EU Membership (UK Renegotiation)

Daniel Kawczynski Excerpts

Tuesday 5th January 2016 Westminster Hall

[Mr Hollobone]

If we left the European Union, having negotiated our exit, we could have arrangements under which we would allow into this country people from the EU whose skills we need and the EU would allow into the EU British people whose skills it needs. At the moment, without those controls, we have massive net immigration into this country. It may not be an issue in Scotland, but it is a big issue in middle England.

[Daniel Kawczynski]

(Shrewsbury) (Con): My hon. Friend is making an extremely good speech. The media are focusing on benefits to EU workers and they are not sharing with our electorate some of the more important constitutional changes that the Prime Minister is trying to get agreement on. How does he assess the importance of the benefits issue for migrants among his constituents in comparison with constitutional changes they would like?

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[Mr Hollobone]

My hon. Friend demonstrates again that he is a very well read Member of this House and, as usual, ahead of the curve. He is right, because negotiating a free trade agreement with the EU should be fairly straightforward, given our status as the EU’s largest trading partner and the fact that we already meet all the EU’s requirements. One fifth of all the cars produced in Germany are exported to the United Kingdom. Is anyone seriously suggesting that if we left the European Union Germany would want to cease trading with us? With a successful leave vote we could negotiate a successful UK-EU deal.

Many countries around the world already have free trade deals with the EU but do not have to accept the supremacy of EU law like we do and do not have to pay the EU a massive £10 billion and rising each year as a membership fee. If Chile, Peru and Colombia can negotiate successful free trade arrangements with the EU, surely the UK, as the world’s fifth largest economy, would also be able to do so. Our membership of the European Union means that we are constitutionally unable to negotiate free trade deals of our own with other countries.

The EU has been in existence since 1957 and has yet to conclude a free trade arrangement with America or China because 28 countries are involved and getting them all to agree on every detail is proving impossible. I suggest that if we left the EU negotiating free trade agreements with the United States and China would be a top priority.

[Daniel Kawczynski]

My hon. Friend talks about an issue that is very close to my heart—British export strategy—and he referred to the United States of America. Does he believe that if we were outside the European Union we could use our special relationship with the Commonwealth—Canada has an agreement with the EU—to get preferential trading agreements with those countries that are more preferential than those that the European Union has?

[Mr Hollobone]

My hon. Friend is right. I think that many countries around the world that have been unable to negotiate a free trade arrangement with the EU would be all too keen to negotiate one with the world’s fifth largest economy. We would have an appetite for doing exactly that were we to leave.

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[Mr Hollobone]

The hon. Gentleman demonstrates that he is as well read as my hon. Friend the Member for Shipley (Philip Davies), and I am grateful for that—the situation is even worse than I had feared.

[Daniel Kawczynski]

My hon. Friend referred to Martin Schulz. Let me tell him that there is growing disquiet in certain smaller central and eastern European states about some of the language that Mr Schulz is starting to use in cajoling them on certain issues, particularly with regard to the crisis of immigrants from Syria. Will my hon. Friend join me in urging caution on this man in his interactions with sovereign nations along those lines?

[Mr Hollobone]

My hon. Friend needs to realise that these people are impervious to criticism, and the smaller nations in the EU need to wake up quick, because what few powers they retain are about to be taken away should these seven Presidents get their way. They aim to complete that, at the latest, by 2025. Apparently, we are already in the first phase—“Deepening by Doing”—and in spring 2017 there will be a white paper outlining the extent of their plans. To hold a referendum in this country on our membership before the spring of 2017 would be a big mistake, because it would be misleading the British people by not telling them now what is just around the corner. If we stay in the European Union, the future as outlined by these Presidents is that it will be very much in charge of Whitehall.

Our membership of the European Union is bad for us. It costs us each week a net £230 million. That is something like a quarter to a half of England’s schools budget. That money would be far better spent either on reducing the national debt or on our NHS. Also, our influence in the EU is far less than it used to be. It is true that the Prime Minister has upped the UK’s game in opposing measures in the EU Council. For example, from 1996 to 2010, the UK voted against 32 measures in the EU Council; since 2010, the Prime Minister has tried to stop 40. However, we have lost all—each and every one—of those votes and we have only an 8% voting share.

Only 5% of UK businesses export to the EU, but 100% of UK businesses are subject to European rules. Four fifths of Britain’s economy has nothing to do with exports, but is in effect regulated by the European Union. We were told that being outside the eurozone meant that we would not be liable for propping up failing eurozone countries. That has proved not to be the case, with bail-out funds going from this country to Greece. Of course, if the global economy were a motorway, the European Union would be on the hard shoulder. The EU’s share of world trade was 40% in 1972, when we joined; it is set to be 20% by 2020. The accounts have not been signed off by European auditors since 1994. Of course, immigration is out of control, and that is set to get even worse. We can be sure that if Turkey, with a population of 85 million, were allowed into the European Union, the wave of immigration that we have seen from eastern Europe would be dwarfed by the wave of immigration from Turkey, and I predict that it would cause big social unrest in this country, but if we vote to stay in the European Union, there will in effect be nothing we can do to stop that.

Increasingly—we have already had a taste of this during the debate today—many bogus arguments will be made as to why it would be dangerous for Britain to leave the European Union. We have been told that we would lose 3 million jobs if we left the European Union. I would like my right hon. Friend the Minister to confirm today that that age-old claim is completely false and that 3 million UK jobs are not dependent on our membership of the European Union. It demonstrates the weakness of the case of those who want us to stay in that those scare stories are being put around. Of course, so many people told us that we would be disadvantaged if we did not join the exchange rate mechanism and the euro. In fact, Britain has been far better served by coming out of the ERM and by not joining the euro. We currently have the biggest amount of foreign direct investment of any country in the European Union.

I will conclude shortly, because I want other hon. Members to contribute to the debate, but it comes down to this: I am confident about Britain’s future. We are the fifth largest economy in the world. We are a member of many prominent international organisations. Our influence in the world would increase if we were to take back our seat at the World Trade Organisation. It is time for the UK to come off the global hard shoulder and go back to doing what we always did best—being a trading nation around the world. If we remain in the European Union, we will have access to its single market, as we do now, but we will have to pay at least £10 billion a year net as our membership fee; EU judges will have supremacy over UK law; and we will have to submit to the free movement of people, with no control over immigration. If we vote to leave, we will still be able to negotiate access to the single market through a free-trade arrangement with the EU, but we will not have to pay the membership fee; we will get back control over own laws; and, at long last, we will be able to control immigration, which is what constituents in Kettering and, I suggest, across the country want to see.

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Britain’s contribution to the European Union since we joined has been massive, honourable and, from a fiscal perspective, extremely generous. I therefore believe that we are renegotiating from a position of strength. I take great pride in being the first British Member of Parliament to have been born in Poland, so I am one of these migrants. I regularly go to Warsaw and talk in Polish to Polish politicians, journalists and other people. I try to reiterate to them the extraordinary support that Poland has had from the United Kingdom for many years—whether it was during world war two, Solidarity in the 1980s, helping Poland enter NATO and the European Union, getting rid of Poland’s communist-era debts to the Paris Club or guaranteeing its borders after German reunification—yet I am extremely disappointed with the intransigence coming out of Warsaw when, for the first time, the United Kingdom is seeking support from Poland and other countries, with everything that we have done for them over such a long period of time. The intransigence and the difficulties are pushing me towards campaigning to pull out of the European Union. I have not yet decided but, when one thinks of what the United Kingdom has done for these countries, it is disappointing that their support for us is now so lacking.

The Prime Minister has asked me to advise him on the eastern European diaspora in this country, and I go around the United Kingdom meeting many Polish organisations. Poles are here not to claim benefits but to work. I am very proud of the Polish community’s contribution to the United Kingdom, and I am extremely disappointed and concerned that the media are focusing so much on the issue of benefits reform. That is why I asked my hon. Friend the Member for Kettering (Mr Hollobone) about his views on that issue. Our renegotiation should not boil down to whether EU migrants get the same benefits as our own citizens. No, I believe that what my constituents in Shrewsbury want— I know a little about what they want because I asked them about their views—is fundamental reform of our membership of the European Union to back up what he said earlier about who governs Britain and how Britain can make such decisions and be accountable to the electorate.

I am worried that Warsaw is trying to conflate the issues of potentially supporting us in exchange for our support for permanent NATO bases in Poland. What is the Minister’s view on that? I am a great supporter of NATO bases in Poland, and I raised the issue with the Secretary of State for Defence at the 1922 committee. We should be helping our NATO allies and protecting them from any aggression from Russia, but the two issues should not be conflated in these important EU negotiations.

Lastly, I have been to villages and towns in Poland that have been completely depopulated. The risk is that there will not be enough people to look after the vulnerable and elderly, because so many young and talented people have left Poland to come to the United Kingdom. If the free movement of people is to work, it must be more equal among the nations. Something must be done to address the massive flows of people coming to the United Kingdom, because it is a concern for my constituents in Shrewsbury.

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[Mr McFadden]

I agree with the hon. Gentleman that Labour Members know a thing or two about free votes after our recent experience, and his intervention gives me a chance to pick up on some of the points made by my hon. Friend the Member for Blackley and Broughton (Graham Stringer).

In the Labour party, we have a clear policy—passed by our conference—to campaign for the UK to remain in the EU. I am not aware of any Front Bencher who disagrees with that policy. There is a pro-Europe group in the parliamentary Labour party that has the names of 214 of the 232 Labour MPs, including every member of the shadow Cabinet. So that is where we stand regarding the balance of views on the issue. I do not deny that there are some Labour MPs who take a different view, as my hon. Friend the Member for Blackley and Broughton set out, but they are only a small minority of the parliamentary party. That is where we stand on this issue.

[Daniel Kawczynski]

rose—

[Mr McFadden]

I will make a little progress before giving way again.

Regarding the terms of the renegotiation, which is the subject of this debate, we have had the exchange of letters between the Prime Minister and one of the “famous five” Presidents, Donald Tusk, who is the President of the European Council. Mr Tusk replied to the Prime Minister’s letter on 7 December, setting out his assessment of where other member states stood on this agenda. There are four items, or four “baskets” as they say, and we are led to understand that progress has been made on the first three issues—protection for non-eurozone countries, competitiveness and the rights of national parliaments—but that further discussions are taking place on the final issue, which we are led to believe is the most difficult of the four issues to resolve, and which is the issue of access to in-work benefits for workers from other EU member states.

[Daniel Kawczynski]

I am grateful to the shadow Minister for giving way. On that point, could he clarify matters for us? Bearing in mind the way that renegotiation is going, what is the Labour party’s official position as to whether or not it is in our country’s national interests to have the referendum earlier—in other words, in June or September 2016—or later, in 2017?

[Mr McFadden]

I thank the hon. Gentleman for that intervention. We have not expressed an opinion on the exact timing, other than to say, as we said during the passage of the European Union Referendum Act 2015, that we do not think it is a good idea to combine the referendum with other important elections scheduled for May this year or May next year, because this issue is of such import that it deserves a campaign and a vote on its own. That is what we have said about how the referendum should take place.

I will put a couple of questions to the Minister about the renegotiation. First, is it correct for people to conclude that there has been substantial progress on the first three issues that I have referred to, but that the fourth issue remains more difficult to make progress on?

On that fourth issue, which is the issue of tax credits and other in-work benefits for workers from other EU member states, the Government’s contention is that the availability of those benefits acts as a pull factor, resulting in levels of immigration that are higher than they would otherwise be. Consequently, the Prime Minister claims that if those benefits are curtailed in the way that he has set out immigration will go down. I disagree with a lot of the points that have been made today by hon. Members who wish to campaign to leave the EU, but there is one issue on which I think I am in some agreement with them, which is to be sceptical about this claim. What evidence do the Government have for the contention that these in-work benefits are affecting the level of immigration? By how much do the Government believe that immigration from other EU member states will go down if the availability of in-work benefits is cut in the way that the Government have set out?

The Office for Budget Responsibility, giving evidence to the Treasury Committee before Christmas, said that its view is that such a change to in-work benefits would make little difference to immigration levels. Also, is it not the case that the vast majority of people who come to the UK from other EU member states come to work hard, pay their taxes and make a positive contribution to this country, in the same way as anyone else?