Calais chaos

Several of you want to write and talk about Calais. Here is your chance.

I want the UK to gain control of its own borders through renegotiation or leaving the EU, as I have made clear on many occasions.

In the meantime I want us to use all legal means to ensure economic migrants do not cross the channel illegally. I am glad the government has said it intends to strengthen our frontiers in Calais and stated any illegal migrants who do get through will not have access to cars, homes or bank accounts if they do come. Illegal migrants need to see that coming without permission does not work for them. The rest of the EU needs to improve its border control. France needs to work with Italy and Greece on their borders and access of illegal migrants to France from southern ports.

Clearly anyone arriving in Dover from Calais cannot be an asylum seeker as France is a democratic country with proper human rights, so anyone wishing to claim asylum should be returned to France.

What measures do you propose?

I will be writing to Mrs May about this and will post what I say to her. The UK government must ensure that only people with legal travel documents that entitle them to come to the UK come here or are allowed to stay here, unless they are genuine asylum seekers arriving directly from a country where they may be at risk of their lives.

Cities and regions

If you look at the EU figures for incomes and output per head the dominance of a few large cities comes across from the statistics. in the 2013 figures Inner London is by far the richest region within the EU. It records an average income per head of 80,000 Euros,more than twice as high as any other part of the UK and more than twice as high as most other EU regions. The dominance of Paris in French economic success is also clear. The Ile de France area , Greater Paris, enjoyed an income of 44,200 Euros a head. The next richest region in France was Rhone Alps at Euro 26,400. These two largest cities in the EU are the most successful in generating high value added services and output, and sustaining more better paid jobs than elsewhere.

Most other European cities are of modest size by modern world standards,and do not establish the same lead over incomes elsewhere in their countries. Berlin is relatively poor. Hamburg is Germany’s top performer with a high income level. In Austria Vienna is the highest earning area by a decent margin, and in Belgium Antwerp is the leader. Outer London is relatively weak, with an average income considerably below the Home Counties that lie beyond it. In the UK Bristol is the one other city aside from Inner London that delivers a higher average income than most parts of the country. Were the EU figures to combine Inner and Outer London it would look more like Paris/Ile de France.

The figures show that cities do seem to offer the best prospects of concentrating, nurturing and using talent to boost incomes and jobs. It is not a universal panacea, as some cities enter periods of decline, stuck with older industries and patterns of working that no longer command high wages. They may also lose talent as it migrates elsewhere, and have a higher ratio of people dependent on state assistance. Fast growing cities on the other hand suck in more talent and may have younger average ages and higher proportions in work.

Other forces can provide high incomes. NE Scotland has done well out of oil, providing enough well paid jobs in that industry to make it one of the best paid regions on average. In the UK Cornwall and West Wales are the lowest income areas, with Lincolnshire, East and South Yorkshire and Merseyside also towards the bottom of the table. The Northern Powerhouse can help boost the great northern cities. As the figures show the lowest incomes in the UK are in rural areas.

Regional identity

In much of the EU the regions that wish to be independent are the richer parts of their present countries. In Spain Catalonia is the most enterprising and highest income part of Spain along with the Basque country which is also keen on having more self government and control of its own tax revenues. In Italy the main force for independence comes from the Northern League where average incomes are much higher than in the south and where economic performance has been much better than in the rest of the country. Venice is a particularly successful city state with a strong wish to be independent. In Belgium the richer north is keenest to split away. In Germany there is less force for self government thanks to the relative success of federal economic policy despite the lander system of devolved government, but even there it is rich Bavaria which seems the most semi detached. In the UK it is different. The richest part of the country is London but there is no serious move to create a City state independent of the UK, whereas some parts of the Union that require substantial transfer payments with lower average incomes have a strong sense of individual identity. Scotland’s wealth and income is a matter of dispute depending on how you account for and project oil revenues.

Language is often a force for separation. The Catalan and Walloon speakers of Spain and Belgium see their language as part of their difference from the rest of their current country. The EU has fostered the development and revival of local languages which has reinforced these feelings. The EU seemed to want to use local and regional identity as a force to weaken the power of unitary states like Spain and Italy. It appealed over the heads of the member states to these regions. It had in mind not a host of smaller new countries claiming independence, but a subsidy or dependency union for the regions. It looked forward to regional allies and gratitude for the money sent to the regions, money it only had thanks to the contributions of the member states.

Now the EU is so much more powerful it has new problems to resolve. Will it seek to play down the demands for independence generally, as it is clearly doing in Catalonia? And now it has ambitions for a common foreign policy, how will it respond to similar tensions in non EU countries? Is it pleased with its work in Ukraine, where it wants the Russian minority to accept the pro EU policy of the western majority? In the Middle East is it feasible to ally with the Kurds against ISIL but to deny them their aim of a Kurdish state? Does the EU seek a federal solution to the governance problems of Iraq and Syria?

Outside the EU the politics of identity can become violent and extreme. It is most important the EU treads carefully if at all over these intricate and deep seated issues within Europe as we wish to keep the peace.

Socialist found in Labour party

Shock horror. Apparently a socialist has managed to conceal himself within the Labour Party. He kept himself unobserved by being a member of the party and an MP for the last 32 years.

He has now revealed himself to the wider world by standing for election as Labour leader and daring to show he has support. He has some shocking views according to his Blairite or “mainstream Labour ” critics. They worry because  he opposed the Iraq war and opposes other Middle Eastern military interventions, and does sometimes criticise the EU. He dares to point out that the extreme austerity policy in Greece has done substantial economic and social damage.

I hasten to add that I would not wish to see his UK economic policies implemented, and do not agree with all his views on foreign affairs but then I am not a socialist.

Labour should have a good debate between the four candidates and decide who they like best. That will define what they want to offer the public in the next general election. It is strange to see some of them complaining already that one of the candidates is not allowed to be poplar and maybe his popularity invalidates the electoral process or the electoral list. Surely it is up to the candidates who disagree with Mr Corbyn to enrol people and gain the support of people who are members by showing why their vision of the future is better for the UK.

Some of the dafter commentary says the leadership election shows Labour is split. The whole point of a leadership election is to allow the different strands of opinion and support within a major party to run their views and seek to show support for them. Labour started all this ridiculous briefing that a party cannot govern if it contains different opinions and groups. It is the ultimate irony to see this myth come back to haunt them when they are having an entirely proper leadership election. The Wet /dry conflict under Mrs Thatcher during Conservative government and the big Blair/Brown row under labour always showed it was nonsense to claim split parties cannot govern.

 

There is no status quo in the forthcoming EU referendum

Those who have already made up their minds to recommend staying in the EU whatever Mr Cameron negotiates think they can control the referendum for Yes. They aim to run a campaign claiming that Yes is Yes to the status quo, Yes is the risk free option, and that No would mean all sorts of dire futures which they intend to portray by lies and scare stories.

The truth is somewhat different. As I set out in the Commons, the present EU is a wild ride to political union. It is not a friendly status quo, a restful membership of a finished structure allowing us to trade and be friends with the neighbours, but a cauldron of disagreements, arguments and a state of permanent revolution as they seek to complete their political, banking, Capital markets, and fiscal unions.

There is no necessary advantage in asking people to vote Yes. After all, No won the Scottish and the AV referendums in recent years. It is true that these two No campaigns were for the status quo, but so in a way NO will be on the EU matter. Many voters think the EU should just be a common market, and those who argue for Out will be arguing to leave the Euro and political union which increasingly impinge on us, not to turn our back on trade and friendship with the neighbours.We want the common market some voted for in 1975.

Anyone independent minded person who has not yet decided how to vote, reasonably wanting to see what terms Mr Cameron comes back with, will want to see how the UK could defend itself from the growing power of the Euro union. Recent events with an attempt to get the UK to pay some of the Greek bills for Euro failure will doubtless give many more pause for thought about the absence of a status quo within the EU.The obvious failure of the EU to control its borders and therefore the problems it poses for UK borders inside the EU is a major issue where the EU seems unable to gain control and unwilling to let the UK control its own territory. The people who want in have no answer to the migration issue. They also want to sign us up to paying more and more of the bills for a proto political union we are trying to keep at arms length.

Loans to Ireland

Some have raised the issue of the UK’s loans to Ireland, made at the point of transition from Labour to Coalition in 2010.
The Coalition decided to lend money bilaterally to Ireland so it was not part of an EU scheme, and offered no precedent for the UK in future having to join Euro area bail outs.

The loan reached a total of £3.2 billion when the final drawdown was made in September 2013. The money is repayable in instalments between April 2019 and March 2021. By September 2014 the UK had received £148 million in interest payments. The interest receipts are now running at £42 million a half year, and all payments have been made on time. The interest rate is a little higher than the UK government current ten year borrowing rate.

There is no reason to suppose anything will go wrong with this loan. The Treasury expects repayment on schedule. It established no precedent. I speak as someone one who was against it at the time, as I just felt the UK had to do everything to get its own borrowing requirement down.

I remain keen to ensure the Uk does not have to pay any of the costs of the unsuccessful Euro economic policies in the states that are suffering from their position in the currency. I also wish to see the UK enjoy tax cuts and lower borrowing by ending the huge payment we make yearly to the EU under our current membership.

The politics of identity

I have always assumed that the EU and its core, the Euro, will eventually be swept away by powerful senses of identity in some individual counties and regions of its vast rambling empire. Might it be the UK who tires of EU meddling in its affairs? Will it be Germany, refusing to pay the bills for its expensive currency union with the neighbours? Or will it be smaller countries and regions who want more self government?

History tells you that’s what will happen. The Roman empire united by force fell when that force met its match from nationalist revolts. The Catholic hegemony was undermined from within, mainly by the successful transmission of heretic thoughts allied to national self belief in parts of the old Catholic union. The Holy Roman Empire fell to pieces under the weight of opinion wanting more local identities. The Scandinavian unions broke owing to strong loyalties to the individual countries. The Latin and Scandinavian currency unions broke up over disputes on how to spread the debts. The USSR empire was destroyed by a series of public revolts state by state, and its currency union split up relatively peacefully and successfully afterwards.

I hope that this false union will go peacefully, through the ballot box. The paradox of the EU is the way it is splitting some of the larger countries of Europe through its own passion to build a Europe of the regions. On the way to power the EU decided that it would good to appeal direct to regional governments below the level of the member states. It set up a series of programmes where regions could apply for EU monies ( money originally sent to the EU by their national taxpayers and those of the other national states), to strengthen regional government. It was happy building the governments of Catalonia, southern Italy, Scotland, and other regions around the EU.

Now the EU has much more power it is becoming more wary of what it has created. The EU was not helpful to those who wanted Scottish independence. The EU is helping the Spanish state deal with rising Catalan nationalism. Just over the EU borders, the EU is far from amused by the demands for autonomy or independence in parts of Ukraine. The issue for the next few years is can the EU help suppress the nationalisms its has helped unleash? What will the impact be on the EU if some of these states within a state, countries trying to get out of larger countries, have their way? I will look at more of this soon.

Mr Redwood’s intervention during the Statement on Counter-ISIL Coalition Strategy, 20 July 2015

John Redwood (Wokingham) (Con): If the coalition forces are successful in removing ISIL from parts of Syria, who would form the legitimate Government of those areas, assuming Assad was still in place?

The Secretary of State for Defence (Michael Fallon):  We hope that Assad will not continue in place for a day longer than is necessary. There is no future for Syria with Assad still in place. As well as the military campaign and the counter-ideology campaign, we now need to work with friends in the region, as has already been said, to help to promote a comprehensive and moderate democratic Government in Syria that has the confidence of all the communities there, including the Alawite community, from which Assad originally came.

Mr Redwood’s intervention during the Statement on the BBC Charter Review, 16 July 2015

John Redwood (Wokingham) (Con): Is it not now time for us to have a BBC England, to match BBC Scotland, and is it not the case that many people in England deeply resent the way in which their country is being balkanised and broken up under some kind of EU plan and that they do not want their much-loved broadcaster assisting the EU in doing that?

Secretary of State for Culture, Media & Sport (Mr John Whittingdale): On my right hon. Friend’s first point, the BBC has a duty to serve the nations and regions, and while there is a specific BBC executive responsible for England, nevertheless, as I suspect might become apparent during the debate, there is a strong feeling that the BBC needs to do more to serve particular regions. On the BBC’s role in any discussions on our EU membership, as he is aware, the BBC is under a duty to maintain objectivity and impartiality, which I hope it will bear in mind, particularly during what I suspect will be quite a controversial debate.

Mr Redwood’s contribution to the Budget Debate, 8 July 2015

John Redwood (Wokingham) (Con): I remind the House of my entry in the Register of Members’ Financial Interests, which reveals that I am an investment and business adviser to a couple of companies.

I congratulate my hon. Friend the Member for Louth and Horncastle (Victoria Atkins) on her excellent maiden speech, in which she gave us a very good portrait of her constituency. I have noted the need to beware of her arrival when she is in her armour; if she throws her gauntlet around, I think that I will be looking the other way. She will clearly be a champion for her area.

I welcome the emphasis on prosperity in the Budget. I want a party and a Government who drive more prosperity for everyone in our country, and I want that to benefit people on all income levels. I especially want to see more people get into work and find other routes out of low incomes and poverty. The Chancellor is right to say that Britain deserves a pay rise and that we need to reinforce that pay rise as people get it, or reinforce their success in getting into a job and getting a pay packet, with tax cuts. I want tax cuts for all, and I am glad that my right hon. Friend has made a start on the promises made in our Conservative manifesto.

It is crucial that, as the Chancellor goes about the task of getting rid of unemployment and poverty through supportive policies, people are better off. What I want to do when we get to the detail of the welfare cuts is to see what the impact is, because we need to look at the overall impact. If people are going from unemployment to work, staying in work, getting a pay rise or getting a tax cut, those are all positive things that will make them better off, and we need to make sure that they are not completely offset or badly damaged by the welfare changes he is making. I look forward to those more detailed debates.

The overall picture in the Budget is quite different from the picture of the next five years set out in the outgoing coalition Government Budget. There is nothing surprising about that. We now have the opportunity to think the strategy through, based on the success in getting the recovery this far in the last Parliament, and learning from the coalition’s experience of the difficulties of getting that recovery up to speed and getting productivity to come through as we would like. The Chancellor is right to make adjustments. People need to work smarter to be paid better. We need a pay rise but we have to earn it, and that is the purpose behind many of the measures.

The expenditure proposals in the March Budget were quite tight in the middle years of this Parliament, and the Chancellor seems to have reached that conclusion as well, because the Red Book sets out some quite big spending increases for those middle years. Current spend in 2016-17 will be £15 billion higher than the March forecast, and the 2017-18 current spend will be £25 billion higher. I think that will make things a bit easier. At the time of the March Budget, there was quite a lot of criticism that the numbers were tight, and the changes give us more scope. We have seen some of the benefit already in the defence statement, but there will be other benefits. We have rather more latitude.

By the end of this Parliament, on the plans set out today, we will be spending £69 billion a year more than we were in the last year of the last Parliament. No doubt, there will be arguments about whether or not that is a real cut. We had those arguments in the last Parliament, when there was a similar rise in spending. I argued that there would be no overall real cuts and was told I was wrong, but the subsequent figures showed that that is broadly what happened: we avoided overall real cuts, but within that, because health, education, the European Union contributions and overseas aid were priorities, some areas suffered, to balance the figures.

The way the deficit comes down is not through spending cuts, of course; it is through a large increase in tax revenues from a more prosperous and faster growing economy. The figures state that tax revenues will be £168 billion a year higher in the last year of this Parliament than in the last year of the coalition. I would have thought that that is a tax rise to suit all socialists. It is a large increase in taxation, but I am pleased that it will come not by raising the rates—indeed, if we raised rates, we would probably collect less money in many cases—but by growing the economy and by people being better off and so able to afford the taxes. By the end of the Parliament, tax revenues will be some £10 billion a year higher than was forecast as recently as March. That shows the improvement in prospects.

Mr Iain Wright (Hartlepool) (Lab): Has the right hon. Gentleman seen the OBR report, accompanying the Red Book, which states:

“We have revised borrowing up in 2016-17 and more significantly in 2017-18, while the surplus of £5.2 billion in 2018-19 that we forecast in March is now expected to be a deficit of £6.4 billion.”

Is he comfortable with that?

John Redwood: I am perfectly comfortable with that. It is the direct result of easing the squeeze on spending to which various people objected in the past. The figures show the deficit coming down and being eliminated over the course of this Parliament, which is exactly what ought to be done. I wonder whether the hon. Gentleman’s new enthusiasm for that is personal, or whether it is just to tease me, but if it is personal enthusiasm, it is welcome to hear that the Labour party would now like to go faster in deficit reduction in the middle years of this Parliament than will happen under these proposals.

The economic background to the official forecasts shows that the growth figures are still pretty good and we have had a welcome upward revision to figures for the immediate past. We also see a welcome upward revision to the number of people in employment, which is fundamental to the whole strategy. There has been a modest deterioration in the balance of payments, which shows that there is more work to be done.

The productivity work will link into that to make us more competitive. We have to earn our living, so we need more competitive products. All that growth and improved revenue is taking place despite higher interest rates—the forecast assumes a modest increase in interest rates compared with past forecasts.

On productivity—working smarter and working better —I welcome the scheme that the Chancellor outlined today. It will mean better roads and spending money on railways more wisely to get extra capacity in the parts of the system where we need it and increased efficiency. There will have to be a lot of work on energy, because we will need cheaper and more energy: as the march of the makers begins and the northern powerhouse cranks up, more electricity and more gas will be required. I hope that we will find cheaper ways to produce them than we have under the policies followed in recent years. It is important that we price people back into energy-intensive markets, rather than export all our energy-intensive business to other countries. It is no great win for those who want to cut carbon dioxide emissions if it is poured out of a factory in China rather than one in the United Kingdom. We need to be conscious of the need to be competitive in our energy generation.

We will need more on broadband, and clearly much more on housing, as many people have mentioned recently. I look forward to an investment-led recovery, with much more private sector investment coming in. We need to pay special attention to cheaper energy and to fix the railways, where we are spending too much and getting too little. It is not just a question of big investment programmes; it is a question of managing them better. Above all, we need to make sure that, as we implement the welfare reforms, everyone is better off and gets the benefits of tax cuts and higher wages.