BREXIT DEBATE SUMMARY - Home | RSM UK/media/files/rural-services/rsm...SUMMARY Speaking at RSM’s...

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BREXIT DEBATE SUMMARY 6 May 2016

Transcript of BREXIT DEBATE SUMMARY - Home | RSM UK/media/files/rural-services/rsm...SUMMARY Speaking at RSM’s...

Page 1: BREXIT DEBATE SUMMARY - Home | RSM UK/media/files/rural-services/rsm...SUMMARY Speaking at RSM’s Brexit debate, focused on rural business were: • Rt Hon Mr Owen Paterson MP •

BREXIT DEBATE SUMMARY6 May 2016

Page 2: BREXIT DEBATE SUMMARY - Home | RSM UK/media/files/rural-services/rsm...SUMMARY Speaking at RSM’s Brexit debate, focused on rural business were: • Rt Hon Mr Owen Paterson MP •

SUMMARYSpeaking at RSM’s Brexit debate, focused on rural business were:

• Rt Hon Mr Owen Paterson MP

• Rt Hon Sir James Paice

The chair, ex-President of the CLA, Harry Cotterell, opened the event by thanking RSM for organising the debate, with speakers who are real authorities on agriculture.

PURPOSE OF THE EU

When questioned on the purpose of the EU, Mr Paterson said that the UK joined the EU, a supranational state, for the free market but it quickly became political. Mr Paterson claimed that “we are on the outside, under the cosh of the Council and outdone by the Court, with a bust Commission on our hands” and that as every constituency has an agricultural interest we need to ensure we are in a position to improve and protect the environment.

Moving on, Mr Paterson claimed that as we will never join the Euro, this is an opportunity for us to walk away.

In response, Sir James held that we need “cool, calm and rational thought”, adding that what it would be like on the outside is pure speculation as no one has ever left. Quoting David Cameron, Sir James claimed that we will never join the Euro, and if there were to be another crash we would still have to contribute anyway.

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SUPPORT FOR AGRICULTURE IN A POST-BREXIT UK GOVERNMENT

Mr Paterson suggested that in the UK, you need to trust in the ability to elect people to government. He argued that you cannot change legislation in the EU and there is no certainty where the European Commission’s money will be spent, but with UK control you can lobby, challenge and change legislation. You have more control over the situation.

He added that there is a real interest in the UK to focus on the rural environment. With an estimated £20-30bn spent on rural tourism every year, he felt that this pretty much guaranteed continued public expenditure in this sector.

Countering this, Sir James claimed that as there are stronger rural communities in the EU, the UK receives more attention in this sector. In the UK, the focus will be on construction and finance, as these are our biggest industries.

Sir James agreed with Mr Paterson that should we leave the EU, there would be environmental payments, but countered that with the question of Osborne’s budget black hole and funding for the NHS, and suggested that these payments would disappear quickly. Sir James continued on to reference a statement made by the leadership of the Leave campaign last week, Michael Gove, who had announced that with Brexit comes cheaper food prices, and made it clear that rural businesses would be the ones to suffer.

Mr Paterson noted that there is £10bn to play with should we leave the EU, plus the money that is put towards CAP, in addition to the £3bn that is already spent on agriculture by the UK government, speculating that we may end up spending as much as Iceland and Sweden on agriculture, whilst also spending on our hospitals.

A focused, specific trade agreement would be more beneficial and easier to negotiate than a battleship like TTIP.

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TRADE AGREEMENTS

Sir James put forward his view that people invest time negotiating access to British products, but they will only spend time negotiating on the most profitable deals, and pointed out that we would easily be dropped in favour of something more fruitful.

In return, Mr Paterson recalled his visits to China, to focus on the trade of pig meat and beef. Mr Paterson stated that the Chinese are really keen on a relationship with us, and that chicken’s feet would be a significantly lucrative market for the UK to get in to.

Continuing on, Mr Paterson claimed that we suffer from being in the EU when negotiating trade deals, as other countries will not make the compromises we need when negotiating major trade deals. We are well situated to negotiated bilateral deals with China and India, he asserted. Mr Paterson went on to say that there were, in fact, not enough distilleries in Scotland for India and that we should not underestimate the value of our food products.

Mr Paterson noted that a focused, specific trade agreement would be more beneficial and easier to negotiate than a battleship like TTIP.

In retort, Sir James stated that the sticking point in the Indian trade agreement is the immigration impact, as India want free access for their people into the UK.

In answer to this, Mr Paterson claimed that if we want to sell whisky to India, and if they want to negotiate free access, on a sustainable basis, then that would be ideal for both sides. We can control the burden of immigration and manage it, getting the right people in, he said.

On the subject of immigration, both Mr Paterson and Sir James agreed that people will always want to come to the UK, not for the benefits, but to work hard.

UK Brexit would send a shockwave through Europe.

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…with Brexit comes cheaper food prices… rural businesses would be the ones to suffer.

GM FOOD

Mr Paterson opened this topic by arguing that it is tragic that the EU has held us back in this arena and that these isn’t currently a single product that we could sell now or that we could plant. Mr Paterson noted that there is vast GM growth globally and the advantages are obvious, citing an example from South Africa.

Moving on, Mr Paterson suggested that the green crowd is very powerful in Brussels, and that the UK would be better off in charge of making its own decisions, basing them on scientific advice.

“I am just as enthusiastic about GM food” Sir James responded. Continuing, he said that we are now beyond genetic manufacturing, and we are now at the stage of gene editing. However, he claimed, we must be realistic as the problem in the UK existed prior to the EU. Sir James referenced anti-GM newspaper campaigns which occurred in the late 90s, as well as several EU propositions that were turned down by the UK government.

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THE BREAKUP OF THE EU

“UK Brexit would send a shockwave through Europe,” Mr Paterson began. He said, everybody knows the EU is not working – we would all like to co-operate, but not under a supranational organisation. Mr Paterson suggested that we are well integrated with Germany, because of our automotive industry for instance, and would work well with them in a post-EU world.

In response, Sir James asked whether the UK would care if the EU collapses. He stated that it would be a wake up call to the EU, and there is a lot wrong with the system, but fundamentally he did not believe we would be better off leaving and if we did, it would not herald the end of the EU.

A SECOND REFERENDUM

Finally, Mr Paterson said that this whole debate is changing the dynamics of British politics. Up to now, the idea of leaving the EU has been considered an extreme view, but Brexit is now on the agenda properly, he said. Mr Paterson suggested that whatever happens, it will be close and the UK government cannot ignore it as the debate would not stop.

Arguing against this, Sir James stated that there is an unwillingness to accept a democratic decision. “If we vote to leave, we leave, but if we vote to stay, we stay”, he said. Sir James expressed sadness at Mr Paterson’s comments as he asked everybody to “accept the democratic decision”.

In closing, Sir James claimed that this battle is damaging to the UK and we cannot sustain this debate. He said that we must accept the decision either way, very much hoped that it would be a vote to stay.

There are stronger rural communities in the EU, the UK receives more attention in this sector.

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SUMMARY OF RESULTS FROM ENTRY/EXIT POLL

26% Leave

45% Remain

29% Undecided

ENTRY POLL

50% Leave

41% Remain

9% Undecided

EXIT POLL

There was a large swing at the close of the debate, from ‘undecided’ to ‘leave’.

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Sharon Omer-KayeTax PartnerT +44 (0)1793 603 300 M +44 (0)7855 314 990 [email protected]

Sharon is the national lead for RSM rural services. She is an experienced tax partner and managing partner for RSM’s Swindon office. A Chartered Tax Adviser, Sharon is currently branch chair for Wiltshire and Gloucester Society of Trust and Estate Practitioners.

She advises individuals, OMBs, trusts and overseas entities on matters such as protecting family wealth, trust/estate planning, business strategy and domicile/residence issues with particular specialisms in the rural and international sectors.

Lucie HammondTax PartnerT +44 (0)1793 603 300 M +44 (0)7809 629 952 [email protected]

Lucie leads the RSM rural services for the Southern Region. She advises businesses, OMBs, private clients and trustees on business and taxation matters.

Lucie provides pro-active advice and across the rural sector including landed estates, agriculture, bloodstock, racing and equestrian businesses.

Lucie is a member of the Country and Land and Business Association (CLA) and is an active branch committee member.

Elsa LittlewoodTax PartnerT +44 (0)1793 603 300 M +44 (0)7442 535 406 [email protected]

Elsa is a private client tax specialist with a wealth of experience in advising owner managed businesses, wealthy families and trusts. She has particular expertise in the rural sector and in international taxation of individuals and owner-managed businesses.

Elsa is a committee member of the Wiltshire branch of the Country Land and Business Association and has been the lead taxation speaker at the CLA Tax and Asset Preservation events in recent years.

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