Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts

Monday, 21 January 2019

The importance of appearing in control and how not to do it (when in opposition)


I started out this particular blog post to try and suggest some answers as to why we have ended up in such a mess over the Brexit process (because the road to the decision is a strange and dark one, and I have talked about it enough. In particular to look at the behaviours of the two main political party leaders in the UK. They have, in my opinion, both shown a lack of leadership and this is at the heart of the situation we currently find ourselves in.

            I have already spent a lot of time on the first part of this blog considering how Theresa May has fared against a relatively common set of leadership characteristics:


  • ·      Integrity – not just being honest, but being seen to be honest, and doing the right thing even when you can get away with doing the wrong thing
  • ·      Courage – in making decisions, even unpopular ones, with limited information, and willing to address difficult points
  • ·      Impartiality and fairness – not pandering to special or favourite causes, identifying the fairest outcome for everyone from a situation
  • ·      Good communication – in both directions, able to explain their message so others get it with clarity and conviction, and able to listen to others and hear their points
  • ·      Flexibility and responsiveness – able to alter not only their plans and direction, but their style to achieve their outcome, and able to listen to other people’s ideas and use the best one, not simply their own

Against which time and again she has been found wanting, and badly ( https://unexpectedsocialist.blogspot.com/2019/01/the-importance-of-appearing-in-control.html ). But surely it is only fair to consider Jeremy Corbyn by the same yardstick? The great man of principle who is very much beloved of party members (if not entirely by his parliamentary labour party) must hold these qualities in spades?

Its much harder to cover the entire process for the opposition leader. Firstly he has had very little (i.e. nothing) to do with the formal process. I will therefore focus on a few key points in the process where he had opportunity to show leadership. Specifically: in the immediate aftermath of the referendum result; the vote on Theresa May’s deal and calling and holding the vote of no confidence.

I remember after the vote itself being completely shocked, saddened and well, scared the following few days. This was a fundamental shift for our country. I had always been European as well as British and English, with family, friends and work colleagues across Europe and here from Europe. I’ve worked as an accountant and seen the millions of pounds of EU money coming in to areas of the North East desperate for regeneration. I’ve studied Economics and understood the absolute logic of being part of trade blocs.

This was a body blow to me and many others. We were dismayed and confused. What we needed was calm, a chance to re-group and get used to this. Instead we got a Prime Minister running away from the problem he had created and a leader of the opposition calling for an immediate invocation of article 50. There were two massive problems with this immediate approach.

Firstly, Corbyn had a long history of concerns over being members of the EU and expressing a desire to leave. He belatedly became an advocate for staying. Throughout the campaign he had stayed away from the main campaign to avoid standing with David Cameron (his reason). Calling for this so quickly immediately left his integrity open to question. It doesn’t matter whether he was being genuinely honest or not. Its whether people see you as being honest. This approach damaged his integrity. Coupled with repeated questions on which way he voted that he refused to answer, he was opened up by his detractors and across the press as lacking integrity.

Secondly, what we needed was calm and a chance to come back together as a nation after a referendum campaign that had been divisive and nasty. But it appeared that this opportunity to make political capital, and to put pressure on the conservative party was more important. It is really hard to see the fairness in that – putting party politics ahead of doing the right thing. Both of these issues stemmed from a man who was no longer listening to the pulse of the country, and a man who had failed to get out his message.

Of course many Corbyn supporters (and I class myself as a supporter) will point out that it is hard to communicate when you have large parts of the press against you. This hasn’t happened over night. There has always been an image of him portrayed by his detractors. It didn’t suddenly appear. The narrative he has been wrapped in is made to measure. But the reason it fits so well is that decisions he makes and how he communicates absolutely lend themselves to it. It sometimes feels like there is a conspiracy to ruin his credentials – and that conspiracy is made up of the Conservative party, right wing media interests and Jeremy Corbyn.

I absolutely get that Jeremy has painted his life as a man of integrity, and a man of principle. There can be no question that he has made difficult and unpopular decisions based on a strong moral sense of right and wrong. Once he has decided what he feels is the morally right thing then he sees it through.*

I absolutely get that Jeremy Corbyn is unwilling to change. He’s made a career out of purposefully choosing the other view – almost for fun. He makes a snap decision on evidence at the time and sticks with it come hell or high water. This “man of principle” is so addicted to being morally right that he can’t accept when he is wrong or things change.*

(*Delete as appropriate)

And therein lay the problem. Because his behaviour and the way he acts and delivers his message can be played both of those ways. In order to be an effective leader you must be able to communicate and be flexible. You have to be responsive and aware. Sometimes sticking to your guns and your tried and trusted methods because you have always been that person is actually the counter to integrity – not the embodiment of it. Jumping into the trap laid for you over and over again shows a lack of flexibility, responsiveness and communication skills.

We’ve seen this behaviour in the House of Commons over the last few weeks. In fact both Corbyn and May have been guilty of the title of this blog – wanting to appear in control rather than wanting to be in control.

When Theresa May lost, as she knew she must, the vote on her badly-won, self-serving, ill-communicated, cowardly deal she immediately challenged Corbyn to bring forward a motion of no confidence in the government. Everyone knew he had to. But to her mind this was her showing the world she was still in charge. If anybody other than May and Hammond believe she is still in control of events then please send them my way – I have a second-hand bridge over the Thames I would like to sell them. However it gave her a chance to remove the initiative from him.

When that motion failed, as he knew it must, Jeremy Corbyn immediately rebuffed May’s offer of talks without his pre-conditions were met. Again, this was an attempt to show he was now in control and would only meet on his terms. Whilst this has now proven to be correct, and that the talks were merely Mrs. May trying to sell her original deal, only in smaller groups and with coffee and biscuits, this was immediately played in the press as Mr. Corbyn refusing the outstretched hand. It could not have been more clearly a trap if the prime minister had read it from a card marked ACME on the back. Because it is how he is expected to react and unfortunately no flexibility or learning is allowed.

I do worry for Brexit and our immediate future. We have days left now until we crash out without a deal. The leaders of our political parties, whilst having very different policies, views and desired outcomes, appear very similar in their approaches. Once the referendum result came in, any opportunity for coming together as a country was lost. Both leaders have allowed their own personal views and animosity along with political calculations to stop them from doing what we need most. Which is actually lead.


Thursday, 17 January 2019

The importance of appearing in control and how not to do it


In the space of less than 24 hours we had 2 of the most unique, important and interesting votes that the House of Commons will ever give us. Most would argue that we have had enough drama of the sort we have seen to last us for a long time. Unfortunately, those votes and the debates and issues supporting them appear to really only be at the end of the beginning, not even close to the beginning of the end. The ongoing saga of Brexit has now dragged on for over two and a half years since the referendum itself. Legally speaking, as it stands, we only have around 10 weeks left to organise a withdrawal deal, or we crash out with No Deal.

            Nobody knows how this is going to turn out. Nobody knows, with absolute certainty, what is the best result for the UK and the EU. We can all choose to believe whichever experts, anti-experts or shaman most suits our views. Generally, that is what the overwhelming majority of use have been doing. My view, and one I want to explain, is that the biggest gap we have faced throughout the process has been the gap in genuine leadership – none more so than from the party leaders themselves.

            There are hundreds of lists of leadership qualities, and books have been written about the subject since we started recording history. I want to focus on a few of those qualities that appear across a wide range of them – it’s impossible to find some that appear in all of them. The most regularly repeating qualities for effective achieving leaders appear to be:

  • ·      Integrity – not just being honest, but being seen to be honest, and doing the right thing even when you can get away with doing the wrong thing
  • ·      Courage – in making decisions, even unpopular ones, with limited information, and willing to address difficult points
  • ·      Impartiality and fairness – not pandering to special or favourite causes, identifying the fairest outcome for everyone from a situation
  • ·      Good communication – in both directions, able to explain their message so others get it with clarity and conviction, and able to listen to others and hear their points
  • ·      Flexibility and responsiveness – able to alter not only their plans and direction, but their style to achieve their outcome, and able to listen to other people’s ideas and use the best one, not simply their own

If we start by looking at how the negotiations process has been operated by Theresa May, and the strategy taken to those negotiations, it becomes very clear very quickly why she is not the right leader for the country. And most certainly not at this point in our history. Look at the strategy she has taken and it crumbles very quickly.

First of all, from the outset the decisions and approach have been her decisions and approach. She ignored every opportunity to reach out to other parties. She refused to listen to ideas from anyone outside her immediate circle. Throughout her career there are countless examples that point to her need to be completely in control. It is a unifying thread that runs like iron through it. How can you be impartial and fair if you are always right? Where is the space for responding to other ideas if you wont even hear them? This political change was the biggest we faced for at least 40 years – and arguably since the Second World War. Why not put in place a specialist commission? A government of unity? Citizen’s panels? No – Theresa knows what is best. Much better for her to go away, decide and then come and tell US what is right.

Of course she realised very early on in the process that in order for her to get away with that as Prime Minister, she needed to have as much personal power and mandate as possible. So whilst we had a backdrop of a clock running down, she called a General Election. Not for the good of the country, not for the good of the negotiations, not even for the good of her party. For her own benefit. And all after explicitly ruling out the idea. Because she believed she would win a landslide. Where is the integrity in that decision? Where is the impartiality and fairness of putting her wants in front of our country’s needs?

During the election itself, she showed herself again and again to have no communication skills. Strong and stable can not be the answer to every question. I imagine during that period if asked her how she took her coffee she would answer “strong and stable”. She ran scared of taking part in debates – sending other people to do them. Because she has all the communication skills and warmth of Buck Rogers friend Twiki, but without the warmth. Or communication skills. Where is the courage in being afraid to stand up without all of your lines safely locked down – taking no risks.

Having refused to talk to other parties, setting out her way of doing it as the only way, and having been embarrassed in a general election because she didn’t realise that the public didn’t want one, she then found herself weakened. The hung parliament that she caused meant that she then had to sell out some of her power to the DUP. This was at the cost of £1bn+ and additional red-lines. She used public money to protect her own position. She reduced her flexibility further.

Whilst all this carried on, Brexit Secretaries and other ministers led a constant stream out of her government because she wouldn’t listen to anyone else, and she kept coming back to the UK having given away more and more negotiating strength. Because she was right, and how dare anybody question or challenge her. She had to survive – she was the only one who was right. The single most important point, throughout this process, has been the survival of Theresa May. On average we have lost a government minister every month since she became Prime Minister. Nobody knew what the current deal was, until she deigned to tell us. No communication, no flexibility.

Where did this lead us? Her own party realised this couldn’t continue – and she survived a confident vote there. 117 of her own MPs – one third of her parliamentary party – wanted her to go. Did this change her approach or make her consider her position? Not for a minute. She not only led her government to be in contempt of parliament (for the first time ever), but she ran down the clock by delaying the vote on her deal. Not for any purpose other than she didn’t want to hear the truth – that she had gotten it completely wrong but couldn’t bear to hear it. She suffered the biggest governmental defeat in history. Only one third of parliament supported her deal – not even the £1bn bung could persuade the DUP. Did this make her consider her position? Not for a moment.

On the back of this she faced a vote of no-confidence in parliament. And I want to return to that point in part 2 of this blog – because we also need to consider the leadership of Jeremy Corbyn in doing that.


Wednesday, 19 April 2017

The art of comedy? Timing

Well, unexpectedly the Prime Minister called a “snap” General Election yesterday. Unexpectedly because as recently as September 2016 she was quite clear in her refusal to do so “I am not going to be calling a snap election…we need a period of stability to be able to deal with the issues the country is facing”. So, why the sudden turnaround in that view? Has the Prime Minister decided we need less stability? Or that Brexit is actually much easier than she expected it to be? Or could there be another reason for it?

It all feels a bit strange, and for those people who are not engaged in politics, this must seem the worst possible outcome. After all we had the particularly nasty and bad tempered Scottish Independence referendum in 2014. Then a general election in 2015. Following on from that David Cameron decided he would shut up UKIP and the brexiteer side of his party by destroying them with ANOTHER referendum in 2016 (and that went so well for him) on EU membership. That was quickly followed up with wall to wall coverage of the US presidential elections (no genuinely, he actually won under their system).

Since then the Prime Minister has insisted that any referendum on Scottish Independence would be a distraction and the government must be entirely focussed on Brexit. In fact just 5 weeks ago, she said “Now is not the time. Just at this point all our energies should be focused on our negotiations with the European Union”.

So why have we had this sudden change of heart from the Prime Minister? There are a number of reasons that this may have taken place. Apparently it is to get a stronger hand for Brexit, and to do the right thing for the country. There are a number of other alternative theories too, so it seems only fair that we explore them all. And just for fun, let’s add a plausibility score out of ten – on whether it has directly impacted on the announcement at this time.  

Official explanation from the PM

Part1: The other parties and the Lords are trying to stop Brexit, and I need a larger majority to force it through.

An interesting statement really, and one that doesn’t hold up to scrutiny on any level. Firstly, the other political parties AND the Lords have had opportunities to delay and frustrate the process. These votes have been held. The opportunity to stop Brexit has been passed already. The votes are completed, and Brexit will happen. As Yvette Cooper pointed out today - 3/4 of MPs and 2/3 of Lords voted FOR Brexit when the vote was held. There is no opportunity of stopping Brexit now, unless there was a massive change in direction and views of the country. That would really require the PM herself to come back and say “we can’t achieve what we promised if we leave”. If that were really her fear she would have called a general election during the NINE MONTHS she has had before triggering Article 50.

Plausibility rating: I wouldn’t buy a used car from her.

Part 2: Negotiations will continue until just before the next General Election, and then you will be able to see what deal we have and start to feel it impacting you. The other countries will use that to drive a hard bargain.

There is probably more truth in this part of her statement. But there are some massive implicit promises in there that you are expected to miss out on. Firstly, it is an acceptance that we will not get everything we want from any negotiations. In fact, it is the first time publicly that any Conservative minister has admitted that the negotiations will be a 2-way street, and that there will be give and take depending on the political pressures the politicians feel at home. Secondly, there is an admission that ordinary people will feel the negative impacts of Brexit. Even those who voted for it and supported it will by then realise we have ended up with a potentially worse deal than we had.

Theresa May is terrified the government will be blamed for that. Perhaps, people may think, if they had spent more time negotiating the best deal and less time threatening war with Spain and coming up with catchy little phrases we wouldn’t be heading into a recession. I can understand Theresa May wanting to avoid that. After all, she was a Remain supporter, who never wanted to leave the EU. She can see closer and in much more detail how hard it will be. I wouldn’t want to be measured on the basis of how successful or painful it was in that situation.

Plausibility rating: More than a ring of truth about it.

It’s a snap annihilation of the Labour Party

Obviously, the staunch conservative voters and those who have wanted the left wing of the Labour party to fail since the election of Jeremy Corbyn are desperate to believe this is the reason for calling it now. Certainly, if you believe the polls (you know, the ones that showed us there would be no overall majority in the last election, that we would remain in the EU, and that Trump would lose) then this makes good political sense.

However, why now exactly? We have only 2 years to negotiate the exit from the EU, and this will take 7 weeks out of that timetable. Labour have been wallowing in the polls for about 18 months. Why not as soon as David Cameron resigned? Labour have said all along they will support it. So did this really make Theresa May directly contradict herself and break a promise she made publicly? Also, was the best time to launch it after Labour have had 2 weeks of announcing a number of incredibly popular policies – one a day – that have strong public support? Finally, if this IS the case, it is a clear admission that calling this election has nothing to do with the good of the country – just the good of the Tory party.

Plausibility rating: A consideration, and an expectation, but not the main reason.

Alleged Tory electoral fraud from 2015

There is still, hanging over the Tories, a police investigation into electoral fraud during the 2015 General Election. This arose because the Tories spent a lot of money in specific target seats that they claimed as central spending, when actually it directly related to the results in those seats, allegedly. A file of possible charges has been sent to the Crown Prosecution Service, and an announcement was expected THIS WEEK. Obviously, that announcement is now up for grabs.

Certainly, we can glean some clues to this – the fact that the CPS have confirmed they are still looking to continue this work suggests there is a case to at least be considered. If there is a fresh election, it means that this can be glossed over as having been solved at the Ballot Box instead of in the courts. Secondly, when the Prime Minister was asked, on the floor of the House of Commons whether she would allow anyone facing criminal or legal proceedings over this to stand, she said that she would support all Tory candidates to stand it begins to show the contempt that she feels towards free and fair elections. Obviously, this is not something that the PM would want to call an election for. But it may just be that this has been the final straw. And it is hard to argue against, given the rushed and surprise nature of it, the obvious U-turning and the fact she is now eating her own words on stability.

Plausability rating: Ticks the box for the timing aspect.


So, there we have it then. A lot of conjecture, and a lot of assumptions, and a lot of admittance on the part of the Government about how bad things are. The most likely scenario is that this is a government who are afraid of admitting the mess they are making of Brexit forced into this decision by the timing of CPS decisions. They are putting the needs of their party above your needs as citizens of this country. I would suggest you remember that, and don’t let them get away with it when you are in the polling station. 

Friday, 20 January 2017

Step right up, now everyone’s a winner, bargains galore.

Thank goodness for Donald Trump and Boris Johnson. There was I, worried that leaving the European Union might in some way be bad for our economy, workers’ rights and public sector, when they come along and show me that everything is going to be OK. Of course it is not just the US. Apparently, countries are queueing up to do trade deals with us. We now thankfully have some greater clarity on what Theresa May plans for her brexit strategy. So, what can we take from her announcement yesterday? And how bright is the future looking for us? Can we get ready for a massive influx of trade we don’t currently have? Is the prospect of a Global Britain better than the prospect of a “Shared Britain” (now removed) or a “Red, White and Blue Brexit” (now removed) or is it just another meaningless slogan?
Really, we need to understand from the speech what we are potentially losing compared to what we might gain. That is the only way we can judge whether we are looking at a net positive or a net negative. This was the most important speech that the Prime Minister has given since we voted for her to be our leader. Only joking of course, we live in a parliamentary democracy where elected representatives are chosen and entrusted to make our decisions for us. Well apart from THAT decision obviously. So, the most important speech since her party voted for her to be party leader and therefore Prime Minister. Only joking, there was no vote for her. So, the most important speech she has given since 35,000 in the borough of Maidenhead voted for her (that’s right Americans, you think you have problems).
I am going to focus purely on the aspects relating to trade and the economy. There was actually some good stuff in there, relating to how the process will run, and also massively important areas around immigration and nationality, borders and governance. But that will have to be part of another blog. So what did we learn? Well the key points were these:
·         All existing rules and regulations of the EU will become British Law and workers’ rights will be protected, then will “keep pace with the changing Labour Market”
·         We will leave the single market, and the customs union then “pursue a bold and ambitious Free Trade Agreement” with the EU
·         We might pay to be a part of “specific European programmes”
·         If we don’t get the deal we want with the EU, we will trade with them without a trade agreement
·         We will seek out new trade deals with other partners that we don’t currently have in place

Keeping existing rules and regulations, and workers protections

                So, depending on your point of view, keeping existing safety and consumer laws is a good thing or a bad thing. It will mean that we can continue to export to mainland Europe because our goods and services will be comparable. But it might also mean that we are held to a higher level of regulation than say US or Chinese manufacturers. Therefore, this could make our products uncompetitive on a global market. So this really depends on whether we get a trade agreement with the EU.
                More worryingly, is the specific language used around workers’ rights. This should be a massive big warning sign to everybody who is employed in the UK. Over the last 6 years the Tories (and their coalition partners) have overseen the stripping away of workers’ rights, and have resisted every opportunity to improve them. For example, even at the height of the furore over zero hours contracts, the government did nothing. Coupled with that our rights to strike have been eroded, weakening our bargaining power with companies. And senior members of the government are openly talking about banning the use of strikes across industries.
                Mrs May could have said that workers’ rights would be improved upon, or strengthened. But the language is purposefully specific. “Keeping pace with the changing Labour Market”. Well, if we look at how the Labour market is changing, more people are being put in to roles where their employers can pretend they are self-employed; employers can give up any sort of responsibility through the “gig” economy; zero hours contracts will become more prevalent; trade unions will be downgraded and weakened at every turn; pensions agreements will no longer be stuck to by employers whilst taxpayers bail out pensions funds. Basically, if you are employed, then this is the start of a bonfire of what rights you currently have. If you are applauding this speech, you are either an employer yourself, or not paying attention. Perhaps somebody could remind me, when we voted for the UK to leave the European Union, where we also voted to give up our working rights to Sir Philip Green and Mike Ashley? I obviously ticked that box without realising.

Leaving the Single Market and Customs Union, getting a trade deal with Europe instead, paying for access

                It is probably worth, as a starting point, understanding what our trade deal within Europe currently means. Firstly, it is worth stating that it is probably the most comprehensive, invasive and wide-ranging multi-lateral trade agreement in the world. It includes everything from free trade (meaning we trade our goods free from tariffs being applied by other countries), customs union (meaning we all apply the same tariffs to goods coming from outside our deal), free movement (of services, capital and resource ie people) and a level of political union too. It covers almost every aspect of trade and commerce, industry and services, import and export. The effort to split ourselves out from it is on a scale unprecedented and untried. It is not simply rhetoric to say it is of the scale that countries leaving the USSR and Eastern-bloc felt during the early 90s.
                So we would be leaving, with great difficulty and cost a free-trading bloc of 450 million people in 27 states (once you take us out of the official figures). It has GDP of US$13tn (again once you take us away from the published figures). It is 41km away from us at the closest point. Those are the really key considerations in any trading deal we want to do: how many individual consumers are there, how wealthy is it, how far away is it, and what tariffs would we expect. It is worth also stating that given the depth and breadth of the negotiations that will be needed, this will (you would hope) require a great deal of considered and careful negotiation. We currently have no experience of trade negotiations, given that we haven’t had to for about 40 years. It seems a reasonable assumption that what experience we can muster together will be focussed on this deal. Two years of effort to LEAVE that free trade deal.
                Of course, it is possible that we could end up with an even better trade deal. However, it is highly improbably. By its very nature, if we are choosing to say to a trading bloc that have grown together “we want to trade with you, but don’t wish to pay in to your structural costs” then it is only reasonable to assume we will get a worse deal than full membership. Even Theresa May accepts that. Hence why the Prime Minister and others have been warming us up to the idea that we will still have to pay something to continue to trade freely in certain markets. I think it is fair to assume this will include the Motor industry (if not, then what the hell have we promised Nissan?) and financial services (given it is our biggest single industry). Of course, that gives us the question of what will the cost be? How much will we have to pay for access? Not only that, does it mean any industry which isn’t beloved of the Tories (Steel, manufacturing, non-financial services) should now expect tariffs to start to affect their business. So there we have it, a deal where we still pay in (when it suits the Tories) and everybody else has their business negatively impacted.
                Not only that, but what if we start imposing our own tariffs on European goods? Well, that will lead to massive instantaneous inflation, whilst at the same time our economy is getting worse. We had this in the 1970s – and the term which was coined was stagflation – a stagnant economy whilst prices rise. It was a horrific time. If you are too young to remember it be grateful, then ask somebody who was around how it felt.

No deal is better than a bad deal, trade deals with other parties

                Of course, we could choose to have no trade deal at all with Europe. However, just the most cursory glance at this shows how completely stupid and damaging this would be. This would mean that we would immediately start trading with ALL of the European Union at WTO Tariff rates. In effect every single item that we export to Europe would immediately be less competitive, and therefore we would either have to sell less OR sell them more cheaply. The idea that no deal is better than a bad deal is complete hogwash – and everybody knows it. God even to export Oxygen to the EU we would have to pay a tariff of 5% - and they breath the bloody stuff (yes, I know, thanks). So this idea that we will go with No Deal is never going to happen. Besides which, in all honesty both parties want to get a deal. It is in their interest as well. It is entirely a PM trying to sound tough for the UKIP-leaning voters in her own party. It is simply within our interest to achieve some deal with Europe (popn 450m, GDP US$13tn, dist 40km) – and it is theirs to do a deal with us (popn 65m, GDP US$3tn, dist 40km).
                What about other deals? We are told by Boris Johnson that countries are “queueing up” to do a trade deal with us. Well, the first consideration is – why aren’t we trading with them currently? If these countries are so desperate to get a trade deal with us, why is that? Well, we already do trade with many of them. But it is at a lower level than perhaps we could. Therefore, any belief that this will lead to a massive influx of NEW trade is again erroneous. What it will do is make trade easier and therefore give some lift to our global trade levels. It might also (if we remove import tariffs) lead to consumers paying less for certain goods. It is way beyond me to be able to state with any certainty what scale the impact would be. But it would need to be very high indeed to offset any major losses of trade with the EU. I am going to leave the US to one side for a moment, but still, let’s pick out some of the options which do look like “live picks” ie countries that are talking about trading with us:
Country
Population
Size of economy
Distance
Comments
EU
450m
US$13.1tn
41km

Iceland
0.3m
US$0.016tn
1,894km

India
1,300m
US$8.72tn
7,194km

New Zealand
4.7m
US$0.174tn
18,500km

Australia
24m
US$1.2tn
17,000km

Canada
36m
US$1.5tn
5,700km

Ghana
27m
US$0.121bn
4,800km

Mexico
120m
US$2.2tn
9,000km

South Korea
50m
US$1.4tn
9,000km

Total
1,562m
US$15.3tn
9,136km average


                So, if the worst happened and we stopped all trade with the EU (which no-one is suggesting, to replace it we would need to trade with these 8 separate economies to get a trading block of the same size. Ignoring the fact that on average that would mean sending goods 45 times further on average to sell them.
                To put it another way, our trade with the EU accounts for 45% of our exports. If we lost a quarter of that export trade – on our doorstep – we would need to boost our sales internationally to non-EU countries by 11%. Unfortunately, our trade with international neighbours is already at record levels for us. What else are we going to sell – at a competitive price after sending it an extra 9,100 km? The very desperately sad thing is, we are already a successful trading nation. Is it really possible that not being part of a customs union with the EU is going to boost our trading with every we currently trade with across the board by over 10% BEFORE the end of the current deal with the EU in 2 years’ time?
                Who is going to negotiate these trade deals? Everyone with experience or knowledge will be working on the EU deal? Or should we leave that to Boris “let’s joke about the Nazis” Johnson? Genuinely? Of course, we have the trade deal to look forward to with the US. After all, we have been promised a trade deal by the President-Elect, a man who never goes back on what he says. Well, he has already threatened to pull out of NAFTA (a free trade deal), and put 35% import tariffs on goods from China and Mexico – 2 of their biggest trading partners and very strong economies. If Donald Trump is looking to trade on those terms with others, why would we believe we would get anything more beneficial?

Everything’s rosy


                There is no hard evidence to say that is all impossible. It may well be that against all odds the government manage to deliver. But for that to happen we would need a massive turnaround in fortunes, in abilities, in industry, in trade patterns and in the views of our own government. At the same time we would need the EU to be kind to us in any future trade deal. Put quite simply, the potential risks are much greater than the opportunities at the moment. I would love to be wrong about this – and I am often wrong. But I see no analysis which suggests anything other than this stark conclusion – by leaving the single market we are throwing away access to a strong market on a really good deal for the possibility of access to less accessible markets, with less good deals. This can only be bad for our economy. 52.1% of people voted for Brexit. But how many voted for an almost certain worsening of our economy, job losses, rights and protection losses, uncertainty and a weaker economy?

Tuesday, 8 November 2016

Some Leave voters have every right to be angry. They just need to work out who with.

So quite an extraordinary act took place last week. 3 judges from the High Court in London made a decision on a technical point of law and sent the news and the political sphere into overdrive. This doesn't happen very often, but given the topic they were ruling on this was hardly surprising. They were passing judgement on a case brought by a group of private citizens against the UK Government on the specific legal steps the government must take to invoke Article 50 of the EU - that is to start the formal process of Brexit.

This has been jumped on, by members of the public and experienced politicians alike as an attempt to derail the democratic will of the UK - that we want to leave the EU. The majority have spoken, and here are a bunch of bremoaners trying to stop that from happening. Is that the case though? Our democracy that has been hard won and hard protected now under attack? Certainly during the Leave campaign much was made of our governance, rights and democracy tying back to the Magna Carta and being uninterrupted since then. Is someone trying to run roughshod over that?
I believe the answer is an unequivocal yes. Should Leavers be angry? For some of them, I think they have every right to be.

Lots of leavers voted that way for lots of different reasons. I think it is a real shame that so many have wanted to tar them all as racists. Some Leavers had decided, long before any cases were put forward that they wanted to Vote Leave. That is absolutely fine. It is a democracy. We don't get a right to limit the vote to only people who consider issues in the way that we do. It is the system we have. But over the course of the referendum campaign, there were really 4 key issues that were used to push the Leave vote. Firstly, to take back control of unchecked immigration. Secondly, to take back control of our laws and rulings. Third, that we would be able to create new and better trading relationships with a wider range of partners. Finally, that we could save money paid in to the EU and use this, for example, to give the NHS an extra £350 million a week. 

These 4 issues, when combined and brought together, spoke to the very heart of the issues a large group of people care about. It spoke to our national pride and national strength. Anyone arguing against this could easily be derided as not patriotic (I know this, because I took this claim fairly regularly). But I can see the emotional flow of that argument. These claims were pushed very strongly, not just by the official campaign, but by UKIP and the majority of the British press too. 

It's quite easy to see, when someone is faced with this level of emotional argument, and see a set of factors that are so clearly wrong and unjust, that they expect everyone else to see it too. I actually wonder why there wasn't more aggression and violence. But also, if you have been given this story, you would assume that once through the referendum, this horrible situation would be remedied quickly. No more EU, no more money paid, no more immigration, control back in your hands.

Unfortunately, they have been both badly let down, and badly lied to. Firstly, David Cameron has let down not only Leavers but everybody in the country. This referendum was only ever meant to kill off UKIP. There was never any intention within government that Remain would actually lose. For this reason, there was never any clarity or honesty as to what would happen if they did. The government didn't even make contingency plans for that outcome. Just imagine that, a government not planning for a possible outcome of a binary referendum. Leave was never on the cards. Why else do you think the PM immediately resigned?

The other effect of this is that there was never any clarity given on how we would or could leave and what leaving would free us from. Had government departments been allowed to work on both outcomes then a clear option would have been given. Stay, and you get A. Leave and you get B. Unfortunately, this was taken away from the electorate. Instead, the Vote Leave campaign, UKIP and press barons were allowed to fill the void where official government guidance should have been. 

A really good example of this is shown by the reaction to the court case last week. The legislation which allowed the referendum was quite clear that it was advisory. Any decision was always going to be subject to British laws and British government - in the shape of the houses of parliament. But if you have been told for three months - you, personally - that you were taking back control, wouldn't you be shocked to now hear that? I would be. 

But this belief that people were given, came quite clearly from UKIP, Vote Leave and the press. It is therefore not at all surprising that all of those bodies have immediately come out and attacked the judges and the law of this country. Not because they ever believed it. But because the alternative is that this raw emotion they have unleashed turns on them to hold them to account for selling them a fairytale. 

Indeed, the judges had not made any ruling on whether we could or couldn't or even should or shouldn't leave the EU. They were purely ruling to say that British Law must be followed. However, social media and the mainstream media were awash with this attempt to stop Brexit by these judges. Never mind the fact that reading of it is completely untrue - UKIP, The Daily Mail, The Express all presented it as an attempt BY THE JUDGES to stop Brexit. In fact, in ever more dangerous behaviour Nigel Farage has called on people to march on the Supreme Court. Because nothing says respect for the rule of law like attempting to intimidate judges. 

Of course, this is just one example where a lack of planning and honesty is going to cause problems. There was never any decision or agreement on whether we would have any future relationship with Europe at all. This was not covered in the referendum. We were given a binary choice between the status quo and whatever the Leave campaign wanted to sell us. So it is far from certain whether our final leaving deal will include: Trade tariffs, freedom of movement, single market access, accepting some European rules. But the Leave camp have already sold all of these things. Given the level of emotion they have plumbed and brought to the surface, this could lead to even greater anger in the future. 

If you voted or now want to Leave, I would not expect any other outcome. But it is time to look at what you have been sold, and whether you actually want it. And if you do, what should it look like? The problem is that other Leavers might have a different view from you. There is no way you can all be kept happy. So, you have every right to be angry. But be angry with David Cameron for making a mess of such an important democratic process. Be angry with those who have lied to you. But don't be angry with the courts. Once this is all over, it is likely they will be the only ones left to us. Do you really want to damage them to the point that they can no longer hold the government to account?

Thursday, 30 June 2016

A heartfelt letter to Nicola Sturgeon

               It’s a funny old thing when you start writing a politics blog. I chose to do it entirely for my own interest and to get myself writing regularly. My original aim was to write semi-amusing articles that some people would like and some wouldn’t – and to deliver something every couple of weeks. I hadn’t realised that politics in the country would be turned on its head by a vote to leave the EU. I sat down last night and counted 15 separate topics I wanted to cover in separate blogs. It’s a funny old world sometimes. We now have a smirking Nigel Farage trying to destroy any goodwill remaining in the European Parliament, racism and xenophobia rampant on the streets, David Cameron resigning, looking less likely that we will actually Brexit every day, Boris Johnson not standing for PM (right now) and a thoroughly horrible coup in the Labour party threatening to rip the party apart. But there has remained one constant – Nicola Sturgeon would like to take Scotland out of the United Kingdom.
                
Dear Nicola Sturgeon MSP
             
               Firstly, well done to Scotland for voting to remain within the EU. This would have been my preferred outcome for the whole of the UK. Many people across the country are still reeling from that vote. The only thing that we can say with clarity because of that vote is that we are heading for a great deal of uncertainty. This uncertainty affects all of us – whether we are in Scotland, England, Northern Ireland or Gibraltar.
                The numbers in the vote were quite stark – and the differences between the countries marked. 1.6 million people voted to Remain across Scotland compared to 1 million people who wanted to Leave. That is a 62% remain vote within a turnout of about 67% (http://www.electoralcommission.org.uk/find-information-by-subject/elections-and-referendums/upcoming-elections-and-referendums/eu-referendum/electorate-and-count-information) . A huge push for Remain. Whilst this was across the UK the biggest democratic exercise that has ever been performed (in terms of turnout) it wasn’t in Scotland. Many more Scots voted in the Independence referendum in 2014. Then you have another 1 million people voting.
                Obviously, we can’t know which way people voted in each referendum – whether people who wanted to stay in the UK wanted to also stay in the EU for example. I am not sure the data is readily available for that. But it is a desperate shame that we couldn’t get more EU remainers out to vote in Scotland. It could have had a big impact on the overall result. As it is such a low turnout in Scotland may have helped the Leave side – and forced you into considering a second referendum yourself.
                Although I say forced, I am not sure that is quite the correct word. You are after all the leader of the SNP. Your entire raison d’etre as a party is to take Scotland out of the UK. The party line following the defeat in the last independence referendum was that something would have to materially change to hold another one. This certainly seems to count. I can understand to some degree how you must have felt after that result – I am sure it was similar to how I felt this week. But here’s the thing – given the uncertainty can you be sure that is the right thing for Scotland?
                My often repeated views during the original referendum were quite simple – the case put forward for independence was pie in the sky and didn’t add up, and that we are all better being part of something bigger. That co-operation with others was always the best way to go. To not follow arguments that were purely nationalistic rather than actually good for the country. I would have argued until I was blue in the face that the people of Britain believed that. I would have argued that leaving to go it alone was an inherently more risky proposition for Scotland. I can see how some of those arguments have absolutely been holed below the waterline now.
                Of course at the time we had no idea what the Scotland Out campaign would really deliver. A manifesto that promised a government to be all things to all peoples was never going to wash. The fact that the manifesto was predicated on receipts from oil money that has largely dried up also now shows the wisdom of the Scottish voters in rejecting it (http://www.telegraph.co.uk/news/uknews/scottish-independence/12052565/Independent-Scotland-would-be-bankrupt-and-appealing-to-IMF.html) . There seems to be an interesting learning from both referendums best summed up by Jamie Vardy – “Chat shit. Get Banged.”. If you try to sell the voters a clearly unreal picture they will rally against you. Of course in your case that was a picture of Scotland that could never come to pass. In the EU case that was a serious of threats to do horrible things to pensioners and the working class that no-one believed by George Osborne.
                I would imagine you have learned from that. I am sure there are some very clever election strategists working out how to avoid that pitfall. Maybe that would help in any future campaign to deliver the result that your party has been seeking for its entire life. Certainly it must be really tempting, whilst the rest of the UK and our politicians are looking the other way to try and push ahead with your agenda. Knowing they are out of the game whilst fighting within their party or negotiating with the EU would certainly make me go for an early referendum.
                But would that, right now, be in the best interests of Scotland or Scottish people? Or is your desire for independence at any cost clouding your judgement a little bit? Because to win a referendum you would have to change the minds of about half a million Scots – and if I may generalise for a moment – it is hard enough getting one Scot to change their minds once they have decided on something. Would using the fact that Scots want to be part of the EU be enough to change how voters would vote?
                Firstly, you would need a clear, realistic plan of what would happen if you left the UK. That needs to be clear from 2 points of view to win people over. One of those is that you would have to be clear what you are going to. If you ceded from the UK, what would that plan be – to immediately rejoin the EU? If so, you would need to be really clear the terms that would be on and get assurances from the EU on that. Do you think that is going to be, right now, a top priority for EU politicians? Never mind the fact that you would have Spain standing in your way at every step (because of their own Catalan separatists) (http://www.bbc.co.uk/news/uk-scotland-scotland-politics-36656980)? So how quickly would you be able to do that? Also, given that the oil price has fallen off a cliff and doesn’t look like recovering the economic case this time round would be much weaker that isn’t helping your case.
                The other point of view is showing people what they are voting away from. As you have shown once simply answering “The English” to this question really isn’t enough. Whilst the Leave EU campaign managed to tap into people’s anger, you have failed to do that once. So what would you be taking people away from? The answer is that you simply can’t know. I get that neither would any Stay campaign – and from a political point of view that would possibly help you massively. But look inside yourself and be honest  - would that really be doing your best for the Scottish people as a whole? There still remains a possibility that a UK outside of the EU would be a good thing for Scotland. There also remains an increasing possibility that nobody will be brave enough to pull the trigger on Brexit – or as Leavers hoped – we end up with all the benefits and none of the costs.
                You simply can’t know. And so you would be asking the Scottish people to vote blind-folded, with one hand tied behind their backs on what would be right for them. Purely to achieve a vote for independence from something unknown and unknowable on the basis of nationalism. If you think you can live with that on your conscience, perhaps go and talk to David Cameron.

                I understand that the SNP will re-run this referendum time and again until it gets the right result. But please, do what is right for Scotland first and foremost, and wait until people can honestly know what they are voting for and against. Because voting in the absence of knowledge can often get you the wrong result.