Europe - impact on jobs

Needless to say there is much bluster in the media at the moment surrounding Europe, with the much hyped - and delayed - speech from David Cameron receiving countless newspaper column inches.  

Seemingly everyday there is a media commentator or politician talking about the merits of an 'in or out referendum', 'sleep walking to the exit door' or 'repatriating powers'. 

You would have thought that in the midst of a decade of austerity and no growth the focus would be on securing jobs and growth. But no. Questions of treaty amendments, sovereignty and referendums - important as they are - dominate. Too little attention has been paid to what Europe means for jobs here in the Midlands and UK. 

Everyone knows intuitively that Europe is vitally important for the UK economy. Even those advocating withdrawal from the EU recognise the intrinsic importance of the huge trading area on our geographical doorstep. Europe is vital to our economy.  

But what about some data about the relationship of Europe to jobs? Well, a report written in 2000 by the Economists at South Bank University provides some interesting food for thought

The headline figures in the report suggest that about 2.5 million jobs rely directly on the export of goods and services to EU countries, with a further 900,000 jobs created indirectly by trade with Europe. Of particular interest to the Midlands, the report suggests that some 666,386 jobs in our region are reliant, directly or indirectly, with Europe. 

Clearly, the report was written in 2000 and therefore the figures would be slightly different today. However, one of the authors of the report, Professor Iain Begg, in 2011 stated that the numbers would undoubtedly be different today, but not by a huge amount.  Therefore, it is reasonable to use these figures as a useful signpost in the jobs debate.

Now, nobody is claiming that if the UK left the EU that all of these jobs would instantly disappear. The UK would continue to trade with Europe - in or out. Nevertheless, I think it is fair to assume that the UK would be put at a competitive disadvantage. 

Firstly, are we better off with a seat at the negotiating table that determine the rules that will, irrespective of whether we are in or outside the EU, have an impact on UK trade and jobs? Would the countries remaining inside the EU, when debating the rules governing the single market, be altruistic in considering British interests - ahead of jobs within their own country? I think that answers its own questions. Each member state has a duty to its own populations. Who will fight for UK jobs and interests?

Secondly, will the UK remain such an attractive location for foreign direct investment (FDI) if the UK is no longer in the EU? Take Toyota as an example. Toyota has brought thousands of jobs (both directly employed and in supply chains) to Derby, since the plant opened in 1989. Would Toyota have chosen to invest in the UK if we had not been in the EU? Surely a country within the EU is the attractive option?

We can't compete on wages. Our advantages for FDI rely upon our access to European markets, advantageous timezone and the English language. Whilst it is fair to assume that the language advantage will remain over the continent - the French, for example, are hardly likely to adopt English - we are not the only English speaking trading nation within the EU. Ireland also has that advantage. Have we heard this in the public debate?  And, without question, being outside the EU will provide uncertainty for FDI. And the ongoing uncertainty is risking FDI opportunities today. We need this resolving.

We can safely say that hundreds of thousands of jobs here in the Midlands are dependent on trade with the EU. And given the economic hard times we are all living through, any threat to current and future jobs should receive the utmost attention. 

So a plea. Amidst the usual noise and bluster in the Europe debate - let us put jobs and the interests of ordinary working people first and givem the priority they deserve.