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

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Dear Constituent

Over the last few days I have been in  regular contact with the government trying to get improvements in a wide range of areas, and seeking better information about where we are in fighting the virus and expanding NHS capacity.

Let me reassure that currently the local NHS  has some spare Intensive care beds, following a doubling of its capacity to handle the virus. It also has well advanced plans to expand capacity further, should this prove necessary. It would do so  in two phases, leading to  possible additional doubling of capacity. This would lead to a 300% increase on the starting position.

The most important  thing is to try to bring the death rate down. As there are still no generally recognised and adopted cures the best way to get the death rate down is for all vulnerable people to self isolate for as long as is needed  whilst the epidemic is still widespread. The NHS has notified people whose other medical conditions make them more vulnerable to the severe version of the disease. The elderly are also more at risk.

I have held phone calls  with Wokingham Borough Council and seen West Berkshire’s work to marshall volunteers and help provide delivery services to those who are self isolated at home. West Berkshire sets it  out through  info.westberks.gov.uk/coronavirus-communityhub .Wokingham refers those needing help to admin@citizensadvicewokingham.org.uk

I have also lobbied government over the national NHS Volunteers scheme. requesting that it includes help for people self isolating who cannot get out to shop or who need some telephone or social media contact.

I have contributed proposals on food supply to speed switching food from catering contracts to supermarket shelves. It is good to see more full shelves and a better range of products available, There were too many empty shelves during the  week or so of maximum purchases when many people decided to stock up at the same time as many others needed to buy more to eat at home instead of having a school or work lunch. I would like to thank all those who have been growing, packing, transporting and selling the food to us in  the shops. They have done a great job in difficult circumstances. I hope constituents will remember to thank them and recognise the problems they have encountered through no fault of the businesses and staff concerned. There was plenty of food available overall but demand shot up to include individual stockpiling and it took time to switch some of the catering supplies.

I pressed successfully for schemes to offer state financial support for companies to keep staff on that no longer are allowed to work, and  for the self employed who are banned from earning a living. I do not normally favour state subsidies to business , but do think this is an entirely unprecedented situation. The government is preventing people and companies from earning a living for public health reasons and to help the NHS, so the state should offer money to pay   the basic  bills during the period when work is prohibited.

Unfortunately the wide ranging and seemingly generous schemes outlined by the Chancellor were slow to come into effect and had various restrictions in the small print which requires change. This week saw some welcome alterations to the bank lending schemes, insufficient changes to eligibility for the furlough and self employed schemes, and little progress with speeding it all  up. I am pressing ever harder. If companies cannot access cash to keep people on they will make them redundant. If the self employed have no income they may have to abandon their business and seek  Universal Credit.

I pressed for the government to publish regular updates of how many people need hospital and intensive care treatment for Covid 19 and how much spare capacity the system has. As one of the main aims of the lock down is to buy time for the NHS to be able to cope with the epidemic it is good to see these numbers now, to see there is spare capacity and to see substantial new capacity  being   opened  in major centres against continuing rises in numbers. What we now all want to see is a falling off in the increase in the seriously ill as the impact of lock down is felt. As  fewer people pass the virus on to vulnerable people who could get the serious version that requires hospital support, so we should see benefits from the policy.  

I am quite clear that the damage being done to jobs, companies and the self employed is large. We need to get out of lock down as soon as possible. I hope these severe measures soon bring the relief we want to see. I am making proposals of how we could relax the restrictions later this month to rescue the  economy, whilst still continuing to give maximum protection to all those who are particularly vulnerable to this epidemic.

Thank you for all you are doing to help bring this to an end.

John Redwood

Supply chains and interruptions to output

During the prolonged wrangles over Brexit we were beset with false claims that supply chains would be disrupted  by moving to a Free Trade or WTO based future arrangement  between the UK and the rest of the EU. Some of us pointed out the long and complex supply chains of industries like the car industry already included substantial supplies from non EU sources which worked fine despite coming from outside the single market.

Today we see supply chains badly disrupted in some cases both within the EU single market and from outside it by the impact of government policies followed around the world to deal with the virus. It is curious we do not hear incessantly and regularly from those who used to  be worried about these things, now there is something to worry about.

There is first of all the interruptions to supply from abroad in to the UK because the supplier has been instructed by their national government to cease production as part of a plan to impede the spread of the virus. There are then the interruptions to supply that come from a foreign government placing an export ban on essential goods in short supply, as the Germans did on certain supplies needed for virus treatment. This is on top of the US moves to impose tariffs and bans on countries that the President regards as a  threat to national security. The USA is seeking to stop allies from buying from some Chinese technology providers, and is imposing strict sanctions on Iran, for example.

Some argue that this means we have now seen peak globalisation. There are  various good reasons to encourage more domestic production. It cuts travel  miles for products and components. It cuts the risks to supply lines from geopolitical events in various countries. It adds more value in your own country. The economic argument against is that based on the theory of free trade and specialisation. If each place or country specialises in a few things that it  becomes very good at and reaps economies of scale in  , total world real income should be maximised. That argument works well when most or all governments believe it and promote it, but comes under pressure when countries cheat. Mr Trump’s argument with the Chinese is over just that. He thinks they cheat on technology, currency level, state aids  and other matters.

The UK is discovering that it cannot rely on China and Germany for some  imports at a time of virus crisis.   The UK private sector is showing considerable flexibility, with Distilleries offering hand gel, engineering businesses offering ventilators and textile companies running up personal protection clothing. The main constraint on our flexibility seems to be occasional delays in the public sector testing and approving what the new producers can deliver. We need to get better at this flexibility when we cannot always rely on abroad to supply the things we really need. We also need to cut the food miles and make sure our fishing and  farming system encourages a higher proportion of home grown and home caught produce.

Green transport

I have sent in my views on the need for an early return to work along with strict safeguarding for all people at serious risk from the disease, and my views on actions needed to reduce the rise in unemployment and termination of businesses in the meantime. Today I wish to turn to another issue.

The government has just produced a document entitled “Decarbonising transport –  Setting the challenge”. It shows  how on current policies transport will  still be a major source of carbon dioxide in 2050 when the government wishes to  be carbon neutral. The Paper recommends six big actions to shift the carbon dioxide curve more decisively downwards.

It says we “need to accelerate the modal shift to public and active transport”, decarbonise deliveries ,make the  UK a hub for green transport technology, toughen regulations to decarbonise road transport, develop placed based strategies that get cars off the roads, and reduce the global carbon dioxide output of ships and aviation.

One of its most amusing charts is the one telling us just how much carbon dioxide  journeys by plane or car entail. It tells us that if we journey to Edinburgh from London by plane we will cause the emission of 144kg of carbon dioxide. If we go by petrol car it falls to 120 kg and diesel car to 115 kg. However, if we walk or go by bike it assures us it will mean no carbon dioxide at all.

They cannot seriously think that walking or cycling to Edinburgh is an option for most of us. The Paper is short on specifics, and recognises that there will need to be new technologies and new greener fuels for old technologies if they are to get anywhere near the zero carbon dioxide target by 2050.

They remind us that cars account for 77% of  miles travelled, buses 4% and trains 9%. They anticipate a 35% increase in distance travelled by car by 2050, bus distances staying the same and rail going up by 60%.  They also assume a 70% increase in van use  but only a 7% increase in heavy goods vehicles, which is a strange variation.

I would be interested in your thoughts on how feasible net zero for transport  is by 2050, and what changes could deliver it.  

Helping small business and the self employed

I am going to have another go at getting the government to speed up and widen the eligibility for its schemes of help for small businesses and the self employed. I am receiving numerous very worrying emails from people whose incomes have been stopped  who do not  qualify for assistance.

  1. The government needs to include owner Directors of small companies who rely on the income and maybe dividends of their business to pay their living costs.
  2. It needs to raise the earnings ceiling on the self employed scheme
  3. It needs to include people who have set up businesses that is their sole means of financial support more recently
  4. It needs to aim for an early payout, not sometime in June.
  5. It needs to offer downloadable simple forms now that permit people to apply for money on  a self certified basis, with adjustments made later in the year. These should be made through the tax system with the payments made as a kind of negative tax against claims based on  no income

The government also needs to speed up the applications and decisions on the furlough scheme for business. Otherwise more companies will conclude they have to  make people  redundant to  save costs.

The commercial banks need to rethink their demands for detailed business plans and cashflow forecasts, and  for personal guarantees, for what is bridging finance for enterprises that have been forced in to temporary closure so producing no revenue. The interest rates charged should also be realistic compared to the commercial banks’ very low financing costs with official rates around zero.

Flattening the curve

If you can measure it you can manage it. Government policy towards the virus is to manage down the numbers of people with the illness seeking admission to hospital, for the doubly good reason that we do not want many people seriously ill and there are limits on hospital capacity to deal with them.

They are advised by epidemiologists, people who predict the likely numbers of individuals who catch a disease in a epidemic based on past experiences of other epidemics and daily data on the course of the one they are following.  In a situation where there is no known or agreed  successful treatment for a disease and no vaccination to block its spread, their advice is to stop many  people catching it by social segregation. In the meantime medical research may find treatments and a vaccine for future protection.  It also allows rapid expansion of the capacity of the medical facilities, and wholesale transfer of trained medical personnel and wards to treating the epidemic victims.

The issue I am seeking more guidance on from the government and their epidemiological advisers is what does winning look like? When will they have flattened the curve enough?

Public Health England on behalf of the wider government publishes daily two sets of figures. One is the daily addition to the case total, and the other is the grim daily addition to the total deaths ascribed to the virus. The problem with these data sets is they are incomplete and prone to error. In default of reliable tests for significant samples of the entire population, repeated regularly,  we do not know the current infection rate or the  case total. Many people have caught a mild version of it – or  something like it – and have self isolated. Their recovery will not  be reflected in  the total because they were never tested .

The Death rate is also based on a set of judgements. Worldwide practice varies, with some doctors attributing numerous deaths of people with the virus to pre-existing or other serious conditions, whilst others are more likely to regard any patient dying with the virus as dying because of the virus. The UK is currently thinking of adding more deaths to the total by ascribing death to the virus in cases not admitted to hospital. To get a more accurate figure most deaths would need to include a virus test, and protocols would  need to  be followed over how to judge the virus contribution to mortality.

So I am asking if we have a consistent set of figures based on clear definitions with resilient data collection, which is needed to decide how much to flatten the curve and to determine how successful policy is. We all are willing the government on  because we want to cut the death rate. The next few days are crucial as we should be seeing a drop in new cases reflecting the days people are spending in isolation.

The role of Parliament in the crisis

I am uneasy that I cannot go to Parliament and raise there the issues and problems that concern my constituents. I appreciate this is the normal time for an Easter recess, but these are not normal times. My case load, email box and website are even more active than usual. There is heightened awareness of government given the large increase in powers and the direct effects it is having on all our lives. I of course take things up by email, phone and letter, as Ministers are working.

I am seeking  reassurances today that Parliament will b e allowed back after the recess as planned. I understand we will need to continue adapting the work pattern to offer more protection to those involved, assuming the social segregation measures are still in place. The Speaker set out some changes which helped before the recess and more might be possible, to limit the number in the chamber at any time, but to ensure that public questions and arguments can still be put. Maybe there can be a temporary use of remote technology, so Parliament can have its version of the daily Number 10 press conferences with MPs asking the questions and making the points to the Ministers on duty.

This should be a time to demonstrate the importance of single member constituency representation at Westminster. Each of us receive many practical pieces of advice and difficult cases that reveal cracks or imperfections in  the rules and government programmes. These need to be put to government Ministers by MPs who are used to speaking truth to power and who know the Ministers well and how they might respond.

I would like strengthened accountability during this recess. The Cabinet office does allow a daily call to put issues, but it would be good to have a recess written question facility to all departments and virtual Ministerial statements with questions from MPs when the government is making important announcements.

I am raising these issues with the Speaker.

The Irish protocol and state aids

Two highly qualified and experienced lawyers told the Conference (held before the virus restrictions but the comment held over here owing to virus news) that the UK needs to get rid of the Irish protocol one way or another. The current protocol seeks to treat Northern Ireland differently from the rest of the UK, and in default of a comprehensive borders and trade agreement seeks to lock Northern Ireland into the rules and customs of the EU.

The UK government is right to say it will not place a trade  border   between GB and Northern Ireland. This could be the result of the negotiations achieving a free trade and trade facilitation package that avoids any need for one. Alternatively if there is no trade deal, the UK government could simply refuse to impose one.

Sammy Wilson for the DUP pointed out that  most trade flowing between NI and GB stays within the UK so there is absolutely no  need for checks and tariffs as it moves across the Irish Sea between the two parts of the UK. He also pointed out we have a complex Northern Ireland/ Republic of Ireland border today, with the need to calculate VAT and Excise payments. This is all done with an invisible border, with the tax calculations and payments being made by computer from the truck manifests. There is no need for a person at a border post with a calculating machine taking fivers. It should similarly be possible to handle international trade crossing the North Sea within the UK by electronic means and by payments at international borders.  

The general mood of the conference was the government must keep its word of no new physical customs border between GB and NI, whether by agreement or not. It is difficult to see how the EU could enforce any interpretation they might place on the Withdrawal Agreement to require a GB/NI border in the event of no agreement. This would be an internal matter for a sovereign UK.

Closing borders

During the crisis so far the EU has battled to keep its belief in open borders as law around the EU. The member states have taken a different attitude.

The EU says “A crisis without borders cannot be resolved by putting  barriers between us”. It has despite this allowed or encouraged tougher border controls around the EU as a whole whilst wanting to avoid all controls at borders between member states.

Instead Germany has imposed border checks against Austria, France, Luxembourg and Denmark for the movement of people. France has imposed checks on Germany, Belgium and Spain.

In the UK there have been criticisms that the government did not impose stricter controls on people entering through our airports and ports. I currently get complaints  that there are still lots of planes flying into Heathrow. I have to explain that some are planes bringing UK nationals home from holidays and stays abroad, and many are freight planes. Some are passenger planes that have been adapted to carry more freight. Passenger services have traditionally also carried some freight in holds as part of our complex supply system.

The EU, realising that countries do wish to impose checks on people at their national borders, is now trying to protect the idea of a barrier free single market for goods.  They state “All internal borders should stay open for freight”. Regardless of  this some member states are diverting export goods for home consumption and inserting their own rules. France and Germany for example are keeping various medical supplies for home use.

This crisis is putting the world trading system under new pressures. In a world of lock down there is more attention to the local and national. Countries are seeking to increase their own productive potential in shortage areas like tests, protective clothing and other medical supplies.

Dear Constituent

I am writing to update you on the virus crisis, and the  damage to jobs, incomes and lifestyles   that the virus response is causing.

The government has taken advice from epidemiologists, based on worldwide work through the World Health Organisation. This work concludes that because there is no current cure nor vaccine to prevent the spread of Covid 19, and  because people with severe versions of the illness die, tough action has to be taken to slow or stop the spread of the disease. As it appears to be easily caught, this requires as much separation between people as possible.

The UK has adopted a range of measures similar to those in Italy, Spain, France and Germany who also have bad attacks. The measures are a  bit less severe than those adopted in China, which claims to have tamed the virus, but more severe than the Swedish approach. The USA seems to be moving to join us with more severe measures as it spreads rapidly there.

I have constantly pointed out to the government that closing down more than  a third of the economy for an unspecified period will put many people out of work, bankrupt many businesses and create hardship for people who lose their income. I suggested a number of measures to offset some of this damage. I am pleased to report that the government has announced a scheme to enable companies to furlough their staff, keep them on the payroll when  not working, with the government paying 80% of the cost for the period of shutdown up to an individual  pay ceiling. It has announced a similar scheme for many self employed people. It has also offered state guarantees for commercial banks to lend to keep companies with much reduced turnover going through the difficult period.

I welcome this big response, but do not think it goes far enough. I am trying to persuade the government to underwrite more jobs and incomes, and to make the payments earlier. Only if we keep company workforces in being can we be ready for recovery as soon as the restrictions are lifted.

I am also about to tackle the government on the all important timing of exit from these emergency measures. I understand cautious advisers wanting to stamp out the disease want maximum isolation for the maximum number of people for as long as possible. They are worried that if we lift the bans early with numbers ill falling there could be a second wave. The government, however, has to balance this risk against the undoubted substantial extra damage to jobs and incomes if we keep the closures in  being for too long.

As capacity builds in  the NHS to handle high numbers with pneumonia like symptoms, and as more people get the mild  version of the illness and gain some immunity, so it should  become easier to relax the tough economic sanctions against normal business activity. We clearly need to keep in place strict safeguarding measures for the ill and vulnerable whilst medical research works on treatments and vaccinations.

I am also conscious of continuing shortfalls in on line food delivery services, where I have proposed measures to harness volunteers and use delivery services from companies previously supplying non essential items. There is plenty of food but still problems with switching items like eggs from large catering packs to retail packs, leading to some empty shelves. Again I have proposed some measures to deal with this backlog.

I hope you and yours are keeping well and are managing in these difficult circumstances. I would like to say a big thank you to all of you who are going to work to maintain our essential services, ensure there is food for our tables, and to care for others. I am working from my home in Wokingham Borough, and doing as much as possible of my job on the phone and on line.

Yours sincerely

John Redwood