Press Release

FSB urges MPs to consider business view in EU Treaty

January 21 2008

The Federation of Small Business (FSB) is renewing calls for a referendum to take place on the EU Reform Treaty.  This call coincides with the Second Reading of the European Union (Amendment) Bill. Serious questions have been raised about the new EU Treaty affecting UK industrial relations.

The UK has secured a written guarantee that the Charter cannot be used by the European Court of Justice to alter UK employment laws. However, there are legal experts who say that this written guarantee may not be effective.  This would mean that small businesses could face further complexity in employment laws, adding to an already increasing burden of red tape.

Members of the FSB overwhelmingly (90%) voted ‘yes’ when asked whether there should be a referendum on the new EU Reform Treaty.

John Walker, FSB Policy Chairman, said:

“Today MPs must listen to the views of small businesses when debating this Bill.  We are reminding politicians that it is small businesses, after all, that may have to deal with increasing complexities in employment law. 

The new EU Reform Treaty makes the Charter of Fundamental Rights legally binding.  We are, however, deeply concerned that despite the written guarantee that the Charter will not apply to employment law in this country, the UK’s position is open to legal challenge.

“The Government should stick to its promise of holding a referendum on the proposals. The packaging may have changed but the provisions are almost identical. We cannot afford to downplay the implications in any way.”