EU Membership: Economic Benefits

Tom Tugendhat Excerpts

Wednesday 15th June 2016 Commons Chamber

[Sir William Cash (Stone) (Con)]

I have one simple message as we approach the last week of the referendum campaign: people fought and died for the right to govern themselves; people fought and died for our democracy, and it is on democracy that everything else depends.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Will my hon. Friend give way?

[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.

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[Sir William Cash]

I can say that I do know. I know because I look at the facts as they are now. The facts I have just given demonstrate that inside the single market we run a monumental trade deficit, while we have an enormous and growing trade surplus with the rest of the world. That surplus is the future. That is the vision. That is the means by which we will get jobs and ensure the future of our children and our grandchildren.

To conclude, it is very simple: this is about who governs us. If we get this wrong, we will not be able to organise and establish a democracy in this country, which is what people fought and died for in not just one world war but two.

[Tom Tugendhat]

Will my hon. Friend give way?

[Sir William Cash]

I will give way one last time.

[Tom Tugendhat]

I appreciate the loss that my hon. Friend’s family suffered in the second world war. My family suffered too, and I have had the privilege to wear the Queen’s uniform and fight for the peace we enjoy today. When I see the division and the spreading of hatred and virulent anti-foreign messages by some people in our country, I wonder whether they are really talking about peace or just stirring the pot.

[Sir William Cash]

I simply say to my hon. Friend that there is one person who has never, ever done that: me.

[Tom Tugendhat]

indicated assent.

[Sir William Cash]

I am glad my hon. Friend acknowledges that. I do believe in peace. I do believe in good relations. What really troubles me, however, is that the majority voting system and the decisions taken behind closed doors are so manifestly undemocratic that they are completely impossible to justify. It has become a kind of dictatorship behind closed doors. We in this House make our decisions based on speeches and votes that are made in public and reported. We are held accountable. That is not the case in the European Union. If we give that up on 23 June, I say to my hon. Friend and to all hon. Members that they will live to regret it. This is about democracy above all else.

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[Tom Tugendhat (Tonbridge and Malling) (Con)]

It is a great pleasure to see you in your place, Madam Deputy Speaker. Over the next few days, we will make the final arguments on the question that will decide the future of not only our country, but our continent. We will be asking ourselves not only who we are, but what we wish to become. Whatever answer the people of the United Kingdom give us, it will be for us here in this House to apply that decision in the best interests of our whole nation. Like many on these Benches, I have made my views known. I have spoken out for what I believe in and for what I believe to be in the best interests of my community in west Kent and the whole nation. I have fought for this country and despite some of the comments I have heard, I will not be silenced when speaking in its interest.

I recognise that today, no matter what we say, it is no longer Parliament that is sovereign—it is the people, as it rightly should be. Whatever is decided in the ballot next week, that decision will be final—50% plus one vote will carry the day. To argue otherwise would be to threaten the fabric of our political settlement and undermine the legitimacy of this House. I urge all Members to remember that in the days after the referendum and not to question the integrity or intelligence of the British people in having expressed their opinion. What may follow is less certain, but, as we used to say, it will be our job to receive our orders, gain height, turn to the right and carry on.

Of course that does not mean we have to wait to be ready. On the contrary, we should be thinking, even now, about what an in vote or an out vote would mean for Britain.

[Jim Shannon (Strangford) (DUP)]

The EU’s bureaucracy and regulations have reduced the number of fishing boats in Portavogie in my constituency from 130 to 70. Six major processing factories have closed in Portavogie and jobs have been lost—young people are drifting away from the sea. The EU has devastated the fishing sector in my constituency. Does the hon. Gentleman agree that if we want to ensure the re-emergence of the fishing sector in the whole of the United Kingdom of Great Britain and Northern Ireland, we have to be out of the EU? For that to happen, we have to vote no and leave Europe.

[Tom Tugendhat]

The hon. Gentleman speaks well for his constituency, but the Member who represents Menai may talk about Menai Oysters and Mussels, which sells most of its catch to Europe and would probably wish to stay in the EU. Even in one industry, there is no single answer, and it is worth listening to the debate of the whole House and to all the people of this United Kingdom, rather than just one pressure group. Of course that does not mean that we have to wait to be ready. As I said earlier, we need to get ready.

The change in the stock market over the past few days has shown that Europe affects not only the fishing industry—for the better in some ways and for the worse in others—but investment in our entire island. Today, people are looking at us and wondering what the future holds.

[Lucy Allan (Telford) (Con)]

rose—

[Tom Tugendhat]

I wish to make some progress.

People are understandably concerned that the factors that led them to put money into our businesses may not last. The interconnected market, the skills base and the global trading agreements are not as permanent as they once thought; they are not even as permanent as they looked a few days ago. The implications and the consequences for us are very severe. Some have begun to doubt us, but they are wrong. Britain is a powerful and growing economy, and despite the undoubted hiatus that would follow a Brexit, we will recover. Indeed, for the markets, we will once again become a safe haven, but only by comparison with our neighbours. The implication that the Europe Union could disintegrate is worrying.

Let us be under no illusion as to why the option to leave the EU is bad for Britain. It is not, as some have sadly claimed, because Britain is too small. It is not because we cannot survive in a globalised world—it is clear that we are better connected and better integrated with the global economy than many other nations. No, it is because we are the economic leaders of a continent of more than 500 million people who are crying out for that very leadership and the very reforms that we offer.

[Oliver Colvile]

Will my hon. Friend give way.

[Tom Tugendhat]

I will make a little progress if I may.

It is worth remembering that this House has shaped the leadership of Europe. We have already achieved two very significant reforms. First, Britain, under the then Prime Minister Margaret Thatcher, steered the competing economies of Europe into a single market. She achieved that against pressure from many other member states. She did so to extend what Britain needed then and what it needs now: economic relationships that endure across the continent. The result was a huge boost to the economy. I pay tribute to my right hon. Friend the Member for Wokingham (John Redwood), who is no longer in his place, for what he did as a member of the Cabinet that took us into the single market. I also recognise the work of my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), who is also not in his place, as he helped us to achieve the lowest debt levels in a century.

Secondly, we have extended the boundaries of European co-operation to the borders of Russia. This may seem obvious now, but when I was growing up during the cold war, the challenge of uniting a continent seemed extraordinary. Now so obviously one nation and at peace with her neighbours, Germany was not always so, and many opposed the unity that was achieved. The inclusion of Estonia—I had the privilege of serving with Estonian troops in Afghanistan—Lithuania and Latvia shows what inclusion can achieve in the service of peace.

[Simon Hoare]

I know that my hon. Friend is a busy man, so I do not know whether he has seen General Smith’s comments in today’s media about the importance of and need for co-operation and partnership. It is a compelling case that underlines the point that my hon. Friend is making.

[Tom Tugendhat]

General Smith is one of the great strategists of our generation. His book “The Utility of Force” is well worth reading.

Britain played an essential role, but it did so not just for ourselves or for others. It did so because shared wealth is good for us all. We prosper when our partners prosper, we are strengthened when our friends are strong, and we achieve peace when our friends are at peace. Therefore, whether we stay or go, we must have a plan.

Our allies around the world—in the middle east, South America, the far east and the United States of America—have invested fortunes through our markets, billions in our industries, and decades in our friendship. They need to know that our promises count and mean something. They need to know that our agreements will endure. They need to know that if we vote out, we are not turning our back on the world, because it will look to them as though we are.

Whatever happens, I urge Her Majesty’s Government to commit to investing heavily in the Foreign Office over the next few years, because the trouble that we have caused our friends and allies in this very debate and the doubt that we have sown across the world are so serious that our markets are struggling, and we need messengers of hope and praise to go to our friends’ capitals to reassure them. Too often we have ignored our allies, and too often we have laughed at our friends. We must move on. I have heard many people talk about patriotism. Today, I say that I am a patriot, but this is my land here and it extends beyond the sea and beyond the cliffs. This is our continent and we must lead it.

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[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I enter the debate with a certain amount of trepidation, especially after the powerful speech by my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat).

The reason I will be voting to remain is that, frankly, I do not trust the Germans and the French to run Europe without us there to keep a close eye on them. Over the last 16 years—as the parliamentary candidate for Plymouth, Sutton and Devonport and, more recently, as its Member of Parliament—I have always sought to take a realistic Euro-view. I am not Euro-suicidal; we should make sure that this thing works for us and that we get as much as we can out of it. However, if there is a downturn in our economy, which appears likely should we come out, any action on the issue I have campaigned on for the last 16 years—the improvement of the railways and roads down to the south-west—will be put off for another 10 or 15 years, which would be a personal disaster.

The debate on our membership of the European Union is very similar to previous debates, such as those on the corn laws and imperial preference. Thank goodness our country eventually found a way through those issues, but it unfortunately had to get involved in a few world wars in the process. I am keen to ensure that that does not happen again, especially as my relatives have fought in every world war and probably every other war—we have been here for a long time.

Our job in Europe is to maintain the balance of power. That is utterly crucial. When we have walked away from Europe, we have had to pay with an enormous amount of blood and an enormous amount of treasure. I received a briefing the other day from one of the more renowned journalists in this country, who told me that America is now looking less at Europe—it sees Russia as a regional, rather than a world, issue—and that it is much more interested in the Pacific. If we come out of Europe, therefore, we will be Billy No Mates, and I do not want that to happen.

Earlier this year, during the recess, I spent a few days in Norway with the Royal Marines, seeing for myself some of the issues they have to deal with. I got involved in trying to build shelter, light a fire and kill a chicken—I did not do that—and it was all rather difficult. However, I also learned how important the Baltic states are for this country, and we must continue engaging in Europe because I am afraid that that issue is going to be very big. I would also add that the Americans are not interested in putting money into NATO; they are seeking to take it out, and the moment we decide to walk away from all of that, we will find ourselves having to spend more money.

[Tom Tugendhat]

Does my hon. Friend recognise that the Republican candidate for the United States presidency has declared NATO obsolete?

[Oliver Colvile]

Absolutely. I find that utterly stunning. That is why we want to remain.

Babcock, which runs the dockyard in my constituency and employs 5,000 people, has written a letter to The Times very firmly in support of remaining. I have a boat manufacturer that is very worried about what would happen should we come out, because it thinks that the French and the Greeks will seek to protect their own boat-building industries and that it will therefore have to pay a significant surcharge. We would end up seeing the university and students in my constituency very badly damaged. We have a global reputation for marine science engineering research, and I do not wish to jettison that.

The claimant count has come down to below 4% in an extremely deprived constituency. It is rather unique to have a Conservative Member of Parliament representing an inner-city seat that has an 11-year life expectancy difference between the northern and western parts and around Devonport. It is very important that we continue to be able to invest in changing these kinds of things.

The Prime Minister has done exactly the right thing in seeking to make sure that he got the best possible deal out of the Europeans. We have to remember that if by some chance it was decided that we should become much more integrated in the European Union, we would have another referendum. I hope that will horrify all Conservative Members, because we have had enough of all this.

This is about making sure that we have a strong position in Europe and that we deliver on the economy for the west country, but also that we do not get involved in any more world wars, or wars of any sort.