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European Affairs

I fully accept the hon. Gentleman’s point. Transport experts need to look into the problem. A diplomatic issue would be involved, too. If there was a bilateral agreement between Russia and the EU that any tax that applied in the EU would apply in Russia if an EU plane refuelled there, it would resolve the problem, although I realise that is a lot easier said than done. On the other hand, Ryanair might not find it viable to fuel up in Moscow to fly from Newcastle to Dublin. However, the problem needs to be tackled, as does competitiveness with the United States and north America. Should flights from that area be dealt with differently from flights within the EU? Those issues are all part of a package and they have to be resolved. I want to make two more points. First, the proposal to hold auctions for carbon limits is interesting and should be examined. I am not convinced that auctions would necessarily be better than the permit system, but it would be worth hearing the Government’s view about whether they would be more effective, although if things were left completely to the market it would be harder for countries to define permits differently. I would not instinctively travel in that direction, but I shall be interested in the Government’s view. Perhaps there could be a reference to that in the wind-up. Secondly, under the current system of emissions control permits, if an EU-based business invests in a carbon-saving scheme outside the EU—for example, in a developing country or in China—their contribution counts in calculations under the EU rules. Although that provision is mildly imperialist, it has a lot of merit, because it reduces emissions worldwide. If, rather than emissions targets being reached only in a European context, they are reached both in Europe and beyond, there is an overall gain, and that is desirable. Earlier today, the Chancellor said that Britain had signed a partnership agreement on the development of biofuels with Brazil, Mozambique and South Africa, and that we are working on the preservation of rain forests with Latin America and Asian countries, on clean coal with China and India and on carbon storage with Norway. If EU businesses, particularly British businesses, currently invest in such projects, would that count against any limits set in the post-2012 agreements? The rules would obviously have to be EU rules, so can the EU make a forward agreement and would the British Government support it? If so, it would provide an incentive to go further towards meeting existing limits than is absolutely necessary from a statutory point of view. It could also be good business for many British companies that could make a contribution in that regard. I am sure that the meetings to be held next week will be similar to others that have taken place over many years. I understand that enlargement will be at the top of the agenda, and I welcome and support that, but I hope that the Government will feel able to push the climate change agenda. In the wind-up, it would be interesting if we could hear to what extent the Government accept the Commission’s new proposals on emissions trading. Do the proposals go as far as the Government want, given that we were instrumental in pushing many of the issues? I wish our representatives—be they the Prime Minister, the Foreign Secretary, European Ministers or an array of civil servants—the very best in the talks next week.