Lack of competitiveness and red tape the big worries in EU vote

The debate over our membership of the European Union has, on occasion, descended into scaremongering over immigration and national security but the business community has tended towards a more mature and informed debate.
Prime Minister David Cameron   Photo: Chris Radburn/PA WirePrime Minister David Cameron   Photo: Chris Radburn/PA Wire
Prime Minister David Cameron Photo: Chris Radburn/PA Wire

While more members of my organisation, the Institute of Directors, started from the position of in than out, the majority were waiting to see the terms of David Cameron’s renegotiation with the EU before making up their minds.

And while the deal appears to have helped some to reach a decision, a large part of our membership remains undecided.

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A recent survey found that three times as many IoD members thought the agreement was good for business compared to those who thought it was bad. Overall, however, they said that the package was not likely to be the decisive factor in how businesses voted in the referendum.

It is apparent from regular surveys of IoD members through our Policy Voice network and from informal discussions that many are unhappy with the status quo.

Their key concerns, as business people, are around a lack of competitiveness and red tape – a feeling that intervention in labour markets has gone too far.

They are less concerned with immigration than many sections of society. In fact, generally speaking, businesses find access to the widest possible pool of labour to be a good thing. I speak to many business owners who say they are unable to find the skills they require without looking to recruit from the wider EU market and beyond.

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The February deal with the EU did contain real commitments on addressing competitiveness and those were welcomed as a useful starting point by the IoD.

One might suspect that consensus-minded bureaucrats will always come up with something they hope will keep everyone happy, but there may be issues further down the track as politicians feel pressure from their own electorates.

Whilst business people may make their decision to vote remain or leave with their corporate hat on, many will also examine the wider issues. There are sound arguments that the democratic deficiency in EU structures is unacceptable and that democracy has proved to be the best foundation for prosperity.

It would be foolish to allow an undemocratic structure to develop on the complacent belief that it will always be mostly inhabited by friendly social democrats. Our members may or may not feel that a clear commitment that the UK is not part of an “ever closer union” is an adequate safeguard of at least our democracy.

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There will be many who, having heard the detailed arguments for and against Brexit, will just go with their gut feeling on whether the future is more secure if we fully engage with the EU or if we disengage.

The difficulty for the former is that it’s impossible to know what the future EU will look like. The difficulty for the latter is that, even though we might be an island, it’s impossible to disengage as much as some might like from our principal trading partners and allies.

As an organisation, the IoD is not campaigning for either side. Instead, we are consulting with, and informing members so they can make a reasoned decision. From the events we have held with members in Yorkshire, it is clear there is real passion in the debate and a thirst for knowledge.

There isn’t a right or wrong answer in the referendum. I’d urge everyone to fully understand what’s at stake before casting their vote on June 23. The outcome will have a lasting impact on the way we all do business in the future.