The EU: Why we shall be Better Off Out

On the Daily Politics Show with Tory MP Simon Hart, formerly with the Countryside Alliance

On the Daily Politics Show with Tory MP Simon Hart, formerly with the Countryside Alliance

The debate on Britain’s EU membership is hotting-up. The Conservative Party has offered a referendum in 2017, after renegotiating the terms of our EU membership. But in Brussels, where I spend much of my time as an MEP, you’ll find very few people who think that special terms for the UK are likely to be on offer. After all, if Britain can get a better deal, everyone will want one, and the whole project will unravel. Yet Cameron has said he will “fight tooth and nail to stay in the EU”, regardless of the outcome of the renegotiation – so he’s given away his only negotiating card before he starts. And on his present showing, he may well not be Prime Minister in 2017 anyway.

A few days ago I was on the BBC’s Daily Politics Show, with Tory MP Simon Hart, Bridget Phillipson (Labour), and Lib-Dem Martin Horwood. Horwood kept repeating the mantra “We need to stay in the EU for jobs, and to tackle cross-border crime and environmental issues”. http://is.gd/ONx7yY Back in 1975, in the only EU referendum we’ve ever had in this country, I voted “Yes”, because I thought the Common Market (as we called it in those days) was about trade and jobs. But in the years since then, I’ve realised that far from promoting jobs, the EU is damaging growth, prosperity and job prospects.

Membership of the EU is hugely expensive, and it’s a deadweight cost on the economy. Two very respected British economists, Tim Congdon and Patrick Minford, have independently set out to estimate the total costs of EU membership. They both come out with similar figures – ten or eleven per cent of GDP. That’s around £160 billion a year – an enormous sum. It’s not just the £20 billion or so that we pay as direct contributions. The costs of EU regulation are widely estimated at 4% of GDP. Former EU Industry Commissioner Gunther Verheugen estimated a figure as high as 5½%. The misallocation of resources and protectionism comes to 3¼%, with smaller amounts for job losses (as a result of migration from the continent); waste, fraud and corruption; and contingent liabilities.

The open-door immigration policy imposed by EU membership means that we open our borders in just a few weeks’ time – January 1st – to 29 million Bulgarians and Romanians. We can expect tens of thousands, or maybe hundreds of thousands, to arrive. They will be largely unskilled, and will be competing for lower-paid jobs here in the UK. That means that for our own lower-paid workers, jobs will be harder to come by, and wages will be depressed. Thank you Brussels. And as for cross-border crime, Mr. Horwood: already most ATM fraud in London is carried out by Romanians.

The huge costs of our EU membership offer little or no benefit. Advocates of the EU point to the trade benefits. But these benefits would be available under a simple free trade agreement, without accepting the heavy costs of membership to our economy and our democracy. In any case the trade benefits, once estimated by then Trade Commissioner Peter Mandelson, at only 1.9% of GDP are completely outweighed by regulatory and other costs. EU employment regulation is destroying jobs and making employers afraid to hire. In the NHS, it is disrupting the training of junior doctors and putting patients at risk on the wards.

When we hear about all the good that EU funding has done for projects in the UK, let’s remember that every pound we get back from Brussels costs the British economy around £3. And we don’t get to spend it on our priorities, but on their priorities. We’d do much better to keep the money at home and do it ourselves.

Then there’s Horwood’s point about the environmental “benefits” of the EU. But the truth is that it’s the EU’s climate and energy policy that is driving up our energy bills, covering the country with wind turbines and undermining security of supply. It’s driving households and pensioners into fuel poverty. Without being too alarmist, I’m afraid it will actually cause excess deaths in Britain this winter, as families struggle to keep warm. And energy prices are doing massive damage to the competitiveness of our industry. This is not just my view. EU Industry Commissioner Antonio Tajani has said that European economies face “an industrial massacre” as a result of energy prices. Businesses are leaving the EU altogether, taking their jobs and their investment with them.

Meantime China is powering its economy with cheap coal, and America with cheap shale gas. It’s increasingly difficult for the UK, and the EU, to compete. And that costs jobs.

We hear about the importance of EU membership for the car industry, like Toyota in the East Midlands. Let’s remember that these same voices, ten years ago, were warning us that foreign car manufacturers would leave the UK unless we joined the €uro. They were wrong, and the €uro has been the disaster that sceptics predicted. Meantime Ford are closing their van operations in Britain, and moving them to Turkey – outside the EU. If Ford can manufacture vans for Europe in a non-EU country, so can Toyota. Former CBI President Digby Jones has said that from Day One when Britain leaves the EU, we will have a free trade agreement. The EU already has such agreements with dozens of countries around the world. When we leave the EU, the UK will be the EU’s largest export market, bar none. Brussels will be biting our hand off for a free trade deal.

So when we leave the EU, we will save tens of billions of pounds in direct and indirect costs, leaving room in the UK budget for better services and lower taxes. We shall have lower energy prices. More flexible labour markets. That means more growth, more jobs, more prosperity. More inward investment. And instead of being ruled by foreign bureaucrats, we can be an independent, self-governing nation again.

In the euro-elections of 2014, the public will have a choice between the three old parties, that are all determined, in their different ways, to stay in the EU. And one party, UKIP, that is committed to independence and self-determination. That’s why we believe that the 2014 euro-election is, in effect, the referendum that the old parties all promised but never delivered. If you want to stay in Europe, vote for any of the old parties – it doesn’t matter which. But if you want freedom, independence, self-government and prosperity, vote UKIP.

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6 Responses to The EU: Why we shall be Better Off Out

  1. neilfutureboy says:

    In the Scottish “independence” referendum it is noticeable that the same “great and good” who claim the EU would be so vindictive as to cut off all trade with an independent Britain never say a remaining UK would cut off or even seriously discourage trade with Scotland. Even though the SNP, who use that argument in favour of the EU, are saying that England would still ensure the navy was built on the clyde and the English would still pay 3 times the going rate for scottosh windmill power.

    One almost gets the impression that they aren’t really trying to stop the UK breaking up but are much more loyal to the EU.

  2. Me_Again says:

    Roger the party is in serious danger of losing its battle to convince people to leave the EU. The polls over the last year have suggested a gentle decline in support for leaving, down to near parity.
    We hear little in the press/media about our usual arguments for wanting to leave, we hear little refuting the economic disadvantages espoused by Danny Alexander and Clegg. They keep repeating the mantra that it is economic suicide and we are saying little to counter it. All we hear about at the moment is this spurious campaign to get David Cameron to not open the borders [what borders anyway?] in January. When we all know he can’t why spend so much money on that when we could be laying out some of Tim Congdon’s excellent points on the economic benefits of leaving.

    We are starting to sound like the playground bullies! Only last weekend I found myself uncomfortable with our anti-immigraqtion stance even though the people I was with were likely UKIP voters.

    Yes the immigration thing is important but can we go back to saying the economic benefits and for heaven’s sake settle on an exit strategy!

    I know people don’t like to hear negatives but I want us back to positives in our campaigning. Immigration should be on our list of reasons for exit, for sure, but only at number three after regaining our right to decide our future and the economic benefits to the country.

    The proportion of comment about immigration should be EXACTLY AS YOU HAVE DONE IN THIS POST!

    We will lose the moral and literal high ground if we don’t get back to basics. If 70% agree that the border should be kept closed and immigration is a problem BUT only 12% of them support the party then we have some serious need of new messages.

  3. Please keep saying this in the same reasonable tone! As UKIP turns slowly – o how slowly! – into a mainstream party, there is a danger it will get marginalised and distracted onto other projects.
    This must not happen. All that needs to be done is to get us out – PDQ.
    Nothing else really matters.
    Even the windmills…

  4. You’ll maybe say I spend too much effort on energy issues. But remember that our energy problems originate in Brussels. So getting a rational energy policy means getting us out of the EU.

  5. Me_Again says:

    No I wouldn’t suggest you spend too much time on energy matters, it’s your brief after all. But you are a respected senior member of the UKIP club and since you do not over focus on immigration then it suggests that you have made a choice not to.
    Immigration should be something we add on to a conversation as another justification for EU-exit, not the sole purpose for it. I really think you need to look at this again.

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