The food and drinks industry has a substantial presence in
the local area, bringing investment to our community and creating jobs. It is
also an industry which has flourished due to the single market and alignment of
regulations created by the EU.
The single market means that inward investment to Scotland
is made easier for European countries. While this benefits Scotland as a whole,
it also impacts on our local community. For example, Muller, the German dairy
producer, recently announced that it will be investing an additional £15
million in its Bellshill plant. This investment will bring new jobs to the community
and help to boost growth in the local area. Notably, Muller’s recent investment
in Bavaria involved expansion into whey and bio-ethanol fuel. If the Bellshill
investment is structured in a similar way, this could mean investment in both
the local food and drinks industry and in green energy.
The EU single market means that imported ingredients are
tariff-free, helping to keep production costs down. Likewise, the single market
means that Scottish exports to the EU are tariff-free, helping to keep consumer
prices down and encourage growth.
This is particularly pertinent given the iconic Scottish
food and drinks producers headquartered in our area, including Barr in
Cumbernauld, Lee’s in Coatbridge, and Angus Dundee Distillery in Coatbridge.
All of these producers export products both to the EU and further afield,
notably with Angus Dundee Distillery exporting to over 70 different countries.
Opponents of EU membership argue that the regulations
surrounding food and drinks products in the EU are restrictive for growth. However,
in reality, these rules keep prices down and encourage export growth by helping
to align regulations across countries.
Outside of the EU, Scottish producers would be required to
adhere to EU regulation to be able to export in Europe. However, they wouldn’t
get a say in the creation of these regulations. Norway implements EU law more
thoroughly than any other country, despite the fact that it is not an EU member
and does not have any say in the creation of EU legislation. Adherence to EU
regulation is a requirement for Norway to export to the EU, as it would be for Scotland
were it to leave the EU.
If Scotland were to leave the EU, and regulations for food
and drinks producers were to change, Scottish producers would still be required
to produce products which adhere to EU regulations when exporting to the EU.
This means that producers would be required to produce at least two types of
product: one for the EU export market which adheres to EU regulations, and
another for the domestic market, which adheres to UK regulations. The
requirement to create two different types of product for the UK and EU markets
would result in higher production costs, thereby driving up prices. By
remaining in the EU, Scottish producers benefit from the savings created by
aligned regulation across the domestic and EU markets.
Scotland’s trade with the EU is too valuable for the economy
to lose. 42% of trade is with European countries, with a total value of £11.6
billion in 2014 alone. Additionally, given the significant employment created
by food and drinks producers in the local area which export to the EU, it is
too valuable for our community to lose.
The referendum is now just over two weeks away. Scotland
cannot risk sleepwalking into leaving the EU. I would encourage everyone to
make sure get out and vote to Remain in the EU.