EU Membership: Economic Benefits

Seema Malhotra Excerpts

Wednesday 15th June 2016 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I thank the more than 35 hon. Members from both sides of the House who have made speeches. I cannot mention them all, but I shall highlight a few of the points that were made.

My hon. Friend the Member for Kingston upon Hull North (Diana Johnson) talked about anger at cuts to public services but said that there is no way that leaving the European Union will magically solve that problem. My hon. Friends the Members for North Tyneside (Mary Glindon) and for Sedgefield (Phil Wilson) said that 160,000 jobs in the north-east are reliant on trade with the European Union, with much that comes through European structural funds that create opportunities for jobs, start-ups, and their local economies.

My hon. Friend the Member for West Bromwich West (Mr Bailey) talked about concerns about the impact on our manufacturing industries. My hon. Friend the Member for Bishop Auckland (Helen Goodman) noted the total failure of the leave campaign to set out how any new trade agreement could work.

[John Redwood]

rose—

[Seema Malhotra]

I am afraid I do not have time to give way.

My right hon. Friend the Member for Cynon Valley (Ann Clwyd) said that our rights are safer if we stand together, and that we should not risk those rights being jeopardised by those who see them as red tape. My hon. Friend the Member for Wirral South (Alison McGovern) said that we need to stay in the single market for our economic prosperity and security, that we should not risk a race to the bottom on working conditions, and that the vote next week is a choice of austerity versus prosperity and influence versus irrelevance.

We are a proud nation—proud of our history, our diversity and our place in the world as a nation that has been at the forefront of progress in science and technology and in politics. I am proud of our place at the heart of the European Union. The vote next week is not just about keeping the world as it is today—it is about how we stand tall with our neighbours in shaping and creating the world of tomorrow, and facing the global challenges of sharing our prosperity and tackling the issues on the environment, tax avoidance and humanitarian crises. Those challenges will not go away if we leave the European Union; instead, we will have fewer allies as we seek to confront them. For our trade, manufacturing and employment, we gain from being members of the European Union. That is why Labour is pro-Europe and the party for reform in Europe. Our message is based on opportunity, hope and fairness—opportunities for future generations and for our economy and society from our membership, now and in the future.

I spoke to a man in my constituency who was conflicted about his vote. His parents were planning to vote leave, but then he asked himself what that would mean for his children. He thought about his children’s opportunities and decided it was vital to get his parents to think again about what their vote would mean for their grandchildren. Why are young people so positive about the European Union? It is because they cherish the freedom to travel, to learn and to experience what Europe and the world have to offer. When young people think about migration, they can see it also in terms of the opportunities it brings for them. Yes, we recognise that immigration needs fair rules and proper controls, but we cannot deny the benefits. Over the past decade, migrants from new EU member countries have contributed £20 billion more in taxes than they have taken in public services and benefits. More than 52,000 EU migrants work in the NHS.

We understand people’s legitimate concerns about the threat to their jobs from the undercutting of wages and the pressure on public services, but that is why we need stronger laws against bad employers and the migration impact fund, which should never have been cut. We need more houses and access to skills and apprenticeships.

I have no truck with those who say that we should choose between the Commonwealth and the European Union. That is absolutely a false choice. When the people and leaders of the Commonwealth nations say that it is in our interest to remain, we should listen to them. Likewise, when young entrepreneurs say that being in the EU has given their businesses the chance to go global overnight, and when scientists such as Stephen Hawking and 150 fellows of the Royal Society say that membership is vital for the future of scientific research, we should listen to them. When the National Union of Students, the Institute for Fiscal Studies, the OECD, the National Farmers Union and many others say that we should remain, we should listen to them.

We are part of plans to create a digital single market in Europe, which will be a huge opportunity for Britain’s tech industry, creating the best part of 4 million jobs and worth €400 billion a year. Many of those jobs and opportunities will be available to this country’s entrepreneurs. Why would we walk away from that? This is what the future of the European Union can offer: more jobs, better jobs and better rights at work.

The European Investment Bank, an EU institution in which Britain holds a sixth of the shares, is the world’s largest international public bank and it is directly owned by member states. In the past 10 years, the bank has invested more than £40 billion in UK infrastructure. Last year alone, the UK received £5.6 billion from the EIB to help regenerate communities and invest in infrastructure up and down the country, with projects such as campuses in Swansea and Belfast and the technology and innovation hub at Strathclyde, and £250 million went to Northumbrian Water.

Let me be clear: I do not wish to scaremonger, and no one should vote based on fear, but people must vote with their eyes open to the risks. I have been asking businesses what makes Britain an attractive destination to invest in, and companies tell me time and again that they choose to invest in Britain because of our language, inclusive culture, heritage and world-class education system, but a key compelling factor is because it also provides access to European markets and, through them, to the rest of the world. That pull factor will disappear overnight if we walk away from the European Union.

[John Redwood]

Will the hon. Lady give way?

--- Later in debate ---

[Seema Malhotra]

I will not give way, I am sorry. The right hon. Gentleman has already spoken today.

Just today, Rolls-Royce, a world-leading company, has joined other companies in making it clear to staff that a leave vote would be detrimental to their company, because uncertainty would put investment decisions on hold. I believe that businesses need to be as bold and forthright in public as they are in private, sharing with their employees the same analysis as they share with their shareholders about the impact of a leave vote.

This referendum must be about more jobs, better jobs and better rights at work. What would it say about Britain if we were to leave? What would it do to the reputation of a nation that has done so much to shape attitudes, culture and institutions across the world if we were to walk away from our closest neighbours? That goes against all that we have stood for as an open and progressive nation.

We know that the European Union is not perfect, but this is an argument for reform, not for walking away. A vote to remain is a vote for stability and security for all our citizens in an increasingly uncertain global world. It is a vote to remain part of the world’s biggest trading bloc, with safeguards for the environment and protection for consumers.

We achieve much more by our common endeavour and by working together. When we look around the world, the achievements of the European Union must not be taken for granted. Sometimes, in the words of Joni Mitchell,

“you don’t know what you’ve got till it’s gone”.

We know that the European Union is not perfect, but we should be leading, not leaving. I urge all hon. Members to join us in the Aye Lobby tonight.