Thursday 2 June 2016

Should I Stay or Should I Go?

Rarely has the aphorism, "there are lies, damned lies and statistics"  been more apposite than among the multitude of facts and figures being pumped out by both sides of the EU referendum debate. Even on the rare occasions where both side agree on a matter of fact as a starting point, they then extrapolate and manipulate to reach wildly different conclusions.

U-turn? What u-turn?


A central plank of the Leave campaign is that we currently pay £350 million per week into the EU budget and that withdrawing would free up this money, which is enough to fund the building of a new hospital every week and pay for 600,000 new nurses for the NHS. Nonsense, claim Remain campaigners. Not only does this figure fail to account for Britain's rebate, it also fails to consider payments made by the EU to the UK. Some claim that our net contribution to the EU actually amounts to 'just' £136 million per week, a still not inconsiderable sum but whatever figure you chose to believe, there are no guarantees on how any money saved would be spent.

The Remainers will point to a report from the independent  research group, the Institute for Fiscal Studies, who say that although withdrawal from the EU would improve UK public finances by £8 billion[1], Brexit could mean two further years of "austerity,"  with a reduction in GDP leading to an increase in our deficit of between £20 billion and £40 billion in 2019–20. But this is just so much speculation; no country has yet exited the EU, there are no precedents to draw on and the effect of Brexit could just as easily be an increase in GDP.

If the value of Britain's contribution - which ought to be verifiable, but clearly isn't - is debatable, then yet more contentious are some of the other figures bandied about, particularly those projected by Chancellor of The Exchequer, George Osborne. Brexit would mean every household in Britain being £4,300 worse off per annum by 2030 according to George, since Britain's withdrawal would cause the economy to shrink by 6% over the next fourteen years. Except of course there is no evidence to support that claim and the £4,300 figure is a representation of how GDP could shrink per head of the population. It is total misrepresentation to claim that everyone will be over four grand a year worse off. It is equally possible that the economy could grow by 6% over the next fourteen years; experience shows that economic forecasts are rarely accurate, there are simply too many variables.

Would you buy a used statistic from this man?

Osborne also claims that Brexit would cost pensioners as much as £32,000. This is based on the assumption that having left the EU, Britain would be faced with rising inflation, falling asset prices and other economic woes which would erode pension values. On the other side of the coin there are pensions experts who predict that pensions would fall if Britain remains in the EU since regulations on the value of cash reserves that insurers are required to keep would drive down the rates on the annuities purchased from pension pots and similarly, final salary pensions schemes would lose out as Brussels introduces controls on them, increasing costs and causing some schemes to close.

When Britain voted on the EU in 1975 it was membership of the Common Market that we were considering. The Common Market was little more than a glorified trade bloc, but one that had delusions of grandeur, and having transmogrified itself into the European Union, it is now an organisation that its detractors claim interferes in too many aspects of our daily lives. EU supporters will claim that it has protected and improved workers' rights throughout the continent with directives such as The Working Time Regulations, however trade union officials both in the UK and outside  consider the EU to be anything but a workers' paradise. Enrico Tortolano, campaign director for Trade Unionists Against The EU says that the case for Britain to leave is stronger than ever, while Norwegian trade unionists believe that they have enjoyed many additional rights and privileges as a direct result of Norway remaining outside the EU. In Sweden workers who saw their terms and conditions of employment deteriorate found that their case went unsupported in the European Court of Justice, who according to the Morning Star, "made it explicit that business and employers’ freedoms trump all workers’ protections."

"A resounding No to continued membership of the EU should be coming from the working-class socialist movement"  Enrico Tortolano.


Ah, say some, but remaining in the EU surely must be good for the NHS, which remains one of this country's most prized assets. NHS England chief executive Simon Stevens has warned that Brexit would be extremely harmful to the NHS, with a possible recession damaging investment in the health service. It is possible, however that our continued membership of the EU might force the break up and privatisation of the NHS through the implementation of the Transatlantic Trade and Investment Partnership (TTIP).

Last week an article in the Evening Standard suggested that Britain could lose control of Gibraltar in the event that we vote to leave the EU, if combined with a victory for the centre-right Partido Popular in the Spanish elections on 26th June. It is of course, equally possible to argue that our continued membership of the EU makes a decision from Brussels to hand control of the Rock over to the Spanish just as likely.



But what about all that pettifogging red tape that Brussels insists in wrapping business up in? Is it really essential for there to be 109 EU laws regarding pillow cases, or 52 relating to toasters (if there are that many for pillow cases, I would have expected the total for toasters to be greater), or 1,200 about bread, or 12,000 concerning milk? Who knows, because is it really possible to keep abreast of that number of directives? Freed from these bureaucratic shackles, which apply whether a company trades with the EU or not, British companies could flourish. Or that is one argument; another would be that they would still have to comply with all of these directives if they traded with the EU, so Brexit would not significantly reduce the amount of red-tape. And anyway, as successive British administrations have proved, Whitehall is equally as adept at passing legislation that companies claim strangles their business.

Unlike General Elections, whatever decision we reach on 23rd June is not one we are likely to be able to reconsider in five years time and reverse if we are unhappy with the outcome. Which is why, in order to make an informed decision, we need facts not speculation and thoughtful consideration of potential outcomes rather than the hyperbolic  purple prose employed by both sides in this debate.

Jeremy Corbyn voted out in 1975 and would be likely to do so now if he were still a back bencher claims his long-time friend and journalist Tariq Ali. Corbyn now backs the Remain campaign.

In the 1975 referendum,  it was 67% to 33% in favour of staying in the Common Market but polls suggest that this time round it will be a lot closer. As many as 20% of voters remain undecided on which way to cast their vote, and I include myself among them. Making my mind up is proving difficult, because frankly I don't know which side to believe - most of the time I don't believe either of them. The scaremongering and peddling of the most dubious of 'facts' has been on a scale unprecedented in any political campaign I can remember. If you believe some of the stories from the Remain camp, without the EU to wipe our noses and ties our shoelaces, Britain will be like a weak and frightened child in a bewildering adult land, while the Leave supporters forget that the world is a very different place from what it was before we joined the Common Market and that disentangling ourselves from and subsequently dealing with the EU may make the most acrimonious of divorces seem like a genteel tea party.

All I know is that this is the most important decision the public have been asked to make since, well 1975 probably, and I hope and pray we make the right one - whatever it is.





[1] See http://www.ifs.org.uk/publications/8296

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