ZENIF PRO… UK 4 EU
As the debate in the UK continues, ZENIF is concerned that
the decisions relating to the UK’s relationship with the UK is no longer
reflecting the true interests of UK businesses.
There are some key areas that need highlighting regarding
the current debate regarding the Uk’s relationship with the EU. They are as
follows:
·
Biased journalism within the UK media industry
·
The benefits of EU membership are being ignored
(or not highlighted)
·
The internal politics of the Conservative Party
is affecting the current debate
Also that within the business sector there is a range of
opinions regarding the relationship and that both sides of the debate
acknowledge the current instability is potentially damaging to the business
sector.
ZENIF believes the best outcome for the business sector is
for the UK to stay within the EU and that the potential benefits far outweigh
the drawbacks to membership.
Read on for more information…
The membership of the EU
has now been in place for forty years and the changes within the EU have been
brought about with various UK governments engaging within the EU. These changes
have resulted in many benefits to the UK economy.
However, the
current debate is now removed from how to best change the EU to benefit the UK
and has been replaced by political posturing prior to the 2015 election. This
current debate ZENIF feels is not in the best long term interests of business
and the UK economy.
Below is how the current debate is being influenced and how
it is affecting the UK business sector.
Biased Journalism
Public opinion since the UK’s entry into the then EEC in
1973 has been influenced by biased journalism.
·
The largest selling newspapers of the last forty
years have been politically, right of centre biased, without informing the
readers of this bias. Most notably, The Sun, Daily Mail, Telegraph & The
Times.
·
The drip-drip of negative bias over the last
forty years has warped public opinion towards being anti-European.
In addition, the ownership of the newspapers has been
dominated by one organisation that is being investigated for criminal
activities relating to their journalistic procedures. This hardly engenders a
belief in high quality journalistic standards being upheld by the UK media
sector.
·
The journalism is focused on finding any faults
within the EU and ignoring that UK run operations fair little better if not
worse than the EU bureaucracy. If we look at the NHS, Public Sector Education
or Parliament itself, are we more capable than the EU in that department?
·
The focus of highlighting the immigration within
the EU has been poorly reported. The UK economy is in dire need of certain skills,
which are lacking in the UK workforce.
·
EU workers have contributed to the growth of the
UK economy, most do not settle but return to their country of origin. Those
that do settle tend to be a net benefit towards the UK economy.
·
UK workers in large numbers have found work
across the EU, many still pay into the UK economy in some form or another. This factor is rarely reported on, except in
the cases when UK workers are affected. As in the arrest of a UK Tour
operator’s “Ski Guides” in France during the 2012/13 season in a row over
qualifications and duty of care.
(For more on this topic go to: http://www.linkedin.com/groups/Could-UK-Ski-operators-find-4358738.S.271671919?qid=57b71d76-8ac9-47bf-84cc-4b8fb073645e&trk=groups_most_popular-0-b-ttl&goback=.gmp_4358738)
Benefits of
Membership being ignored
The benefits for UK business have been understated, mainly
because we now take them for granted, as follows:
1.
Stability is crucial to continued economic
growth in the long term. Western Europe
has been remarkably stable for the last fifty plus years. This stability has
hinged on the EU.
2.
The cost of doing business is lower as there are
fewer barriers to trade. Leaving the EU will increase the barriers to trade.
Even with a Swiss style affiliated agreement, that would be the most likely
outcome of leaving the EU.
3.
The UK has benefited from the creation of the
free market and right to work anywhere within the EU. Businesses and
individuals have been able work across the EU without any restrictions.
4.
The biggest prise of the last twenty or even
post war years is about to become reality, access to the North American
markets. Talks are starting on a free trade agreement across the NAFTA and EU
regions.
5.
To leave before this happens will be a
catastrophe for the UK business sector. Imagine, BMW and VW having access to
the enlarged free trade area and JLR being left out! Where will Honda &
Toyota want to produce its cars? - Outside or Inside?
6.
Regeneration of the low performing regions of
the UK has been backed by the EU regional development funds (Category One Areas
in Wales for example).
The UK is a country with extremely diverse
economic areas. The South East of England generates a much higher level of GDP
that the North East or North West of England. How much will it cost the UK to
replace the EU funding?
Much of the saving from withdrawing from
the UK from the EU would be eaten up by the need to support these regions.
7.
Germany, Sweden and Poland are all countries
with administrations that broadly share the UK’s antipathy towards the huge
expense of the EU budget and regulations that hinder business. Increasingly the UK’s views upon EU reform
are becoming more accepted by other countries. The crisis in the Eurozone has
change the dynamics towards EU reform towards a centralised EU.
The internal politics
of the Conservative Party is affecting the current debate
The historical split within the Conservative Party over EU
membership has been heightened in recent times by the rise of UKIP.
The Prime Minister, David Cameron, has introduced the
concept of a referendum after the next election. This can be viewed as a
reaction to the party’s internal concerns regarding the threat of UKIP leeching
votes away from the party and preventing them winning the next election.
Most businesses want stability to allow a level playing
field for competition.
The Business Sectors
Response
It is clear that the business sector has made its stance
clear on this matter, as highlighted below:
·
Businesses want stability and the uncertainty of
a long wait for a possible referendum will affect business confidence and the
ability to make key business decisions over the next two years.
Government strategic planning should be to
meet these aims, rather than short term strategies that are reacting to the
current political pressures.
·
Inward investment will stop and worse may follow
as established operations relocate to within the EU. Honda and Toyota have
stated that they will review their UK operations in the light of any withdrawal
from the EU.
○
Dave Hodgetts (Chairman Honda UK) stated the Swindon operation is at threat if
the UK is not at the heart of the EU..
○
In 2000 Minoru Harada stated Honda regretted investing in the Swindon plant
because of the weak Euro v Stirling
○
The Japanese embassy sent an open letter to David Cameron warning of these
consequences
·
Financial Institutions have cast doubt over the
financial stability of an independent UK.
·
Over a longer time period, Frankfurt may become
the stronger draw as a centre of finance for MNC at the city of London’s
expense.
·
Some Business leaders have supported withdrawal
from the EU. Many more are in favour of continued membership, including many
who would like to see reform of the EU, rather than greater integration.
ZENIF Our Position
ZENIF would like to see all EU governments actively engage
in improving the EU, in particular:
·
Reducing the bureaucracy and thus reducing the
barriers to trade across the EU
·
Enforcing compliance with EU regulations
·
Tightening the fiscal control of the Eurozone. (This may happen as the fall out of Eurozone
defaulting & bailouts occurs)
ZENIF is concerned that if the UK business sector and its
leading “lights” do not press the current government to adopt a more balanced business
orientated approach towards the EU. (The
harm to the UK economy of short term political decisions driving current
government EU policy could last for decades.)
EU membership needs to be assured, with the pro EU opinion
being highlighted far more than at current, as well the negative opinions. (This is unlikely to be achieved with the
current ownership of the media sector in the UK).
Globalisation
is a real and on-going process, it is occurring via the merging of trade
blocks. The EU is one of the largest single markets in the world and is
possibly going to become part of the most dominant trade block if the “merger”
with NAFTA happens.
The benefits
and opportunities to the UK economy are immense. That’s the message the UK government &
press should be telling the UK public.
ZENIF works across the EU and sees the advantage of
continued EU membership. The stability offered of assured membership and the
potential access to North American markets far outweighs the continued
political debate upon the UK membership of the EU.
ZENIF: What is needed?
·
Market stability offered by assured EU
Membership
·
Governments engaging in a positive manner within
the EU, with a balanced business focused strategy
·
Less bureaucracy for businesses to operate
across the EU
·
Better enforcement of EU regulations within the
member states.
·
Tightening the fiscal control of the Eurozone.
·
A stronger case made for the benefits of EU
membership
·
Highlight the inherent political bias within the
newspapers reporting of EU issues
ZENIF has no
political affiliations and is an apolitical organisation.
