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 economic damage of lock down

Whilst the official advisers seem to find forecasting the possible incidence of the virus and trends in future cases of the disease difficult, there is considerable agreement amongst economic forecasters that the anti virus measures are very damaging to jobs, output and incomes.

The latest proposed England lock down, allied to the lock downs already in force in other parts of the UK are particularly bad news for jobs and businesses in entertainment, hospitality, tourism, leisure, sport , travel and shop retail. Around one quarter of our economy will be subject to bans on trading altogether or will be trading in very restricted circumstances to comply with anti CV 19 requirements.

The damage will be mitigated by the extension of the Furlough scheme for another month, allowing 80% of the wages of people employed in affected sectors to be paid by taxpayers rather than by employers. There will also need to be more easy terms loans for struggling businesses losing some or all their cash flow owing to bans and controls.

The need for an Exit Plan is however paramount. We all need this to have something to look forward to. Businesses need it to know it is worthwhile borrowing, making do and bridging over a further period of lockdown. They need reasonable certainty that come next year they will be able to trade well, so keeping together expensive teams of people and maintaining plant and properties is worthwhile because they will trade again as they used to.

The immediate task is to seek to ameliorate the rules and controls, given the Opposition’s intention to support the lock down on any vote we might get. The questions include

Can outdoor sporting facilities be used rather than all closed? The changing rooms and club houses could be shut to avoid larger gatherings indoors.

Can pubs and bars run an off licence trade with home delivery so they have some drinks turnover, as well as being allowed to sell take away food?

Can specialist shops which sell home items be allowed to open to compete with the multi purpose food led supermarkets?

Can Garden Centres be allowed to keep open their outdoors areas with the sale of a range of items for growing food, food, home care and gardening with allowance of some trading under awnings or with plenty of through fresh air flow? Their stock is perishable.

When will the government press further with advice to allow adaptation of buildings to extract air rapidly to allow more indoor use with low risk of concentrated and infected stale air harming people?

The large increased costs to taxpayers of the railways and other public services, allied to the large subsidies needed for private sector business and individuals banned from working, cannot be sustained indefinitely. I am all for spending enough whilst the controls last, but there does have to be a recognition that we cannot go on like this through more cycles of relaxation and lockdown. It also needs to be understood that with this second national lock down we will lose more jobs and businesses permanently. In more cases their debts become too high and their owners will lose confidence in the longer term viability of businesses gravely damaged by these policies.

I remain critical of the wild ranges of the official forecasts and the highly selective and variable data being used to justify this policy.

What is the point of a lock down?

The first national lock down was said to be for one main reason – to save the NHS. The NHS was short of Intensive care beds and breathing systems at a time when that was thought to be the only treatment for bad cases of CV 19. This time the government advisers say hospital admissions may stay below the April peak which was handled, or may be three times that level. What is the use of such massive ranges as forecasts?

The time of that lockdown was used to procure many more ventilators, to put in four large new Nightingale hospitals and to expand ICU capacity in existing hospitals. More nurses and doctors were hired, and recently retired qualified staff were tempted back to help with the crisis. The peak demand in April was comfortably accommodated by the NHS. Serious cases came down, though some argued the peak had been reached at or before the lock down started. As we went into summer with more Ultra violet light and warmer temperatures which both damage the virus case numbers stayed relatively low.

The lock down also gave the medical and scientific establishments more time to research the virus, to understand more about its transmission and its impact on infected people. As a result we now know than some steroids, anti virals and clot busting drugs can make a difference to serious cases and can save some lives.

Today we are told there needs to be an extensive “circuit breaker”. It’s a strange analogy, because of course a circuit breaker immediately cancels all dangerous power in a system, whereas a lock down does not immediately turn the virus off. When you put a circuit breaker back on full power is restored immediately, but what I assume these scientists want to do is to use a period of lock down to bring virus spread down, before resuming some relaxation which on their analysis will allow some drift back up. How does this help? How much relaxation would they allow and how much extra virus circulation would they find acceptable? Why are we not given measurable targets in advance so we can see what they are trying to achieve?

The advisers rightly warn us there may be no magic bullet or solution early next year in the form of a vaccine which offers full protection.This means the true question to answer is how do we live with this virus? What is the right mix of policy to keep the spread down, to protect the vulnerable, but to allow more jobs and activity than we currently enjoy?

It is no good the government imposing a whole new raft of controls over people’s daily lives if there is insufficient buy in by the public. To work people have to be persuaded it is necessary to follow the rules, and the rules have to be the minimum to keep virus spread down sensibly . What controls do you think are necessary?

Letter to BBC

Dear Director General

         Congratulations on your appointment. I am glad you are reviewing the extent to which the BBC delivers the impartiality and public service content Licence fee payers pay for.

        As someone who seeks to make a  contribution to the main arguments over public policy, specialising in economic and constitutional matters, I find the BBC output is often biased against discussion and thoughtful  consideration of  views and attitudes that disagree with the conventional wisdom of the large corporations, civil service and international quango establishment. As examples  I have in the past  been denied access or time to explain  the case against the ERM and features of the Euro which duly went on to do considerable economic damage, the case against so called independent central banks when they were in recession creating mode,  to consider the opportunities given to nationalisms by devolution or to make the case to rescue industrial and agricultural market share lost during our years in the EU single market. I have written and published on these and other themes extensively and wish to discuss them in a true Reithian spirit of independent enquiry. Instead I have to listen to a propaganda channel which just assumes the establishment view of Euro policy,  thinks the single market is always a net gain which we must not lose, that  Central Banks are wise and right and the errors of economic policy are all the fault of governments, and favours lop sided devolution  which must be  encouraged. There is a reverence towards so called independent experts who are often political in their judgements and sometimes not even good experts in their fields with poor track records at forecasting.

          I do not think the BBC reveal party political bias between Labour and the Conservatives. The interviewers are usually rightly tough on both parties. There is however systematic  bias against England, with many voices representing Scotland, Wales and Northern Ireland and liberal reporting of the devolved governments  with never any consideration of the views of England where  most Licence fee payers live.   There is  no English radio or tv channel to redress the balance, unlike the other nations in  the Union which have their own channels. No-one is ever allowed to speak for England. We are endlessly told Scotland voted to stay in  the EU but never told England voted decisively to leave. The BBC follows the EU agenda of trying to break England into regional and city area governments, whilst leaving Scotland whole despite the anti Edinburgh tensions in  places like the Shetlands and the differences between the Highlands and the main cities.  I would appreciate the opportunity to have a conversation with you about global  establishment bias throughout BBC output, which has left the BBC finding it very difficult to report sensibly on Brexit or Trump or other populist movements. I think the BBC needs to do a lot more to foster intelligent debate about these economic and constitutional matters, as it misses out on many of the conversations listeners and viewers are having on social media in frustration with their state Broadcaster.

           The bias is also reflected in the way so called populist politicians and parties in office overseas are reported. I am neutral on the US election, as UK politicians should stay out of foreign elections and be willing to work with any democratically elected government that emerges in an ally. Listening and watching BBC output it regularly frames the election as the Democrats would wish, concentrating plenty of hostile fire on Trump and  his supporters but never doing the same to Biden and his. Coverage of continental parties in government that are sceptical of EU policy is also usually more hostile in tone than coverage of pro EU parties. I look forward to meeting.

Yours sincerely

John Redwood

Letter to the Home Secretary

The tragic loss of life at sea near France this week has highlighted again the need to change policy in tackling illegal migration.

You have rightly condemned the actions of people smugglers. They take profit to put people at risk on dangerous boats and encourage them to break the law of the country they wish to enter. It would be good to know what more can be done to find and prosecute the people in France responsible for organising this vile trade.

The UK needs to reinforce your clear view that people should not attempt illegal entry through dangerous crossings in boats or by illegal and dangerous use of trucks and road vehicles with or without the knowledge of the drivers. To do so the courts need a new instruction from an Act of Parliament to help ensure there is no incitement to try the dangerous sea route or back of the lorry method with smugglers. No-one should be paying a people smuggler to evade the law and no-one should be funding and organising dangerous journeys for children.

The message has to go out that it is possible to become a refugee or economic migrant legally and safely. The UK should not accept any attempted illegal entry. The last thing we want to do is to send out a message that attempting illegal entry is likely to work as that would be an incentive to put more lives at risk. Too many have died at sea or in or on lorries already. Let’s take action to save lives.

The EU believes in tariffs

There is a double irony in the Remain position on trade. They say a free trade agreement with the EU is crucial, whilst doing everything in their power to stop us having free trade agreements with all those other non EU countries who would like one . They pose as free traders, claiming tariffs are harmful, yet they fully support EU trade policy which makes use of very high tariffs on agricultural and food products to protect domestic farming and the food industry, and seeks to use a 10% tariff on non EU cars to help single market producers.

So which is it? Is free trade essential to our future? Or do selective tariffs do good and protect domestic industries sensibly?

The theory of free trade tells us that a country is better off with free trade than with tariffs. If, however, you take this to the logical conclusion that you might as well surrender all your tariffs with no reciprocation from overseas you may well find domestic industries damaged by aggressive overseas competition, to be followed by price hikes once the domestic industry has been demolished. Arguably the West has been too generous to China, offering low or no tariffs under WTO rules whilst allowing China to maintain big protectionist barriers of various kinds.UK industry lost out badly when we went to zero tariffs against German and other continental steel, car and and textile manufacturers in the 1970s.

I favour bilateral or multilateral reduction of tariffs and other barriers. As we leave the EU’s single market and customs union we are free to choose tariffs or no tariffs, and to decide how high they should be,. The only proviso is we need to impose the same tariff on all WTO members, unless they have a Free Trade Agreement with us. In the case of food it means we can lower tariffs on non EU countries whilst imposing some tariff on EU food, which will act as a stimulus to recapture market share for domestic producers lost over our years in the CAP and Customs Union.

So let us once and for all get rid of the silly lies put around about trade

1 We can trade well and grow our trade without a Free Trade Agreement, as we have done during our time in the EU with non EU countries

2 Tariff free does not guarantee good trade growth, as have seen in recent years within the tariff free single market in the EU

3, Most Free Trade Agreements are useful and can add a bit to trade.

4. Lop sided trade agreements can be damaging, as our EU has been to our farming and fishing industries.

The new pedagocracy

The global elite are trying to make one size fit all around the world. They seek to enforce the power of their ideas by recruiting people of like minds to leading global bodies and into the civil services which staff governments. They value highly the formal qualifications put out by universities and professional bodies. They create a hierarchy of income, respect and wealth based on approved knowledge of a certain kind and membership of the privileged educational clubs. They find entrepreneurs uncomfortable with their radical ideas and ability to change the world without necessarily having passed through the right institutions. They seek to vilify or ignore anyone with a different view of the big issues of the day from how to promote growth to climate change and the way to respond to a virus.

They claim there are correct scientific or factual answers to complex problems. They think there is something called “settled” science. They seek to limit the scope for permitted dissent or political discussion of other options and approaches. They edge towards the idea of a post democratic age, when the views and wishes of the many distilled through the electoral process are replaced by the rules and laws of the so called international order, set down and interpreted by lawyers, senior officials and conforming politicians. They are intolerant of others whilst preaching tolerance on their own terms. The worst of them can be stupid in the way they deny the obvious, bury inconvenient evidence or scorn what commonsense suggests.

We need more debate about why the advocates of this approved and regulated international order are so often wrong, and why they think doing damage is an acceptable price to pay for their ideas.

If we take the issue of the “settled” views on economics, they hold that Central Banks are all wise and need to be independent. They seek to take as many issues as possible from competition policy to environmental policy out of the hands of elected politicians and ultimate public debate and control and put onto a rules based autopilot instead.

This system has delivered the Oil and banking crash of the 1970s, the Exchange Rate Mechanism recession of the early 1990s, the Great banking crash of 2008-9, the successive Euro crises of the last decade and now the CV 19 slump. Much of this was a failure of Central banking as well as poor conduct and judgement by commercial banks, but the Central Banks are always protected from criticism or management change.

The system has also delivered an over powerful China cornering the market in many manufactured products whilst enjoying privileged trading terms with the West. China busily sells the West the products of the Green revolution whilst pressing on with the construction of many new coal fired power stations.

It is time this universocracy was made more accountable. Elected people around the world need to ask more questions about the obvious failures of the policies of some of these institutions and governments, and need to speak out more for changes of approach.

The Presidential election

Over the long campaign so far I have kept off the topic of the Presidential election. I strongly believe that politicians and commentators from another country should keep out of other people’s elections. Today I do not break my silence so far to recommend one of the candidates. US voters do not need another UK MP or commentator telling them how to vote. I was appalled by President Obama’s clumsy and ill judged intervention in the UK EU referendum, though I soon realised he had if anything helped the Brexit cause he wished to damage.

I write today to make two main points. Many of us follow the debates and stories of the election because the USA is still the leader of the democratic world. The person, policies and team the voters choose matters to us all. We need a USA that is strong in the defence of freedom, a good ally and friend, who respects us and our different democratic views and decisions. This election is particularly important, because the USA has before it two champions of very different world views and policy prescriptions that mirror the debates this side of the Atlantic and have read across to us.

I will leave aside the candidates other than Mr Biden and Mr Trump, as practically all UK and European media do as if they do not exist. I accept the polls and past history suggests the two main party candidates will command well over 90% of the vote between them and only those two have any chance of winning.

I will also leave aside all the character and behaviour issues which are part of the US debate because both sides have chosen to make character a big issue. Chance and often unfortunate or unpleasant remarks are in the USA as in the UK treated with undue fascination with extreme reactions to words, when what matters more for US voters and the wider world is what use would either man make of the large powers of the office of President if elected.

The essence of the debate between the two revolves around two major disagreements. The first is rooted in the immediate background. Mr Trump stands for livelihoods and Mr Biden for lives. The President argues fear of CV 19 is overdone and there are limits to what government can do to grant people immunity so he favours getting the USA fully back to work and a more normal life. Mr Biden believes the virus needs strong state powers to block social contact and shut down business that thrives on it to stop the spread and so bring the death rate down. Damage to jobs is a price worth paying to stop or delay infection. These two contrasting views are also very prevalent in our own country.

The second is their attitude to world government and the so called international rules based order. Mr Biden for example agrees with the fashionable consensus that climate change is the most crucial problem besetting our world, and wishes the USA to tread the EU and UN route to closing down the oil, gas and coal industries and forcing a rapid transition to electrical power at home and in transport. Mr Trump backs cheap energy and defends all the jobs dependent today on fossil fuels and fossil fuel using vehicles and machines. He sees that as part of the prosperity machine he sought to unleash.

I will look in a later post at some of the other big differences, especially in foreign policy, their attitude to military intervention and different approaches to the Middle East, terrorism and borders. Be in no doubt this is a big moment in the history of the advanced world and in its impact of the democracies on world politics.

Time for Plan B

The decision of the Welsh devolved government to impose a wider ranging lockdown on an already scarred and weakened Welsh economy has made the contradictions and absurdities of too many controls more obvious. The supermarkets are told to tape up their shelves and fence off their aisles for so called non essentials. The devolved government stumbles over what is an essential. They defend their decision by saying that as they have closed non food specialist shops it would be unfair to let the supermarkets sell items the specialist shops cannot offer. There is no good answer when people point out that the policy will just lead to many more people buying the banned items on line, losing business not only to the specialist High Street shops but to the food shops of the high Street as well. How is that sensible?

The idea is that stopping more shopping will abate the spread of the disease, which then will allow relaxation of controls which on their analysis of course will lead to a further spread of the disease. How does that help? Why should the virus wait until after Christmas before it builds up again, if the plan is to relax a bit for Christmas. What proof is there that shopping spreads the disease anyway? People do not spend much time in the company of another person from outside their household in a supermarket. Air flows through stores of course need to help control the disease, and can do so.

As I argued in Parliament and put to the government, trying to change behaviour to contain the virus requires consent and co-operation from the public. There is no longer enough buy in to the detailed rules nor to Test and trace. The even more complex and wide ranging Welsh rules have met with a hostile response from many Welsh people, showing that the devolved government is losing support for these measures.

The U.K. government needs to learn from the Welsh experience. More needs to be done to encourage a business and jobs revival. There are many things that are being done and can be done to limit deaths. Improving treatments, safeguarding the vulnerable, improving ventilation and air flow in public buildings and improving infection control in health settings, can all help to get the death rate down. There are limits to how many detailed rules and controls government should seek to place on people generally, as government has reached the end of tolerance for the current degree of control let alone for tightening. People now want explanations of why and how a control will help or is necessary, and why it should continue.

It is time to put economic recovery higher up the priority list, and to go out to save many more livelihoods. There needs to be another drive to get more non CV 19 medical problems treated. We have to live with the virus, and do all we can to lower the death rates from CV 19 and from other killer medical problems without shutting down the economy or seeking to control everyone’s social life and shopping habits..

Letter to the Business Secretary to get more back to work

Dear Alok,

It is imperative more is done to rescue and help businesses that rely on social contact. Too many companies in events, leisure, travel and tourism are badly damaged by anti CV 19 rules, and some remain completely closed.

One way forward which could provide urgent relief short of repealing the Controls that do the damage is to help businesses adapt their ventilation and heating systems to make them safer. There is plenty of research saying that if a restaurant, hotel, meeting room has a system for extracting stale air promptly and replacing it with clean air it can offer a safer environment. Extraction from the top and supply of new air from the bottom greatly cuts the spread of the virus and other contagions in the circulating air.

I understand your department is responsible for these policies for the public sector and has done work on suitable advice and shared technical research for the private sector. Will you now make this more public? Will you provide advice and where appropriate adaptation grants to business to get this done quickly for all who wish to go this way? Could there be a CV19 standard for air change which those who wished could reach, showing their certification to reassure customers? Will you lead the public sector in adapting government and Council buildings?

We must do more to save all those businesses. Best of all would be a clear exit plan from restrictions generally.

How should we live with and control CV 19?

Today I seek your views on how much economic sacrifice we should make to try to slow or delay the transmission of this disease.

It is clearly lethal for a minority who get the bad version of it, but no worse than flu or bad colds for many others. The Global death rate so far from it is 0.015% of the world population, and it seems to account for under 3% of deaths. Cardiovascular problems remain the prime killer. CV 19 is on track to kill a few more than road traffic accidents but ranks well below cancer and other lung infections.

It is good news that in its second wave in the Americas and Europe the death rate is much reduced. Treatments are better and maybe more younger people are getting it with much less risk of death.Some of the advisers think it is just a lag and deaths will rise as they did in the spring. That would every worrying.

So how much economic pain should we suffer to delay the spread of the disease? Is there a realistic exit through a vaccine to make the cost of delay a price worth paying, or will there just be another flare up as soon as we relax controls again?

I think the government needs to do more to save livelihoods and needs to remove those controls that have limited utility in defeating the virus but do considerable damage to jobs and business. Can we do more to help people most at risk protect themselves from it? Can we have isolation hospitals and high standards of infection control in all care homes and other health settings?