I would like to make some progress.
Total exports from the north-east to the EU last year were worth £6.5 billion, which was nearly half the region’s total. In a survey for Business for Britain, 6% of businesses said that they would close if we left the EU. That would mean the loss of 1.5 million jobs in Britain, including 40,000 in the north-east, at an average of 1,300 per north-east constituency. I am pleased that I am not jeopardising those jobs by supporting the Bill.
Foreign direct investment is important to the UK economy and the north-east. FDI has fallen in the north-east since 2010, but let me explain why the Bill, given the lack of consultation on its creation, would make matters worse. A recent Ernst and Young report on FDI called “No room for complacency” said:
“The number of FDI projects secured by most English regions, excluding London, declined in 2012. Investments in England outside of London were 24% below their level in 2010—a decline that has coincided with the closure of the Regional Development
Agencies…and the switch to Local Enterprise Partnerships…If it continues, the weakness of the English regions could damage the UK’s overall ability to attract FDI in comparison to countries such as France and Germany”.
It states:
“56% of investors in Western Europe feel that if the UK were less integrated into the EU it would become less attractive for FDI”.
It also says:
“the position of London is now so pronounced that if the UK were to be considered without London, it would be placed joint third alongside Spain in attracting new investment.”
All that underlines my basic point that at a time of difficulties in attracting foreign investment, it is absolutely ridiculous to create even more uncertainty by proceeding with the Bill.
Perhaps there are other people whom the hon. Member for Stockton South should have heard from, because if he had consulted more widely than just the various factions of the Conservative party for whom coming out of Europe is an anecdote for the loss of empire, he would not have touched this Bill with a bargepole. He should have spoken to people such as Paul Everitt, the chief executive of the ADS group, who says:
“UK exports are crucial to rebalancing the economy and last year alone, aerospace sales to Europe were worth £7.5 billion. But the EU is more than just a large market for ADS’s sectors. It’s also a significant source of additional funding for R&D investment in the UK and plays an integral role in shaping the regulatory environment for the sector’s key customers and suppliers...The priority must be to maintain these opportunities for exports, investment and influence in Europe in order to support the UK’s growth and global competitiveness.”