UK Parliament / Open data

European Union (Referendum) Bill

I am grateful to the hon. Gentleman for his advice, which should probably have come from the Chair rather than him. There is a slight problem,

however, as most of my time has been taken up responding to interventions from his colleagues, so perhaps he should encourage them to be a little quieter.

The problems continue. The uncertainty that the Bill creates for business is clear, even if we make a number of big assumptions about the referendum process: first, that the Conservative Front Bench will not change its position between now and 2017, but having changed it three times in two years, that is a big assumption; secondly, that the timetable for the referendum does not have to be changed in any case, although we may find in 2017 that we are in the middle of a renegotiation or treaty change process resulting from changes in the eurozone, and at such a juncture, it would be nonsense to hold a referendum, as another referendum might be provoked in only a matter of months or years, so we would not really know what we were voting for in those circumstances; and finally, if the political landscape had not completely changed in any case we might have a different Government with different priorities and there might be a recovery in the European economy, and we may find votes for the UK Independence party subsiding and that Europe is not quite such a big priority—it is not a terribly big priority for most voters according to existing polls—so the idea of spending yet more hundreds of hours of parliamentary time banging on about Europe might not seem quite as appealing.

Even if all of that is true, and we move towards a referendum by 2017, that still condemns British business and British jobs to four years of uncertainty—what a message to send to investors. The CBI is quoted in the Independent newspaper, i, this morning, and raises the problem of the uncertainty caused for British business:

“British businesses don’t want to find themselves at the margins of the world’s largest trading bloc operating under market rules over which they have no influence.”

That is the prospect that we are going to live with, unresolved, apparently for up to four years. That is one of the problems with the Bill. This morning, The Daily Telegraph, I think, quoted the leader of the Norwegian Conservative party, who pointed out that the supposed solution of the UK trying to have a status more or less equivalent to Norway’s was worse than being in the EU. Norway pays hundreds of billions of euros to the European Union for access to the single European market, and finds out about the rules through so-called fax democracy.

There are many, many problems with the Bill, which does not really resolve the main question. It is, as we all really know—rather like Harold Wilson’s Bill in the 1970s—about papering over the cracks in the Conservative party itself. It will not really work. The Prime Minister has spelled out a reasonably modest set of ambitions for renegotiation that will never satisfy many of his Back Benchers, who clearly want to use a much more ambitious and unilateral agenda for negotiation as something that will provide them with an excuse to campaign for exit.

UK businesses have access to free trade in the world’s largest single market, worth nearly £11 trillion in gross domestic product, with over 500 million consumers. One in 10 British jobs are linked to the single market. Some £495 billion-worth of British trade is with other EU member states. To put that in jeopardy—

About this proceeding contribution

Reference

565 cc1227-8 

Session

2013-14

Chamber / Committee

House of Commons chamber
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