39
[Mr. Marlow.]
Iran
19 MAY 1980
in for retrospective legislation, what does my right hon. Friend think that the Ayatollah will do with the Talbot con- tract?
Sir I. Gilmour: The first part of the question is beyond the reaches of the statement. Secondly, my hon. Friend talks about retrospective legislation. Certainly these are retrospective sanctions, but that is not the same thing as retrospective legislation. Obviously, I have no infor- mation about the Ayatollah's intentions.
Mr. Jay Is the Lord Privy Seal aware that he is just as accountable to the House for what Ministers do at informal meetings as he is for what they do at for- mal EEC meetings?
Sir. I. Gilmour: The Government are responsible for every action taken by Ministers and by the Government. As the right hon. Gentleman knows perfectly well. in normal circumstances statements are not made after informal meetings.
Mr. Bowen Wells: Is my right hon. Friend aware that he will receive many congratulations for trying to co-ordinate the Policies of Western Europe over Iran? Is he also aware, however, that the retrospective element of this legisla- tion was not made plain to the House in the debate last week? There is no doubt about that. Will my right hon. Friend bear in mind that European states- men must find a way to compensate those who have entered into contracts since November? This is a particularly serious element in the statement that my right hon. Friend made today.
Sir I. Gilmour: I agree that it is seri- ous, but there is no precedent for giving compensation in such cases. My hon. Friend must be aware that the possi- bility of going back beyond the present date on the sanctions legislation was clearly kept open by the Government Front Bench-
Mrs. Dunwoody: No, no, it was not.
Sir. I. Gilmour: It is no use the hon. Lady chanting "No ". The passage that I have already read out to the House in- dicates that clearly. There was certainly no decision to introduce sanctions as from 4 November, because that decision had not been taken. It was taken only by
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Iran
40
consensus at the meeting in Napies as at the weekend.
Mr. Straw Is the Lord Privy Seal not aware that the statement that he read out, made by the Minister of State in response to my intervention, was that no decision on the use of the 1939 Act had been taken? That statement was made to pro- vide reassurance to hon. Members that existing contracts would not be affected. That was the whole point of his state- ment. If there was a possibility that at the weekend meeting retrospection would be introduced, surely the Lord Privy Seaj and his officials knew of it? If they did why was the House not informed of that possibility? The truth is that hundreds of firms and thousands of workpeople will now feel that they have been totally deceived by the Government-and they have been.
Sir I. Gilmour : With respect to the hon. Gentleman, the debate to which he is referring took place a week ago, sc I do not think that the last part of hi question is very relevant. [HON MEMBERS: "Why not?" I agree that what my hon. Friend the Minister of State said was in answer to an intervention by the hon. Gentleman, but my hon. Friend went on to say--and I repeat-that no decision has been taken to use those powers. No decision would be taken unless it were clear that our main com- petitors were doing the same.
If any such proposal were made, it would have to be submitted to this House for approval. The possibility was clearly kept open.
Mr. Kenneth Lewis: As many of the firms affected by this matter will not have any cover at all under the ECGD, which has, I think, been withdrawn, and no compensation, will my right hon. Friend and other Ministers concerned in other Departments at least try to find out how many firms are affected and seek to arrange for Government Departments to pick up the orders to Iran which will be lost to those firms, so as to keep the firms busy making those orders?
Sir I. Gilmour : Certainly we shall make all the inquiries asked for by my hon. Friend. Every relevant matter in this concern will be considered very carefully by us. I give that assurance.
Several hon. Members rose