EU Referendum Leaflet

Debate between Richard Drax and Anne-Marie Trevelyan

Monday 9th May 2016 Westminster Hall

[Mrs Trevelyan]

I hope the Minister takes note of that and perhaps saves the taxpayer a little bit of the money that the Government have so unscrupulously chosen to spend.

I want to look at one section of the leaflet—the wider issues have already been raised by other hon. Members and will no doubt be covered in more detail. The heading on page 7 is, “What happens if we leave?” That is clearly an open question—it sounds like an A-level question. One would expect the answer to cover both sides of the argument, presenting the for and the against, and giving a bit of detail and a concluding position, but it is clearly from one side of the argument. Apparently, voting to leave would create uncertainty and “potential economic disruption”. “Potential” leaves a little uncertainty. I think we have had definite economic disruption forever. Economies go up and they go down. Anyone who suggests that staying in a particular bubble will maintain some kind of economic stability has not been looking out of the window much.

[Richard Drax]

On that particular point, the leader of the opposition, Mr Rose, said there would be no change at all.

[Mrs Trevelyan]

My hon. Friend is right. It is always a little confusing when leaders of opposing camps in any election start to talk about the other side’s views. I hope that uncertainty and economic disruption will not be caused by Brexit. It is safe to say that we see much ahead of us that could cause that anyway.

The question of what happens if we leave is presented in the leaflet. What is not offered for those who have had the pleasure of having it through their door, or who have that pleasure still to come, is the question of what would voting to stay look like, since we know what would happen if we leave. It would ensure that we remain wedded with almost no influence, as several colleagues have already said. We are outwith the battered and struggling eurozone framework, but we are wedded to it. We are seeing Greek residents yet again put under unbearable financial strain so that EU bankers can circulate IMF money through Greece to ensure that the bankers do not come off too badly because of the euro chaos going on there. That is something we will definitely stay attached to in our uncontrolled sector outwith the eurozone, but that will cost us money. We will have to continue, as required, to bail out future eurozone crashes.

Jim Mellon, a successful entrepreneur who works across a large number of EU states, has made it clear—his forecasts, unlike the Treasury’s, have often been accurate—that the likely next crash of the euro, possibly a complete crash, will be within the next three years. It seems to me that voting to stay in will almost certainly ensure that we are wedded to a big bill over which we have little control, watching nations around us suffer even greater debt. The reality is that France’s and Italy’s debt balance sheet is pretty unsustainable. The chances are that the bill will be a lot bigger than just Greece’s costs. It is clear what will happen if we choose to stay.

The Government leaflet briefly suggests that we might strike a good deal in terms of trade with the EU if we were to leave, but it goes on to dismiss that as a pie-in-the-sky idea that is incredibly unlikely, because, somehow, there is no reason why a trade deal would be struck. The leaflet indicates that 8% of EU exports come to the UK and that 44% of UK exports go to the EU. That sounds terrible: 8% in, 44% out. That is a big imbalance, but let us look at that in real terms—my hon. Friend the Member for Stone (Sir William Cash) mentioned this earlier—and in the terms that businesses and those who make the exports and provide the services that we sell abroad would actually understand: the terms of money.

I am an accountant; percentages can be a useful way to present an issue, but also a useful way to create a level of dissimulation. There is a £67 billion deficit of goods and services this year.