EU Membership: Economic Benefits

Nicholas Dakin Excerpts

Wednesday 15th June 2016 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

I shall be voting next week to remain in the European Union, for three reasons —an idealistic reason, a practical reason and a selfish reason. The idealistic reason is that the EU has contributed to peace and freedom within its member states, and that is something for us to be proud of.

The practical reason is that we are interconnected with our European neighbours. A constituent stopped me on the street and asked whether we would still be able to use the European health insurance card if we came out of Europe. She was anxious because her husband has a particular medical condition and they have to go to a warm climate in Europe every winter. They are protected by the European health insurance card while they are there. That makes a practical difference to her, and she told me that if it were not for the card, they would have to pay an extra £2,000 each time, which would make it impossible for them to go. So practically, it is important that we stay in the European Union.

The selfish reason is that we are better off in the European Union. No one in this debate has challenged the view that there will be a massive economic shock if we leave. Everyone accepts that. Indeed, that fact is recognised by nine out of 10 economists, by the OECD, by the IMF and by the World Bank. There is consensus on that, and it is clear that there will be difficulties if we leave and that jobs and livelihoods will be affected. It is better for our self-interest if we remain in the EU.

The list of businesses lining up to say that they are in favour of remaining in the European Union is vast. It includes Hitachi, J. P. Morgan, GKN, Airbus, Glaxo, BT Openreach and, today, Rolls-Royce. They are joined by 90% of trade unions. Businesses and employers’ and employees’ organisations are in favour of remaining. The EEF, the manufacturers employers association, is overwhelmingly in favour of remaining in the EU because it is good for manufacturing, and as my hon. Friend the Member for Aberavon (Stephen Kinnock) said, the steel industry would face even more challenges if we left the EU.

[Kevin Barron (Rother Valley) (Lab)]

My hon. Friend is right. After the miners’ strike in the mid-1980s, the running down of coal mining in my constituency and many others in South Yorkshire devastated the local economies, which were fragile even when mining was taking place. Thousands of jobs were lost not only in coal mining but in supply industries. The objective 1 programme, which was introduced in 2000 and ran for six years, put some £2.4 billion into not only jobs and skills but health, neighbourhood renewal and housing. More than £820 million of that came from Europe, and without it south Yorkshire would not be what it is today. Many Ministers travel to places like the advanced manufacturing park, but they would not be able to go there if Europe had not taken the lead in the regeneration of poor areas in the UK. Such places just would not be there.

[Nic Dakin]

My right hon. Friend is completely right about the power of the European Union in assisting us in regenerating areas of the countries like his so that there can be a renaissance and they can move forward.

I echo the reference that has been made to Siemens, which is an important employer in my region, with a base in Lincoln and developments in Hull. It has said:

“Siemens believes that being part of the EU is good for UK jobs and prosperity and we have concerns about the possible effects of a vote to leave.”

The company is investing in new wind power and renewables, which bring a lot of opportunities for steel. We should not take any risks with that future.

There is a massive choice about our future before the nation. In making that choice, I hope that everyone thinks it through very carefully. We respect the view of the British people, and I hope very much that they vote to remain.

[Several hon. Members rose—]