Where CDL stands on Brexit – the economic case for staying in Europe is spelt out by CDL’s founder Tom Hogg.
With the EU referendum just days away, and business leaders up and down the UK becoming increasingly vocal about the issues at stake, CDL Group Chairman, Tom Hogg, sets out his perspective on why exiting the European Union would spell bad news for Britain – and threaten CDL’s growth ambitions.
“First and foremost, the case for staying in the EU is an economic one,” establishes Tom.
“The single market it’s created is the world’s largest economy, giving Britons free trade access to a region with over half a billion people. This relationship has worked very much in our favour – almost half of UK exports go to the EU, whereas EU exports into the UK stand at just 8%.
The bigger picture
“Unfortunately, people are losing sight of the underlying principles, goals and achievements of the EU as the debate descends into personality attacks and political in-fighting.
“The origins of pan-European union arose from a positive post-war vision of peace and prosperity in Europe. The powerful trading area that has arisen as a result has transformed many countries beyond recognition.”
In simple terms, membership of the EU means free movement of people, goods, services and capital, making it easier and cheaper to export to Europe, and making Britain a more attractive place for foreign companies to invest.
“Our location within the EU free trade area has undoubtedly helped to attract overseas manufacturers to base operations here – take the motor or aerospace industries as two significant examples,” continues Tom.
“As a small island nation, we have limited natural resources, and with our own manufacturing sector declining, this ability to attract inward investment has become increasingly crucial.”
The EU has also been instrumental in leading the way on the environment and supporting employment rights, acting as a catalyst for family friendly policies promoting a positive work- life balance: “As with any political organisation, it’s too easy to point out the flaws, while forgetting the positive changes brought about through EU reforms,” adds Tom.
The UK is also the greatest recipient of R&D grants to support innovation, and CDL has received over £3 million in EU R&D funding in recent years, contributing to our investment in Strata and our sustained expansion.
Single market for insurance
For CDL, the ability to trade in Europe was critical to its early development. The company’s first major contract with Brother International saw it win a brief to computerise the accounts systems in their European offices.
“It was the success of this project which enabled CDL to invest in the development of an insurance package and focus our business in this market,” explains Tom. “Out of that, we’ve evolved into the CDL which people recognise today.”
CDL’s current client base is distinctly pan European. “The likes of Swinton, Ageas and Allianz are all headquarted in the EU – and our membership of the union makes it easier for them to operate in the UK,” continues Tom.
“Moreover, the EU is actively looking at ways to promote further competition and innovation in the insurance marketplace across Europe. With our technology, contacts and ambition for international expansion, we are ideally poised to take advantage of deeper integration of the European market for financial services,” continues Tom.
Consultation on the EU’s Green Paper for Retail Financial Services has already taken place, seeking to remove barriers to trade in financial and insurance products. Other measures, such as the recent Insurance Distribution Directive will bring further harmonisation to the EU insurance marketplace by 2018, and its Digital Single Market Strategy recognises the central role of technology in facilitating this trade.
“The UK is currently the most sophisticated marketplace when it comes to digital distribution of insurance, and the fact that CDL is a leader in this sector means we’re in pole position to capitalise on these developments as they unfold.
“However, there is no doubt that we would have a tougher pitch in this scenario as an EU outsider.”
Tom points to the risks to CDL’s business presented by the prospect of a period of uncertainty as Britain seeks to establish its place in a new world order.
“Starting from scratch in terms of negotiating new bilateral trade deals is likely to be a lengthy endeavour, risking leaving the UK stagnating while the rest of the world moves on. An exit will inevitably bring challenging trading conditions which are likely to slow our growth,” he concludes.
Cultural exchange
While people are generally comfortable with the trade benefits of moving products around, it is the movement of people – migration – that has become an increasingly emotive topic, often portrayed as a threat to jobs and a potential drain on the economy.
“The reality is that people are the most valuable resource of any country and every economy needs a workforce to drive it,” argues Tom. “Migrants often bring with them a strong work ethic and a contribution that enhances our prospects of creating a richer, more diverse nation.
“Equally, the chance for British citizens to travel, work and study abroad creates opportunities and a more open global economy.
“In any debate, there is a danger of oversimplifying the issues, but the idea of returning to a world where we try to build walls to keep people out is to succumb to the fear and suspicion that holds people back, rather than having the confidence to embrace the opportunities presented by freedom of movement in a diverse world.”
Influence in a modern economy
Ultimately, Tom points to the importance of people really considering what kind of world we want to live in. “This is an emotional decision about the future of the country as much as a rational one. Both the threats and the opportunities which lie ahead are international in nature and require a co-ordinated, united response to be effective.
“In this age of globalisation, our chances of positive world influence are far stronger from within the EU than outside it.
“This is a significant moment in determining Britain’s future and the vote on 23 June is people’s chance to influence which way we go. There are extensive resources available on the referendum debate, and I hope people will take the time to consider these so they can make an informed decision. Above all, I hope that everyone will exert their democratic right to vote on the issue on 23 June.”