EU Membership (UK Renegotiation)

Debate between Graham Stringer and Pat McFadden

Tuesday 5th January 2016 Westminster Hall

[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?

[Graham Stringer]

I am grateful to my right hon. Friend for giving way and I am pleased that he is sceptical about the basis of the Government’s policy in this area. However, does he agree not only that that policy will fail to do what it says on the tin, but that it is an offensive policy, which will be very divisive in the workplace?

[Mr McFadden]

I think there is a case for a discussion about the basis on which people have access to benefits, but there is a big difference between saying that and claiming that restricting access to benefits will make a fundamental difference to immigration levels. The truth is that people come to the UK because it is a great country, not because it is a “soft touch” on welfare.

We will probably see the results of the renegotiation soon, so I would also like to ask the Minister a question about timing. If he expects that there will be a conclusion to these negotiations at the European Council in February, what will be the implications of that conclusion for the timing of the referendum itself? The 2015 Act only says that the referendum must be held by the end of December 2017, but the Prime Minister’s new year message indicated that it was more likely to be held later this year. I ask the Minister directly: if the renegotiation is completed in February, is it the Government’s intention to hold the referendum this year rather than next year?

In one or two of the interventions on me, I was asked about my own party’s position. Our view is that we should not make the decision about whether or not Britain remains a member of the EU on the basis of this renegotiation. At the end of the day, the question on the ballot paper is, “Remain or leave?” It may be the case that the Prime Minister’s renegotiation has some impact on the public view of that question, but it may well not be the case, because there are issues concerning our EU membership that go well beyond the four items that the Prime Minister has set out in his renegotiation.

Our party conference quite clearly supported a position of being in favour of remaining in the EU and our campaign to remain in has already been launched, under the leadership of my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson). We want to see what the renegotiation produces, but that is our basic position.

My final point in response to some of the arguments that have been put forward by Government Members is that we have been told repeatedly today that we can retain access to the single market without paying anything for it. I would like to ask a question about that assertion, which is perhaps more for the hon. Member for Kettering, who secured this debate, than for the Minister. On what basis is it made? If the British people are going to be asked to exchange more than 40 years of EU membership for a future outside the EU, they have a right to know—with some certainty—what that future will entail. What will it mean for access to the single market? What will be the price for access to the single market? What will that future mean in terms of our adherence to the rules of that market while we perhaps forgo any say about what those rules are? What will it mean for inward investment in this country, which in European terms comes at the rate of tens of millions of pounds every single day? What will it mean for our export industries? What will it mean for our research, our universities, our agricultural industries and so on?

Whatever the flaws of the EU, a referendum on it is not only a referendum on one future but a choice between two futures, and those who advocate leaving the EU need to do an awful lot more to say what being out would be like.

European Union Referendum Bill

Debate between Graham Stringer and Pat McFadden

Tuesday 16th June 2015 Commons Chamber

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I shall speak to amendments 4, 5 and 6 on the publication of information, and amendment 54, in my name and those of my right hon. Friends, on the application of purdah.

I congratulate the hon. Member for Morley and Outwood (Andrea Jenkyns) on her maiden speech. She enjoyed a famous victory at the election and she is entitled to enjoy it. She spoke very movingly about her father and I wish her well for her time in the House.

I also congratulate my hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq) on her excellent maiden speech. She reminded us—it was a good reminder —of the reasons why people come to these shores, and of the wonderful chances and opportunities that this great country can bring to people who do come to these shores. I know she brought with her some very distinguished and very welcome guests to watch our proceedings.

Another week has brought more European troubles for the Conservative party. Last week, we had the debacle over collective ministerial responsibility. The Prime Minister was first reported as saying that it would apply, then that he had been misinterpreted, and then that no decision had been taken on the issue. This week, we have had the tabling overnight of an amendment saying that in response to pressure, from the Opposition and from elsewhere in the House, the referendum will not take place in May next year in combination with other important elections that will be taking place throughout the country. We welcome that change of heart from the Government, but I must point out to the Minister that his amendment deals only with the issue of May next year and not May 2017. That is an issue to which we will want to return. There have also been reports overnight that the Government may have something to say about purdah. I will question the Minister more on that as we go.

Amendments 4, 5 and 6 concern the provision of information for the public on the implications of Britain leaving the EU. I say at the outset that this is not the same as a discussion about purdah, which is dealt with by amendment 54 and others. Amendments 4, 5 and 6 deal with information that we feel should be provided at least 10 weeks before the referendum takes place, not in the final four weeks of the campaign.

The UK has been a member of the EU for more than 40 years, so we know what membership means in terms of trade, legal obligations, costs and so on. Of course, the Prime Minister has set out on a renegotiation process that may change to some degree the terms of that membership, but all of that will be made public well before the referendum takes place and people will be able to make a judgment on whatever he achieves in the negotiations. What is less clear, as was pointed out by the right hon. and learned Member for Rushcliffe (Mr Clarke) on Second Reading, is what being out of the EU would mean. The amendments are intended to inform the public debate on this issue.

[Graham Stringer (Blackley and Broughton) (Lab)]

I have some sympathy for providing as much information as possible during the referendum campaign, but is my right hon. Friend aware that probably the most definitive assessment of the costs and benefits of leaving the European Union has been provided by Open Europe? It says that on the one hand there may be benefits and on the other hand there may be disbenefits, depending on what assumptions are put into the calculation. How does he expect the Government to come down on one side or the other, and which assumptions would go into that assessment?

[Mr McFadden]

I have read the work by Open Europe. My hon. Friend is right to say it has made an assessment, but it is one assessment among many—there have been many others. As I go, I will explain why I think there is merit in Government Departments taking a proper look at this.

There has been much talk of whether the UK would adopt the Norwegian model, the Swiss model or some other model of being outside the EU. The Committee will be glad to know that I am not going to go through all the costs and benefits of those models today, but they all raise questions about being outside the EU that have not yet been answered.

Amendment 4 calls for a report from the Office for Budget Responsibility on the implications for the public finances of a British exit. Few would dispute that since the OBR was established it has gained a reputation for both independence and quality. The reports it produces on the Budget and the autumn statement are valued across the House and have helped to inform the debate about fiscal policy in the past five years. In the run-up to the recent election, my party called for the OBR to assess the tax and spending promises of each of the main parties, a demand supported by the Treasury Committee in the previous Parliament, although there was some debate about whether the request had come too late in the Parliament to be brought into being in time for the election.