Russian representatives the possibility of human rights monitoring in and around Chechnya by the Organisation for Security and Co-operation in Europe or the Council of Europe.[HL3589]

Baroness Symons of Vernham Dean: My right honourable friends the Prime Minister and Foreign Secretary both discussed Chechnya in talks with President Putin and Foreign Minister Ivanov during the state visit. However, neither raised the role of the Council of Europe or the Organisation for Security and Co-operation in Europe during these discussions.

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Israel: Contributions to UNWRA

Lord Hylton asked Her Majesty's Government:

Whether they will ask the Government of Israel to contribute to the budget of the United Nations Works and Relief Agency in the current year.[HL3588]

Baroness Symons of Vernham Dean: No. Our priority is to ensure implementation of the road map by both parties. This is therefore the current focus of our contacts with the Israeli Government.

Indonesia: Scorpion Armoured Vehicles

Lord Avebury asked Her Majesty's Government:

What action they are taking following reports that British-made Scorpion armoured vehicles are being used by the Indonesian forces in Aceh.[HL3615]

Baroness Symons of Vernham Dean: The Indonesian Government announced on 23 June the deployment of 36 British-built Scorpion vehicles to Aceh to defend roads against attack by the Free Aceh Movement (FAM).

Our embassy in Jakarta spoke to senior military contacts and reminded them of the assurances that British-built military equipment should not be used offensively or to violate human rights. We are carefully monitoring the extent of compliance with these assurances.

Age Discrimination

Lord Lester of Herne Hill asked Her Majesty's Government:

Whether they consider that the victims of age discrimination in the fields of education, housing, the provision of goods, facilities and services to the public, and public sector provision, should be given equal legal protection to that enjoyed by the victims of sex and race discrimination; and, if not, why not; and [HL3802]

Whether they intend to introduce legislation to make it unlawful to discriminate on grounds of age in the fields of education, housing, the provision of goods, facilities and services to the public, and in public sector provision; and, if not, why not; and [HL3821]

Which respondents to Towards Equality and Diversity, referred to in paragraph 3a of Towards Equality and Diversity: Report of responses on Age 2003, as "the age lobby", felt that age discrimination legislation should be extended to cover areas other than employment, such as goods and services; and what is their response. [HL3822]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville): Unfair age discrimination is intolerable wherever it occurs. The Government's priority is to

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introduce effective and workable legislation outlawing age discrimination in employment and vocational training. That in itself requires the resolution of a number of complex and sensitive issues, which are discussed in our consultation—Equality and Diversity: Age Matters—launched on 2 July. We shall be following it up with a further consultation in 2004 on the draft legislation itself.

In responding to our previous consultation—Towards Equality and Diversity—Age Concern England, the Third Age Employment Network, and the Association of Retired Persons Over 50 felt that legislation should be extended to goods and services.

The Government believe that legislating against age discrimination at work will help to form less ageist attitudes generally. Demographic and economic factors will also provide powerful incentives for providers of goods and services to change discriminatory attitudes and eliminate discriminatory practices.

Royal Mail: VAT on Rail Transport

The Earl of Mar and Kellie asked Her Majesty's Government:

Whether, in the light of Royal Mail's decision to withdraw from rail transport because it cannot reclaim the VAT, they will allow Royal Mail to reclaim the VAT on rail transport. [HL3657]

The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey): It is a fundamental principle of the VAT system that tax incurred on purchases can only be reclaimed when it relates to taxable business activities. Businesses making VAT-exempt supplies, such as Royal Mail, cannot therefore reclaim the VAT they incur when purchasing the goods and services they need in order to make those supplies.

As the Minister for Science and Innovation made clear on 8 July (Official Report, col. 128), even if the VAT position were changed, there would nevertheless still be a very substantial saving for Royal Mail from their decision to withdraw from rail transport. The VAT cost will therefore have been only one of many factors likely to have been taken into account in coming to that decision. However, while the loss of business for rail freight is always regrettable, the Government remain committed to allowing Royal Mail the freedom it needs to take operational decisions in its best commercial interests.

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