European Union (Referendum) Bill

Helen Goodman Excerpts

Friday 22nd November 2013 Commons Chamber

[Mike Gapes]

I absolutely agree with my hon. Friend, but I would not wish to stray back into the debates on the earlier group of amendments. We are now talking about other matters.

I was commenting on the possibility of holding the referendum by the end of 2014, as suggested in my amendment 22. To meet people’s concerns about that issue and about whether to hold the referendum on the same day as the general election in May 2015, I have tabled an amendment to allow for greater flexibility. My amendment 23 would allow the referendum to be held by the end of 2015. That would mean, of course, that the Government would have to give some thought rapidly to how their renegotiation strategy could be developed prior to the general election. I am sure that the Liberal Democrats would, as usual, be very accommodating and helpful to their Conservative partners, as they always are on all matters.

This amendment would at least reduce the period of uncertainty. One of my big fears is that a referendum held a long way away will lead to potential delays or even cancellations of suggestions for inward investment into this country from countries such as Korea, Japan, China or the United States that have other European Union potential host countries such as the Netherlands, the Irish Republic and elsewhere. They might choose to go there rather than here if they thought that, four years down the line, the UK might be exiting from the single market and the European Union.

[Helen Goodman (Bishop Auckland) (Lab)]

On that very issue, is my hon. Friend aware of what Nissan said a couple of weeks ago? It said that it would reconsider its investment in the UK if Britain leaves the European Union—and there are 6,500 people employed by Nissan in the north-east. Does not my hon. Friend find that to be an extremely worrying scenario?

[Mike Gapes]

Absolutely—and it is not just Nissan; it is any major international company that wishes to locate within the European Union to get access to the single market population of 500 million and wishes to be based in a country with a high level of education where large numbers of people speak the English language. Because there is an excellent education system in the Netherlands, that counts as one such country; the Irish Republic would also provide an easy alternative for location if, because of the uncertainty created by a potential referendum and renegotiation leading up to 2017, they chose not to invest in the United Kingdom.

I was dealing with amendment 23, but amendment 24 would allow a little bit more time for the renegotiation. It is not as good as holding it earlier because of the uncertainty and the issues to which I have just referred. Nevertheless, this would allow less uncertainty—one year less uncertainty—than this private Member’s Bill, supported by elements of the Government, would allow.

Given the questions over whether this issue should be properly considered and some doubts about how long the renegotiation might take, I have also tabled amendments to provide an alternative date after the next general election, going beyond 2017. I have suggested—although I shall not press amendments 26 and 27 to the vote—2018 and 2019 as alternatives to allow more time. With 27 other EU states, this renegotiation, if it were to happen, would be extremely difficult. If, of course, the renegotiation is going to be a modest figleaf-type negotiation, it could be done quite quickly. If, however, it is fundamental and has to meet all the demands of the people who want to leave behind all the aspects of the present European Union and go back to being a free trade area or a common market, it would involve a complete disintegration and disentanglement of the UK relationship, requiring an à la carte approach that the other 27 countries are not likely to—I would say, will not—agree to. That would be a problem, so we would need a long time to persuade those other countries of our case.

--- Later in debate ---

[Mr Thomas]

I am grateful to the hon. Gentleman for intervening on me to tell the Minister for Europe what he wants, but the Minister shows no signs of getting up to intervene and tell the House what powers and competences the Prime Minister wants to get back and whether they will meet the hon. Gentleman’s ambitions.

Thirdly, I suspect that the hon. Member for Windsor can make common cause with other Members who have tabled similar amendments to change the date of any referendum. My right hon. Friend the Member for Neath and my hon. Friends the Members for Ilford South, for Glasgow North East and for Derby North have suggested in amendment 77 that the period from July to December 2017, when Britain holds the presidency of the European Union, should be avoided. Surely that will be this country’s moment of maximum influence in Europe, when the Prime Minister of the day chairs the European Council and can set the agenda and force the rest of the European Union to consider Britain’s priorities. At that moment the Conservative party would have all the machinery and influence of Government focused not on fighting Britain’s corner but on fighting Tory Eurosceptics. It is diplomatic nonsense. It is not worthy of a Foreign Secretary supposedly serious about fighting for our national interest.

As the amendments tabled by my hon. Friend the Member for Ilford South, amendments 21 to 27, and his speech underlined, the complete lack of flexibility in the Bill over dates for a referendum is surprising. In Committee the hon. Member for Cheltenham set out the perfectly plausible possibility that negotiations on treaty change might be ongoing as the Bill’s arbitrary deadline approached. Indeed, in Committee the Minister half accepted that such negotiations, involving many countries and considerable complexity, could still be taking place, but he was not prepared to allow any flexibility in the legislation. Ministers could be in the middle of crucial negotiations, but rather than concentrating on completing them just when they are in their most sensitive stage, they would have to switch all their attention from fighting Britain’s corner to fighting a referendum campaign. How on earth could such a situation be in the national interest? Is not the truth that the fruitcakes are not in UKIP; they have just been gobbled up by Ministers.

Despite my sympathy for what I think are the motivations of the hon. Member for Windsor, I cannot recommend support for his amendment. Given that for 40 of the past 41 months since the Conservative party took power prices have risen faster than wages, as a country we should be spending the next year concentrating on improving living standards, increasing the number of well paid jobs and tackling energy bills. A referendum next year, or indeed in four years’ time, would make that task harder as a result of all the uncertainty it would bring.

Consultation with a wider field of national bodies and local government, as amendment 68, tabled by my hon. Friend the Member for Glasgow North East, suggests, might have enabled the Prime Minister to withstand the pressure from the Tory right over timing. Why was a referendum later in the next Parliament ruled out? There does not appear to have been any input in that decision by any recognised national or local grouping, yet the Bill rules out such flexibility. Is not the truth that too many Conservative Members, because they do not trust the Prime Minister on matters European, are unwilling to trust him on the issue of a referendum beyond the halfway point of the next Parliament?

Let us consider the merits of amendment 68. When the Prime Minister decided to take the risk of allowing Britain to leave the European Union, at a potential average cost of £3,000 to the living standards of the British people, there was probably no one in the room who was not a member of the Conservative party, apart from Lynton Crosby. There was no one else to give the Prime Minister a view on whether a referendum might be in the national interest, or indeed, if a referendum were in the national interest, how it should be conducted and what information should be available when it took place.

[Helen Goodman]

On the amendment tabled by our hon. Friend the Member for Glasgow North East (Mr Bain), does my hon. Friend not agree that this consultation is extremely important and necessary, given that the Bill has not been treated, as it should have been, as a constitutional Bill, with pre-legislative scrutiny and an opportunity for evidence-taking? We must have the amendment; otherwise, we will never know what enormously important stakeholders in this country believe.

[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.