The EU flag blows at Reichstag building is on October 01, 2013 in Berlin. Photograph: Getty Images.
Show Hide image

How Labour will work for real change in Europe

We need to boost Europe’s competitiveness, avoid a race to the bottom on skills and wages and ensure EU migrants contribute to our economy and our society.

This week Ed Miliband made clear that a Labour government will be as bold in defending membership of the EU as we are in pushing for real change in Europe. Because being willing to speak up for our place in Europe, does not mean being deaf to the concerns that some people have about our membership.

Securing Britain’s future in Europe means the UK needs to work for change within Europe: setting out how the EU can be made to work better for Britain. That is why Labour has set out a reform agenda focused on boosting Europe’s competitiveness, avoiding a race to the bottom on skills and wages and ensuring people coming to the UK from other EU countries seeking work contribute to our economy and our society.

First, on the economy, our reforms will help deliver a Europe focused on jobs and growth, not more austerity and rising unemployment.  An EU Commissioner for growth, and an independent audit of the impact of any new piece of legislation on growth, would be key to helping re-focusing Europe towards this key task. Ed Miliband also announced that Labour is working with British businesses – through the CBI – to agree a plan for the completion of the Single Market in key sectors like digital and services, helping create new jobs and expand our economy in the years ahead.

Second, we will put in place reforms to help do more to ensure that EU migrants contribute to our economy, and to our society. We will work for greater flexibility on transitional arrangements for new member states, including extending the period of time that people from them have to wait before being able to come to the UK to look for work. But EU migration is not just about who should be able to come to the UK, it is also about what those already here should be entitled to. That is why Ed Miliband announced that we will address the payment of benefits to those not resident in this country, and will look again at the rules on deporting EU citizens who receive a prison sentence for committing a crime after arriving in the UK.

Labour has made clear that we do not think it is right that EU migrants should have access to all UK benefits from day one of entering the country, which is why we have called on the government to double the time that people coming to the UK from other EU countries seeking work have to wait before being able to claim Jobseeker's Allowance. None of us want to see a race to the bottom on wages and skills between EU workers and local workers. That is why we will take action to ensure the minimum wage is properly enforced, close loopholes in rules for agency workers, and look at EU Directives designed to prevent undercutting.

Finally, we recognise that any agenda for change in Europe must also address people’s concerns about how power is exercised at a European level. Labour does not support a drive towards an "ever closer union". EU cooperation is important but so too is the role of the UK Parliament. To uphold this principle, national parliaments must have a greater role in EU decision making, and we should be prepared to work to bring powers back to Britain where EU cooperation hinders rather than advances our interests.

No one is today calling for more powers to be transferred from Britain to Brussels. But given the uncertainty about precisely what a changing Europe and further integration in the eurozone might involve, Ed Miliband has acknowledged that a further transfer of powers remains unlikely, but possible. That is why he announced that a Labour government will legislate for a new lock: there would be no transfer of powers from the UK to the EU without a referendum. This would not just be a referendum to ratify a decision on powers, because as we saw in other countries, referendums of this kind are too easy for governments to ignore. Instead, it would have to be an in/out referendum, with a clear choice for the public to make on our membership of the EU.

After Ed Miliband’s speech this week, it is clear that the dividing line on the EU is not status quo vs change. The choice in 2015 is between a Conservative Party fast unravelling over Europe, and a Labour Party committed to working to make the EU work better for Britain. Ed Miliband leads a Labour Party united on what is best for Britain – and committed to delivering real change in Europe.

Douglas Alexander is the shadow foreign secretary and Labour MP for Paisley and Renfrewshire South.

GETTY
Show Hide image

Brexit will hike energy prices - progressive campaigners should seize the opportunity

Winter is Coming. 

Friday 24th June 2016 was a beautiful day. Blue sky and highs of 22 degrees greeted Londoners as they awoke to the news that Britain had voted to leave the EU.  

Yet the sunny weather was at odds with the mood of the capital, which was largely in favour of Remain. And even more so with the prospect of an expensive, uncertain and potentially dirty energy future. 

For not only are prominent members of the Leave leadership well known climate sceptics - with Boris Johnson playing down human impact upon the weather, Nigel Farage admitting he doesn’t “have a clue” about global warming, and Owen Paterson advocating scrapping the Climate Change Act altogether - but Brexit looks set to harm more than just our plans to reduce emissions.

Far from delivering the Leave campaign’s promise of a cheaper and more secure energy supply, it is likely that the referendum’s outcome will cause bills to rise and investment in new infrastructure to delay -  regardless of whether or not we opt to stay within Europe’s internal energy market.

Here’s why: 

1. Rising cost of imports

With the UK importing around 50% of our gas supply, any fall in the value of sterling are likely to push up the wholesale price of fuel and drive up charges - offsetting Boris Johnson’s promise to remove VAT on energy bills.

2. Less funding for energy development

Pulling out of the EU will also require us to give up valuable funding. According to a Chatham House report, not only was the UK set to receive €1.9bn for climate change adaptation and risk prevention, but €1.6bn had also been earmarked to support the transition to a low carbon economy.

3.  Investment uncertainty & capital flight

EU countries currently account for over half of all foreign direct investment in UK energy infrastructure. And while the chairman of EDF energy, the French state giant that is building the planned nuclear plant at Hinkley Point, has said Brexit would have “no impact” on the project’s future, Angus Brendan MacNeil, chair of the energy and climate select committee, believes last week’s vote undermines all such certainty; “anything could happen”, he says.

4. Compromised security

According to a report by the Institute for European Environmental Policy (the IEEP), an independent UK stands less chance of securing favourable bilateral deals with non-EU countries. A situation that carries particular weight with regard to Russia, from whom the UK receives 16% of its energy imports.

5. A divided energy supply

Brexiteers have argued that leaving the EU will strengthen our indigenous energy sources. And is a belief supported by some industry officials: “leaving the EU could ultimately signal a more prosperous future for the UK North Sea”, said Peter Searle of Airswift, the global energy workforce provider, last Friday.

However, not only is North Sea oil and gas already a mature energy arena, but the renewed prospect of Scottish independence could yet throw the above optimism into free fall, with Scotland expected to secure the lion’s share of UK offshore reserves. On top of this, the prospect for protecting the UK’s nascent renewable industry is also looking rocky. “Dreadful” was the word Natalie Bennett used to describe the Conservative’s current record on green policy, while a special government audit committee agreed that UK environment policy was likely to be better off within the EU than without.

The Brexiteer’s promise to deliver, in Andrea Leadsom’s words, the “freedom to keep bills down”, thus looks likely to inflict financial pain on those least able to pay. And consumers could start to feel the effects by the Autumn, when the cold weather closes in and the Conservatives, perhaps appropriately, plan to begin Brexit negotiations in earnest.

Those pressing for full withdrawal from EU ties and trade, may write off price hikes as short term pain for long term gain. While those wishing to protect our place within EU markets may seize on them, as they did during referendum campaign, as an argument to maintain the status quo. Conservative secretary of state for energy and climate change, Amber Rudd, has already warned that leaving the internal energy market could cause energy costs “to rocket by at least half a billion pounds a year”.

But progressive forces might be able to use arguments on energy to do even more than this - to set out the case for an approach to energy policy in which economics is not automatically set against ideals.

Technological innovation could help. HSBC has predicted that plans for additional interconnectors to the continent and Ireland could lower the wholesale market price for baseload electricity by as much as 7% - a physical example of just how linked our international interests are. 

Closer to home, projects that prioritise reducing emission through tackling energy poverty -  from energy efficiency schemes to campaigns for publicly owned energy companies - may provide a means of helping heal the some of the deeper divides that the referendum campaign has exposed.

If the failure of Remain shows anything, it’s that economic arguments alone will not always win the day and that a sense of justice – or injustice – is still equally powerful. Luckily, if played right, the debate over energy and the environment might yet be able to win on both.

 

India Bourke is the New Statesman's editorial assistant.