European Union (Referendum) Bill

Debate between Wayne David and Adrian Bailey

Friday 29th November 2013 Commons Chamber

[Wayne David]

My hon. Friend makes a good point. We touched on that issue in our debate last Friday, and the point holds firm. We would hope that if the Bill proceeds from this House to the other place, the Government might well table an amendment, as they have done with previous legislation, to modify the question that is set, in line with the Electoral Commission’s recommendation. It is also important to stress, however, that the Electoral Commission is a neutral, impartial body respected by all sections of the political spectrum. Those in the Electoral Commission are the custodians of electoral processes, objectively and clearly defined. To go back to the point I was making about its report on the conduct of the campaign, that is why it is important that the Government take on board the Electoral Commission’s recommendations, and that it is given plenty of time to do the work and is told precisely when its reports are expected. We have had an important debate on that matter, and I am minded to favour the idea of a stipulated time for such a report from the Electoral Commission.

Amendment 7, tabled by my hon. Friend the Member for Ilford South, refers to the need for advertisements in national newspapers, across the United Kingdom and in the nations that make up the United Kingdom. As a Welshman, I think that that is particularly important. Although I do not speak the language of heaven—I have tried but failed—I recognise its importance, and the Welsh language must be respected. In addition, a distinct population in Wales speak the Welsh language as their first language. It is important that we do not place Welsh language advertisements in newspapers just in what is known as “BBC Welsh”, as the Welsh language varies in different parts of Wales. The Electoral Commission has done quite a bit of work on how the debate should be conducted through the medium of the Welsh language. Interestingly, GfK, the organisation contracted by the Electoral Commission to conduct the research, has said that we must be careful with the Welsh language in what we put on the ballot paper and, by implication, in the advertisements. For example, it makes the point that the phrase “Undeb Ewropeaidd”, which of course means the European Union, is not widely understood by Welsh speakers. GfK’s survey found that many Welsh speakers thought it referred to the United Nations.

[Mr Bailey]

I have listened to my hon. Friend’s argument and I think that there is a lot in it. What he perhaps has not brought out so far, although he seems to be touching on it now, is that this is not only an issue about BBC English or BBC Welsh; Euro-speak is likely to become embedded in this debate. That underlines the need to involve organisations dealing with plain English and the Welsh equivalent to ensure that the terminology current in Europe and in those organisations in this country connected to Europe—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I have allowed a great many interventions during this debate. Everyone who has indicated that they wish to speak on this group of amendments has made many interventions, and everyone has now had the opportunity to hold the Floor. I am sure that the hon. Member for Caerphilly (Wayne David), who has already rehearsed many of his arguments in interventions on the speeches of other hon. Members, will soon be drawing his remarks to a conclusion.

--- Later in debate ---

[Mr Bailey]

I was coming to that point. In all my years in the House, I have never known a private Member’s Bill to be adopted so enthusiastically, which it has been by at least one section of the Government—the Conservative party and the Prime Minister. I have never known the devices that have been used to rally support for the Bill to be used before. We are told that Back Benchers have had breakfast in Downing street. The Prime Minister is trying to convince his Back Benchers either to stay in or to come out of the EU using the device of stuffing them with French croissants or, I have heard, bacon baps. Was it Danish or British bacon? I hope that those Conservative Back Benchers who are so hostile to the EU ensured that the Prime Minister stuffed their baps with British bacon to get their vote for the Bill.

On a more serious note, I want to concentrate my few remarks on a vital issue not only for the country, but for the west midlands and my constituency in particular. A lot has been said—my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) emphasised this—about the potential impact on foreign direct investment in this country arising from the uncertainty that will be created by a decision to hold a referendum in 2017. If we ask investors what the most crucial thing to ensure that they invest in a place is, they will answer, “Certainty.” If people are to invest money, they want to know on what basis that money will be used and what returns can reasonably be generated. If there is uncertainty about the scale of the market for British manufacturers, the prospect of encouraging foreign direct investment will be very much more limited.

Outside investors are not daft. When they see the Government—or the Conservative party—backing a Back-Bench Bill such as this one, they can see the way the wind is blowing and they are bound to question whether they should be investing in this country again. As my hon. Friend said, major manufacturers in this country are already questioning their long-term commitment to it as a result of the uncertainty being created by this Bill.

The Bill conflicts with the Government’s asserted priorities, too. We are told that they are reducing corporation tax to encourage foreign direct investment, but what is the point of doing that if they are at the same time reducing the potential market for the products that would be generated by that investment from 500 million people to 60 million? The two policies are totally contradictory, as outsiders with money to invest in Britain will notice.

The situation has particular importance for my west midlands constituency. It is fair to say that the recession has not had nearly as bad an overall impact as it might have had, largely because of the rejuvenation and renaissance of the motor industry, which has been centred in particular on the expansion of Jaguar Land Rover. My constituency has more foundries than any other, and they are often third, fourth or fifth-tier suppliers to the motor industry. The prospect of a reduction in investment in the key manufacturers in the motor industry is bound to have an impact on the economic prospects of my constituents.

[Wayne David]

My hon. Friend makes an extremely important point. One thing that is evident from the debate is that there is not an appreciation of the importance of the single market to the European Union. Does he agree that if anything is central to the whole European project, it is the single market?

[Mr Bailey]

I totally agree. British car manufacturing is a success story; 80% of what we make is exported, with 50% of it going to Europe—Jaguar Land Rover’s major market is the United States. If the Bill goes ahead and there were to be a referendum whereby Britain came out of the EU, we would lose out not only on our major car market, but on the investment, marketing and manufacturing that would go to other countries.

I wish to discuss one other aspect that has perhaps not had the consideration it deserves. We are engaged in an EU-US free trade negotiating process, which, again, will have profound consequences for the British car industry and, in particular, Jaguar Land Rover. The uncertainty created by a decision to pass this Bill and the prospect of our coming out of the EU is bound to affect the final settlement of those negotiations. It is not possible to believe that the US would be prepared to have one settlement with the EU and another with this country. Only by our membership of the EU are we able to have a united position that will give a potential market for cars for both the US and the EU, with enormous benefit. The potential of such an agreement has been estimated at £4 billion to £10 billion in this country.

I could go on, but I recognise that many other hon. Members wish to speak. The crucial point is that the Bill injects an element of uncertainty into much needed foreign direct investment in key strategic industries in this country, particularly affecting the west midlands and my constituency. That is why I am not prepared to back the Bill, and I urge others hon. Members to take the same approach.