EU Membership (Audit of Costs and Benefits) Bill

Greg Knight Excerpts

Friday 26th February 2016 Commons Chamber

[Mr Chope]

The short answer is no. I do not think it was ever envisaged that the European Union would be such a manifest failure as an economic entity and would be unable to maintain its share of world trade. We know that since 1972, the EU share of world trade has declined significantly. We know, too, that the EU has not been growing in economic terms in the way people thought would be possible—even to the extent that we now face a situation in which half the new jobs being created in Europe are being created in the United Kingdom, while the other half are being created in the 27 other countries of the EU. When we first joined, the share of trade that the EU had with the rest of the world was significantly higher than it is now, despite the fact that at that time it had many fewer member countries. As the EU has got larger in numbers, its influence over trade in the rest of the world has declined. I do not think that any of that was anticipated by Mr Milne in his pamphlet.

[Sir Greg Knight (East Yorkshire) (Con)]

Does not the Bill have a serious drawback if it is seeking to educate the public? Clause 6 seeks to set up a commission that will report within 12 months. If we are supporting this Bill, is not the inescapable conclusion that we are, in effect, arguing for the referendum to be put back two years?

[Mr Chope]

My right hon. Friend is a lawyer, so he knows that he is absolutely correct. The Bill was brought forward back in June and we did not know then what would happen. We did not know when we would get a referendum. Now we know that we are going to get a referendum so I will not ask the House to give the Bill a Second Reading today. It has been overtaken by the welcome fact that we are getting our referendum on 23 June. I hope that when that happens, we will be able to have an objective assessment of the costs and benefits of our membership, although I must say that on the basis of recent events, I am rather concerned about whether there will be such an open and objective assessment by the Government. Still, I live in hope.

--- Later in debate ---

[Mr Chope]

We did not get down to that sort of detail, because the feeling was that we are a long way apart on this. There is also a feeling that there is a lot more commonality between the British people and the people of the United States; we share a common language, the common law and a common heritage, and that is very different from the approach of so many other EU countries. On the basis that we have this special relationship with the US, we would be able to prosper and develop our trade together through bilateral open trading arrangements far more effectively than is being done at the moment with the EU. That is an important factor to take into account when assessing the costs and benefits of membership.

I am conscious of the fact that a number of other people wish to participate in this debate, so I will not say much more now. I merely wish to point out that the Bill proposes terms of reference, whereby the independent commission that would be set up to examine the current costs and benefits would be

“taking into account the impact of membership on the UK’s—

(a) economy (including consideration of public expenditure and receipts resulting directly from membership”).

Of course, we know that in round figures we are paying in about £10 billion more than we get back every year. Interestingly, in yesterday’s statement on the EU solidarity fund and flooding the Minister made much of the fact that we would be applying to get some money back from the fund, but he did not think this would amount to anything more, at best, than about the equivalent of one day’s net contributions to the EU. He admitted that even getting back one day’s net contribution would involve an enormous amount of bureaucracy on both sides, which typifies the costs at the moment and how unfair it is that our people should be paying £10 billion net a year to the EU.

[Sir Greg Knight]

My hon. Friend made a prediction earlier. Will he comment on my prediction that if this country is misguided enough to vote to remain in the EU, within a few months our contribution to the EU will go up, because it is totally incapable of keeping within existing programmes and budgets?

[Mr Chope]

I agree absolutely with my right hon. Friend, who brings an enormous amount of experience, not only as a former trade Minister, but as a former Deputy Chief Whip. I am delighted that he is playing a key part in the leave campaign. What is happening in Europe to deal with the migration crisis is breath-taking in its incompetence. We are talking about a major cost; this crisis will potentially cost the EU a fortune. Who will have to contribute to those costs if we remain in the EU? It is none other than the British taxpayer. I think my right hon. Friend’s prediction is right, but I hope we will never see whether it comes to pass because by then we will have left the EU.