Autumn Statement

Yesterday, the Chancellor of the Exchequer gave the first Autumn Statement since the UK’s vote to leave the EU.

The Autumn statement has revealed the very beginnings of the devastating impact withdrawing from the EU single market will have on the economy. Economic growth will be slower, there will be higher inflation, higher borrowing, and higher debt.

The Office for Budget Responsibility (OBR) has predicted that Brexit could hit public finances by £58.7 billion. The OBR has further forecast a fall in GDP growth by 2.4% due to the uncertainty created by Brexit. Inflation is predicted be 2.8% in 2018, which will cause the cost of basic goods to rise.

While the Chancellor made several positive announcements, including a rise in the National Living Wage to £7.50 per hour and a cancellation in the planned fuel duty rise, the measures introduced in the wake of Brexit are completely insufficient.

Years of Tory austerity since 2010 have decimated the UK economy- UK GDP is close to 20% lower than it would have been if the UK had achieved a paltry 2% growth rate since 2008. Wage growth has been weak due to low productivity, and the OBR has predicted that wages will not return to their 2009 level until 2021.

On top of the difficulties created by Tory austerity, the prospect of Scotland being forced out of the EU single market against its sovereign will has the potential to further harm the economy. Membership of the single market contributes £11.6 billion to the Scottish economy. The independent Fraser of Allander Institute has predicted that a hard Tory Brexit threatens to cost 80,000 Scottish jobs, and cost Scotland’s economy up to £11 billion a year by 2030.

These figures, however, are based upon what we currently know about Brexit, which is still very little. The Chancellor and the UK Government have failed to define exactly what Brexit means, more than 5 months after the referendum.

The Prime Minister, Theresa May, has stated that she will not provide a “running commentary” on the Brexit negotiations. However, the utter lack of information provided by the UK Government on what Brexit actually entails will only serve to create further uncertainty.

Empty Promises and 'Tory con-tricks'

With only 3 days to go until the EU Referendum, some right-wing Conservatives are claiming that Scotland will receive more powers if we leave the EU however I completely agree with the Deputy First Minister John Swinney that this is a “Tory con-trick”. The Tories’ promises seem to be empty ones and furthermore, leaving the EU may actually be dangerous for Scotland’s economy. Remaining in the EU will provide us with guaranteed protection of our human rights, workers’ rights and guard our welfare and economy.

Earlier this week, the unlikely frontman of the Leave campaign Michael Gove MP made a bizarre claim that along with more powers over fishing, farming and health care, the Scottish Government will hold more control over immigration if Brexit goes ahead next Thursday. I believe that these claims hold no merit and are simply a way of swaying Scottish voters to vote in their favour next week.

We only have to look back to the 2014 Independence Referendum to realise we must be wary of such claims. Before the vote, the No campaigners flooded the media with warnings that independence would cause a disastrous loss of over 100,000 jobs and declared that steel workers “across the whole of the UK stand united in solidarity” behind the ‘Better Together’ campaign.

However, just 13 months after the No vote, the UK government stood by and watched the collapse of steel production in Scotland when the country’s last two mills in Motherwell and Cambuslang were shut down by owners Tata. Hundreds of workers found themselves suddenly unemployed and let down by the establishment that had promised them safety before the vote.

The No camp also insisted that workers in the public sector working for HMRC would be safe if Scotland remained in the UK however a few months later, hundreds of workers were left devastated when jobs were axed as plans emerged to amalgamate HMRC’s current network of 18 offices into two major hubs and shut down local offices.

These betrayals are just two examples of how Scottish voters in favour of devolution and independence are targeted by scaremongering campaigns. I find it absurd that the claims are being made by the party who are opposing the devolution of powers to Holyrood and I appeal to my constituents and the wider public to be aware of these false promises made by the Leave campaigners.

Westminster still holds control over areas such as pensions and benefits. Brexit would ultimately lead to Westminster obtaining further powers over areas such as basic human and workers’ rights which we all hold dear and need to be protected. I have previously spoken out against the scrapping of the Human Rights Act (1998) in my May blog post “A British Bill of Rights?” and objected to this being replaced by a new British Bill of Rights. I fear that leaving the EU would pose a severe risk to our rights and want to fight against those who seek to destroy the various workers’ rights and employment protections that are guaranteed to be protected by the European Union.

If we vote to Remain in the referendum next week, the future of Scotland looks bright. Under, the Scotland Act 2016 legislative competence for certain areas of social security will be devolved to the Scottish Parliament which means they will be able to control a wide range of Social Security benefits such as benefits for carers, Disability Living Allowance, Discretionary Housing payments and many more. Over the last 3 years, the SNP have invested more than £90 million in Discretionary Housing Payments which means the Bedroom Tax has been abolished for those households in Scotland affected. It is estimated that the total value of benefits to be devolved is around £2.7 billion. It will also be given the power to create other new social security benefits in areas not connected with reserved matters and support unemployed people through employment programmes.

With polls in this referendum being undoubtedly tight, we in Scotland have a major part to play in the outcome of the vote. Information is emerging daily supporting both sides of the debate and I encourage the Scottish people to consider the intentions behind claims before making a decision. These fierce right wing Tories do not have Scotland’s best intentions at heart and I urge voters to protect their own rights and the rights of those around them by voting to Remain.

 

The Impact of the EU to the Local Food and Drinks Industry

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.

The Benefits of EU Tourism

One of the many benefits of the European Union to Scotland is the support it provides to the Scottish tourism industry.

In 2014, 1.5 million people from EU countries outside the rest of the UK visited Scotland, amounting to 10% of the total visitors to Scotland. Not only are EU visitors a substantial portion of those who choose Scotland as their holiday destination, they are also big spenders. Tourists from EU countries spent £800 million, around 40% of international visitor spend. Visitors from France, Germany, and Spain alone spent £381 million in 2014.

Scotland’s airports saw 1.8 million overseas residents walking through its terminals with over 1 million, or 57% of the total, of those coming from the rest of the EU, outside of the UK. Glasgow Airport in particular has secured direct routes to key European cities, such as Madrid, Prague, Milan, and Budapest.

With Scotland’s vast attractions, from the desolate beauty of the Highlands to vibrant, historic cities of Edinburgh and Glasgow it is easy to see why our small country has so many visitors from the EU.

But it is not only major attractions which see large numbers of visitors, but also those we have locally, such as the Summerlee Museum of Industrial Life. Summerlee has some of Scotland’s most important displays of social and industrial history. We often fail to realise what we have right on our doorstep, but Summerlee is just one example of what the local area has to offer to the tourism industry.

These advantages of EU tourists visiting Scotland are, of course, in addition to the benefits we get as tourists visiting the EU ourselves. The EU allows us to travel hassle-free to numerous European countries, as well as helping to keep down the cost of trains, ferries, and airfare. In addition, the healthcare guarantees with the European Health Insurance Card (EHIC) allow us all to travel with peace of mind.

The EU makes Scotland an attractive market in Europe for tourism, and provides us with affordable, hassle-free access to travel in Europe. It would be to the detriment of both the Scottish tourism industry and those of us who travel to Europe for business or pleasure alike for Scotland to leave the EU.

Benefits of the EU to Coatbridge, Chryston and Bellshill

As many will be aware with the campaigns on both sides ramping up, the referendum on the UK’s membership of the European Union is rapidly approaching, and will be held on the 23rd of June 2016.

I am in favour of remaining in the European Union, as I believe it brings substantial benefits to Scotland. The EU is the main destination for most of Scotland’s exports- annual exports from Scotland to EU countries outside the UK are worth nearly £13 billion, and help support 336,000 jobs. In addition, EU companies add nearly £16 billion to Scotland’s economy. Between 2014-2020, Scotland will be in receipt of €985 million in direct funding from the EU.

However, I realise many of the arguments, statistics and figures quoted in the media from both sides of the issue tend to focus on the aggregate, UK-wide effect of the EU, making the local impact more difficult to discern. As such, I felt it prudent to discuss why I believe membership of the EU is a benefit to Coatbridge, Chryston and Bellshill. These reasons can widely be divided into three categories: household benefits, local investment, and workers’ rights.


Household Benefits

The EU, as a trade block, means that international trade within the EU is tariff-free. This, in effect, means that Scotland’s imports are less expensive. Less expensive imports mean more affordable fruit and vegetables on supermarket shelves, more affordable household goods and lower cost of living. Annual savings from these lower prices are estimated to amount to £350 per person.

In addition, EU subsidies to industries such as farming help to keep household costs down. Scottish farms receive €580 million a year in direct subsidies from the EU, which help to keep our groceries less expensive.

Despite claims made by Euro-sceptics, the UK’s membership of the EU has helped to drive up salaries, rather than push them down. The Treasury has calculated that EU membership has increased average UK salaries by £1,800 per year.

Overall, EU membership amounts to a net gain of £3,000 per year, per household from the effect of lower prices, increased trade, more jobs and investment.

Given that the median household salary in Coatbridge, Chryston and Bellshill is approximately £20,000 per year, the benefit of EU membership represents fifteen percent of household income in the area.


Local Investment

While we do pay into the EU, Scotland receives significant funding from the EU via its many investment and development projects.

Between 2000 and 2006, North Lanarkshire council received £19.5 million in direct funding from the EU. Between 2007 and 2013, this figure was £8 million. The Council has used these funds for a number of purposes, including employment projects, regeneration projects and investment in infrastructure.

In addition to these direct funds to the council, the EU has a number of Scotland-wide projects which benefit the area. Between 2007 and 2013, European Structural funds improved skills for 135,000 people across Scotland. This helps to make our economy stronger, and gets young people into work.

In 2012, New College Lanarkshire (then Coatbridge College) received a grant from the EU of £1.5 million for a vital refurbishment project.


Workers’ Rights

In April I spoke at the International Memorial Workers’ Day at Sumerlee Heritage Museum. The event was a stark reminder of how far we have come protecting workers, given the mining and steel industry heritage of the local area. Many of the laws in place to protect workers come from the EU, rather than the UK Government. These rights include paid maternity and paternity leave, guaranteed holiday leave, the right to not be discriminated against based upon age, race, or gender, and the right to work no more than 48 hours per week.

In 2015, we witnessed changes to health and safety for those who are self-employed. What about those who are self- employed, but not through choice? I know many young people in particular, who although they are self-employed are working regularly for the same company, unfortunately without any of the benefits which should come with employment such as sick pay or holiday pay.

This is a health and safety risk – working when you are sick because you have to put food on the table. Or never getting a break from repetitive work because you can’t afford to take any time off.

This is why we need strong trade unions as well as strong laws. Not just to prevent the major catastrophes but to also keep a decent work/life balance in our lives, and to ensure that as well as fair pay for a day’s work that fair conditions are available keeping us all healthy and safe.

Being a member of the European Union has had a huge impact on Health and Safety at work in the UK. It has given us the solid, legal framework covering the maximum number of risks with the minimum number of regulations. So how would UK health and safety record fare if the UK votes to leave the European Union? In my opinion, there is safety in numbers.

Just as it makes sense to be part of a trade union, it also makes sense to part of a larger, louder collective, across the European continent.

You deserve to be looked after and we must keep insisting that our health and safety at work is a priority for our employers. It makes sound business sense to keep a workforce healthy.

Given the substantial contributions the European Union makes to Coatbridge, Chryston and Bellshill, from keeping household costs low to protecting workers and investing in our youth, I sincerely believe that leaving the EU would negatively impact not just Scotland as a whole, but our local community as well. This is why I will be joining the campaign for Scotland to remain in the EU.

If you would like to learn more about the issues pertaining to EU membership, and how they impact on Scotland, you can find out here: http://www.scotlandineurope.eu/