NORTHERN ROCK (from my piece for the Guardian website)

I was asked to write a piece on what the government should do next in the Northern Rock refinancing saga. Those most closely involved – the company, shareholders, the Bank of England and the government – will need to take professional advice on the legal, tax and investment complexities they have dug themselves into. The general position however, remains much simpler than those who clamour for nationalisation suppose. The government as main lender has all the power it needs to protect taxpayers, whcih should be its prime aim. I sent the following to the Guardian:

The government seems to have been mesmerised by shareholder power. I don’t know why. The truth of the position is simple. Northern Rock needs access to large sums of public money to keep its business going. There is no other source for this money in the short term. The government can therefore set out its terms.

It is wise to seek agreement with shareholders and the mortgage Bank, but foolish to underestimate the power in the government’s position. The taxpayer wants the government and the Bank of England to do a good deal, which saves the bank and ensures the taxpayer will get early repayment of the large sums with interest. The taxpayer should also be rewarded with stock warrants or options to give the taxpayer some share in success, if the rescue works well and the shares recover.

The rumoured decision to demand the end of the guarantee in three years rather than the originally floated five years changes the nature of the task any owner of Northern Rock faces. It means they need to generate more cash more quickly, or to be sure they can raise private finance more quickly. Assuming the government changed the terms on offer like this, it should ensure all potential bidders know, and each bidder has to be given a chance to change their bid in the light of the new circumstances. Presumably the government realises if they press for a shorter repayment period it will increase the pressure on management to cut costs, and may result in a smaller business. This does not mean it is wrong, as the taxpayer does want to know the money will be repaid sooner rather than later.

In order to decide between the competing bids, the shareholder representatives have to satisfy themselves they are recommending the best bid in the circumstances to improve shareholder value and give the business the best chance of future prosperity. It is not for the government to decide which bidder, but it is for the government to make its terms as Bank manager clear to all bidders. Given the scale of lending to the company the government has an effective veto on any bidder, as the government could decide (only if there were good reason) that a particular bidder did not satisfy the government that it was likely to be able to repay the loans in good time.

From the beginning the government has failed to tell us how much it has lent, what interest rate it will charge, when it will b e repaid and how much security it has taken for the loans. These are all elementary parts of good banking. Let us hope these necessary arrangements were made to protect the taxpayers’ interests. Now there is the chance of shareholders putting more money in, or a of a new plan by management to develop and finance the bank, the company needs to make a decision. To do so it needs to be sure how much money it can borrow for how long on what terms from the government. That will then help determine how quickly the business will have to be reduced in size to repay borrowings, and how much scope there is to try and trade their way out of cash shortage.

Compulsory medication

That perennial row about whether it is right to add fluoride to water is raging again. Our newish Health Secretary believes that children’s teeth will benefit hugely through compulsory mass medication. Instead of people taking fluoride topically, if they choose, by buying a fluoride toothpaste, we will all be forced to ingest it in the water if he has his way.

Nevermind that this shows a failure of the government’s stated policy to encourage healthier eating and drinking in young people, to teach them the importance of cleaning their teeth or to provide adequate NHS dentists. The latest government proposal is to force feed us all a chemical. What are people who react badly to fluoride to do?

There is a clear issue of freedom here. You are forced to use water from the tap. You need it to bathe in, cook in and to clean your teeth in. When you visit a friend, a bar or restaurant, everything they prepare will have used fluorinated water. So if you’re also one of the unlucky ones who can’t tolerate fluoride you have no escape.

Despite a subsidy from the government, heath authorities would be wise to turn down any attempt to make them impose mass medication on their unsuspecting communities. Most taxpayers don’t much like the idea of having their hard earned cash used for this purpose..

John Redwood presses Government over human rights aspects of EU Treaty

<strong>Yesterday in the Commons John Redwood was again at the forefront of the debate on the Lisbon Treaty, this time concerning its provision for human rights. Mr Redwood championed Parliament as the appropriate and historic legislator for defining and protecting the rights of its people. Being bound to Europe in this area of legislation as proposed by the Treaty is yet another example of the erosion of Parliamentary democracy.</strong>

Mr Redwood’s six interventions and speech, taken from Hansard, follow.

<strong>(1) Mr. John Redwood (Wokingham) (Con): </strong>Does the Secretary of State accept that, over the centuries, it has been this Parliament that has defined, upheld and shaped our human rights, and that it should be this Parliament that does so in future? The European charter would be too inflexible and would not reflect the will of the British people.

<strong>Mr. Straw: </strong>I do not accept that. It was this British Parliament that decided in 1971 to join the European Union. It was also this British Parliament that signed up to the Single European Act in 1986, to the Maastricht treaty and to the treaties of Amsterdam and Nice. We now have the prospect of signing up to this one. It is open to any party in this country to propose in its manifesto that the United Kingdom should withdraw from its treaty obligations and leave the European Union. That is the sovereign right of this country and this Parliament, and long may that continue to be the case.

<strong>(2) Mr. Redwood: </strong>We do not disagree with individual rights—we disagree with the legal process which means that they are defined and imposed on us instead of defined and imposed from here.

<strong>[No direct response]</strong>

<strong>(3) Mr. Redwood: </strong>Does my hon. Friend agree that the major fallacy in the Secretary of State’s argument is that all these rights, if we like them, can be granted by this Parliament and interpreted and enforced through our courts, with the advantage that if we do not like them as they evolve we can amend them here without needing the agreement of 26 other member states?

<strong>Mr. Lidington: </strong>Throughout his speech, the Secretary of State carefully sidestepped the challenge posed by my right hon. Friend.

<strong>(4) Mr. Redwood: </strong>Is there not a simpler point? The European Court of Justice is a federalist, activist Court, which over time always makes judgments in favour of more European power, so why take the risk? We could opt out of the whole provision and not include it in the treaty.

<strong>Mr. Lidington:</strong> It is not only my right hon. Friend who says that Britain should opt out of the charter of fundamental rights; it was originally the position of the Labour Government, but they have subsequently abandoned it. If we further consider the likely consequences of a European Court of Justice decision deriving from the application of charter rights, we can see that irrespective of the protocol, any company that operates in more than one EU member state will change its practices across the EU, even in the United Kingdom or Poland, once the ECJ has given a judgment on what has gone on in one particular country.

<strong>(5) Mr. John Redwood (Wokingham) (Con): </strong>I am grateful to my hon. Friend (Mr Cash) for putting together and tabling so many excellent amendments, which, if we had the time to discuss them, would indeed provide us with the line-by-line scrutiny that we are being denied. Does he agree that the Government do not seem to grasp that the simple question is: “Do you wish to be governed by elected people in Parliament, whom you can sack, and from whom you can get a different answer following a general election, or do you wish to be governed by unelected people on the continent whom you cannot sack, and from whom you will never get a different answer?”? Is not that the issue?

<strong>Mr. Cash:</strong> It is the issue, and the point needs to be repeated over and over. I believe that there are Members on the Labour and Liberal Democrat Benches who believe in that, because their own parties evolved from, or came from, the fight in the 19th century for the very rights that we are now taking away from them. It is astonishing that a vague application of general principles, through the European Court of Justice, should be allowed to be a substitute for people’s right to choose who they want to vote for, and to choose the Government under whom they want to live.

<strong>Speech</strong>

<strong>Mr. Redwood: </strong>Tonight’s debate, like many of these debates, is about where power should rest. It is about democracy itself, especially in the context of the excellent amendment tabled by my hon. Friend the Member for Stone (Mr. Cash). I should like the amendment to go a little further, because I should like to see the sovereignty of a Parliament clearly reaffirmed and re-established in the laws that we enact when trying to tackle this rather difficult and refractory treaty.

This Parliament made itself great over many centuries because campaigners of all parties and of none—Whig and Tory, Labour and Liberal and Conservative—came together so often to assert the right of elected representatives in this House of Commons to make the laws and take the right decisions, and to face their electors in turn on the hustings so that their work could be adjudged good or bad and the necessary decisions could be made about the futures of MPs individually and of Governments that had exercised the powers of this House.

There have been two great movements. There has been a great movement over many decades to ensure that we reach the point where all adults have the precious advantage of the vote, so that they can choose those elected representatives and decide whether to remove them when they fail to do their jobs in the imagined way. The other great movement was to ensure that the powers were in this Chamber and in Parliament as a whole, so that here the laws could be chosen, here they could be amended, and here they could be struck down. What the Government are asking us to do tonight is suspend that right, in perpetuity perhaps, and certainly for a very long time—there is no fixed time for this treaty—so that in future such decisions may in many areas be made by unelected people in a European court. They may, as far as the British people are concerned, in future be made by unelected people sitting in Council chambers, often meeting in private and reaching decisions in private.

<strong>Ms Hewitt: </strong>I am following the right hon. Gentleman’s points with great care, but I am puzzled that he seems to ignore the fact that, ever since this country joined what was then the Common Market all those years ago, there has been primacy of European Union law as decided by the collective institutions of the EU and as interpreted by the European Court. The point he is making is simply an argument for the United Kingdom to withdraw from the EU. That is a perfectly respectable point of view, although I profoundly disagree with it. Is that what he is asking this House to decide, and is that the official policy of the Opposition?

<strong>Mr. Redwood:</strong> The right hon. Lady is a little cleverer than that: she knows that that is not the official position of the Opposition party, and nor is it the case that I happen to be making at present. Her history is wrong, of course: we did not give all those powers away at the beginning when we joined something called the Common Market in common parlance, or the European Economic Community as set out in the original treaty. That was not the deal offered to the British people when they last had a vote on this issue in 1975. It so happens that I voted “no”. I have always since accepted the verdict of the British people. I am sure that they voted for a common market, and that is what I would like them to have. They voted for co-operation and collaboration while our country retained its veto. What I dislike about the deal under discussion—the clauses before us tonight highlight this—is that our veto has been given away needlessly, when the Government had the veto to veto surrendering the veto; the Government just had to say “no”, and they would not have had so many law-making powers brought in by the back door by this treaty and this proposed legislation.

I, like my party, say that this deal is many steps too far—it gives away far too much of the power rightly accumulated by Parliament over the centuries to do good for the British people and to respond to their will and their wishes. The right hon. Lady has in a previous intervention in our debates today come up with a clever argument. She says that the magic of this particular block of work is that at last the EU will have to submit itself to the human rights court and the human rights convention that many states in Europe have signed. What she omits, however, to tell the House in that very partial interpretation is that that in no way detracts from the power of the European Court of Justice to keep on advancing its power at the expense of the British people and their elected representatives in this Parliament assembled.

<strong>Mr. Peter Bone (Wellingborough) (Con):</strong> The logic of the argument we have heard from the Labour Benches is as follows: as we have given some power away already, we might as well give the rest of the power away. Does my right hon. Friend agree that that is the Government’s position?

<strong>Mr. Redwood: </strong>That is clearly the Government’s position. They have shown total surrender in the negotiations over the treaty as a whole. The Government have told us again tonight that they wish the large number of principles and rights set out in the document before us to be adopted as part of our law code. Worse still, they will accept not one but two European Courts standing in judgment over us. Like my hon. Friend the Member for Stone (Mr. Cash), I am more worried about the European Court of Justice, because it has a long tradition of furthering a federal agenda. In case after case that Court is determining that there should be more power for law-making and decision in the European Union and less in the member states.

<strong>Mr. Gerald Howarth (Aldershot) (Con):</strong> Is that not why this House and the British people should approach this treaty with the greatest scepticism? They will recall the European Communities (Amendment) Act 1986, which I voted against. Our right hon. and noble Friend Baroness Thatcher was assured that employment and the social contract would be outside the ECJ’s remit, but the ECJ took that area into its own power. Therefore, we should resist any Government attempt to hoodwink the British people into thinking that we should accept these assurances.

<strong>Mr. Redwood:</strong> That is exactly right. The facts are stark. This Government have surrendered 10 times more vetoes than previous Governments. Some of us had reservations about surrendering some of those other vetoes, but they were at least surrendered in furtherance of the Common Market, for which people had voted in a referendum. That was why Baroness Thatcher decided to make those modest surrenders of power in the 1980s. Since then, this Government have given away massive rights, duties and powers that have nothing to do with the Common Market for which the British people voted.

<strong>Mike Gapes: </strong>Surely the right hon. Gentleman cannot believe that the modest changes in this treaty or in the Amsterdam and Nice treaties are comparable with the massive expansion of European competence in Baroness Thatcher’s Single European Act?

<strong>Mr. Redwood: </strong>I suggest that the hon. Gentleman tries reading the different treaties. The Single European Act was, as its name describes, about market measures to try to promote a common market. I believe that a common market is created by having buyers and sellers and does not need nearly as much law as the European Union subsequently developed. The SEA was a very narrow area of work compared with a common foreign policy, a common army, a common defence policy, a common criminal justice policy, a common immigration policy, a president of Europe and a much-expanded Parliament, all of which have come under this Government’s watch.

At each point, the Government have claimed that they were not giving any real power away, that we would not notice the difference, that they had protected our interest and that the famous red lines were in place. We have heard all that nonsense, but we can see from the huge amount of work embedded in this revised treaty that massive powers were surrendered at Nice and Amsterdam, and that such a surrender is being proposed tonight in this crucial area of fundamental human rights.

We have been told by some Opposition and Labour Members that we do not value human rights or the very good principles embodied in parts of this text—but of course we value those things. We fight, and our predecessors fought, for those rights for the British people just as surely as the Labour party has often done in the past. We believe that those rights are best expressed in British law, in the English language and in a way that is answerable to the British people. We believe they have to stay like that, so that the British people can, through their elected representatives, change, amend and improve them as circumstances and time require.

This treaty is an inflexible, unaccountable and thoroughly undemocratic way of legislating. We are being asked to embody at one point in the long evolution of our national and European history, a set of principles that might make sense to some people now, but which are going to be extremely difficult to change. It will be impossible to change them in a democratic way in this Parliament, because the agreement of so many of other member states will be needed, as will a treaty amendment. As we can see, such an amendment is a complicated and difficult process.

We must amend these clauses and retain these powers that the Government wish to give away. We must restore the position that this Parliament makes these crucial decisions, so that we answer to our electors. We should live or die as politicians by how well we do and by whether we answer to our electors in the correct way.

<strong>(6) Mr. Redwood: </strong>The Minister is now getting to something interesting. Is he not ashamed that there is so little time because of the ridiculous guillotine motion? Many Members cannot tease out these important points and have a proper debate on them. Will he give us more time?

<strong>Mr. Murphy: </strong>That does not fall within the scope of the amendment. The matter has already been resolved by the House.

The government tries to silence Parliament

Last night was another sorry coda to our long and distinguished history of Parliamentary debate.

Once again we are allowed just one and half hours after 8pm to discuss a fistful of important amendments and complex issues about the government’s wish to bring the European Charter of Human Rights into our law codes through adopting the Constitutional treaty. The government had allowed four and half hours for a general debate on human rights, in order to prevent MPs getting into the important line by line analysis of the 358 Articles and 327 pages of the “Consolidated texts of the EU Treaties as amended by the Treaty of Lisbon”. Several MPs were unable to make the speech they wished to make on the first group of amendments. I had to cut my remarks down to a few minutes, preventing me from referring to any of the amendments in detail. Subsequent amendments on the order paper went undebated, thrown into the dustbin of history without word or vote.

This is a constitutional outrage. All previous governments have allowed substantial time for proper debate of constitutional bills on the floor of the House. Much of the time the House has met in committee, which means MPs have time to move amendments and speak to them. Some move probing amendments, to test out what Ministers think the words of the legislation they are recommending mean and will do. Some are important amendments designed to change the bill, to correct errors or remove harmful clauses and provisions.

Bill Cash invited a number of us concerned about this legislation to meetings before the debates began in the House. We all agreed that we needed to move a series of amendments to strike out the varying parts of the Treaty and Bill which transfer substantial powers from the UK to the EU. Bill kindly produced a wide ranging series of amendments which we co-signed and lodged. I am grateful to him for his hard work in producing them. Anyone who values a democracy in the UK should be glad he took the trouble and set out to make a fight of it before these powers are lost.

The government turned down the official Opposition’s request for 20 days of consideration. We were offered 12 in committee, plus a day on Second Reading to discuss the overall picture, and a day to discuss the so-called timetable motion. The Official Opposition argued passionately against the whole Treaty, and we voted against it on a three line whip. We all argued passionately against the very restrictive timetable, and voted against that on a three line whip.

We were promised by the government “line by line scrutiny” of this massive piece of legislation, as if this were new or a concession. “Line by line scrutiny” of legislation was what we usually had before this government. Most bills went through on no timetable, allowing the Opposition to table as many amendments as they wished and debate for as long as they liked. Parliament often met into the early hours in the morning to hammer out disagreements on complex bills.

What takes my breath away is the audacity of the government to introduce a constitutional outrage on this bill of all bills. Their decision to allow only one and half hours a day to stifle debate on amendments and to replace time in committee with a series of longer general debates is a cynical manoeuvre designed to prevent the Opposition revealing all the danger in the detail as we see it. It implies Ministers are unsure of their ground and their case, that they do not wish to be exposed to the usual cross examination on the wording of each part of this long and complex text.

TV choice

Today is the 19th anniversay of Sky TV.
When they launched their first four channels in 1989, it was not easy for them, competing against two monoliths, BBC and ITV, offering free to air services. Sky offered choice, but it came at a price the viewer had to pay directly.
As competition Minister I had to take one of the most difficult decisions in that job for the Secretary of State, when the case came before me to merge Sky with its rival subscription service BSB as BSkyB.
I was a competition enthusiast. I wanted the benign power of competition to work its magic, so the UK could have better quality, more choice and lower prices like the richer countries of the world. My first reaction was to prevent the merger, to make the two fight it out for supermacy.
As I studied the market and the figures, I was persauded that the pay TV market was too small and fragile in its early days to sustain two competitors, against the formidable competition of the free to air channels. I came to the conclusion that a merged group would be strong enopugh to survive the early years of build up in the idea of pay TV, and that would provide in due course a serious competitor to the BBC and ITV.
We will never know what would have happened if the two fledgelings had had to slug it out for longer, but we do know that pay TV took off with a stronger played championing its cause.So I say Happy birthday to Sky – you have brought variety and choice into our lives, and have forced changes on the free to air incumbents into the bargain.

Carry on bugging?

It was not a good day yesterday for Parliament to discuss an MP’s right to avoid the bugging of conversations that is now such a common characteristic of our enfeebled democracy. I listened to the exchanges but held my silence. There was so much I wanted to say, but so little that could be said in the form of a question to Jack Straw who had kicked the whole subject into touch by claiming he knew nothing on Saturday and still knew very little, two days on.

I thought we paid Ministers large salaries, gave them official cars and a growing army of officials so they could make decisions, keep us informed and answer when things went wrong. All he had to do on finding out an MP’s conversations appear to have been bugged was to ring the Governor of the Prison concerned and asked 1. Had the MP been bugged? 2. Who had required and authorised the bugging?

Armed with this information he could have told Parliament, and told us whether he was happy with this state of affairs or not. If he thought it a good idea to bug an MP in such circumstances then he should tell the House and change the policy accordingly. If he thought it a bad idea he should find out how it had happened and tell us how he intends to stop it happening again.

I am all in favour of bugging people who are suspected of terrorism. We need to know more of their networks and intercept more of their plans. It is the best way of making us more secure. I am not in favour of bugging many other people for a whole series of more minor offences, as local authorities are now empowered to do. That is all part of the surveillance society which Labour has built up with its fleet of speed cameras and other devices.

There are some important issues over the confidentiality of various people’s conversations with suspected criminals or proven criminals. I would be interested to hear views on when if ever the confidentiality of certain conversations should be broken. Let us examine the cases of four different groups who claim to offer confidentiality, and then consider whether there are things they might hear that they should pass on regardless.

1. The journalist. The journalist will rightly claim he or she needs to offer the promise of confidentiality to sources in order to find out things that are in the public interest to reveal, which authority – often government – wishes to conceal. Of course they should usually be protected by their own conduct and by their editors.

2. The MPs will claim that they need to offer confidentiality to people who wish to share with the MP private information about themselves so the MP can pursue their case with government. Someone may need an MP to represent their case to the Tax or benefit Authorities, or to the Health Service. People naturally want reassurance that the personal details of their income, circumstances or illnesses will not be made public.

3. The priest in the confessional will wish to assure the communicant that their secrets are safe with him. Who would want to confess a sin if the priest then broadcast it to the local community?

4. The lawyer acting for a defendant in a criminal trial will want to assure his or her client that anything they say is privileged. Under our combative system of justice the defence has a duty to put the best possible case for anyone pleading not guilty, whatever else they may have been told by their client.

.However, if any of the above learned during the course of their interviews of a planned terrorist attack which could cause huge harm and loss of life, should they not pass the information on to the authorities so they could collect more evidence on the conspirators and act in time to prevent the outrage? What should a journalist do if he or she learns of lesser offences committed by their source? What should the priest?

The doctrine of full confidentiality and privilege has already been changed for professional advisers. Lawyers and accountants advising individuals and companies on civil cases and on their tax and contractual affairs now have a duty to report their clients to the authorities if they come to suspect them of money laundering or fraud. Should further changes be made in law to qualify the confidentiality of these relationships? Whatever is done, it important that people coming to such a confidential discussion should know in advance if there are limits to that confidence. MPs are employed to change the law where necessary, and to help constituents to pursue cases against government where government has been unfair, incompetent or worse. MPs are not employed to condone or cover up crime: nor do I know of any MP who has done so.

EU 2 The people 0

The decision to rush the EU Constitution through this week in France with no referendum shows just how undemocratic a construct this whole EU edifice has become. It almost beggars belief that the French are told by their President they cannot have another referendum because that might trigger one in the UK where the project would be voted down!

Surely the French deserve another if their government is so determined to countermand their clearly expressed hostility to another Treaty expressed in their last referendum?

It also seems likely the Dutch will not be allowed another referendum, because they too got the answer wrong last time as far as the political class of the EU are concerned.

It makes it even more necessary for voters to maximise pressure on all those MPs in the UK who promised a referendum in the last General Election who are not currently inclined to keep their word and vote for one.

The people deserve a voice. It will be a disgrace if democracy is snuffed out on this crucial issue on both sides of the Channel.

Value for money from Parliament?

Let’s face it. Parliament has become to some another of those monopoly nationalised industries that Labour always think work in the public interest, but which the public love to hate. People pay through the nose for the subsidised nationalised industries whether they use the service or not. The service is often not up to the standard they want. Now there are similar criticisms of the cost and performance of Parliament.

Tackling it is not easy. As perhaps the keenest advocate of competition as a force for better quality and lower cost, even I do not want competing legislatures. Indeed, I would dearly love it if we could stop the EU legislating, as the last few years of “cooperating” legislatures on both sides of the Channel has left us chronically over-governed and over regulated.

Fortunately at Westminster we still have first past the post elections at least once every five years. This means the consumers have the chance to sack the producers. Single member constituencies are the best means of keeping MPs honest and of restraining the wish of some MPs to laud their power over the rest. If we were to adopt the European system of PR, with MPs not answerable to a particular group of electors and beholden to their parties for their place on the list to get elected, we would find the electorate’s last grip over MPs had vanished.

Any sensible MP must see that the public no longer thinks they are getting good value for the money they have to spend on keeping Parliament going. This is just the tip of the iceberg of the problem of public sector waste. There are thousands in senior positions across the rambling public sector spending generous expense allowances with little public scrutiny. There will be thousands in management of the public sector watching the clock and demanding more help to carry out their work.

MPs’ performance, however, matters even though it is a small part of a general problem, because it is so public, and because MPs, especially ones who are Ministers, need to set a standard and a tone for the rest of the public sector to follow.

Parliament, like the rest of the public sector, in the last ten years has set about reducing its productivity and increasing its costs. This is the very opposite of what has happened in the increasingly competitive world of the private sector.

I would like to see Parliament set about proving it has taken on the board the message, and wishes to lead a crusade to raise the game of public service. I have a series of proposals which I think would help:

1. The time taken on doing the main job of holding the government to account and scrutinising new laws.
We need to increase the number of days when Parliament is allowed to meet – this government chopped it back too much with the half term breaks on top of the other summer and Bank holiday leave. Why not have a session in September? Why not restore a couple of days during the half terms, maybe without votes, so those of us who do not have to look after schoolchildren can still do the job?

2. Sitting hours.
It was argued we needed to cut the hours we sit in order to be family friendly. Packing up at 7.15 pm on a Wednesday does not allow someone with young children to see them awake or put them to bed, so why not run on to 10 pm as on Mondays and Tuesdays?

3. Topical debates.
The government’s idea that every Thursday should see a topical debate is a good one, but it is useless if they persist in choosing subjects the government thinks are harmless or are part of their propaganda for the week. Why not ballot to choose the motions, or allow the Opposition to choose alternate ones?

4. The number of MPs.
I used to represent almost 20,000 more electors than I do today, without complaints that I had skimped the job. Why does the Boundary Commission make MPs in seats with rising populations become less productive by taking voters away? Shouldn’t they be asked at subsequent reviews to come up with seats that are on average larger, so we can steadily reduce the numbers of MPs over time, to raise productivity?

5. The support for doing the job.
I understand many colleagues wish to have three or more staffers to help them. Some support is desirable to handle the wide range of issues and constituents’ queries. However, the last few years have seen a big increase in the permitted total cost. Why not have three years with no increases in the totals, to start to bring costs under control?

6. Let MPs take over work from other bodies where savings can be made.
Many electors think MPs are a kind of super Councillor, with powers to override Councils on issues like planning or schools places. Instead, we have no such power. One area where MPs could make a difference and substantial savings could be made is in the area of regional government. Why not remove the regional quangos, and where there is a need for a voice for a wider area to Ministers, ask MPs to provide that voice instead of the quango state? This does not require regional committees in the House as Labour has proposed, as these would seek to reinforce the artificial European regions so many of us dislike.

7. Stop turning Parliament into a fortress, and making it an expensive building site every recess.
I do not think visitors known to an MP and invited in and accompanied by the MP should have to wear sticky labels which often fall off their lapels and litter the place. We do not need more concrete bollards and ever more physical barriers to entry. Parliament is meant to offer access to all voters who want to visit or to meet their MP. The best way to protect it is to protect the country at large by controlling borders and monitoring terrorist groups closely.

These modest proposals would all help restore some confidence, and show that MPs want to lead a move to a better and more productive public sector. People could criticise them for not demanding enough of an improvement, but they would be a good start. Everyone of them requires the government to wish to use its majority to move us in that direction, as the majority rightly rules in Parliament. Over the last 10 years the majority has wanted shorter hours, fewer sitting days, less government accountability, and more schemes to cut Parliament off from the public.

Time to cut taxes – and spending

I was delighted to read in the Sunday Telegraph that George Osborne wishes to adopt the tax and deregulatory proposals from my Economic Competitiveness Report. They concentrated on offering the most attractive climate to entrepreneurs and businesses, old and new, domestic and foreign. If we do that, there will be more jobs, and higher tax revenues.

The problem for the government is that its own bad management of the public accounts in recent years has left us heavily overborrowed and short of cash at exactly the time when we need tax cuts to stimulate growth. The USA can afford tax cuts because its budget deficit has been coming down in recent years. The UK fears it cannot afford them, because the deficit is large and rising. As George has pointed out, we did not use the good times to get the public sector into shape, so now we need lower taxes the budget apparently does not allow it.

UK consumers are experiencing an unpleasant squeeze. UK companies are facing taxes higher than in leading competitors like China, Hong Kong, the USA and even now parts of the EU like Holland. We are facing much more intrusive and expensive regulation than many of the leading competitor nations. The Brown Chancellorship began relatively well, controlling public spending, leaving room for growth in business and consumer prosperity. Slashing capital gains tax to 10% for many business investments was great, giving us a competitive edge.

Unfortunately he then decided to go on a mad spending spree in the public sector, without asking how he would achieve value for the money spent. So much of it was blown on higher public sector pay, shorter hours of working, more quangoes, more civil servants, more problematic computerisation schemes and more management consultants. Productivity in the public services in many cases fell. As a result borrowing surged, consumers were squeezed, and the Chancellor sought many ways to increase taxes by stealth. We had an increase in the tax on employment, bigger taxes on pension funds, and a big increase in oil taxation.

So this week when the Bank of England Monetary Policy Committee meets they will not have the US luxury of being able to slash interest rates by 75 or even by 50 basis points, and they will not be able to work with a tax cutting government to stimulate growth in the way the Fed can. If they are truly independent they should make their 25 point cut – or keep rates on hold – and tell the government that more needs to be done, but can only be done if public spending is brought under better control.

The government should intensify its attempts to cut the growth rate in public spending by:

1. Introducing an immediate freeze on all civil service and quango recruitment, seeking to replace leavers from within the swollen ranks of employees. Only if a Minister agreed a special case should external recruitment be permitted. This would not apply to front line personnel in the armed forces or police, nor to teachers and social service staff recruited by local government.

2. Review all central and quango computerisation projects with a view to coming up with total savings of at least 20%.

3. Cancel large projects like the ID computer scheme.

4. Place a ban on all new consultancy contracts throughout central government, unless Treasury special permission is granted for a new one.

5. Reduce the advertising and communications budget by 20%.

6. Put in place proper banking controls over the Northern Rock lending and begin to obtain repayment of money advanced.

7. Implementing the new tougher approach to benefits to those who are out of work, withdrawing them where a person has turned down the offer of a job.

8. Announcing a freeze on the total annual allowances that MPs can claim for the rest of this Parliament.

9. Implementing green measures throughout the government estate to cut energy bills – better heating controls, better insulation, systems to turn lights and heating off when buildings not in use etc.

10. Producing a plan to cut the size of the property estate in line with falling staff numbers as the staff freeze starts to bite.

If the government could achieve savings of around £10 billion a year from these measures over the next couple of years or so – as it could do – it would have more scope to live within its own borrowing controls. It could also, on the back of such better management, make the cuts in business tax needed to stimulate growth and enterprise. Some of these cuts would quite soon bring in more revenue form the increased volume of investment and business activity.

Unfortunately in the UK debate there are two myths which constrain sensible action. Myth number one is you can only cut public spending by having fewer teachers, nurses and police. We do not need to sack any of them – we have far too many regulators and administrators that we do need to reduce by natural wastage.
Myth number two is that cutting tax rates always loses you revenue, when evidence abounds that after a gap revenue surges if you cut the right taxes by enough.

It is time to disprove both myths, by cutting spending and taxes at the same time, as soon as possible. I look forward to joining George Osborne in the lobby to vote against the damaging increase in Capital Gains Tax this government is still proposing.

West Berkshire -Don’t tangle with people’s identity

Ten years ago the eastern villages in West Berkshire were added to my Wokingham constituency, whilst Wokingham Without, Crowthorne and other settlements near to Wokingham were given to the Bracknell constituency. At the time people were up in arms. They told me that residents in Mortimer, Burghfield and the other West Berkshire villages looked to Newbury. Their local government comes from Newbury. They buy Newbury rather than Wokingham papers. They go shopping in Reading or Newbury, but not Wokingham.

I had to explain that none of this was of my making. The Boundary Commission is as near to an independent body as you get in a cnetralised state like the UK. They have to create constituencies of around a similar size once every ten years, and are not allowed to cross County boundaries. As a result,with so much new housing development forced on Berkshire, each time there has to be change. They start in the west, and have to cut the geographical size of the Newbury seat to reduce numbers, and so on across the County. It means the Parliamentary seats do not represent natural communities, and are not contained within a single Unitary District Council area.

I mention this now, because last night I was at a dinner on the very western edge of my constituency. The immediate anger over the boundary review may have gone away, but there is still confusion in people’s minds, and a sense that it is not right. Most people do not understand that local government at District level and national government at Westminster have different boundaries in many cases. Many electors are confused about what powers are held by central government and Parliament, and what is done locally by officers and Councillors.

I take up issues for people in West Berkshire as well as in Wokingham District. I write a seperate newsletter for the West Berkshire side. Anyone living in those villages who reads this blog should know that this is for them, as well as for people of Wokingham and the wider nation. MPs deal with issues that have wider significance. The shape of the Wokingham constituency should not get in your way when dealing with local West Berkshire Councillors on the local issues that often concern people the most.

It does all go to show how deep and local senses of identity are in the UK.