I am disappointed but not surprised that a few warm days without rain and the water industry is already saying we need to be careful about use. Hosepipe bans are being introduced in some places.

This winter January, March and April all saw rainfall well above average. It was a wet and cold winter, with February and March well below average temperatures of the last 40 years. I remember urging the industry to collect enough of the large quantities of rainwater and snow melt that we experienced just in case we got a hot summer.

From the forecast and the temperatures so far this is not going to be re run of the very hot and dry 1976 nor of the even drier 1995. It is a bit more like a hot summer of yesteryear than some more recent overcast and cooler summers. We need to plan for these events, as they are well within our range of experience. Water is a glamorous growth product. As people get better off so they want to use more water to wash their cars, water their gardens, fill their children’s paddling pools and take more showers when it’s hot. As water is an entirely renewable resource, the industry needs to put in enough capacity to meet our needs. The industry needs to remember that in parts of the country like the south east the population is growing quickly, which means the need for more piped water.

There should be two options on the table for the discussions on Friday. There is the World Trade option, which does not require consent from the EU. This allows us to take back control of our laws, our money, our borders and our trade policy as promised on 29 March 2019. It avoids the uncertainty of a long transition and saves us a lot of money. I would advise that the extra £13bn of tax collected as tariffs on EU goods – prior to trade adjusting to more home production and non EU sourcing – should be given back to UK consumers as a tax cut.

Then there is the Free Trade Agreement option. This is much in the EU’s interest. If they thought it was a simple choice of a Free Trade Agreement or WTO, they would be likely to choose the Free Trade Agreement. Whether they do or not depends on how sensible they are, and on whether they believe we will otherwise simply leave with no agreement.

Under both these options the EU will try to argue it creates a border problem between Northern Ireland the Republic of Ireland. I do not see why it should do so. That complex border today works fine, even though it is a currency, Excise, VAT and people movement border. All the UK need say is it has no plans to put up watch towers or to delay trucks whilst they work out the VAT and customs dues. IT would then be up to the EU what it intends to do on its side of the border.

Some will seek to invent or reinvent some kind of Customs partnership or EEA membership as a third option. These variants fall foul of the PM’s promises to leave the single market and customs union, and delay or prevent taking back control of our laws, our trade policy, all our money and our borders. The PM was quite clear in the Commons on Monday that she does intend to take back control as required by the referendum vote. She was equally clear Northern Ireland leaves the EU in the same way as the rest of the UK does.

We are told to expect another White Paper on Brexit. The last one was clear and fairly detailed. It stated that “We will bring to an end the jurisdiction of the Court of Justice of the EU in the UK”. “We will design our immigration system to ensure that we are able to control the number of people who come here from the EU. In future the Free Movement Directive will no longer apply.” “The government is clear that no deal for the UK is better than a bad deal for the UK” The government should repeat those decisions.

The biggest planning issue that confronts my constituency of Wokingham is that surrounding the pace of housebuilding.

The government and planning system lay down that Wokingham Borough, not the same boundaries as my constituency, has to allow the construction of 900 new homes a year. To do this the Council needs to set out in a local plan where the homes should go, and has to grant sufficient planning permissions to allow this to happen. The government planning system requires a Council to make available a five years supply of residential plots. If the Council does not do this, there is every likelihood that additional planning permissions will be granted in the Council area on appeal by Planning Inpsectors. Failure by the Council to make 5 years available gives the Inspectors the right to override the Council’s local plan, and to grant additional permissions elsewhere.

Wokingham has granted 11,000 permissions for individual new homes that have not yet been built. Commonsense tells you that this means the Council has made available a 12 year supply of land for the 900 a year build rate. Until recently the planning establishment took the view that Wokingham had a supply lower than five years. They came to this conclusion from looking at the actual build rate achieved, rather than at the outstanding permissions. Developers were also suggesting they could not build and sell at the required rate from the four main areas for housing expansion in the local plan and reflected in the permissions granted.

It is possible for a developer to get substantial permissions granted on one site in a given district, to build out at a slow rate, and to gain planning permissions on appeal on other sites it has acquired in the same district. Or it may be that some other landowner benefits from the slow build rate. Sometimes it may be true that the developer cannot build and sell at a fast enough rate. Other times it could be gaming the system, deliberately going slow on an agreed site to win permission on a contested site.

I am currently in discussion with the government over how this system can be reformed. A local authority like Wokingham which is co-operating fully with the national policy aim of increasing housebuilding should not be undermined by grant of permissions on appeal elsewhere in its area outside the local plan. The whole point of a local plan is to set a sustainable pace of building, and to concentrate the development to make it easier to provide the additional roadspace, schools and health facilities a growing community needs. Such planning is more difficult and dearer if the Council loses control of where the bulk of the new homes will be.

Post war planning controls were brought in to speed development, encourage the right type of development in the right places, and to protect the heritage and best parts of our landscape. Private interests owning land were to be more strongly controlled by government deciding how land can best be used. There were high hopes of a better world from the substantial increase in state control.
In practice the planning system has left many frustrated by its high costs, delays and complications. The truth is there is no easy way of reconciling neighbours who have different views of their neighbourhood, no single answer to what is worth preserving and what modern developments look good or are appropriate, and no convincing way of controlling what everyone does do with their land, whatever the law may say.
Let’s take a common simple disagreement within a community. Mr X lives on the edge of a beautiful Home Counties village adjacent to fields. He paid a premium to buy the house with the views, and called his home Field View House to reflect his priorities. His neighbour, Mrs Y, bought some agricultural fields and wants to make a living from them. She did not have enough money to buy a farm, as even agricultural land values are high and rents low as a proportion of the capital value if you just let the land out to a farmer.
Mrs Y recognised the shortage of things for the young people of the village to do. She proposed a Go Kart course on her field, with her organising the events. Strong village opposition resulted in planning permission being refused, to the relief of Mr X who did not want loud karts revving past his garden.Mrs Y is now pursuing a planning application for a skateboarding park. In the meantime she has offered the land on a short lease to a local farmer, who is using it to fatten pigs. Mr X now has a view of corrugated pig shelters and a once greenfield that is now a dust or mud hole.
The planning authority is caught between these two very different views of what the edge of the village should look like and how working land should be used. They cannot stop agricultural uses as it is currently demarked as farmland. They can prevent the owner from gaining permission for new business uses, and do prevent housebuilding in many such contexts.
In such a situation what should the planners do? Who should make the decision about what Mrs Y can do with her land, and what rights should Mr X have to enable him to enjoy the peaceful use of his garden? How far should the law go in laying down answers, and how far should landowners be free to do as they wish with their land?

The EU spent hours arguing over migration policy, with Italy opposing the draft Council conclusions. Finally they reached agreement with a few face saving formulas for the disputants.

Mrs Merkel got language into the document about countering “secondary movements of asylum seekers between member states” The German Interior Minister is demanding a stop to migrants moving from Italy across the German border to take jobs, benefits and housing in Germany. I don’t see how this weak phrase solves that problem, nor see how the EU with freedom of movement and Schengen rules could prevent a lawful refugee from moving from country a to country B if they wish.

Italy got language in about exploring how migrant centres could be set up outside the EU to process applications. There is no commitment to implement such a policy, no special budget, and as yet no idea of where and how this could be done. It may be enough for the Italian PM for the summer, but Mr Salvini will need some tangible answers. Italy wants an end to boats arriving with many migrants now.

The end of the Council presented a friendly face because no-one had lost or been slapped down. Instead the issues drift on to another Council. The one positive out of it for all of us was a new found enthusiasm for the World Trade Organisation. The EU agreed unanimously to commit to ” a comprehensive approach to improving…the functioning of the WTO” and to promote the “strengthening of the WTO as an institution”. As the Uk shifts from reliance on EU membership to direct reliance on WTO membership for all trade matters, it is good to know the EU takes its membership of the WTO seriously and wants to work with the UK and other like minded members of the WTO to cut trade costs and remove more barriers.

The EU Council endorsed the new proposals for European Parliament seats after 2019. The 73 UK seats disappear, with an overall reduction of 46 seats. Germany at 96 (n/c), France at 79 (plus 5) and Italy at 76 (plus 3) will be the largest in the new Parliament out of a total of 705. It shows that some of the planning for the UK exit soon is progressing.

The 27 agreed a line on Brexit which is far from friendly to the UK. They are only holding out the hope of some “political declaration” about the future relationship, yet seem to expect the UK to sign up to the very one sided Withdrawal Agreement they have in mind nonetheless. To make that worse they are still insisting on some “back stop” for the Irish border, which is their way of trying to get the UK back into the Customs Union we voted to leave. The UK would be wise to point out we have no need to sign any Withdrawal Agreement unless there is a really good proposal for the future which would offset the penal terms of their Withdrawal document.

The Cabinet will be seeking to hammer out a more detailed proposal on the future relationship at their meeting at the end of next week at Chequers. I trust they will recognise the so called New Customs Partnership is badly holed, and was rejected by the Brexit Cabinet Committee when last examined. They should also veto any idea of ending up in a version of the customs union and or single market just for goods. The EU is the big winner from the current goods arrangements, so the UK has no need to pay to continue those arrangements, and must ensure it takes back control of its laws and trade policy when we leave.

I repeat my advice to the government. Table a comprehensive free trade agreement for goods and services. If the EU is well disposed, then negotiate over it. If the EU is not, then just leave without signing any Withdrawal Agreement The government says all is going well with plans to leave with No Deal, so lets make sure the EU know that. So far the EU has turned down every constructive UK suggestion. They have even managed to turn a very generous UK offer on defence and security into a UK demand they cannot meet!

In the 1970s when as a young man I first became critical of nationalised industries, I identified there main features of them I did not like. They were bad for their customers. They usually overcharged them, with high rates of price increase. They failed to innovate or hit high standards of customer service. They were bad for their employees. You had a high chance of losing your job if you worked for the nationalised steel or coal or rail businesses, as they went through redundancy programme after redundancy programme. They were bad for taxpayers, as they racked up huge borrowings and losses which required taxpayer subsidies and write offs on a large scale.

The current nationalised business which comes closest to some of these features today is the nationalised provision of roadspace. It is a monopoly supply, provided mainly by Councils with the biggest and most successful roads supplied by the national government. They are provided free at the point of use, but there are huge charges on motorists who pay many times over the cost of the provision through special taxes on motoring. The cost of provision for taxpayers is also high. The monopolist rations the supply, creating congestion and inconvenience. The Highways executives often occupy the road for weeks on end for improvements or alterations, and do not seem to have a sense of urgency in getting roads back into use. Some of the works they call improvements intensify the congestion and sometimes pit different kinds of road users against each other in unhelpful ways.

This year has seen misery about potholes, where some of the local highways authorities have been slow to respond to money available for pothole filling, and slow to respond to the general public mood to improve the quality of the surfaces. Potholes are particularly trying for cyclists. Let’s hope local highways departments take up Mr Grayling’s proposals to put utilities away from the main highway, to build better local strategic networks, and to tackle congestion more vigorously.

The UK may want the EU summit to be about that post Brexit relationship, but much of the time will be taken up with the rest of the EU trying to stitch together a new migration policy. That will be followed by a meeting of the Eurozone Heads with Germany wanting to reinforce the austere disciplines of the scheme against possible challenges from Italy and others. The rows over migration may make the issues over the Euro more intractable and fractious.

When the PM is allowed to put the UK case I want her to be strong as well as her usual courteous and helpful self. She should say the UK negotiators have been more than generous so far in responding to EU demands for money we do not owe, and in potentially accepting powers and controls we do not have to accept during a possible transition. In return the EU now needs to offer a comprehensive free trade agreement for goods and services which leaves the UK free to spend it own money, make its own laws and conduct its own trade policy. If the EU rejects any such suggestion then the UK should simply leave on March 29 2019.

The public have rightly shrugged off the latest round of Project Fear statements. Airbus has no wish to try to sell planes without wings, and is not about to substitute Chinese wings for UK ones. There need be no queues of lorries at Dover or other UK ports once we leave. The UK will control those borders and will use the electronic and advance filing systems we already use for our trade to avoid needing to calculate customs dues whilst the driver waits at the border.

There hasn’t been a new Project Fear worry for some time. The Remain media just seem to like recycling old materials time after time, with no particular purpose.

Yesterday I gave my second lecture on the delivery of public services, following on from the All Souls lecture providing analysis of the different ways public service is delivered in the UK. Speaking at the IEA I reminded people of my main findings. Bread and circuses are as much public services as water and broadcasting, or health and education. The most common way of delivering public service in the UK is through numerous competing private sector for profit companies charging consumers the economic price of the good or service. The private sector plays a large role even in services that some think are truly public sector. The NHS for example has many GPs who are small business contractors, and uses medicines entirely supplied by for profit companies.

I stressed the importance of choice or competition to achieving improvements in quality and reductions in cost. It was the introduction of competition into electricity supply that lowered prices following privatisation. It was competition which powered big improvements in service quality and technology in UK telecommunications. It is choice of free school places which helps progress in local schools and gives parents and pupils some leverage where a school starts to fail.

I wish to see competition introduced more widely in the water industry where it would encourage lower prices and better provision. I want to see more competition in the provision of rail assets and services. Newly united track and train companies could have to offer capacity to third parties wishing to run services on their lines subject to an independent arbitrator over terms, and more should be able to put in new capacity as a challenge to incumbents. Quality and efficiency are not enemies, but opposite sides of the same coin. Both are driven more effectively by competition.

Offering a service free is fundamental to the UK’s NHS and to the provision of school places. We need to make sure, however, that the taxpaying user of the service is not powerless to require good performance or to change arrangements just because the state pays rather than the individual directly. There needs to be sufficient capacity to allow people to change school or doctor if they wish to do so.

In some other cases offering free public services can provide unfair competition to the private sector. The BBC website makes it difficult for competitors to charge for similar news and cultural output. Some Council leisure facilities prevent private sector competitors or damage private facilities already established.

Owning assets in the public sector has the advantage that the state has access to huge sums of capital at low interest rates. It has often in the past overspent on the assets and managed them badly, offsetting the gains from relatively cheap capital. There does need to be capital discipline when using the freedoms having your own printing press and bond factory allows. The danger is single channel decision making. If the state owns telecoms for example, and makes the wrong call on technology,the whole country is affected. That is exactly what the nationalised industry did in its last decade, when it fell further and further behind the USA.

Parliament yesterday voted to approve the third runway at Heathrow. This is the third of the three Hs of large scale infrastructure investment that this government has decided on. It is the most commercial of the three. Hinckley may lumber us with 5o years of very expensive power, unless the alternatives suddenly shoot up in cost . HS2 will be a huge loss maker for years to come on any sensible forecast. It is a disproportionately expensive investment for the railway as a whole, and will hit the revenues on competitor lines. Heathrow will be a successful hub airport with many people and airlines wishing to use it.

The issues surrounding Heathrow were not easy. Some felt expansion at Gatwick would be better. Some wanted a distributed system of growth with several airports in the south east expanding to take more flights, on the argument that hubs and interlining are not as important as some claim. Some wanted the lengthened two runway solution at Heathrow, to cut costs. Many of us want some better news on noise. Because the UK has developed an airport so close to a large conurbation it has created more strains between the settle population and their noisy neighbour. Having the airport to the west of London means planes cannot be stacked over the sea, which would reduce noise and risk.

There was general agreement that the UK does need more airport capacity in London and the south east. There is universal agreement that more direct flights to other UK cities would be helpful, reducing the strains on Heathrow with people flying down to London to catch an onward flight to somewhere else. This is mainly a question of getting to critical mass in these other cities to sustain a decent direct service.
I urged the Transport Secretary to intensify efforts to reduce current levels of aircraft noise, reminding him of the agenda of measures I have been working on with the Aviation Minister.