The decision of Ford to cease engine production at Bridgend is sad, but part of their long term retreat from manufacture in the UK. Their market share has shrunk dramatically from the high levels in the 1960s and 1970s . It is also part of the story of loss of sales and big financial losses in Europe as a whole. Just like Honda they have found it difficult to stay sufficiently competitive.

The immediate background to the closures both here and in Germany is the sharp decline in the world car market over the last year. In part this is the result of monetary squeezes here and  on the continent. In part it is the result of the savage increase in VED taxes in the UK in 2017 with the limits on car loans, the increase in Chinese car sales taxes, and the rising interest rates in the USA. There is a world car downturn based on more tax and less credit.

The other big change is the sudden shift of the UK and EU governments against diesel cars and their insistence that people buy electric vehicles. The public have not warmed to these electric vehicles and the industry is still struggling to produce ones that are good value, with a big range and fast recharging. The public has held off from buying, as in many other countries told to go in the same direction. China has made faster progress with electric vehicles.

It is strange to watch the UK and other governments do this much damage to their car industry. It would be more normal to give the industry more time to develop new products with electric propulsion, and to make sure there are products people want to buy. In the meantime to avoid more closures in the UK as a matter of urgency the government should cut its tax rates on new cars, and  loosen new car  loans availability.

The UK car industry had two dominant players in 1972 when we joined the EEC/EU, BL and Ford. Both found competing with German, French and Italian product when tariffs were all taken off very difficult. They lost big chunks of market share to continental competitors. Meanwhile the Japanese came in and created great new car factories that were more efficient selling popular product, and latterly  Indian investment has successfully  expanded the Land Rover part of JLR.  These successful companies took UK and EU government advice to accentuate diesel engines, only now to find the governments have changed their minds without giving due warning.

The decision of the 1922 Committee Executive to change the rules of the leadership election has changed its dynamics. We have gone from having a wide range of choices with more candidates likely to come forward, to a narrowing with more candidates likely to drop out even before Nominations close on June 10th. Putting in rising requirements for MP support for Nomination and the first two rounds makes it much more difficult for an outsider or different candidate to start from a small base and grow their support over the early rounds. There has been a mini rush for more MPs to declare for a candidate,creating a premier  league of four, Boris Johnson, Jeremy Hunt, Michael Gove and Dominic Raab.  Two candidates, Kit Malthouse and James Cleverly have already stepped down, with pressure on other candidates  to do the same for want of more support. This is now a more traditional election, with growing camps for the main candidates trying to hoover up more votes and pledges by demonstrating momentum for their candidate.

Nominations close on  June 10th. The first round ballot is on 13 June, the second round on 18 June, the third round on 19 June and rounds four and five if needed on 20 June.  That would allow for a seven candidate race with just one dropping out at each stage and two winners to go on to the contest amongst the membership or for a more numerous field if more than one drops out between rounds owing to the new thresholds or candidate choice. It is likely we will not need rounds beyond June 20th.  It would be worrying if we got to a last two only for the second placed candidate  to do a deal to prevent a membership run off.  Under the rules the race in the country can be eliminated by candidates colluding or changing their minds, as with the last leadership election.

I have now seen and heard a range of views from members of the Wokingham constituency. 50 came to a reception and  others have emailed or spoken to me.There is no one stand out candidate commanding great support, with many members saying they do not know a number of the candidates and do not therefore wish to commit to one particular one at this early stage. Boris Johnson is the best known and attracted the most mentions wanting him on the ballot paper,  but his numbers were still in single figures with most do not knows.

I have now had the opportunity to talk to Dominic Raab, one of the two candidates in the front runners list who resigned from the government over the Brexit policy being pursued by Mrs May. He took the job of Brexit Secretary knowing the PM’s commitment to the Withdrawal Treaty.  He voted for the Withdrawal Agreement on the third vote despite having strong reservations about it. He states clearly that as PM he would get us out by October 31 with or without an Agreement. He also says he has a preference for an Agreement and thinks it should be possible to renegotiate it with the EU despite their repeated statements to the contrary.  He wants changes to the backstop and some other matters, but seems willing to countenance a two year delay in exit and  making further substantial payments to the EU. These views make it difficult for me to vote for him.

Michael Gove has repeated his support for the Withdrawal Agreement, and said he would countenance a further delay in our exit to try to get a better deal. He seems to think he might be able to renegotiate the Treaty, and seems to imply the only really bad feature of it is the Irish backstop which he would like to time limit. These views make it impossible for me to vote for him. Both these candidates have interesting views of a range of other topics,  but if we cannot get out of the EU promptly and cleanly the policies we follow post Brexit will be drowned out by disappointment and continuing rows over Brexit. The general view of most of the candidates is in favour of relaxing austerity, with some tax cuts and some spending increases, as recommended regularly on this site.

This Parliament went to war with the people when it decided to delay Brexit. Labour and  government supporting Conservative MPs who were elected to implement the referendum decision decided to support a Prime Minister who broke her word and begged for an extension of our membership of the EU. From that moment the two main parties went into freefall in opinion polls and elections. Both hit just 28% in the locals with no Brexit party on offer, and then slumped to 14% and 9% in the European election when there was a pro Brexit party many wanted to vote for. Never have the two main parties been so low in support and esteem.

You would have thought this would wake up all those MPs who promised Brexit and then spent the next two years trying to dilute or delay it, or even to reverse it. Yet listening to the continuing conversations in both parties there are many who still do not get it. They want to believe the European election was just a warning or a by election or a flash in the pan. They want to believe it will all be different when we get to a Westminster election. They should try reading the latest opinion poll. That shows the Brexit party clearly in the lead at 26%, with Labour on just 22% and the Conservatives on a near wipe out score of 17%.

All those currently jostling for the position of Leader of the Conservatives have to understand the magnitude of Mrs May’s decision to lose the trust of the people by delaying Brexit. In February the Conservatives were still on 43% in the polls because people believed her when she said deal or no deal we would be out on 29 March. Polling made clear they did like not her Agreement which had already been decisively rejected by Parliament. Many Leave voters did not see the Agreement as leaving, whilst many Remain voters thought the Agreement worse than staying in, so the Agreement lacked friends. If Mrs May misunderstood this, she surely now must understand it. Her Agreement was the only thing she offered in the European election, and the Conservative party was the only party offering it. It went down to a catastrophic defeat. Many former Conservative voters wanted to leave without the Agreement, and were happy voting for just that policy when the Brexit party came along with it.

Any person wanting to lead the Conservatives to success from this disastrous current showing in the polls has to deliver a clean Brexit as soon as possible and apologise on behalf of Mrs May and the outgoing government for the needless delay. It is difficult to see  how someone who stayed in the government and argued for the Withdrawal Agreement could convincingly pull this off.  The new leader then needs to move rapidly to using the new freedoms, the extra money and the other advantages of being a self governing country again to show the wider nation that Project Fear was wrong and that there is a good and prosperous future for us once out.

Meanwhile Labour has not even got to the point of contemplating a change of leadership as its civil war between Remain and Leave continues. If it lurches further to Remain and offers clearly a second referendum it will lose many of its remaining Leave supporters. It then has to go head to head with the Lib Dems and Greens in a very crowded political marketplace. Conservatives have a poor future if they do not win back lost Brexit voters. Labour has an even  poorer future if it is a half hearted version of the Liberal Democrats.

This week  we recall the launch of a mighty force to liberate the continent of Europe in 1944.

At tomorrow’s commemoration our Queen will stand alongside the President of the USA, the Prime Minister of Canada and the Prime Minister of Australia as representatives of the allied nations that mobilised that awesome force. The President of France will attend, on behalf of the largest country they planned to set free. So too will the Chancellor of the new Germany that arose after her defeat, as a reminder that Germany too  agrees the Nazi German tyranny over the continent had to be purged.

Some 160,000 troops made passage by boat to the beaches of  Normandy, or flew in for a dangerous parachute drop as the advance party. Surprise was achieved despite the magnitude of the army and the length of time it took to  assemble and concentrate the force, thanks to disinformation about where the blow would be struck. The Americans encountered the  strongest resistance on Omaha, one of the five beaches,  but Operation Neptune captured all beaches and began the long process of consolidating a position in France for the advance on Berlin.

In the days that followed D day temporary harbours were installed for future supplies and reinforcement, a pipeline was put in to fuel the highly mechanised armed forces, and air and sea control was established against the enemy planes and U boats. It took many more months of hard fighting with many losses to unite with the advancing Russians in Germany, but total victory was secured some eleven months later.

The second world war was a necessary tragedy. Germany’s wish to dominate Europe  with her Italian ally and Japan’s wish to colonise  much of Asia by military means had to be resisted and defeated. The axis powers would not compromise and could not be trusted to honour any possible peace agreement. The wanton Japanese attack on Pearl Harbour, the long preparations for the German invasion of the UK, the impetuous and ultimately self defeating German  invasion of the Soviet Union all demonstrated this was an occasion when military victory had to precede diplomatic and political settlements.

It was a reminder of what happens when politics fails. Germany had been defeated just 21 years before the outbreak of the second world war. The Peace Treaty imposed on her created grievances which Hitler was able to manipulate to his own advantage. The victors’ failure to intervene in German politics when Hitler overthrew the democratic constitution, or when he remilitarised the Rhineland showed a failure of resolve and understanding of what could happen next. Western politics failed to produce an acceptable peace, and more importantly failed to police a tough peace. German politics was subverted by a demagogue who restored German pride, won an election and then   created an evil tyranny which went on to perpetrate mass murder on the battle field and in the gas chambers and concentration camps.

We owe much to the many allied service personnel who were killed in wounded during the liberation of Europe.

Today we should welcome the President of the USA to the UK on a state visit.

The USA is our principal military ally. Her leading presence in NATO has been crucial to our safety over the last seventy years, as we have dealt with the Soviet threat of the 1950s and 1960s, and the more complex and various threats to our security of more recent years. The USA is the world’s most powerful democracy. The UK is one of the world’s oldest and most experienced democracies. Together we project democratic values, argue for freedom, defend free speech and free enterprise, and stand up against dictatorships, genocides and abuse of power.

Many MPs and some of my constituents dislike Mr Trump and say we should not afford him the courtesies of a state visit. The MPs and protesters have done all in their power to limit where he can go and what he can do whilst in our country. I regret that. I will be honouring the office of President. The whole point of a State visit is it  bestows on the State visitor the trappings of power whilst with us and confirms the  power of the office the visitor holds. We respect the office, whilst reserving the right to disagree with the office holders politics, words and actions as an international politician. On many a state visit a visitor has been told in private communications exactly what the UK’s position is on issues of the day and how we would like the visitor’s country to change or to accommodate our views.

On this visit I will find myself in agreement with Mr Trump over Brexit and the UK’s good future outside the EU. The President urged Mrs May, as I and others did, to take a firmer line in the talks she held with the EU to get a better deal. Unfortunately she was tarnished with the view that Mr Trump was a difficult person for UK tastes and did not accept his  good advice. She failed to follow up promptly and vigorously on his offer to see if we can agree a Free Trade Agreement between our two countries, to sign as soon as we leave the EU.

I agree with Mr Trump’s policy of promoting prosperity by lower tax rates and selective higher public spending. We can learn a lot from the much faster growth rate in the USA than in Europe. I agree with the President that  the West needs to ensure cyber security at a time of unprecedented technological challenge, which will have an impact on our commercial alliances. I also agree with his approach to Middle Eastern politics, where he has bombed less and not intervened on the ground in the belief that further military intervention will not help. This is a welcome change from Presidents Bush,  Clinton and Obama.

I study why some so dislike Mr Trump. They argue that his wish to secure US borders and to build a wall at the Mexican frontier is unacceptable. They did not say the same when Mr Clinton built a substantial wall along part of that frontier, or when various EU countries rushed up walls at the height of the migration crisis in 2015-16. They say his attitude to women in unacceptable, though he has not stood accused of improper relations with a young female intern in the way Mr Clinton was. They dislike some of his language about migrants. They think that underlying his policies are intolerant attitudes towards foreigners and unpleasant attitudes towards women. I am not here to apologise for all that he has done in his private life before becoming President nor to defend all his tweets.

I say to his critics we should respect the democratic decisions of our ally, and leave it to US politics to decide what are acceptable attitudes in their democracy. We do not go into the failings and wrong doings of State visitors from tyrannies and monarchies abroad, but we let them come and make their own statements. We have entertained dreadful people from thug states without a murmur of protest from MPs. Why be less courteous to a democratic ally who has stood the ultimate test of democratic scrutiny and media fury in his own free country?  I do not agree with some of the things Mr Trump says, and sometimes disagree with his policies as with features of his trade war that have a wide adverse impact. I do think we should welcome Mr Trump to understand him better and to collaborate with the USA as ally and friend in as many ways as are to our mutual advantage.

I have now heard from  members of the Wokingham Conservatives about the leadership by email and through my meeting on Friday with members at a party reception. I will continue to consult.

I  will now rule out voting for those candidates who want to delay our exit, and who have unrealistic plans to re open the Withdrawal Agreement and renegotiate bits of it, when the EU has said they will not do so.

I have heard enough to know Mr Stewart’s positions do not offer us a way forward that is likely to work. He was one of the three  foremost advocates of the Withdrawal Agreement which went down to the most spectacular defeat the Conservative party has ever experienced in the Euro elections, when it was the only proposition the official Conservative machine put forward. The failure with Mrs May  to sell it to more than 90% of the public should rule him out as a future leader of the party. His stubborn belief that a variant of the Agreement has to go ahead shows he is  completely out of touch with the electorate.

This Agreement is toxic, hated by both Leave and Remain voters. The Cabinet made a mighty mistake in going along with it, with some Cabinet members trying  trying the hard sell on it for weeks on end long after it was clear the public did not want it.

Now Nigel Farage leads the largest UK and largest EU wide single grouping of MEPs the next UK Prime Minister should work with him to secure an early exit from the EU. He should be invited to Downing Street as soon as the new PM moves in  to discuss the details of our departure on or before 31 October this year. The government should invite the Brexit party MEPs to assist in presenting our case for a smooth WTO exit, adding to government work on ensuring working arrangements are agreed for the main issues in an exit of many deals. Much of the work is already completed and agreed, including customs, transport and government procurement, but more could be offered and supported in the European Parliament as well as in further bilateral discussion between the UK government and the EU. Both the Brexit party and the government should accept that the Withdrawal Treaty is a no go for the UK, as the Brexit party made clear to achieve their win in the European election. The resounding defeat for Mrs May’s Withdrawal Agreement, commanding only 9% of the vote, should be decisive. There is no way we should sign that Treaty or anything like that Treaty, for the reasons often set out here.

The website Facts4eu which has some good material has run a piece adapted from this website today. It can be seen on <a href= ” https://facts4eu.org/news/2019 june redwood on brexit opportunities”>

The Independent says they will be running the first chapter of the book next week on austerity economics as part of an article.

Someone wrote in and said there are no more tickets for my IEA talk based on the book on June 11th at 6.15pm. The IEA assure me that whilst there is strong demand there are still a few tickets left for those interested.

They are on 0207 799 3745 usual business hours Monday to Friday

The book is available on Amazon

“We don’t believe you  Why Populists reject the establishment”   ISBN 9781095 254950

The President is mainly coming to the UK to commemorate the D day landings  and the  70 years of the NATO alliance. He will be very positive about the UK’s role and contribution. He and his advisers also fully accept the UK’s decision to leave the EU and would be happy to negotiate a free trade agreement as soon as the UK government is willing and able to do so. Mrs May was reluctant all the time we stayed in the EU, wrongly  claiming the EU  Treaty stopped us holding detailed negotiations.

The US has been making it clear for some time that they think Huawei is a threat to their national security, and recommend allies take the same view. As we share many secrets with them they do not want our systems offering access to companies in China that they think operate for the Chinese state.

Mr Trump’s recent imposition of tariffs on Mexico until they do more to control illegal migration into the USA across their border adds to the trade tensions with China. The President is also allowing only 180 days to the Europeans to respond to his claim  that the EU in general and Germany  in particular are cheating in their trade in cars, with asymmetric tariffs against the USA. As soon as the UK is out of the EU we can make our own decisions on a fair tariff regime for vehicles and avoid the likely fall out from a wider trade war if the USA takes action against  the EU as it is doing with China and Mexico.

The markets are not liking the aggressive stance on trade , but Mr Trump does have issues over Mexico and China that resonate with many US voters. It will be interesting to see if and when the President feels he has been offered enough by way of a possible compromise or settlement.