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Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)Britain in Europe Lunch |
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I am delighted to be here at this Britain in Europe lunch. Today I want to address two issues. One is about the importance of Europe to the United Kingdom. I also want to say a few words at the end about the Government?s approach to the single European currency. And in the context of that to make a very strong case for Europe itself to reform and modernise. I think many of you here will be aware that one of the key objectives of this Government has been the reform and modernisation of our own public services, of our constitution, of our institutions. The time is now right to look at the reform and modernisation of Europe as well. And it is also the right time to make the case for Britain in Europe. We must do so not from the position of trying to gain some narrow party political advantage but from the standpoint of the British national interest. We must not allow political dogma to determine our approach but ensure throughout that our decisions are pragmatic and principled. Such an approach is in the interests of British business and for British jobs as well. It is clear from all of you here today that business takes Europe seriously. Millions of jobs depend on Britain being in Europe. By playing a constructive role in Europe, by modernising its policies and institutions, I believe we can reap even greater economic benefits than we have at the moment. Europe matters politically and economically. Nearly 60% of our trade is within the European Union - worth £120 billion last year. The share of our exports going to EU countries has risen rapidly since we joined. Many markets which were closed in Europe have opened up. The United Kingdom has been in the forefront - driving forward the liberalisation agenda. British jobs and investment increasingly depend on Europe. It is our key market. The facts are clear. We export more to France and Italy than to the whole of North America. We export more to the Netherlands than to China, South Korea, Hong Kong and all of the Asian tiger countries combined. UK exports to Belgium are double those to Japan. In total over three million jobs depend on Britain being in Europe. As most inward investors tell me, Britain?s position as one of the most attractive locations for inward investment depends on two things above everything else - our modern, flexible and stable economy and Britain?s membership of one of the world?s largest markets. There are 380 million consumers in the European Union. With enlargement this is likely to grow by a further 100 million over the next few years. That?s the big prize that attracts the major players in our global economy. There are nearly 18,000 foreign investors in the UK. 1,000 Japanese firms. 5,700 from the United States. They invest in Britain not just because it is Britain, but because Britain is part of Europe. Smaller British companies are also dependent on this inward investment which our membership of the European Union brings. New investors create jobs through the supply chain. Nissan up in the North East of England, where my constituency is, not only has the highest productivity of any car plant in Europe, but has also supported the development of a world class components industry in the region. Membership of Europe brings other economic benefits. All companies - whether home-grown or inward investors - will increasingly use electronic communications for marketing and service. A common EU regulatory framework for e-commerce, providing legal certainty for business and guaranteed rights for consumers, means that British businesses can fully exploit the opportunities of e-commerce throughout the European Union. Telecommunications is a vital part of the electronic economy. EU single market measures have opened opportunities for our telecoms operators and reduced costs and prices. The price of a telephone call, for example, to France has halved between 1989 and 1999. Membership of the European Union also gives us a stronger voice in opening markets elsewhere. It is against this backdrop that talk of renegotiation is so dangerous. Yet that is exactly what the Conservative party is doing at the moment. The political shift in Tory thinking on Europe means that yet again the case for British involvement and participation in Europe will need to be made.
Europe matters to us both politically and economically. Influence and partnership in Europe are essential to the British national interest. I believe that the Conservatives have confused the strong need for reform in Europe with their wish for disengagement and a retreat to the political margins. Those of us who believe in the importance of Europe must be the first to recognise that the Europe we have today - its institutions, its working practises and its policy priorities - is not designed to meet the challenges of the global economy or the needs and aspirations of the people of Europe. In terms of working practices and the institutions of the European Union, Neil Kinnock?s proposals for reform published last week show that at long last something?s being done. His White Paper is a major first step in what will be a long term process, requiring real commitment from the whole Commission. Reform in this area is crucial. The Commission needs to be dynamic, efficient and effective. The public will rightly expect nothing less than the highest standards. The reforms needed to fundamentally change the way the Commission works are now clear. They need to be service-oriented, they need to be guided by the principles of accountability, efficiency and transparency. In addition to those fundamental changes needed in the working practices and the institutions of the EU, we also need to look at the policies and the programmes. They must be able to meet the challenges of the global economy in the 21st century. At the end of March there will be a special meeting of the European Council in Lisbon. This will be a key event in the political direction of Europe . The Council will need to consider how the European Union is to respond to the new economy, an economy based on globalisation and rapid change. It is clear that a new approach will need to be adopted. At Lisbon the countries of Europe will have to confront a stark fact. In modern times an economy must be based on innovation and knowledge if it is to provide the wealth and growth on which we all depend. To be honest, Europe is lagging behind in this respect. Members of the European Union will need to embrace a clear programme of reform. Working to an agenda of enterprise and innovation. Tackling unemployment through skills and training and ensuring greater priority is given to policies that promote social inclusion. The Prime Minister has proposed a clear strategic goal: to build in the European Union by 2010 the most dynamic and socially inclusive knowledge-based economy in the world. I believe Lisbon will provide an opportunity to set out and to meet this strategic goal. We are working to support the Portuguese Presidency to make economic reform, employment and the knowledge-based economy key themes at the centre of the Lisbon Summit. A crucial element of this must be a commitment on action for small firms. If we are to meet the challenge of sustainable growth and employment, Europe must do things differently. We must deliver a positive environment for our entrepreneurs. There must be a recognition that regulation can be a barrier to economic growth and job creation. We need to cut start-up costs for new businesses. We need to create a business culture and tax environment which actually rewards risk. We need better access to finance for small firms and high growth companies, which will increasingly be the engine for growth and increased employment across Europe. Above all else, Europe needs to be more forward looking. Working to an agenda on education, enterprise and innovation. To make sure that the knowledge based economy is a bringer of opportunity and not a threat. Such a programme would be good for Britain and for Europe. To achieve this Britain needs to be fully and constructively engaged in Europe at all times. By working closely with our European partners and in the Commission we have been able to put economic reform and employment at the top of the European agenda. In our dealings with Europe we must always act in the national interest - the British people would rightly expect nothing less. This must also be our approach to the single currency. There is endless speculation about the government changing its position on the euro. That we?ve gone cool on the idea or that we?ve become more enthusiastic; that the brakes have been applied or that the foot is now hard down on the accelerator. This, I know, makes for good copy in newspapers but the reality is that the policy remains the same. It was stated by the Chancellor in October 1997 and by the Prime Minister early in 1999. We want the single currency to be successful. It is in the interests of Britain and Europe for that to be the case. The determining factor underpinning any government decision is whether the economic benefits from the UK joining are clear and unambiguous. Because of the importance of the decision we believe that it should be taken in a referendum by the British people. It would be wrong for any Government to bounce the British people into a referendum on the Euro in the immediate aftermath of the next General Election. A clear distinction must be drawn between the two. And for this Parliament the policy is settled. There will continue to be people who will argue for a fixed date to be set by which we should join the single currency. Some, including a number of inward investors, will push for a commitment now to enter at an early stage in the next Parliament. Others will put forward the case for delay, or as with the Conservative Opposition to rule it out for an arbitrary period of time. The Conservatives argue that joining should be ruled out for a period even if during that time it would be in the national interest to join. No doubt strong pressure in support of one position or another will be brought to bear over the coming months. But our policy is clear. Britain should be part of a successful single currency provided the economic conditions have been met and the people give their consent in a referendum. But the five economic tests have to be met. We will consider if the five tests have been met early in the next Parliament. If the economic tests are satisfied then we could join a successful single currency if that is what the Government, Parliament and the people decide. Unlike the Tories we won?t allow political dogma to triumph over the national interest. We should put the interests of our country first and provide the British people with the opportunity of exercising a genuine choice. And that?s exactly what this Government will do. |
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Other speeches by Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)
(the following are available from the archive) |
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