EU Referendum


EU Referendum: we need a better vision


05/03/2015



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Some might suppose that we would "walk through" the latest Farage statement on immigration, except that the only question to ask is: why is this news? Making it up as he goes is not going to get Farage anywhere near a sniff of power, so his latest U-turn is of very little long-term relevance.

In fact the only thing of any interest that Farage managed to say yesterday was: "You cannot have anything in politics without people obsessing over caps and targets and I think people are bored of it".

Of real relevance in the longer term, however, is the vexed question of "over-regulation" which has been briefly in the headlines. But, except for those who are most engaged in seeking to "expand the envelope", the details would also be regarded as "boring" by most people.

Supposedly one of the skills of the media, though, is the ability to take ostensibly boring detail and put it into a context that makes it interesting, accessible and relevant – and even entertaining. But, such is the nature of the modern media that it is no longer up to the job – if it ever was.

This still leave the essential issues to address, which are very far from boring, and which strike at the heart of the way we are governed. One of those is that the blind mantra of "EU red tape" harming industry, one of those memes that has been doing the rounds for over twenty years.  It is one that, in fact, is way past its sell-by date and one which is no longer of any great service to the anti-EU movement.

For sure, there are many business interests which will complain about over-regulation, usually out of narrow self-interest. If there is financial advantage to be gained, they will argue against regulation, whether it is necessary or not. And if there is advantage to be gained from making the EU the whipping boy, then those self-same business interests will jump on any passing bandwagon.

Yet, for the ordinary voting public, the regulation of business is not that unpopular – most will be largely indifferent to it, or vaguely in favour. And, when it comes to the "banksters" and other malefactors, regulation is more popular than not. Anyone seeking to sell a ticket of cutting regulation on business is going to gain less traction than they might otherwise imagine.

On the other hand, there is some logic in the EU mantra of having 28 sets of regulation replaced by a single set. For exporters, trading across the Community, this does substantially ease business, it does promote trade and, even according to independent academic studies, does reduce costs. To that extent, there is some research to indicate that regulation is a trade lubricant, and the trade in regulated products is higher than in those where there is no regulatory control.

Furthermore, according to such studies, in certain sectors, differences in [national] standards do have a significant negative effect on trade - which is why, of course, industry spends so much time lobbying for regulation, and assists in it formulation, funding studies and providing sector experts. They are aware of what the WTO points out, that so-called "non-tariff measures" – some arising from the lack of harmonisation - "can be as trade-restrictive as tariffs, and even more so in the case of certain high- and middle-income countries".

As the other half of the Booker-North duo who virtually invented the "EU red tape" meme some twenty years ago, I perhaps have a better grasp of this than most. The issue has never been one of regulation per se. It was mostly one of poor regulation, our catchphrase, "the sledgehammer to miss the nut". Then, a major part of the problem was enforcement - the "Mad Officials" who misapplied the law or who were clumsy in its application, creating unnecessary burdens.  

Arguably, therefore – and this is precisely what I do argue – the "red tape" agenda is not going to win us the referendum battle. At best it will capture the support of some in the business community – and the opposition of others. With skilfully exploited FUD, the agenda could backfire on the "out" campaign. If we left the EU without making the appropriate provision, for instance, we would no longer have any hygiene control on food shops, factories and restaurants. 

Nevertheless, in campaigning terms, the arguments that the pro-EU lobby uses can be turned to our advantage. They argue that a single set of regulations for 28 EU member states makes for more and cheaper trade. This is not a problem. That effect must be even greater with standards common to all 160 WTO members, and that is where we should be.

Since so many standards are now made at global level, we would be far better off breaking out of the constraints of "little Europe" and rejoining the world, where we would have a much more powerful voice in setting the global agenda. The globalisation agenda, that so many seem to be determined to ignore, could work powerfully in our favour, and become a game changer.

On top of this, since global business is carried out on an intergovernmental basis, the benefits to be gained from working together do not carry with them the price of loss of sovereignty, and we are no longer subject to the rule of institutions such as the ECJ.

The point thus, in terms of campaigning, is that we must question the old arguments, the old mantras and the same tired old strategies. If we are going to have the slightest chance of winning, we need fresh ideas and new ways of presenting them. "Globalisation" is one of those ideas. As a campaign tool, EU "red tape" is a relic – we need a better vision.