John Redwood's Diary
Incisive and topical campaigns and commentary on today's issues and tomorrow's problems. Promoted by John Redwood 152 Grosvenor Road SW1V 3JL

Anyone submitting a comment to this site is giving their permission for it to be published here along with the name and identifiers they have submitted.

The moderator reserves the sole right to decide whether to publish or not.

The collapse of great political parties on the continent

When I wrote my book about populism a few weeks ago I drew a contrast between the long trends on the continent to the demise of the Christian Democrats and Social Democrats in most places, and the recovery of support for Conservative and Labour in the 2017 election. In February this year as I sent it to the printers the Conservatives were on a  healthy 43% in the polls. The reason was simple. The Conservatives had embraced the Brexit verdict and we were on target to leave the EU on 29 March 2019. It seemed very likely the Withdrawal Agreement would not be passed, as it was extremely unpopular with much of the electorate, uniting Remain and Leave voters against. Implementing a timely and clean Brexit could  lead on to other changes that would be welcome – spending the money on our priorities including some tax cuts with more spending on schools and social care, boosting the economy, developing our own global trade policy, setting out our own borders policy and restoring our fishing grounds.

Mrs May’s decision to delay our exit and to blame Parliament led to a big fall in Conservative poll ratings. Her even worse decision to hold the European Parliamentary elections, three years after our decision to leave, led to a further slump in Conservative poll ratings. People write in and tell me I have to solve this problem. I need to do something.

My remedy is simple. We need a government that will go to the EU and explain the Withdrawal Agreement is completely unacceptable to Parliament and people, and cannot pass. We will leave at the first opportunity – October 31 if the EU does not co-operate or earlier if they will co-operate. We will offer free trade talks and no new barriers to our trade on exit if they agree under Gatt Article 24. It would be better to leave with such a deal than with just the various smaller deals we have in place for a so called no deal exit.

That is all the easy bit. I will continue to argue and vote for that in Parliament. That is entirely in line with what I promised I would do in the General election, and with the Conservative party Manifesto of 2017. The difficult bit is how to get the government to do just that, as it shows no wish to save itself at the moment.

I have made clear my wish to see Mrs May either change her policy in the way described or to give way to a PM who can do the job. If the Conservatives do not deliver  a clean Brexit soon the polls will stay bad for the party and the country will continue to feel let down. I on my own do not have the power to get these changes, and nor so far does anyone else. That is what these days are about – trying to get the change we need.

The immediate future of Brexit rests on a Conservative Prime Minister and will continue to rest on a Conservative PM until the end of this Parliament at least. Any individual MP resigning the Conservative whip would not bring about the change many of you want, but would make achieving such change one vote less likely.

 

The book is

“We don’t believe you”

 

Paperback version:

 

ISBN-10: 1095254952

ISBN-13: 978-1095254950

 

Kindle version:

 

ASIN: B07QYBK9SZ

 

On Amazon:

 

https://www.amazon.co.uk/Dont-Believe-You-Establishment-Differently/dp/1095254952/ref=sr_1_1?keywords=we+don%27t+believe+you&qid=1556687292&s=gateway&sr=8-1

 

On Bite-Sized Books website:

 

https://www.bite-sizedbooks.com/shop/public-affairs-books/we-dont-believe-you/

 

 

 

 

 

Reply from the Brexit Secretary and my response

I have received a reply from the Brexit Secretary following to my recent letter to the Attorney General. The letter is available to view here.

Here is my further response to the Secretary of State:

Dear Stephen

Thank you for your letter.

You say the Withdrawal Agreement takes us out of the EU, yet you also agree with me that we may well stay fully in without vote or voice under it until December 2022, and you cannot of course tell me what our eventual departure would be  like given how much would need to be negotiated over the so called future partnership. There would also need to be resolution of the alleged Irish border difficulties which so far have proved impossible to resolve despite lengthy talks.

I am glad we agree we could be fully under the control of the EU until December 2022 and would have to accept all new rules and laws. I do not accept that these will  be few in number and limited by our possible departure. The EU is a very active legislature, generating a large proportion of our laws over everything from the environment to trade and from migration to transport.

I am intrigued that you think £35-39 bn a small sum, and that the Treasury forecasts of our gross contributions now amount to an annual  £16.7bn. One of the main advantages of leaving as was clear in the referendum is the ability to spend our own money on our priorities, which we should  be able to do from now, 3 years after our decision to leave.

In a number of areas you point out that the continuing powers of the ECJ and the EU relate to events or commitments made during the transition period. I and many others object to this. Leaving means ending the authority of the EU, not allowing it to interpret past events and impose continuing obligations upon us.

You confirm we will not take control of our fishing grounds during the transition period of the Agreement, nor can you promise that the independence of our fishing industry thereafter might not be compromised in subsequent negotiations to get out of the EU in due course.

The splitting of the Withdrawal issues from the future partnership issues is against our Manifesto and full of negotiating danger. Why should we sign up to so many things they want, before we have agreed some of the things we might want? Why have we dropped the mantra of “Nothing is agreed until everything is agreed?”. What exactly do we get for our £39bn (and the higher sums likely to result from the loose and general commitments of the Treaty) in this so called deal?

 

The Agreement is a very expensive invitation to talks about our possible exit. It does not give us either a clear date for leaving or the terms on which we might eventually be allowed out. It locks us into a binding Treaty to behave as a continuing member of the EU without vote or voice over what we have to obey whilst we try to negotiate our way out of the Irish backstop and the other restraints on us.

Yours ever

John

A better railway

The current railway is effectively a nationalised industry. Its main assets the tracks, stations and signalling system are all in public ownership. The train companies are heavily regulated and have to conform to timetables agreed by government and constrained by what track capacity the nationalised business cares to make available. One of the results of public ownership is a restrictive and unhelpful approach to managing railway property.

It is true that at last the industry has got round to transforming some of the large London stations with retail and service improvements, and to one or two of the prize City properties outside London like Birmingham New Street. Meanwhile much of the rest of the network fails to exploit the obvious opportunities to redevelop station properties to create proper transport interchanges with bus, taxi and private vehicles, and fails to devclop the retail and service opportunities. Worse than the failure to initiate, the railway often blocks, delays or prices out suggestions from others to improve or develop general railway  property anywhere on the extensive estate.

As a train traveller I often look out on a bleak landscape of disused sidings, weed strewn derelict property, surplus land, under developed and old stations. The railway itself is one of the main barriers to a better road system requiring  expensive bridges to get roads across. Too many  level crossings present a safety issue to the railway as well as creating big delays for road traffic. Better investment schemes could include more bridges to get traffic safely over the lines.  In Wokingham the railway blocked my proposals for a new station using private money funded by some private development of retail and café facilities on public land, only for them eventually to give into pressure  to build a new station, using public money  without much increase in service.

Harnessing more private capital and re uniting track and trains would assist in creating a more positive atmosphere for station and property development. Kings Cross and St Pancras show what can be done on a grand scale when private sector services are allowed to flourish alongside the train service. Much more could  be done elsewhere.

The railway review also needs to consider how ticketing and ticket pricing could be improved. The multiplicity of tickets from conventional paper through printed out pieces of paper to electronic tickets on smart phones can cause delays and complications getting through automatic ticket barriers. The range of prices turns buying a ticket into a kind of lottery, where you could pay anything from a low price bargain to a very high price penalty style fare depending on time of day, route and timing of your purchase of the ticket. There is little flexibility so if on the day you wish to travel by a different train your surcharge for switching can be disproportionate even where you are switching to a relatively empty alternative train. The heavily discounted bargain tickets bought in advance for non peak travel cannot represent a good deal for the train operator, whilst the penal high fares for a peak period journey bought the same day is certainly not value for the passenger. The fare structure is an assault course for the unwary, with great complexity leading to difficulties or discouraging potential passengers.

Letter to Brexit Secretary about the Withdrawal Agreement Bill (WAB)

Dear Stephen

I understand the government is considering putting the Withdrawal Agreement Bill to  the Commons for a  vote on the principles of the Bill following   a  Second Reading debate. Indeed we were all told to be ready to answer a 3 line whip for this purpose on Thursday, only for this to be postponed.

I understand this is a long and complex piece of constitutional legislation which will require careful study by all those asked to improve or approve it. I would therefore urge you again to publish this Bill as soon as possible so MPs  can have an intelligent debate about what it is seeking to do and how it might try to do that. Why the delay in  releasing a piece of legislation for scrutiny which the government claims is so important. It must have been drafted for some time, as the draft Agreement it seeks to implement has been settled for many weeks and is not subject to renegotiation according to both the government and the EU.

The legislation presumably seeks to repeal much of the EU Withdrawal Act and will reintroduce the European Communities Act 1972 into the UK constitution to restore all EU powers for a flexible and long  transitional period and maybe beyond that. It needs to make provision for the substantial sums of money the draft Agreement commits the UK to pay and  for the imposition of new EU law upon the UK.  It needs to confirm  the powers of the Joint Committee and European Court of Justice in making important decisions about our future government and resolving disputes between the UK and the EU. These are all weighty matters which warrant proper consideration by MPs before any debate and vote on them.

The Bill could be more accurately called the “Delay our exit from the EU ” Bill, or ” The Reimposition of EU powers “Bill given the requirements of the draft Withdrawal Treaty. The Bill itself would of course need to conform precisely with the Treaty, as the Treaty will be  binding in European law anyway.

 

Yours ever

 

John

What answer should the Attorney have sent to my letter about the draft treaty?

When I sent my letter I was still hoping to persuade the government to announce it could not get its Withdrawal Agreement through and to process to the free trade WTO exit route. A good answer would have been along these lines:

Dear John

You are right that in order to try to get an Agreement with the EU the UK did make various compromises. It also asked for an extension to our membership for a 21 month or two year period which came at a price over money and powers.  The government thought this the best answer, but it is now clear people and Parliament do not agree.

We are therefore now looking at an expedited exit from the EU without signing the Withdrawal Agreement. We will be tabling a comprehensive free trade proposal, which the EU Commission has indicated it will consider.

 

Yours etc

 

I also thought I might get a whitewash brush off letter:

 

Dear John

 

Thank you for your letter. Whilst we do not agree with your interpretation of what might happen were we to sign the EU Withdrawal Treaty, I acknowledge as you mainly point out that in the transition period the UK will continue to make budgetary payments and observe EU laws. This seems to the government to be entirely fair and to give the UK more time to adjust to exit. I do not accept we will necessarily be in transition for almost four more years, nor accept that we will have to stay in the customs union indefinitely owing to the backstop provision. The powers and charges  that last beyond transition are proportionate and reasonable.

You need to accept that compromises have to be made and this was the best deal the UK government was able to negotiate.

Yours etc

 

The argument over which of two Ministers might reply indicates to me a certain unhappiness about having to deal with the individual points highlighted in the letter, and a recognition that the draft treaty does indeed keep the UK under the full control of the EU for at least 21 more months and maybe much longer depending on how things work out. It is on any reading a Stay in not a leave agreement. The argument is over how long it might last and what it does to any eventual leaving, given the way it removes many of the UK’s best bargaining levers. The backstop threatens permanent customs membership and other clauses have an impact well beyond the next 21 months. It does not unequivocally let us leave at any future date, and binds us in to more EU controls and bills without vote or voice to protest. Under it you can be sure we are locked in on bad terms for an unspecified period, with no easy way out and under huge pressure to sacrifice yet more to try to get out.

The latest opinion polls

Looking at the latest European election polls, I am urging the Conservative government  to change its approach to our exit from the EU.

A large majority of the public do not see the Withdrawal Agreement as a good deal for the UK, or as Brexit. It unites Remain and Leave voters in opposition.

It is urgent not just for the Conservative party but for our country that either Mrs May accepts the Agreement cannot proceed, or a new PM takes over who starts by telling the EU the Agreement is  unacceptable. The Conservative-Labour talks as predicted are not helping either party.  We need to leave now, responding positively to the EU offer of talks on a free trade agreement. We should not be holding these European elections as we do not want to have another 5 years as members of the EU. The 2017 Conservative Manifesto was right to say No deal is better than a bad deal, and to propose exit on 29 March 2019.

Trust in the establishment? We dont believe you…

One of the big themes of my book is the breakdown in trust in Establishment forecasts, remedies and ability to even identify what people think the problems are. In a healthy democracy there are always sceptics, campaigners trying to change the agenda, and differences of expert opinion. In recent years there has been a bigger reduction in trust in establishment analysis and priorities, allied to more concerted attempts by the establishment to crowd out any alternative narrative or policy approach. They have got better at spinning as they have got worse at managing.

 

In the area I know best, economic forecasts and policy making, the banking crash and its aftermath was a major knock to confidence in official forecasts and their ability to make policy for prosperity. The widespread adoption of austerity policies, especially the extreme ones in the Euro area, added to the disillusion. It is true that the UK Treasury and Bank had  a very disappointing record prior to the Great Recession, but that for many was the final straw.

Most of my adult life I have been a critic of successive Treasury policies by  the changing governments who usually perish through economic incompetence. In the 1970s I was urging more prudent policies on spending and borrowing, only to see Labour humiliate our country by having to go for a bail out at the IMF and bring on a nasty recession.

In the 1980s I successfully battled against submitting the UK to the boom bust torture of the European Exchange Rate Mechanism, only to lose the battle at the end of the decade. The scheme did even more damage than I imagined , plunged us into recession and threw the Conservative party out of office for 13 years as a result.

 

In the period from 2005 I was one of many warning of excessive debt and credit building in the system. After 2007 I was a lonely voice urging a less severe approach to sorting out the banking system,watching the authorities break some banks and trigger another large recession. That threw Labour out of office. Today I remain a critic of the over tight money policy and the damaging tax policy of the current government, which is slowing growth too much.

 

The Referendum campaign was another major blow to expert opinion and trust  in government financial institutions. Their stupid pessimism for the econony if we dared to vote to leave the EU was soon disproved by events. It confirmed critics in thinking official forecasts are politically rigged to suit the establishment.

Oxford talk Friday 17 May “We dont believe you” The assault on establishment views

On Friday 17 May at 2 pm  I am giving a talk on the collapse of great parties and  the rise of scepticism  about establishment opinion  at All Souls  College, High Street Oxford.

All those interested in coming  should email myles.larrington@parliament.uk so we can tell the Lodge at All Souls  to let you in.

I am happy to take questions on anything from migration to climate change, from Brexit to the trade war.

.

 

All change for the trains? Further evidence for the Williams Review

I wrote the minority report on how to introduce private capital into the nationalised railway when I was in government. I proposed keeping track and trains together. The majority went with the idea of splitting the ownership and management of track from trains. This just happened to be the EU view, which became a requirement. My main objection to the split was it created a massive monopoly track and stations provider which would be unresponsive to the ultimate customers, the passengers, and not especially responsive to the smaller and temporary franchise companies running the trains.

It was bound to lead to rows over who was to blame when a train is late. Was it poor track, bad signals,  the  requirements of the network provider? Or was it poor trains, driver problems or other issues from the operating companies?  As I feared there were plenty of delays and plenty of disputes about who was to blame. Poor signalling and network management was often the cause, but so was poor labour relations by the train companies.

It was also likely to push the network provider  back into the public sector. Such a large concentration of power invited Ministerial intervention. The perceived need to continue to subsidise the railways meant a stream of cash going from taxpayers to the industry, with the network provider likely to be lobbying. One of the main reasons nationalised monopolies often served their customers badly was the perception of their Boards and senior management that their customer was the government, not the people using the service or buying the product. They looked upwards for taxpayer cash and Ministerial directives. They did not look down to find out what customers wanted and to treasure their financial contributions.

I recommend that the government examine ways to reconnect track with trains under common management. That way the investment programmes can be compatible and co-ordinated, and passengers know who to blame for poor or insufficient service.  The train company can be responsible for the whole experience, on the station, on the train and the train’s performance on the track. They would have more incentive to make those smaller but timely investments in better signals, better information systems, short passing places and the like that could revolutionise train service reliability and add to capacity where needed. One of the big constraints on train traffic growth today is the nationalised network providers inability to supply sufficient train slots at busy times for more popular services.

 

The integrated  companies in turn must not be unchallenged monopolies otherwise they too will be less responsive to customers and more minded to play political games around subsidy and government led structural decisions. The main rail company owning a given line or region of track would have to treat the track as a common carrier and be prepared to lease train spaces to rival companies. There will need to be an independent access regulator to ensure this is observed and practised fairly. Challenger companies should also have the right to add track to the existing network, again with suitable regulatory supervision of revenue sharing, safety and other matters. It is possible to design decent sized integrated companies that leave open competition between lines and services. The obvious case of East coast versus West coast mainline is not the only one. These lines should be owned by different companies.

Train companies will need subsidy in some cases. There needs to be clear rules over subsidy allocation. The things to avoid include  a subsidy system which protects a fossilised service, keeping routes which would  be  better replaced by new services. It is also a danger that the maximum subsidy goes to the least used service, providing a perverse incentive to run unpopular services because they have always been  services.

 

(to be continued)

Book launch – how great parties can be destroyed by close association with the EU project

At the launch of “We don’t believe you” yesterday I stressed the way most Christian Democrat and Social democrat parties on the continent have ceased to be serious challengers for power, giving way to new parties that are usually more critical of the EU scheme, of austerity economics, the Euro, migration and benefit policies, dear energy and the rest. I pointed out how Conservative and Labour detached themselves from decline and fall on the continental model in the 2017 General election, achieving 82.4% of the vote between them.

More recently with the Conservative government delaying Brexit and Labour going towards a second referendum and dumping Brexit altogether, they have slumped to just 56% together in the local elections, with worse polls for the European elections so far. The message is clear – leave the EU quickly and popularity is likely to return, stay in and get sucked into the continental turning away from traditional parties.

“We don’t believe you” available on AMAZON

The price is paperback £6.99; kindle £4.99.

The links to the book to buy online:

Paperback version:

ISBN-10: 1095254952
ISBN-13: 978-1095254950

Kindle version:

ASIN: B07QYBK9SZ

On Amazon:

https://www.amazon.co.uk/Dont-Believe-You-Establishment-Differently/dp/1095254952/ref=sr_1_1?keywords=we+don%27t+believe+you&qid=1556687292&s=gateway&sr=8-1

On Bite-Sized Books website:

https://www.bite-sizedbooks.com/shop/public-affairs-books/we-dont-believe-you/

The book has chapters on military intervention, austerity economics, Brexit, the collapse of the Social Democrats and Christian Democrats as governing parties in most of the EU,the clash between social media and conventional media, the way some large businesses side with big government to the annoyance of their customers, political correctness, large scale migration and the difficulties caused by the Euro.

“We don’t believe you Why Populists reject the establishment” Bite-sized books Available through Amazon