European Union (Referendum) Bill

Debate between Gareth Thomas and Jack Dromey

Friday 22nd November 2013 Commons Chamber

[Mr Thomas]

My hon. Friend makes an extremely important point, as indeed has our hon. Friend the Member for Glasgow North East. She points to the consultation deficit that is implicit in the way the referendum has been brought forward.

Nobody seriously doubts that a referendum will inject uncertainty into British economic life, putting at risk our constituents’ jobs and opportunities for higher living standards. The amendment offers the prospect of serious voices from outside the narrow confines of the Conservative party contributing to the debate on whether a referendum might be held and, if so, when and how. They would be calmer voices than those of Conservative Members terrified of losing their seats. When there is increasing talk about the possibility of interest rates rising, it is hard to believe that the Prime Minister is willing to risk such a huge cut in the living standards of the British people—£3,000 a year per household, according to the CBI—simply to try to maintain the fiction of unity over Europe among Conservative Members.

New schedule 2, tabled by my hon. Friend the Member for Glasgow North East, specifically suggests that the CBI should be consulted. I would welcome that, because a dose of realism about the stakes involved in a decision to leave the European Union is sorely needed. Any debate on whether, when and in what circumstances a national referendum should be held should surely be informed by contributions from those recognised as representing some of the major interests and communities in the UK.

[Jack Dromey]

My hon. Friend is making a powerful case. Does he agree that a strength of amendment 70, also tabled by our hon. Friend the Member for Glasgow North East (Mr Bain), is that it would flush out hidden agendas, because it is apparent that behind the notion of repatriation lies a desire to move down the path towards Beecroft Britain? Our country cannot succeed on the basis of a race to the bottom on pay and conditions.

[Mr Thomas]

My hon. Friend makes a good point on the case for amendment 70 and the real motivations behind the Conservative campaign to get us out of Europe.

My right hon. Friend the shadow Foreign Secretary said on Second Reading:

“Any judgment about an in-out referendum on the UK’s membership of the European Union has to be based on what is in the national interest.”—[Official Report, 5 July 2013; Vol. 565, c. 1180.]

A formal consultation with the organisations listed in new schedule 2 could certainly help the whole House, and Conservative Members in particular, reach a more rounded consideration of the circumstances in which a referendum would be in the national interest. It is far from clear that on matters European the Conservatives are able to reach a rational judgment on what is in the national interest, so consultation with a range of organisations beyond the 1922 committee may help us all.

We have heard from some Conservative Members about their dislike of the idea that business should be consulted formally. That is extraordinary: Conservatives turning away from business voices in this debate. Perhaps it is because one part of the business community, TheCityUK, last month published research into the views and mindset of captains of the financial services industry on the issues we are discussing in these amendments. It revealed that over 40% of those surveyed agreed that the prospect of a referendum on the UK’s membership of the European Union in 2017 has created an uncertainty that is affecting decisions in their business. Over a third said that it was likely that their firm would relocate at least some of its headcount from the UK to a location within the single market if Britain left the European Union. That is just one part of the business community.