Post Election

Now it’s post election it’s time to reflect on the UK’s Election or what might become known as Theresa May’s disaster.

Some of this is extracted from a Goodreads forum discussion.

First turnout.

  • Although pleasing the turnout went up 3% since 2015 we still ended up with only 69% bothering to vote or deciding to vote. i.e. nearly 1/3 of electorate did not care or could not decide.
  • 53 to 48% on UK Brexit out on turnout of 72% of which 62% in Scotland voted to remain in EU and 60% in London did the same. EU vote also included Gibraltar
    55 to 45% on Scotland to stay in UK on 84.5% of eligible Scottish voters – no one else got a say
  • 2015 General election 66.4% turnout with wide variation dependent on constituency. The Conservatives won 36% of that which gave them overall majority of 12 seats in House of Commons

May as P.M

IMHO May got exactly what she deserved. 3 unbelievably bad decisions in under 12 months:

  1. No general election after becoming p.m and failing to seek support across parties for Brexit process after referendum and Cameron’s resignation
  2. Triggering Brexit process but not having election whilst clearly knowing there was a 2 year timetable
  3. Changing mind and having election – again this could have been agreed with other parties based on the Brexit timetable – i.e. the alleged reason of a stable government to agree deal on the timeline

If anything proves that May is not fit to be P.M it should be the above – as if her record as an appalling Home Secretary was any justification for making her leader. I think that was the, anyone but Boris Johnson/Michael Gove, vote in action. Luckily I was away for a few weeks of the general election campaign but seldom have I seen such a disastrous rabble as the Conservative attempt – again totally controlled by May’s cohorts, at least some of them have had the dignity to resign. Contrast with Scottish campaign run by Scottish Conservatives 1 MP to 13 is staggering.

Now what – the country will have to carry on with May (or have 4 weeks of leadership election) for a period but expect an autumn election – no party can govern without a more formalised agreement as 2010-15 showed – at least Gov was stable – unlike Lib-Lab pact of 70’s. Despite Progressive Alliance discussion, Labour would need DUP as well as all the other parties to pass any legislation unless they expect Conservatives to vote for their policies – nationalise railways for example?

Labour

Kudos to Corbyn although losing an election is a funny way of claiming victory. The big losers are SNP, but are still the majority in Scotland. My only comment there is if your campaign is entirely based on someone who is not standing i.e. Nicola Sturgeon then don’t be surprised if it gets personal. Ditto for Theresa May but at least she was standing in her constituency. Labour MPs after this election have 10 less than Labour won under Neil Kinnock in 1987. He resigned as it was seen as a disastrous result. Some Labour commentators have managed to mention the fact that Labour lost.

Some realism at last. To win an outright majority Labour need at least another 70 seats. To have a decent majority they need more like another 100. Even with a complete reversal in Scotland (30 back from SNP) a dozen from Wales and no resurgence in Lib Dems, somehow they need another 50 current Conservative seats.

Forecast

If there is another election will Conservatives campaign as badly? Will young turnout (thought to be Labour) be as high will places like Kensington stay with current result. My view:

  • Lib Dems will gain again impact on both Labour and Conservative but only small number maybe another 5-8
  • Labour will hold more easily in North but lose in South end up same
  • Conservatives will regain Southern losts
  • SNP will again slip back to Labour but might re-gain Conservative wins.
  • Net result – same again but might just give Conservatives 8 seats net gain for overall majority.

I cannot see an alternate candidate for P.M – yes I know people talk about Boris but he does not have enough backing. There is no obvious alternate leader in waiting. I think May will survive for a few months, then again I didn’t expect Cameron to resign and her to become P.M. Let alone to blow the election – I had a bet for 50+ majority. This time I won’t put money on it and a lot can happen between now and then

The BBC’s poll of polls tracker actually showed it. The trend for Labour was up just as it had been for the referendum out vote and the 2015 election Conservative win. What Theresa would give for Cameron’s result now.

Tax

One of the problems of most electorates and the promise of jam tomorrow is misunderstanding how the tax system works and what can really be obtained by raising taxes. The Lib-Dem manifesto was at least partly honest by stating that there needed to be a rise in basic taxation to generate the funds needed for higher spending without just adding to the debt. Remember our UK debt interest payments:

(paying the interest) the public debt amounted to around £43 billion (which is roughly 3% of GDP or 8% of UK government tax income)

This is roughly the same as the defence budget 2/3 of education spending and 1/3 of NHS. In other words this is a staggering amount of money, which is growing daily and current spending activity despite austerity is just adding to it. i.e. the governments since 2008 have made this worse.

If we want more money for these areas (or anything else) don’t treat public spending as a never ending credit card. The difficult austerity measures of 2010-15 were designed to stop increasing this borrowing and failed. The Labour party campaigned (somewhat successfully whilst still losing) for an end to austerity but unless tax intake goes up substantially the debt will rise as day to day borrowing increases i.e. we add to the debt.

It doesn’t mater what you borrow for (infrastructure, deficit, pay) it all adds up to debt – a failing of virtually every country in the world. It’s called living beyond our means – although in most of advanced world it is its not paying our bills. i.e. if we paid more tax privately or from business we could pay this off. Relying on GDP increase to increase taxation is not working.

The other issue on tax is the fallacy that higher earners are not paying their fair share. 25% of £100k a year is £25k. 25% of £20k is £4,000 – ignoring allowances and higher payments (First £11k free of tax for both and higher rate coming in at higher salary) the higher rate tax payer already pays £21k a year more for the same services. So the richer members of society (everyone that pays tax) already give subsidies to the lower paid. At the same time many richer members of society do not use those services e.g. private education and private health/social care.

The old tale of the taxpayers should always be born in mind – yes its glib. For 10 taxpayers substitute ten companies with corporation tax

10 drinkers in a bar who decide to settle their £100 weekly beer bill roughly the same way we pay our taxes. So, the first four men (the poorest) paid nothing; the fifth paid £1; the sixth £3; the seventh £7; the eighth £12; the ninth £18; and the 10th man, the richest, paid £59.

Then the barman decided to give them a £20 discount for being good customers. The group wanted to continue to pay the new £80 bill the same way as before. While the first four men still drank for free, the other six divided up the £20 windfall by following the progressive principle of the tax system. So the fifth man, like the first four, now paid nothing, making a 100 per cent saving; the sixth man paid £2 instead of £3 (a 33 per cent saving); the seventh man paid £5 instead of £7 (a 28 per cent saving); the eighth £9 instead of £12 (a 25 per cent saving); and the ninth £14 instead of £18 (a 22 per cent saving). The 10th man paid £49 instead of £59 (a 16 per cent saving).

The men then began to compare their savings. “I only got £1 out of the £20,” declared the sixth man. He pointed to the 10th man, “but he got £10 – the wealthy get all the breaks!” “Wait a minute,” said the first four men, “we didn’t get anything at all. This new system exploits the poor.” So the other nine men surrounded the 10th and beat him up. The next week he didn’t show for drinks, so the nine sat down and had their beers without him. But when they came to pay, they discovered they didn’t have enough money between them to pay even half the bill.

Inflation

Unless we as a society do some fundamental re-thinking of tax income we are in danger of the rich man/company walking away. The amount of money raised by just increasing higher rates of tax is small because there are so few. This is always going to result in less income as the ridiculous 90% tax applied in the 70s demonstrated. The same applies to rich companies – i.e. those that generate sufficient profits or dividends. If the are publicly owned then those dividends turn into investment income for our pensions – yes the senior executives pay themselves extortionate amounts. The richest companies in the world (Apple etc.) employ hundreds of people to move money around to avoid whichever country tries to get more of the income even under a current system. If you make it more expensive for them to trade the directors will be duty bound (and financially incentivised) to try a way to avoid it. Taking their jobs (from Apple store assistants to financial traders) with them.

By the way increasing wages in any organisation increases costs unless there is a corresponding increase in productivity. Cost = goods / services price rise or cost of service for public sector. Thus either price inflation or more tax required issue. Pay seems to come first, productivity a long way behind, if ever. Have we learned nothing from the high inflation and high interest rates of the 70s and 80s. Of course the young have an excuse. They were promised in Labour’s manifesto free University education, higher wages, and the old more spending on welfare and social care. They are the now generation and have grown up with exceptionally low inflation. This is not a Conservative manifesto it is baic economics. We as a population are childish and naive. We want something for nothing. We all want jam tomorrow. The current political situation is a reflection of lack of honesty from politicians of all parties who have failed to address the major issues of national income and national debt. If we want good health care and good social care then it has to be paid for. That means tax not borrowing. The trident row is another good example, Whatever the merits of a nuclear deterrent the cost argument is farcical. Trident cost is £100bn for whole life i.e. less than the cost of one year’s NHS spending.

I sometimes think the entire population is unable to understand basic mathematics in particular what a percentage is i.e. the tax take example above. If we really want to sort out public finances.Institue of Financial Studies produced this in 2015. Suggested reading

And a quote from that document my emphasis – “Of the big three taxes:
  • a 1 percentage point rise in all rates of income tax would raise £5.5 billion;
  • a 1 percentage point rise in all employee and self-employed National Insurance
  • contribution (NIC) rates would raise £4.9 billion;
  • a 1 percentage point rise in the main rate of VAT would raise £5.2 billion.
If we want £10bn more for the NHS per year we need 2% on basic rate and we will all have less to spend.

Re-Moaners and Trump’eters

Re-Moaners and Trump’eters respective terms for Remain campaigners in Brexit and Donald J Trump supporters

Another few weeks drift past and yet the same issues which seem to have been in the news all year, remain.

The US never-ending election still has over 3 weeks to run and just when you think the behaviour and approach of both camps can’t get any worse, they manage to achieve it. If it’s not sexual abuse allegations, it’s more leaked emails. I pity the American voter. I thought our choice this side of the Atlantic was pretty bad, but the candidates there look appalling.

I watched the clip of Gary Johnson who is apparently also standing as a Libertarian Party candidate – I mean really? Over five years into a civil war in Syria and this man who wants to be President of the most powerful nation on earth, does not know what Aleppo is.

At least Trump and Clinton have managed to answer some questions on the subject. It’s not unusual for foreign affairs (not the sexual kind) to play little part in a US election, but one might have expected that confrontations with Russia over Syria, Ukraine and Crimea, to have some impact. Likewise, relations with China over the Spratley Islands rather than ridiculous notions of simplistic arguments over manufacturing jobs in the US should have some policy. It remains completely unreported what either candidate’s plans for North Korea are. Better not ask Trump, but his rhetoric can’t be worse than the accusations from US Security services that NK was behind the Sony attack.

What still amazes many commentators, is that Trump is still popular with large swathes of the US electorate despite all the gaffes. It demonstrates how unpopular Clinton is, but more importantly, how upset many American voters are with the established political class which Clinton embodies.  Here we have some of the parallels with the UK EU debate, despite the referendum.

Although there is an element of the moaning bad loser side in some of the pronouncements from what was the remain side, many did set out the risks to the economy an no-vote would bring. Several senior economists have stated that the currency changes that we have seen since end of June were a long overdue correction to Sterling’s position just exasperated by the vote for exit and on-going uncertainty of what that means. In the percentages shown everything is referred to the currency position post 23rd June, failing as usual to mention that Sterling’s value had risen significantly in the lead up to the vote.

The Euro’s value over 5 years from here shows a different story than the headlines might have you believe. On 19th Oct 2011 the exchange rate was 1.14 and it closed on 14th Oct 2016 at 1.11. In particular, the rise of the pound in 2015 and the lead up to the vote is dramatic. US Dollar to Sterling is a significant fall over the same period 1.57 to 1.21 and the comments on reserve currencies should be concerning, but at the same time interest rates have been signalled upwards in the US, and stay the same or lower in the UK. That does not help Sterling investors. By the way, Euro to US Dollar has gone down from 1.37 to 1.11 in the same time period.

I have picked an arbitrary period but some of us can remember much better and worse Pound to Dollar rates. It reached a low of 1.05 in February 1985 after the ERM fiasco, and was as high as 2.11 in November 2007 as sub-prime crashed the dollar

What do we learn from that brief history? Currencies fluctuate, sometimes by a lot, and thousands of traders around the world make money doing that.

Final discussion for today is on Credit Rating Agencies and their comments. Yes the same folks that branded those sub-prime investment funds as AAA, are doing all their warnings on where the pound might go next. All the discussion is based on what the UK might do as if what might happen in the Euro, (How is Greece by the way and Italy, Portugal, Spain?) will have no impact. Remember Euro zone and other EU exports to the UK, exceed UK Exports to the EU – we both have a lot to lose if we are stupid and put in unnecessary tariffs. World trade will be damaged if Trump introduced tariffs to protect American jobs and cancels NAFTA. Likewise, what will be the impact on the dollar if Trump wins and implements that piece of rhetoric.

Guess what the pound might go up or down or sideways. Can we moan about currency traders instead?

For Oval Office satire try One Morning In The Office

Music and Musing – OK, The EU Referendum As Well

My first creative writing outside school work was actually music lyrics. The words were my first artistic adventures and continued for many years. The few poems on this site are really lyrics for various songs that I have written over the years. Music still inspires me and has the power to move me like no other art form. I like to think I have a wide taste in genres from classical (including some opera) through to modern pop, although rap is a real effort whilst appreciating the skill of the lyricist.

I appreciate art, as in painting and sculpture, in the same way, but I do not find it moves me in the same way as music, likewise theatre. I did write a short story, Landscape, with art as the background attempting to convey my love of some paintings. Musical theatre does have that impact, whereas opera tends to get lost for me except the odd aria. Probably the language barrier but also the variations in the notes – a complaint I have with much Jazz.

The language barrier (not necessarily the artistic barrier – ignore the Eurovision song contest) of course applies to our European colleagues, the focus of much of the debate in the referendum. There is not just a language barrier but also a cultural and legal one. Many European countries have a legal system based on Roman/Napoleonic basis, (France and other codified legal systems) or are federated states (UK has devolved power to Scotland, Wales and Northern Ireland but not England) as opposed to common law based on precedent with juries. The EU is codified leading I believe, to many of the clashes we have seen with the ECJ and the slow but creeping codification of the UK’s laws driven from the EU – a background driver for the sovereignty debate i.e. where UK precedent can be overruled by a codified European Court causing a codified change to UK law.

I remain undecided. I have written before about my concern with population growth. This issue is mixed up with immigration, asylum and the crisis facing the world (not just the EU) The increase in the world’s population is staggering

Population
World population

As is the UK’s from Migration watch but using ONS numbers

UK Pop
UK population Migration Watch

The future projections which are based on net migration levels plus the impact of the new population having children must be addressed. Regardless of what happens in the referendum, and associated immigration policy, the increases of the last ten years will have a major impact on schools, housing, healthcare, etc. for generations. More cars, more use of public transport, and it takes years to get infrastructure in place to cope from London airport runways to sewer mains.

I grew up at a time when the net birth rate was thought to be falling below 2, i.e. population decline. This has now reversed and we have added a massive increase in life expectancy which impacts the same things plus pensions but with a disproportionate impact on health and social care.

As with many undecided I am annoyed with the quality and tone of the debate making it very hard to decipher fact from fiction or forecasts or the real risks in either choice.

The In campaigners fail to talk about the impact of ever closer union (yes UK may have an opt out) when EU policy is pursued. Especially the efforts of Eurozone countries to support the currency. We will be outside (we already are) that decision process. i.e. if EU funds are used to support an in-crisis Eurozone country ahead of a non Eurozone country purely to help stabilise the Eurozone and prevent another crisis. I have just returned from Greece – that crisis has not gone away. The impact on the UK and the financial systems is there regardless of membership status. Outside the Eurozone the UK has zero ability to influence policy in or out. The only way we could would be to stay in and join the Euro! That is something that has been ruled out by most euro campaigners, which seems illogical if we really want to be at the table and have a say on the future of the EU.

The Out campaigners fail to address the risk and the economic forecasts, ignoring many supposedly qualified commentators. Albeit, being lectured by American bankers (Merrill Lynch) and other big businesses does not go down well. Of course economic forecasters are well known for their accuracy; from the IMF to the Treasury we can clearly believe everything they say. Growth rates, employment rates, financial products. That is sarcasm by the way, in case anyone thought that I think economic forecasting has a better success rate than weather forecasting beyond the next 24 hours.

The pleas from foreign leaders feel forced and in some cases (USA) hypocritical. Of course the USA wants the UK in the EU. It means there is some check from the UK on various EU proposals on trade, data and competition so that USA interests are protected.

For EU leaders, if you are so desperate for the UK to remain, Mrs Merkel, why did you not offer a better reform package to the UK when Cameron was running around Europe before the referendum was announced? Actually, why haven’t you reformed the EU thus making the changes needed before a referendum was called?

I cannot abstain. I believe in voting, there should be more of it. I just do not know what is the best decision, for me, my family, the generations to come and my country. I do believe that the EU would be a worse institution without the UK in it but would the UK be worse? I do not just mean economically, but worse in a generic sense. Would the UK be a worse place to live or better?  If someone can give me a clear answer to that and address the population growth issue (not just the immigration issue) I would be grateful.

Whatever the outcome of the vote, I can still write words and occasionally music. The paintings will remain in the galleries. Life will go on. The world will not stop and the 6.5 billion people who live outside the EU (with or without the UK) will continue to have their lives. The population will continue to increase, and the poor and scared will desperately seek a better life wherever that may be.

Panama and Voting

Hot news, apparently, dictators, the super rich, corrupt politicians and criminals try to hide their ill gotten gains. Add to this list the moderately rich and various investments funds try to to avoid paying as much tax as possible. This is news?

In the spirit of openness I too have investments in offshore funds. It’s called my pension. I can’t confirm that I don’t own shares in Panama registered companies. Don’t look shocked, I have heard lots of people say that recently. Why can’t I confirm? Investment funds.

The pension company offers multiple funds in which I can buy units. Some of these funds trade in oversea shares. Frankly I have no idea if any of these units are linked to operations in Panama, The Cayman Islands, Belize and many other tax efficient locations. Just because I am several steps removed from the investment and income does not mean I do not want a good return on the deal. I want interest and investment gain too.

Of course I will have to pay tax on the income just like I already do on my salary, savings’ interest and directly invested share dividends. By the way every single person in this country that has an ISA is trying to avoid tax. Every investment in a personal pension avoids more tax. Every claim of business expenses is another bit of tax avoidance, why do you think your employer wants a VAT receipt? A little less hypocrisy please.

I think we all knew that bad people do bad things. The 11 million Panama sourced documents just confirmed this knowledge. It used to be the notorious Swiss bank account. The use of shell companies and hidden investment funds should also be no surprise. If anyone has watched The Big Short or read any of the extensive reviews of the financial crash, the rich bankers were peddling AAA rated investment funds as if they were solid gold. In reality they were derivatives bundled with other derivatives sold into other funds. Your pension fund may well have invested in these funds.

This was probably criminal behaviour, although precious few have gone to jail, whereas avoiding tax may be morally questionable but it is not illegal. Those few of you who have been kind enough to buy my book, The Persuasive Man, know that I have included a lot of financial wheeling and dealing in that fictional account. Fictional yes, but based on several financial stories and some personal experience.

Avoiding tax is a national pastime. Ask a tradesman if he’ll do the job for cash and you contribute to tax evasion which is illegal. Of course morally we are happy to have got a deal. We, the purchaser, have not done anything wrong. It is not our responsibility to declare the income, but are we a co-conspirator?

Directly in the UK, the Prime Minister has been dragged into the mess as the documents showed that David Cameron and his spouse had shares in an investment fund set up by his father. As usual with political scandals it’s not the actual thing that’s the problem, it is the cover up or the failure to come clean. Then of course we have the reporters dramatically trying to turn a drama into a crisis

The BBC were interviewing voters in Bedfordshire about whether they have changed their opinion of the Prime Minister, then came the most ridiculous question. Will you vote for him? Last time I checked, Cameron’s constituency was Whitney in Oxfordshire not Dunstable in South Bedfordshire; so how exactly were these voter going to vote for him? He has also said he will not stand at the next election. Therefore, no one is going to be able to vote for him.

You can vote in May local elections. In June you can vote for the EU referendum. Scotland, Wales and Northern Ireland have their respective Parliament and Assembly elections, (English Democratic deficit anyone?) but except for by-elections no UK MP will get elected until 2020. It’s like asking the vox pop interviewee, the archetypical man on the street if they would vote for Trump – had to get him in somewhere – irrelevant and just bad journalism.

With 11 million documents to sift through who knows which name will turn up next. Of course Cameron has got himself in this mess for not being open and forthright at the start of the week, not for what he has actually done with a relatively small amount. Yes, I know £30,000 is a lot of money to most of us, but compared to the billions hiding in Panama shell companies, it’s not really. By the way as the shares were co-owned by him and his spouse that’s £15k each. Capital gains are only due on the element above the yearly allowance depending on how long the investment had been held. Income from the fund should have been declared each year on the individual tax return. So a £30k fund on a very good year may have paid out 10 percent per annum so £1.5k per year each at 40 percent tax is £600. Not exactly a new duck pond. The selling story is already 6 years old.

Jeremy Corbyn the Leader of Her Majesty’s Opposition is making political hay out of the alleged scandal but is it just me? Not many Labour MPs are making a song and dance about this nor Liberals. Even the Scottish Nationalists are being relatively quiet. Have I missed something?

We can add UEFA and FIFA to the list of those being embedded in the scandal, Iceland has already lost its Prime Minister. It seems this leak even makes other news disappear although the press are desperately trying to link the revelations to the EU in/out referendum. After all we need something to make that more interesting.

Meanwhile 1.5 million migrants/asylum seekers/immigrants/terrorists (delete as applicable) have tried to enter the EU and the new deal with Turkey has allowed 200 to be returned to Turkey. Perhaps we are missing the scale of the problem and not addressing the priorities. Mr Putin (be respectful) seems to be connected to Panama via some friends who seem to have a lot of state money. What about EU funds? Are there no documents connecting EU officials. Of course we have the overseas aid budget from the EU and the UK which have often been suspected of ending up in odd bank accounts. No news there then.

Back to the scale of the financial misconduct, what efforts are actually being made to get the money. Has the Panamanian Ambassador been called in, have any executives of the legal company been arrested, is anyone going to be charged with anything? Is any money going to be returned? More likely it will all disappear, the money and the story.

Perhaps a sequel is needed but would anybody buy it? Perhaps I should set it up as an offshore investment fund opportunity?

In, Out or Shake It All About

In, out or shake it all about was written before the referendum on Brexit

I did not think I would return so quickly to the UK’s in out referendum as a blog topic but here I am. Once again I am heartily sick of this misinformation that is allowed to run across our media outlets without proper questioning.

This week much has been made of the legal status of the agreement with the Council of Europe and whether it is binding. Bottom line on this, in my view, is that the agreement is binding in intent but only becomes formalised after treaty change. As I explained in my previous post, this will require referendums in several other countries. If rejected by the constitutional process in those countries then what?

There continues to be a lack of clarity on many areas of our relationship with the EU regardless of the agreement negotiated. The in/out decision is really about this for most out campaigners. Regardless of the renegotiation details which appear almost to be a side show. I’ll focus on three elements Finance, Security, Rights and Trade.

Finance

The UK’s is the 4th largest contributor but the 2nd largest net contributor behind Germany. This net contribution is effectively a membership fee and that contribution is used by the EU organisations to subsidise and support other EU nations of which Poland, in 2013, was the largest recipient. In other words it is overseas aid for the EU. This fee in 2015 was £9 billion based on £18b contribution, £5b rebate (Mrs T) and £4b in farming via Common Agricultural. As a comparison the UK currently pays £43b per year in interest on its National debt of £1.6 Trillion.

The UK is the 5th or 6th largest economy in the world depending on which source you site. G7 membership, G20 membership IMF etc are not dependent on EU membership.

Security

The In campaigners claim we are safer inside the EU. The Out disagree. So facts:

Under Article 51 of the UN charter all nation states have the right to self defence. The UK is a permanent member of the UN Security Council – one of five. Under Article 51 NATO operates its collective defence policy of an attack against one is an attack against all. NATO is the same size as the EU in terms of members, but they do not align. Several EU countries are Neutral (Austria, Finland and Sweden. You can add Ireland based on non-belligerency) therefore they cannot help with that type of security. Of course the USA and Canada are not in the EU but help with security. In/Out this does not change.

Security has other forms. The UK is one of the so-called 5-eyes which share intelligence information this is (CIA, MI5, MI6 , NSA, GCHQ etc with Australia, New Zealand ,Canada and the USA). No other member of the EU is; therefore, there is intelligence information that the UK does not share with those countries. There are separate agreements with some countries (France, Germany, Netherlands etc) and NATO shares some. So much for the contribution to the EU security.

Europol is put forward as a good example of EU security. Norway is mentioned as European, non-EU member that shares information. What is Europol? It has 800 members of staff of which 145 are liaison officers from member police forces. Under 5-eyes MI5 which along with the Met Police has Counter-Terrorism responsibilities, can’t share info with Europol. In fact much activity in 5-eyes is spent spying on our EU partners. Mrs Merkel’s phone for example. Do we really believe that Europol cooperation would stop if the UK left, or would a Norway arrangement be made. Then there is Interpol which is in 190 countries with many of the same aims as Europol. We would still be a member of that.

Rights

We are protected by the UN, Universal Declaration of Human Rights and the European Convention on Human Rights. Both predate and are separate from the EU. The European Court of Human Rights is not an EU institution, nor is the War Crimes unit, nor the International Court. The EU does have the CJEU or the European Court of Justice which arbitrates on EU law i.e. the rights and wrongs under the treaty. This was the argument on legality disputed by the two sides this week. In effect they are both right. The CJEU could over turn but it has never done so. So, it will not, or might not, but could.

Some rights I believe the EU has done a much better job on then the UK authorities. Data protection is one are where the UK’s Information Commissioner has been an abject failure primarily due to the powers granted to the ICO. The EU has been much stronger striking down the pathetic Safe Harbor agreement with the USA as offering no protection. Whether the UK alone would stand up to the USA in these matters is doubtful, given 5-eyes its unlikely. This might mean that in event of an exit the EU may not be able to exchange data with the UK. That will be a major impediment to trade so would need to be addressed. In this case EU protection offers more than just UK.

Trade

Following the letter from several major companies promoting stay in the airwaves and print were full of disagreements on what exit might mean. I return to World Trade Organisation, G7, G20 and other agreements. Based on import export the EU needs us in a free trade area more than we need them especially as the EFTA agreements have not fully supported the trade in services. BMW and Audi will not want to lose access to the market. Any hint of trade tariffs or protectionism would just escalate on both sides. The actions of the Eurozone will make this more and more difficult for those members

In or Out

I still don’t know but I want to see much stronger reasons for staying in then I have seen so far. The new agreement does not change that as I cannot see anything fundamental changing. Removing ever closer union from a treaty (if approved) means nothing when the Eurozone is doing just that and has to do that to make the Euro work.

Blog-less Blog

That is the current status of this blog. I am supposed to write regularly and hopefully providing articles and comments of interest. All instead of just spouting updates on the progress, or lack of it, on my books.

The idea is to write other stuff which will attract interest form a broad readership. In turn this will lead to readers investigating this site and then hopefully clicking on a book description and consequently purchasing one of my offerings. Notice no links or embedded spam – is this a new approach? No, it just seems to have no impact so I’m trying a bit of reverse psychology. The statistics from this site tell me about click through traffic and pages read. Since my last post advertising my latest release and associated discount on the first part of the series, I have started several blogs but time and my own interest stopped a post going out.

I was going to comment on the Google tax deal and Apples quarterly sales in a hopefully witty way. Googles amount of tax paid to HMRC and the city’s reaction to Apple’s disappointing revenue and profits. If only more of the UK’s home industries had such disappointing results. Then there was the humour in watching the UK’s Labour Party trying to explain how we would still have a nuclear deterrent if we let our submarines sale without nuclear weapons. For real entertainment, we can all enjoy the US Presidential Election Candidate Selection Process. This seems to consist of a group of people from all parties who demonstrate their unsuitability at every occasion. Only another 9 months till the election. This is on the UK news almost as much as the other big story, namely the UK’s referendum.

As of this morning, 20th Feb, the UK apparently has a new deal agreed by the other member states. Does this indicate the sunset of the UK’s EU Membership or a positive renewal of our commitment. This is being described as meeting Cameron’s (the UK’s current Prime Minister) objectives and thus allowing him to campaign for a yes vote in what will probably now be a June referendum. I stated current as if he loses the referendum he may have to resign.

The yes vote is to stay in the European Union based on the changes agreed.  At the moment the polls (Remember them in the last UK election) seem to provide a very mixed response. The Daily Telegraph had 51.5% in against 48.5% out. YouGov with The Times this morning has 45% leave against 36% stay. As with the 2015 election – more guess work.

EU 28

One annoying point that the scaremongers report, is how the UK would be suddenly isolated outside the EU. The UK would still be one of the five permanent members of the UN Security Council. It would still be in NATO, World Health Organisation the IMF etc. It would still have too numerous to mention direct treaties with nation states including other EU members e.g. The Lancaster House Treaties between UK and France signed in 2010. It would still be a part of other pan-European organisations and legal processes. It would still be the 6th largest economy in the World. The sun will still rise in the East and set in the West. It will still rain – often.

For those scaremongering the other way, the same applies. The Common Market has changed out of all recognition. Some of this is good, some of this is done badly. The horrible farce that is the current migrant crisis and the never ending Euro crisis ( no it has not gone away, Greece was requesting more concessions as a condition fro backing the UK’s negotiation only this week) are caused by EU treaty and process failure. The EU like any organisation can be reformed from inside i.e. stay in and fix it. Some of the reforms the UK has asked for other member states want as well, they would not have agreed otherwise.

I must be honest – I am on the fence. The previous European referendum was on staying in what was then called the European Economic Community (EEC). The UK had actually joined The Common Market without a referendum and has not held a referendum since despite the vastly different environment that the EU now represents. I was too young to vote then. England, Wales and Northern Ireland were not asked about Scotland staying in the UK in 2014. The only referendum I have voted in was one on Alternate Voting, in 2011, where only 42% of people could be bothered to vote at all. The Alternate Voting and the EEC remain the only UK wide referendums ever held in the UK. Yes the mother of Parliaments, the cradle of modern democracy, has only bothered to consult the voters twice. The first of these was after the fact.

If it takes place in June, the planned referendum will be held before any legal treaty changes are made and before the European Parliament votes to accept the changes. It remains unclear what happens if the European Parliament rejects the changes agreed by the European Council (Heads of Government) or the Treaty Changes are not made. Many of partners in the European Union (Ireland, Netherlands etc) require their own referendums to approve treaties. Previous changes have not had a smooth ride through this process. The European Constitution vote or Lisbon Treaty is a good example. The first referendum on the Treaty of Lisbon held in 2008 was rejected by the Irish voters. A second referendum followed in 2009 where it was accepted. The UK was going to have a referendum but this was postponed after France and Holland rejected it. The Treaty was then changed. Others voted but the then UK Government signed it albeit after various concessions were created.

The Lisbon Treaty also states the explicit legal right to leave the EU and a procedure to do so. If the UK votes no in June, we will all get to see whether this procedure works, but don’t be surprised if there is not another round of negotiations and another referendum.

By the time the US elects it’s next President or even has the agreed party candidates the UK could be in the middle of a very major change. I might even get around to writing another book!

 

Mischief for Scotland Join My Petition

Although written in 2015 Mischief for Scotland is as relevant now in 2021

It is a year after the Scottish Referendum with a result with a clear majority in favour of staying in the UK. This was supposed to be a once in a generation decision, and the SNP leadership agreed that it was. Still if you don’t like the result you can always change your mind. Perfect EU principle as Ireland discovered.

It is only four months after the UK’s general election result. Despite this, we still have the SNP calling for another referendum or how the UK government has no democratic mandate to rule in Scotland. This is because 56 of the 58 regional MPs are from SNP. This opinion carefully ignores the views of the other 594 MPs representing other areas of the UK and in particular claiming that the 331 Conservative Party MPs have no democratic mandate to rule in the UK. Full result here. I make that a democratic majority just in the Conservative party without taking into consideration the views of other parties on the subject of the Union. I am unclear what the new Labour leadership believe.

Although I believe that the United Kingdom is better together, that does not mean I am not heartily sick of hearing the SNP moaning about how badly treated Scotland is. Still it keeps the public’s eyes away from their actual record as the governing party of Scotland, with the current devolved powers of the Scottish Parliament. How about a few questions about that BBC and the rest of the media.

So in the spirit of helping the SNP out, I want to start a petition, not for them to have a referendum, but to be expelled from the Union. This should be a much faster process and for once, the rest of the United Kingdom might get a say in the matter. You can sign up via the UK Governments petition web site.

Click this link to sign the petition:
https://petition.parliament.uk/petitions/108874/sponsors/MJjAp4IjbnqBhJ1kg8

My petition:

Expel Scotland from the United Kingdom

There are only 56 MPs from the SNP, but they believe the rest of the 650 should carry out their wishes, whatever the consequences for the rest of the UK or what the UK voted for in May this year.

The SNP continues to press for an new referendum on membership of the UK. The Scottish people voted less than 12 months ago to stay; however, the remainder of the UK has had no say. If Scotland continues to ignore the democratic wishes of the rest of the UK it should be expelled.

Ramblings on a Referendum

Ramblings on a referendum was written in September 2014 after the Scottish independence referendum

Writer I’ve just returned from a week in Las Palmas in The Canary Islands of Spain, don’t worry this is not trip advisor. Away from the UK my wife and I missed the Scottish referendum election and much of the ongoing horrors in Iraq, Syria, Ukraine alongside the Ebola crisis. Not that these events have gone away, even the referendum will have ramifications for months in the UK as the politicians will decide which of the bribes they proposed to the Scottish electorate will be fulfilled – oh and England, Wales and Northern Ireland may get some constitutional change too. How generous, although the argument now seems to be either: from Labour on what the impact will be on reducing the ability of Scottish Labour MPs to vote on English matters; the Conservatives need something to continue their fight with UKIP.
Meanwhile another group of MPs continue to receive their salaries and benefits of MPs without ever attending Parliament or taking up their seats. Sinn Féin step forward no news there.

As I discussed in a previous post the whole referendum process for Scotland was anything but democratic for the rest of the UK in the end 55% of those voting which was 85.5% (thanks for bothering, but what happened to the other 15%) of the 4.3m, or 3.6m decided the future of 64m. We had the unedifying view of all the main political parties disappearing to Scotland with vague promises on DevoMax which they had all decided previously should not have been on the ballot. Promises put forward by Gordon Brown, so we can all believe those!. I think the SNP were right to describe this as a pointless halfway house if Scotland really wanted control it had to vote yes. Further devolved powers do not make us more united. Of course the independence movement failed to mention the real problem – with so much legislation decided by Brussels or other treaty obligations even an independent Scotland would not have had that much control just like Westminster does not. That was if the EU (Spain may well have vetoed), NATO (would take defence commitments) and the UN (they will take anyone) accepted applications. What about the World Bank, IMF, World Health Organisation these international institutions are all part of legislative and economic power base of the world. Would an independent Scotland have joined the European Space Agency? Perhaps it was this and the currency uncertainties that tipped the balance in favour on a no. Who knows perhaps it was the colour of the flag that appealed.

The Liberal Democrats (remember them they are still in the Coalition) have proposed a federal organisation of the UK as part of the reform. My son who has studied this stuff likes the idea. If it creates another layer of bureaucracy which the previous Labour regional assembly proposals did then I would be against. Labour wants to follow the example of London for more power to big cities but then what about those of us that do not live in big cities? Whatever happens Parliamentary reform is long overdue we should have far fewer MPs given the devolved powers already and even fewer in the Lords. Perhaps 500 MPs with devolved powers to regional parliaments and 250 in the Lords – elected please.

Meanwhile the Pope thinks World War 3 is effectively under way due to the conflicts throughout the world. Not quite; however brutal and the number of conflicts. Clearly, it makes no difference to the victims whether the Pope thinks it’s a World War or not but human history is full of mostly unreported conflict. The battles in Africa seem never ending mostly based on tribal divisions made worse by the colonial false borders. There seems no easy resolution of the Syria conflict without supporting Assad, the very man the Western powers (and others) wanted removed, in order to defeat the allegedly bigger threat of ISIS, IS or ISL.

The appalling beheading on video of hostages adds to the fear element in the West allowing/forcing the politicians to act as if that one death is worse than the death from Ebola, Malaria, AIDS, or cancer. Horrific yes but so is a bomb from a coalition aircraft or a shell from an ISIS fighter. Remember those wonderful pictures of precision bombing. Someone’s son, brother, father, daughter, sister or mother has just been publicly killed. No squeamishness from western media in showing that video, but of course the victims are not journalists or aid workers. Not that we know who was in the vehicle or building alongside the fighter. The famous unverified reports beloved of BBC speak especially when dealing with sensitive subjects, must not get in trouble with the government when the next license fee discussion is under way. Even to the point of not reporting a story about a famous tennis player in case his view influences (only during voting day) the Scottish Referendum – really? The BBC’s efforts not to fall foul or the Electoral Commission are sometimes laughable, just like the promises of constitutional reform which we will now have to sit through.

The West Lothian Question

The West Lothian Question remains outstanding and in 2021 not being addressed in the upcoming Welsh and Scottish elections

I have refrained from blogging about the Scottish Independence referendum on the grounds that anything an English person living in England says on the subject will be ignored or treated as either patronising or irrelevant and probably both. Following last night’s debate, between Alex Salmond First Minister, SNP and leader of the campaign for a Yes vote, and Alastair Darling former Chancellor of the Exchequer and leader of the campaign for a No vote, I felt it was high time I did write something.

Firstly, I am annoyed that I don’t have a vote. There was an act of Union between Scotland and England, Wales and then Ireland and yet only one part of the union is getting a say on the subject as to whether it should continue. This does not seem to be democratic to me. Of course there is no telling what the voting in the rest of the United Kingdom might deliver. Perhaps they might vote Yes!

Secondly, the talk is that if there is a No vote (current poll prediction is 56% for No), Scotland will be offered further devolved powers. In this scenario what about England? We have devolved powers from Westminster to the Northern Irish and Welsh Assemblies and a greater range of devolved powers to the Scottish Parliament. Scotland has always had it’s own legal system for example. Despite current devolved powers Scottish (and Welsh and Northern Irish) MPs and Peers have continued to vote in Parliament on matters that are devolved to the individual nations and principalities. This is the famous West Lothian question and has not been addressed by any of the political parties. As part of any further devolution settlement can we at least address this undemocratic system. As all MPs represent geographical constituencies having no votes on particular subject like NHS in England would only be fair in exchange for devolved powers. Given the ability of any TV programme to count and handle millions of votes in a TV talent contest in a few broadcast minutes it seems inconceivable that our elected representatives cannot agree out of 650 MPs who can vote on any given subject.

Thirdly, demographics matter and one of the comments I heard today was on the relative voting power of London and Scotland. London has 73 constituencies serving a population of 6.5 million living there, whilst Scotland has 59 MPs for 5.3 million. This is out of 650 MPs. The ratio is approximately the same 89,000 eligible voters per MP. Yet London MPs cannot vote on devolved matters but 59 Scottish MPs do when it does not impact their own constituents.

Relative economies are interesting as well. London as 22% of the UKs GDP of $2.5 Trillion dollars (approx $550 billion). Scotland has $214 billion of that. London’s share of the UK minus Scotland would therefore go up to nearly 24% and the runt of the UK would drop to $2.3 Trillion. These figure are I’m sure disputed by the SNP and Yes campaign.

In terms of a democratic and economic deficit it is London that is being ignored and on a wider scale England. Scotland has no prescription charges (nor does Wales) and no University tuition fees for residents. According to the ONS here, Scotland receives £10,152 per head of population of Public Sector spending compared to England’s £8,529. Again who has a democratic and economic deficit? It is not Scotland.

In the end as with all independence movements around the world the vote (at least there is one) will be down to the Scottish voters who turn out and tick a Yes or No vote. In the last Scottish Parliament election in 2011 turnout was 50.4%. I would hope that more than half of the Scottish residents on the electoral role would bother to vote in this referendum, after all the SNP has changed voting rules to allow persons over the age of 16 to vote. Let’s say that the turnout is 100% of the 4 million on the electoral roll; therefore, each campaign needs a minimum of 2,000,001 votes to win. Out of nearly 64 million people in the UK it’s future could be decided by less than 3.2% of the population. How’s that for democracy?