Outcome of the European Union Referendum — House of Lords, 2016-07-05
Topic: Macroeconomics
John Seymour (Crossbench, Unknown): My Lords, first it would be useful to analyse the causes and reasons for the unexpected and dismaying referendum vote. We know that large swathes of the poorer parts of the country voted out. These are areas of industrial retrenchment, mostly in the north and the Midlands. They are far from the south-east and London, which were more inclined to remain. It is job losses and deprivation, stemming largely from the mining and steel crises of the 1980s, which have made people disillusioned with the political classes of all persuasions here in London. They feel ignored and abandoned, unheard and cut off from the wealth that emanates and dissipates from our great capital city Earlier, the noble Baroness, Lady Kramer, told us about the wealth generation that comes from the City of London. However, how many of the successful companies and enterprises based there have spread their wealth and success northwards? Have they sponsored or supported hospitals or schools, or any new housing? I think probably not. Globalisation is not working for many of the disadvantaged. The fact that big international businesses largely avoid paying any tax has been camouflaged by economic growth, so the better-off have not really noticed it. Austerity has also affected the lower-paid relatively hard It is secondary, and perhaps part of the media agenda, that migration has meant competition for jobs, access to services and housing. While I deplore and condemn the hate crimes that we have heard so much about this evening, I do not think it is always racism per se, but frustration and an easily identifiable blame target that is responsible. Far too many are disgruntled that the political and economic system appears rigged against working people. This perhaps explains why Mr Corbyn retains such high support among the Labour-voting non-elite. The massive long-term problem that a new Government need to tackle is moving wealth north and west, sharing it more equitably with all the regions of the UK We should also blame the unelected leaders of the European Union, Messrs Juncker and Tusk, for their arrogance, intransigence and head-in-the-sand attitude. Their failure to allow Mr Cameron any worthwhile concessions in his pre-vote negotiations is typical of their position of paralysis. Their fear of contagion ignores the increasing clamour for not only their resignations but changes of direction in EU policy, which might yet save the project from disintegration. This is what happened to earlier superstates such as the Soviet Union and the British Empire where regionalism and national identity were ignored. Some central European states reckon that our vote highlights the rejection by many EU citizens of increasing federalism, so any knee-jerk reaction by Brussels for deeper integration could create a two-speed Europe with the eastern countries wanting more repatriation of powers and more accountable democracy Freedom of movement is a fine principle but it has caused huge problems that have to be addressed. Improving housing and creating and encouraging jobs in our own deprived areas is one part but controlling migration is another. That we need overseas labour and talent is incontrovertible. The National Health Service and the food trade would soon collapse without them, so a points-based system that acknowledges our need for low-skilled workers may be best. This could be linked to a mechanism that limits overseas workers’ ability to claim some benefits, such as that for unemployment. However, it is not too late to remind ourselves that EU citizens have contributed £20 billion more in taxes than they have taken out in benefits. We need a strong leader and a Prime Minister who will not allow us to retreat from the world or countenance isolation and intolerance. We must continue to embrace our European friends and strive to steer them away from the corrupt and largely unelected constitution that the disaffected people of the UK and Europe so despise. We can do this by being liberal and open with our future trading terms, minimising tariffs and, most importantly, giving immediate reassurance to those Europeans already settled and working in the UK. They contribute so much to our economy and must be allowed to stay here for good. Reciprocally, those British people living, studying and working in mainland Europe must be allowed to remain without restrictions or bureaucratic hurdles. Four of my children live in Europe or have European interests. One of them, in Naples, is translating between Italian doctors and Libyan and sub-Saharan boat refugees. Let us not condemn all our young to a narrow future of less opportunity, unable to work or to do good works outside this country Some noble Lords have suggested that we hold another referendum in two years’ time when our exit position is clear. Can the Minister comment on the legal status of this proposal, which would involve rescinding Article 50 at that point? Such a course of action would allow the country to vote and decide on a political choice where we know the exact ramifications, which were unclear to many this time round It appears that our strongest negotiating card is to delay invoking Article 50. We should postpone that until the most important question has been answered: the question of the future of citizens living abroad on both sides of the channel. One hundred years ago, we experienced a catastrophic political failure that culminated in the Battle of the Somme and the Great War. The EU was created out of that horror. Let us not compound today’s great political failure by not attending to this crisis without understanding and fixing the reasons, or by ignoring the potential of these islands to rise, shake themselves and point Europe towards a fairer and different route to prosperity, peace and optimism We live in a counterfactual democracy. What has happened to the admirable enlightenment and ambition for truth and clarity? Have modern politicians abandoned truth for dogma and half-truths? Where is this taking us?