EU Membership: Economic Benefits

Tasmina Ahmed-Sheikh Excerpts

Wednesday 15th June 2016 Commons Chamber

[Sir William Cash]

In a minute, but not now.

People fought and died for the right to govern themselves, and everything else depends on that, including the economic arguments. I urge the British people to consider the consequences for future generations if we get this wrong and vote to stay in the European Union. As a result of successive leaderships since 1972, we have given away more and more of our powers to govern ourselves.

If I may say so, I predicted the consequences of that in a book in 1990, at the time of the Maastricht treaty. I said there would be protests and riots throughout Europe, and massive unemployment. I said there would be recession and waves of immigration. I said there would be breaches of the rule of law and the rise of the far right. I was concerned about those things then and I remain concerned about them now. The direction in which the European Union is being taken is putting the United Kingdom—our voters, our people—in the second tier of a two-tier Europe dominated increasingly, through the eurozone, by the excessive economic nationalism of the German system of economic government.

Members must bear in mind that the consequences of the single market are demonstrated by what I said earlier in an intervention: we run a trade deficit, or loss, with the other 27 member states of £67.8 billion a year. That has gone up by £10 billion in the past year alone. Our trade surplus with the rest of the world has gone up by about £10 billion in this year alone to £31 billion. European growth is going down—that is the trajectory of our capacity to have growth and jobs for the young people of this country. In Europe as a whole, youth unemployment in certain countries is as much as 60%. That is a complete disgrace.

In contrast, the German trade surplus with the same 27 member states is running at £81.8 billion and has gone up by as much as £18 billion in the past year alone. That trajectory is what the third-rate so-called economists are ignoring. They are the ones who got it wrong over and over and over again: they got it wrong over Maastricht, they got it wrong over the euro and they got it wrong over the exchange rate mechanism. I listened to the absolutely absurd nostalgic nonsense of the right hon. Member for Sheffield, Hallam (Mr Clegg). It is evident that those who got it wrong are trying yet again to mislead people.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

I am grateful to the hon. Gentleman for giving way, not least because we might have the opportunity to get answers to some important questions. He will be aware that when the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) was asked about the impact on the economy in GDP of Brexit, his answer was, “We don’t know.” He will also be aware that when Diane James, a UKIP MEP, was asked whether visas would be required, the answer was, “We don’t know.” Given that the answer to every question posed to the leave campaign is, “We don’t know”, perhaps the hon. Gentleman could answer these questions now.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We need to have short interventions, not speeches. That was longer than five minutes!

--- Later in debate ---

[Mr Carmichael]

The hon. Gentleman is absolutely right. I was coming on to leadership, but I will tackle the issue now. The European Union has benefited from Britain’s membership countless times in the past. It was the British Government who drove through the single market. It was the British Government who ensured that a country like Poland could come into Europe and benefit from all its opportunities. We should not forget that when I was born, that country was based within the empire of the Soviet Union—a place where liberal democracy was non-existent and where growth and economic opportunity could not take place. Yet we have managed to get that country into a position of being totally democratic and absolutely robust in its economy. That drives a coach and horses through the argument of anyone who says that being in the European Union is somehow undemocratic or a challenge to democracy. The reality is that, when Britain shows leadership, as we have in the past, it has been good for Europe and, obviously, also good for us.

When we win this referendum campaign—I certainly hope that we do—we need to focus on the positive case. It is not a question of sniping from the sidelines; we need to get involved, set the agenda, work with our allies and ensure that the people we represent can continue to benefit from the good things that the European Union has brought.

[Ms Ahmed-Sheikh]

On that point, will the hon. Gentleman give way?

[Mr Carmichael]

I am afraid not. I am running out of time.

All organisations need to be reformed. The other day, I was told to move my car for a reason that I have still not understood. This House needs to reform; all organisations need reform—and the European Union is no exception. The key thing is that we are the ones to drive those reforms. We are the ones who should be constructing the alliances to push through the kind of Europe that we want—one that is competitive, that recognises freedom and that is at the heart of promoting liberal democracy, not just within the EU but beyond it.

The question of international impact must also be borne in mind. Europe is the world’s largest single market, but it is also a place of huge influence in the world. We in Britain want to be part of that. We want to shape and develop that influence. That is why every single US President has told us, in one way or another, that we should be a member of the European Union. That is why every single Commonwealth leader has told us that we should be in the European Union. The only two country leaders that I can think of who are casting some doubt on this matter are those of North Korea and the Russian Federation. If that is the supporter group of the leave campaign, I am staying!

It is essential to make the positive case. We must do so not from an apologetic position or as a result of some tepid hope; we should do so out of ambition for our country and our young people. They need to know what we really believe—that by participating internationally with a clear agenda and a determination to turn away from narrow-mindedness and the concerns of little groups of people, we can instead think big and be big. With that drive behind us, this country has the capacity for an exciting future ahead.