UK Economy

Debate between Kit Malthouse and James Cartlidge

Wednesday 29th June 2016 Commons Chamber

[James Cartlidge]

The hon. Gentleman has a fantastic sense of humour himself, as does his party.

If we had boarded that tube train and gone down that route, our Prime Minister would have been in post for years to come, and our stock market, our economic confidence and our currency would have strengthened. We would not have put permanently to bed but would have very strongly put to one side the two big constitutional issues of Europe and Scotland that have bedevilled our politics for so long. Instead, we have instability again.

We have to recognise that if we had remained, we would have had a very strong position, rather than all this uncertainty and weakness. For me, whatever arrangements are negotiated for the future, they must compensate for that and restore the strengths and assets that we had, not least the fact that British has historically been seen as a beacon of trust. It has been seen as a country into which people would put their life savings, and there is a profound sense around the world that we have respect for the rule of law, and that we are stable, sound and all the rest of it. At the moment, one could forgive the world for thinking that that was not the case, as certainly seems to be true in other European countries.

How do we restore those strengths? First and foremost, when we enter into negotiations, we have to decide on the principles—just as with a Bill, we have a Second Reading debate about its principles—and we need to decide on the principles of the negotiations we will have with our European partners and on the fundamentals about how we go forwards. I want to focus on three key points.

The first point is openness, to which I referred earlier. To me, one of the most extraordinary comments during the referendum was when, after concerns were raised about steel, a key figure in the leave campaign said that if we left the EU, we could unilaterally impose tariffs on Chinese steel. There may be a strong case for doing so, but that betrayed the fact that when the argument becomes nationalistic, particularly economically nationalistic, there is inevitably a threat of protectionism. We have heard many times about how Britain would negotiate good trade arrangements, and about how, since we have deficits with the EU, its members will want to trade with us—after all, look at how many cars we buy from them. Implicitly, the point was therefore that if they did not want to trade with us, we would consider protectionism.

[Kit Malthouse]

I realise that my hon. Friend and I were on different sides of the argument, but does he recognise that the EU is a protectionist bloc? The EU is a common tariff area whose members collectively impose significant tariffs on other parts of the world, some of which are impoverished third world nations.