European Union

David Simpson Excerpts

Tuesday 13th December 2011 Commons Chamber

[Mr Lidington]

The hon. Gentleman is right to point to the risks to any country of giving up control of its tax rates to some supranational body that cannot be guaranteed always to act in the interests of any one of the nations party to the decision. It was no secret at the time of the Irish bail-out last year that the Irish Government came under enormous pressure from other EU member states to raise their corporation tax rates. As he will know, the UK Government were steadfast in supporting the Taoiseach’s resistance to that move.

I recognise what the right hon. Member for Belfast North and the hon. Member for North Antrim (Ian Paisley) said about it not always being easy to be in the EU. There are plenty of frustrations and occasions when we can see so clearly what is wrong. Any Minister from any party who has sat in European Council meetings will be able to recall times when they wanted to scream with frustration at a piece of what seemed to be unnecessary bureaucracy or expense, or at the complexity and time taken to secure reforms when agreement was needed among a collection of different Governments.

There are many areas where we would like change, but I want to make it clear that the Government’s judgment is that membership of the EU remains very much in the UK national interest. I shall briefly sketch three key areas where we believe that the benefits of our membership far outweigh the difficulties: the single market, the single voice in international trade and diplomatic leverage in foreign policy. There is little doubt that our membership of the single market has allowed us to reap the economic benefits, because the EU comprises the largest single market and most important trading zone in the world. It is bigger than the whole of the United States and Japan combined and gives British business access to 500 million consumers without customs or trade barriers.

In Northern Ireland, EU countries remain key trading partners. Export sales to Europe from Northern Ireland alone amounted to £600 million in 2010, and many Northern Ireland companies have been doing significant business in the EU for many years. The success stories include a broad range of Northern Ireland industries, from engineering to information technology, synthetic fibres, pharmaceuticals, and food and drink. Recognising where additional growth could be achieved by targeting opportunities in EU export markets is one of the keys to improving economic growth prospects for Northern Ireland. That is why for Northern Ireland, as for the whole of the UK, a resumption of growth within the EU would be of immense benefit to our own interests.

[David Simpson (Upper Bann) (DUP)]

The Minister will know that the agri-food sector is one of the biggest industries in Northern Ireland, and it could grow even more if we had a level playing field with Europe.

[Mr Lidington]

I am aware of the concerns in Northern Ireland about the operation of the common agricultural policy. As the hon. Gentleman knows much better than I do, the CAP is implemented in a way in Northern Ireland that is different from the rest of the UK. When I was in Belfast recently, the First Minister made strong representations to me about that. I ensured that they were passed on to my right hon. Friends the Chancellor and the Secretary of State for Environment, Food and Rural Affairs. The concerns of Northern Ireland are very much in the minds of British Ministers who will be negotiating these matters.

There is well documented evidence that trade integration brings wider benefits in areas such as investment and innovation. EU member states comprise seven of the United Kingdom’s top 10 trading partners and account for roughly half our overall exports of goods and services. However, the benefits go beyond exports. EU member states are the main source of foreign direct investment into the UK, with roughly half our total FDI coming from those countries.

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[Mr Jeffrey M. Donaldson (Lagan Valley) (DUP)]

I rise not just to support the motion, but to commend the Prime Minister for the stance that he took at last weekend’s negotiations.

The reality is that a bandwagon driven by Germany and France is taking the EU inexorably towards a European superstate. Those countries are using the current crisis in the eurozone as a cover to advance their agenda, and the fiscal compact is deepening and strengthening their desire—and the mechanisms that go with it—to build that European superstate. Our experience in Northern Ireland, as one of the UK regions, is not a positive one in terms of EU membership. Some member states that point the finger at the UK today are the very ones that sign up to treaties and then drive a cart and horse through every rule that those treaties create, and it is this country that abides by the rules in the European Union. Time after time we are told that Euroscepticism is a bad thing, yet those who are most strong in their defence of the European Union are often those who do not play by the rules created by the EU.

[David Simpson]

Does my right hon. Friend agree that France is one of the biggest offenders in this regard?

[Mr Donaldson]

I accept that entirely. People who talk about vox pops in France and who quote the French ought to talk to the French farmers about the European Union and the rules that their Government sign up to. As my right hon. Friend the Member for Belfast North (Mr Dodds) said, it is all very well talking about Britain being left outside the door, but let us wait until this treaty gets to the people in these member states and see the response when they realise its full consequences. In Northern Ireland, we have of course seen the consequences, at times, of bad European policies. As my hon. Friend the Member for Strangford (Jim Shannon) reminded us, we have seen those consequences and the impact on our fishing industry in Northern Ireland. Our white fish fleet comprised more than 40 trawlers in 1999, but it now numbers just four—that is the result of the common fisheries policy. At the end of the 1990s, the Northern Ireland over-10 metre fleet comprised 240 vessels, but now it comprises 140—that is the result of the CFP. We could also say the same about our farmers, because although there have undoubtedly been some benefits, small farmers have paid a very high price for the common agricultural policy. The directives that have been imposed on agriculture have presented a real challenge for many farmers across the United Kingdom, not least those in Northern Ireland.

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[David Simpson (Upper Bann) (DUP)]

I start by congratulating the Prime Minister on the stance that he took in the negotiations at the weekend. However, I also wish to sound a note of caution. Although he is currently on the crest of a wave and the people of the United Kingdom are backing him—rightly so, and I congratulate him again—there will be more trials ahead. As other right hon. and hon. Members have said, the journey is not over yet. There is still some way to go, and we expect, hope and trust that he will show the same grit and “bulldog spirit”, as it was put in the House last week, in doing again what he did at the weekend.

[Mr Bone]

I am sorry to interrupt the hon. Gentleman’s powerful speech, but I have listened to the speeches made from the DUP Benches and the speech made from the Liberal Democrat Benches. I ask him, is it not a great shame that you gentlemen are not sitting on the Government side of the House and those gentlemen on the Opposition side?

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[David Simpson]

If that is an invitation—[Hon. Members: “Don’t be tempted.”] I will not take it further; I think that is probably an internal matter for the coalition.

[Martin Horwood]

rose—

[David Simpson]

I will not give way because time is short.

Of course, I rise to support the motion that my party has tabled. The whole of Europe—countries in the EU and outside it—faces a major crisis. It is an immediate crisis that is made worse by the drag or gravitational pull of long-term policies, treaties, agreements and directives that lock EU countries, especially those in the eurozone, into a negative economic cycle. Countries were allowed to join the euro that were simply in no fit state to do so and should never have been permitted to do so. Their admittance had nothing to do with their ability to survive and prosper with the euro, but everything to do with the ideology of those who have pressed for an EU superstate. The Republic of Ireland, Greece, Portugal, Spain and Italy were welcomed into the euro on the ground of a pro-European superstate rather than hard economic assessment.

At the same time as those fundamental weaknesses were being built into the eurozone, there were cries in the UK that we should be part of that disastrous undertaking. There were ardently pro-euro factions in the Conservative party and the Labour party. However, in both parties sanity ultimately won the day.

Many of us predicted that locking ill-equipped countries into a position whereby they could not devalue or set their own interest rates was a recipe for disaster. Some would say that, with the benefit of hindsight, Britain had a lucky escape. However, we do not need hindsight because we have history on our side—the history of the European Union and what has happened in it down the years.

From the phone calls and e-mails that I have received, I know that the general public in the United Kingdom are fed up to the back teeth with the money that we pour into Europe every year: £17 billion—£10 billion net, or, to put it in everyday terms, £200 million each day, only to see increasing red tape and an increasing desire to meddle in our courts, our immigration, our foreign policy, our tax system, our employment market and our national defence. For many people, that is simply not acceptable.

We should take the advice of the Prime Minister, who said at the end of October:

“This is the right time to sort out the eurozone’s problems, defend your national interest and look to the opportunities there may be in the future to repatriate powers back”

to the United Kingdom.