EU Membership: Economic Benefits — House of Commons, 2016-06-15
Topic: Mixed Topics
Jeremy John Elton Lefroy (Conservative, Centre-right): It is a great honour to speak in this debate after so many powerful and lucid speeches. I am unashamedly speaking in favour of remain, but next week my constituents each have one vote—the same number I do. My job here is to try to represent what I see as their best interests. They may not see it like that, but it is what I see as being in the best interests both of my constituency and the country I will follow on from what my hon. Friends the Members for Faversham and Mid Kent (Helen Whately), for Portsmouth South (Mrs Drummond) and for North Devon (Peter Heaton-Jones) have said about the importance of stability, prosperity and co-operation, and about the United Kingdom’s place in the world and its position as a force for good Let me start with stability and prosperity. It is quite clear—this is acknowledged even by those who speak for leaving—that there will be at least a short-term impact on the United Kingdom economy if we leave the EU. My hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) has said as much. He talks about the Nike swoosh, or the dip, that would happen. We are talking about not a graphic but a direct impact on people’s pockets and on Treasury revenues As for what happens in the medium term, there is more debate. A vast majority of economists have said that being part of the European Union would be better for our economy in the medium and long term, but I accept that there are a wide range of views on that. How much that would cost—how much we would gain, or not gain—is more difficult to say. One thing is absolutely clear: those who claim that we will thrive outside the European Union in a way that we do not inside are profoundly mistaken Economically, there are two areas in which we suffer the most. The first is our failure to export enough, which we have spoken about time and again, and the second is our productivity. Neither has anything to do with our membership of the European Union, and both have everything to do with ourselves. Germany and France have considerably higher productivity levels than us, as does the United States. Germany is quite capable of exporting three or four times as much to China as we can, from within the European Union. I fully agree that there are aspects of regulation and so on where we might do better if we controlled them entirely ourselves, but those are minor points—mere pinpricks—compared with the responsibility on our shoulders to improve our productivity and exports. We can do that whether we are inside or outside the European Union. Coming out of the EU is no panacea It is clear that where we will suffer if we leave is in inward investment. I have spoken to inward investors in my constituency on whom thousands of jobs depend, and they say they want us in and that it is very important. As the Foreign Secretary said earlier, with our current account deficit as it is, a reduction in foreign investment would be dangerous. I have not had investors coming to me and saying, "I’ve been waiting for you to leave the European Union so that I can invest in Stafford." That has never happened On co-operation and Britain’s place in the world, I am unashamed about the need to work together. There are many challenges in this world, and putting ourselves on the outside is not the way forward. We must not underestimate the importance of good relations with our neighbours, even if they come through difficult meetings in the European Union week in, week out and month in, month out. The other bodies of which we are a member, such as the United Nations, are no substitute. They meet infrequently and are much bigger bodies Who wants us out? Do our best friends? Do the United States, Australia, New Zealand and Canada—those with whom we have the strongest personal and political ties? Absolutely not.