IWR in the news

13/12/07

Business leader says new EU Constitution a step backwards

Yorkshire Evening Post

The new European constitution could cost British business billions of pounds a year, according to Yorkshire campaigners for a referendum on the issue.

Victor Watson, chairman of Yorkshire for a Referendum, said today: "The British Chamber of Commerce (BCC) estimates that EU regulations introduced since 1998 have cost businesses in this country £40bn. The amount of red tape will inevitably be dramatically increased following the introduction of the new Constitution.

"Under the changed voting rules, several different proposals that are being blocked by the UK could be pushed through. These include the UK opt-out from the 48-hour working week and the proposal to give temporary and agency workers the same rights as full-time employees after only six weeks."

Mr Watson claimed the DTI estimated that losing the opt-out would cost the UK economy £9bn a year, while the Temporary Agency Workers Directive could cost 250,000 temporary jobs.

Reserve

He said the treaty would also end the national veto over energy policy, allowing the EU to pass its proposed directive on increased statutory oil reserve requirements, which could increase Britain's energy bill by up to £6bn a year.

The constitution - which Prime Minister Gordon Brown was due to sign today - would also increase the EU's powers over employment, social security, competition, trade and economic policy.

Mr Watson, a former President of Leeds Chamber of Commerce and former chairman of several Yorkshire companies, said: "To compete in the modern world, business needs a flexible economy with light regulation.

"But the Constitution will take Europe in the wrong direction, towards old-fashioned centralisation and bureaucracy.

"This is why the British people must be allowed their say on the issue in a referendum before Parliament votes on the treaty."