Theresa May is no friend of freedom: any Tory leader but May

It's been just over a week and the UK still exists, and hasn't left the European Union.  That's a matter for the next government, as David Cameron, having promised to implement the outcome of the election, decided to wimp out completely.

It was widely assumed that as Boris Johnson had led the Vote Leave campaign, he would be in pole position to become Conservative Party leader, but that fell apart last week when his closest ally, Justice Secretary Michael Gove came to the (correct) conclusion that Johnson wasn't up to it.   As clever and witty and Johnson is, he isn't a man for detail and demonstrated in a column at the beginning of last week that his thinking was muddled and uncertain.  It also became clear that Boris was not trustworthy.  As Mayor he became addicted to vanity projects.  First a cable-car across the Thames that is barely used, then bespoke buses that no bus company would buy, so he got taxpayers to buy them for the companies.  He bought second-hand water cannons after the 2011 London riots that were not legal to operate in the UK, so remained idle, but maintained at taxpayers' expense.   He spent millions on a proposal for a vast new airport in the Thames Estuary to replace Heathrow, even though nothing in the statutory roles and responsibility of the Mayor includes aviation, and claimed businesses were "lining up" to pay for it, which of course was utter nonsense.  Finally, he embarked on a vast network of "cycling superhighways", taking away traffic lanes to accommodate cycling commutes for half the year (the other half the numbers dwindle because of the weather).  This has, in part, been responsible for increasing congestion and pollution, and cutting bus patronage.

In short, Boris is a showman, an intelligent raconteur and I'd even say he has mildly libertarian instincts, but as a Prime Minister, Chairman of Cabinet and chief negotiator with the European Union?  No.  He avoids conflict, his main approach to critics is to try to be witty or change the subject.  Expert debater, but loose with the facts.  This is why Michael Gove, a quiet, principled Conservative politician, who has cared little for his own image, decided to withdraw his backing and run himself.  Gove notably on BBC Question Time was questioning of the government he belonged to (as Cabinet Minister with collective responsibility) pursuing press regulation, because he was uncomfortable with government interfering with what newspapers could or could not publish.  

Yet the front runner is Theresa May.  Daughter of a Vicar, and the longest serving Home Secretary for decades.  She campaigned rather timidly for Remain, and while she is notable for her negotiating skills, she is frightening in her disregard for liberty.  

Her speech launching her campaign for leader alone should make just about anyone who doesn't have sympathies with the National Front, wonder...

"we should make clear that for the foreseeable future there is absolutely no change in Britain’s trading relationships with the EU or other markets. And until a new legal agreement is reached with the EU, which will not happen for some time, the legal status of British nationals living or working in Europe will not change – and neither will the status of EU nationals in Britain."

In other words, despite the Leave campaign making it absolutely clear that the legal status of any EU nationals living in the UK today would not change, she is putting it up for grabs.  Does it mean she could envisage having the Police knocking on the doors of families who have spent years working legally and peacefully to round them up and send them home?  Well an interview on ITV news/interview show Peston today made thing worse as reported by Fraser Nelson, editor of the Spectator:

Robert Peston: Now, there’s a lot of anxiety among migrants who’ve come here from the rest of the EU about whether they’ll be allowed to stay. There’s also quite a lot of anxiety among Brits living in the rest of Europe. What would you say to them?

May: What I’d say is that, at the moment we’re still a member of the EU, and the arrangements still continue, so there is no change to their position currently. But of course, as part of the negotiation, we will need to look at this question of people who are here in the UK from the EU, and I want to be able to ensure that we’re able to not just guarantee a position for those people, but guarantee the position for British citizens who are over in other member states, in other countries in Europe and living there.

Peston: So you would like people both… you’d like Brits abroad and migrants here to stay? Forever basically?

May: Well, nobody necessarily stays anywhere forever. But I think what’s important…

Peston: But at their choice?

May: What’s important is there will be a negotiation here as to how we deal with that issue of people who are already here and who have established a life here and Brits who’ve established a life in other countries within the European Union. And that is, their position at the moment is as it has been. There’s no change at the moment, but of course we have to factor that into the negotiations.

As Fraser Nelson, a Vote Leave supporter said:

Michael Gove and the rest of the Vote Leave leadership made this clear during the campaign: no deportations. Not even a question of deportations. Brexit was a vote to control immigration, to control the inflow: currently more than three times higher than Mrs May’s 100,000 target. But it was not a vote to boot out anybody, and to allow even the slightest doubt about that point is grossly irresponsible. Especially at a time when so many are trying to cast the Brexit vote in the worst possible light.

Britain needs these people; our NHS needs these people. We don’t keep them as a favour to Poland and nor should we ever dream of bargaining their residency in some game of diplomatic hardball. The EU may threaten deportation of Brits: it’s a corrupt and undemocratic institution which is why the 52pc of us voted to leave. But no British government should ever consider kicking out any of the two million EU nationals who are already with us..

Quite.  It's deplorable.

However, no one should be surprised.  May embraced the so-called "Snoopers' Charter" as she took every call from the Police, MI5 and MI6 for additional powers for surveillance as being in the public good.  Her proposals mean that a list of every website everyone in the UK visits must be held for at least one year with the Police having open rights to go through all those URLs, but needing a "warrant" to check the "contents".   Besides being completely draconian, it also shows an astonishing ignorance of the internet.  It's like saying I have a list of all the books you have read, but unless I get permission I couldn't work out what was in them.   

Former Liberal Democrat Minister, David Laws, said that between security and liberty, May always chose security, noting that former Home Security Ken Clarke often turned down requests for more powers from security services because "we would be a Police state".

Quite.

Gove is a good man, but I fear his quip that economic experts warning that leaving the EU were like the Nazis organising a smear campaign against Einstein makes him unsuitable to negotiate a new trading relationship with the EU.  He admits it was stupid, but for all his merits, he isn't the right man for the job.  The other three, Andrea Leadsom (pro-Leave ex. financial manager), Stephen Crabb (God botherer from Wales) and Liam Fox (Google Adam Werritty) all have pluses and minuses, more minuses than pluses in my book, but all of them are better than May.  

The contest is a process of attrition.  Conservative MPs vote on the candidates repeatedly, with the lowest polling dropping out until there are two.  I fear May will be one of them, and for now I just hope that whoever is the other can defeat her.

With the UK Labour Party led by a communist who is defying 80% of his Parliamentary party to remain leader, the country has no effective Opposition.   Make no mistake, Theresa May is an enemy of individual freedom, she is no "new Thatcher" and should not become Prime Minister. 

Brexit: An opportunity that could be wrecked by politicians

So the UK votes to leave and the PM decides to leave, but not now.  The Chancellor of the Exchequer hides, and beyond the Bank of England printing a few billion, nothing else happens.

The EU has already decided to play tough and has its own position, which is essentially "fuck off, the walls are going up, deal with it".  Although Germany is being much more nuanced.

The Conservative Party has to find a new leader, and from that a new Cabinet and a policy on negotiations.  Labour meanwhile is going the same way.  It is likely a new Conservative leader/PM will call a General Election on a manifesto of leading the UK into a new open, free-trading world with a new free trading relationship with the EU.   Leaving the EU requires the UK to initiate it formally, which the EU is begging for, but the Government would rather delay because it changes its bargaining position.

Yet that could be problematic, not least because a key plank of those fighting to leave the EU is to end free movement of people with the EU, and all countries in the EU Single Market (including non-EU Norway and Iceland) all have signed up to free movement, and even non Single Market Switzerland has, although it does have extensive restrictions on new residents having access to any government provided services.

Meanwhile, leftwing nationalists have jumped on an opportunity.  Sinn Fein wants a referendum on Irish unification, but the Northern Ireland First Minister has said no.  Scottish First Minister Nicola Sturgeon is flailing about wanting a second referendum on independence, but wont discuss:

1. The EU only lets non-members join, not current members split into joining and non-joining;

2. Joining the EU means joining the Euro;

3. 90% of Scottish trade is with the UK, Scotland in the EU would mean any EU trade barriers with the UK also apply to Scottish trade with the rest of the UK.

Spain, showing it really hasn't turned as far from Francoism as it would have liked, is demanding co-sovereignty over Gibraltar.

Meanwhile, the young leftwing social justice warrior types (Generation SnowFlake some have called them, for their "safe spaces", being "triggered" by hurt feelings and constantly protesting about what is offended) feel "betrayed" about the old "ruining their futures".  However, the truth is that the majority of the young didn't care enough to vote as revealed by Sky News below.

% who got through our final #EUref poll turnout filter by age group:

18-24: 36%
25-34: 58%
35-44: 72%
45-54: 75%
55-64: 81%
65+: 83%

— Sky Data (@SkyData) June 25, 2016

Whinging about democracy when it doesn't go your way, whilst embracing it otherwise, is beyond the pale, as are some of the hate filled attacks on older votes coming from those whose own identity politics is supposed to decry hate speech.  The truth being that the so-called liberal leftwing anti-hate, anti-violence activists are full of hate and quite happily embrace violence to get their "own way".  It's emotion laden petulance, of the kind you would have only seen from the fringes of the far-right and conspiracy theorists had the vote gone to Remain. 

So what should happen now? (notwithstanding who the PM and Government is)

1. The Government should announce the key planks of a new relationship with the EU around trade, investment, movement of people and co-operation, that it seeks to adopt.  It should clarify to the entire country that it is not going to be a UK of isolationism, but one of openness.

2. The Government should make it clear to all EU passport holders in the UK that no-one will be deported, except under existing arrangements for threats to national security or criminals.  No EU residents need fear this, nor will their property be affected or businesses, and if anyone threatens them they should go to the Police.

3. The PM should make it clear that there will be no referendum on Scottish independence this side of Brexit, but that the Government will consult with the Scottish government and parliament on the deal it seeks with the EU.  It is precipitous to talk about Scottish independence until Scotland sees the new deal negotiated with the EU.

4. The PM should make it clear that there will be no referendum on Northern Ireland joining Ireland unless the preconditions of the Good Friday Agreement are met, but that equally it cannot happen until the new deal with the EU is negotiated AND negotiations are concluded with the Republic of Ireland.

5. The PM should go to Dublin and discuss the future relationship and reassure that no border controls will be reinstated.

6. The PM should go to Germany and talk, extensively, about how to make this work, and then go to all other EU Member State capitals, and the EFTA Member States too. 

7.  The Government should go to the WTO to discussing reviving membership.

8. The PM should visit USA, China, Japan and other trading partners and say that it wants to have open, freer trading relationships and the UK will be open for business and people.

9. Finally, the PM should make it clear that there wont be a second referendum on membership and that those who want to claim it is unfair, that this is democracy and the task now is to bring the country together and work for a new relationship with the EU and the world that demonstrably proves the claims of the Remain activists wrong.

Oh and ignore Nicola Sturgeon.  The Scottish Parliament can't "veto" the British Government any more than Lambeth Borough Council can stop the UK having nuclear weapons.

EU truths and untruths

With the UK now voting as to whether it remains in the EU or stirs up what has been described as "the biggest change in European politics since the fall of the Berlin Wall" (although the war in Yugoslavia and the first genocide since the Nazis ought to come close), I thought I'd run through some of the claims of both sides that are intellectually dishonest.

Remain

3 million jobs are linked to trade with the EU: Well yes, but then nobody is saying trade with the EU will end and nobody campaigning to leave wants inferior trading conditions.  The European Free Trade Association provides free trade with the EU, with Switzerland, Norway and Iceland all members.  The idea that leaving the EU means 3 millions jobs are at risk is a gross exaggeration.   However, if the EU is bloody minded and puts up tariff barriers equivalent to what it does for the rest of the world. it is a 4% average tariff on UK trade to the EU, which is negative for jobs, but hardly a huge risk. 

If the UK leaves the EU, you might need a visa to visit the EU: Nonsense.  You don't need a visa to visit the EU from the US, Canada, Australia, NZ or any of the EFTA member states.  What would change is having the right to live there.  Given those wanting to leave mostly want to end the free movement of people, that could be a concern for some. 

Leaving the EU will create a recession: No it wont.  The worst estimates are a small reduction in economic growth, but the long run estimates are a 6% long term slowing of growth if the UK gets the most inferior trading conditions likely with the EU (and assuming the UK has no free trade agreements with any other countries, like the US, Japan and China).  It also assumes the UK does not cut any EU regulation out at all.  In short, the Treasury estimates used by the Government of a recession are based on leaving the EU, and not taking advantage of the new freedom to trade and freedom to relieve the economy of EU Directives that impose costs on growth.

The EU means food, petrol, flights, energy and mobile phone charges are lower: Unmitigated rubbish, quite the opposite.  The EU Common Agricultural Policy inflates the price of food in the EU by 17% over market prices.  The EU legally requires all Member States to tax petrol by at least around 32p/l (but the UK government taxes it at 80% more than that).  The Single Aviation Market goes beyond the EU, with many non-EU countries as participants.  Norwegian Airlines has grown rapidly in the past couple of years, expanding long haul flights between the UK and US.  Norway is not in the EU. The EU inflates energy prices, by requiring minimum levels of taxation on gas and electricity bills, and imposing renewable energy obligations on member states.  Yes mobile roaming in the EU is lower than it would have been had the EU not enforced it, but it's clear EU protectionism and "normalisation" of regulations imposes costs on consumers. 

The £10 billion paid into the EU is "returned' many times over: No it's not.  What is returned is free trade, which should never be at the cost of paying for farming subsidies or infrastructure investment in other countries.  Leaving the EU doesn't mean an end to trading with the EU. 

The EU has 50 trade agreements we lose access to:  Many of which are with micro-states/territories, like San Marino, Andorra, Liechtenstein, Faroe Islands, Guernsey.  The only significant economies with deals are Mexico, South Africa and South Korea.  The UK could readily negotiate during the transition deals easily as good or better, as the main forces for protectionism in trade are the likes of France.

Staying in means reform:  That's highly unlikely.  David Cameron couldn't even get all the reforms he asked for with a threat of Brexit (which clearly the EU saw through as being unlikely), why would it happen after a vote to Remain?  The UK holds 9% of the MEP seats in the European Parliament, and although it is a significant contributor, reform is sclerotic.  The EU hasn't significantly cut back any of its activities and always finds new ones.  It is a political project of integration, and shows little sign of ever caring what is thought of it.

David Cameron's deal means unemployed EU migrants can be deported:  No, they can't. EU citizens can't be deported from Member States unless they are a threat to national security or criminals.  

Leave

Leaving the EU will fix the immigration "problem":  Assuming the problem is too many immigrant, and the failure of the Government to cut annual immigration to less than 100,000 people, leaving the EU will enable the UK to ration EU immigration like it does for non-EU.  However, non- EU immigration is already over 150,000 per annum.  Nobody is saying Brexit means deporting immigrants (thankfully).  Most concerns over immigration are perceptions about access to taxpayer provided services, and more often than not reflect the bankruptcy of the world's biggest health bureaucracy, which is treated as a religion never to be reformed (NHS), the bizarre legal obligation of all local authorities to ensure anyone who lives in the UK has housing (including rooms in hotels paid for by taxpayers), the open access to compulsory education and the sclerotic way the UK restrains supply of housing and roads.   Leaving the EU wont solve any of that, but then those wanting to stay in the EU are also devoid of responses to what are more fundamental problems.  

Turkey is joining soon: No it's not.  Notwithstanding David Cameron's hypocrisy over the issue, it is difficult to see Cyprus accepting Turkey until there is settlement over northern Cyprus, or Greece accepting Turkey until Turkey secures its southern borders with Syria and Iraq.  However, Serbia, Montenegro, FYR Macedonia and Albania will all likely be members within 10 years.

Money saved will be spent on the NHS:  Well the half that is a rebate and is current subsidies wont change, although there is a chance to make some serious saving there.  The rest?  Well it can go on many things, but there is a case for simply cutting the deficit by £10 billion a year.  After all, despite George Osborne's platitudes, the UK government is still overspending.  What happens with the money is up to the government.  The Leave campaign is not the government.  Yes leaving the EU wont save £350 million a week, more like half that, but the rebate is not set in a treaty, and the spending 

UK will be drawn into the Euro and ever closer union: The UK has a treaty opt-out of the Euro and has to agree to treaties for ever closer union, but it wont mean it doesn't face the costs of ever closer union.  That will depend on future negotiations.

The UK can get trade access as good as the Single Market without free movement of people:  This is unlikely, simply because it would mean the Single Market is undermined and would be a massive backtracking of the principles of the EU.  Signing up to EFTA or the EEA will mean some compromise on this.

Road pricing in Auckland

A simple guide:

1.  The proposal now on the cards is not "road tolls", tolls are when individual roads are subject to an additional fee on top of existing motoring taxes.  

2. The Auckland Mayor's "motorway tolls" proposal has been comprehensively rejected, as it has been before for sound reasons.  Quite simply, the motorways are not Auckland Council's to charge and just charging them diverts traffic onto the local road network which has traditionally been neglected in Auckland.

3. The proposal put forward by the government is to replace fuel tax with what is essentially an updated version of road user charges (which already is provided now by three private companies collected RUC), that varies by vehicle type, location and time of day.  It should be absolutely clear, as are vaguely similar proposals in Oregon and California, that fuel tax must go if roads are to be charged directly. 

4. The Auckland Transport Alignment Project (ATAP) has made it abundantly clear that the current "build lots of rail based public transport" trend beloved of new-urbanist planning enthusiasts (and the Green Party) will have next to no impact on traffic congestion. It's hardly surprising, because the reason traffic congestion exists is because the provision of roads and the pricing of roads is not done under market conditions, but is subject to a political/administrative process that results in demand exceeding supply.  Nowhere in the new world (NZ/Australia/US/Canada) have any cities noticeably eased traffic congestion by building new bespoke passenger rail networks.  Which is why, when questioned, the enthusiasts for highly subsidised (by taxes from road users) urban rail don't talk about addressing the problems of urban transport, but sell how "wonderful" it is for people to have a choice that they pay a fraction of the cost for.

5. There is no need for road pricing to be accompanied by highly subsidised alternatives.  Full market based road pricing has four major effects:

-  Prices go up at peak times, encouraging users to make different choices, such as drive at a different time, use a different (less congested) route if available, use another mode (increasing revenue for that mode), or not take a trip at all (consolidating trips);

- Prices go down at off peak times, encouraging greater use and facilitating more trips at those times;

- Congestion is greatly reduced, providing capacity for more public transport on existing roads at peaks, and making such public transport commercially viable.

- Higher revenues at peak times on busy roads sends a signal to invest in more road capacity when revenue from additional users will pay for the cost of the new capital investment

The primary economic argument for subsidising peak time public transport in cities has always been that roads in cities at peak times are underpriced (and historically the technology did not exist to adequately address this).  Once roads are priced efficiently, the case for subsidising urban public transport is weak indeed.  Notice that intercity bus and airline services are not subsidised, neither are road freight services (in or between cities).  Why should urban public transport be special when roads are subject to market forces?

6.  Market based road pricing inevitably should mean the management of roads is taken away from politicians and bureaucracies and towards a more commercial model.  State highways could be shifted into a state-owned-enterprise that could be privatised by giving away shares to all registered vehicle owners.  Local authority roads could be transferred into similar enterprises, but with shares held by local property owners (as ratepayers currently pay for half of all local road costs).

The price of roads should then be set by these organisations.  They would be owned by those with the greatest interest in their networks being run efficiently and meeting their needs.  

7. The ATAP road pricing proposal can only work nationwide.  It isn't just for Auckland, it's a change in how roads are priced everywhere.

Auckland Council wont like this, because it knows that the only way to address congestion is through road pricing, but it doesn't want to lose control of its large rail vanity projects (now including trams - which are buses on dedicated rights of way for 3-5x the price to taxpayers).  It wants control of the revenue to spend on its politically/central planner driven projects, but it shouldn't get it.

Bearing in mind the government wont do what I say, this is what it could do:

- Move all of the state highways into a new SOE, empower that SOE to charge users but only if it gives them an equivalent refund in fuel tax or RUC

- Tell Auckland Council that if it shifts its roads into a new Council Controlled Organisation, it can be fully funded from fuel tax and RUC (and any road pricing that replaces them), but on condition it gives all Auckland ratepayers an equivalent permanent cut in rates and that it has no political direction at all on its activities.


More background on Auckland road pricing debate in recent years:
Auckland motorway tolls re-emerge as revenue raising option
Auckland transport funding report promotes urban road pricing and tolls
Auckland congestion charging, not happening yet

NZ Herald wrong about EU referendum

The NZ Herald has decided that it thinks the UK should stay in the EU, but its editorial on the issue is  woeful, it misses the point and is dotted with errors.  There is nothing in the editorial about the key problems with EU membership, around how EU laws are developed undemocratically (introduced by the European Council, MEPs can't introduce legislation), how the EU is inordinately wasteful including on policies that harm New Zealand's economy (including the Common Agricultural Policy) and harm developing countries.  Nothing about the protectionism of the EU slowing the ability of the UK to trade freely with growing economies in Asia and Latin America.  

New Zealand has full control over its trade policy, its domestic regulations and immigration policy, but the UK does not have the same at all.

It's not true that no country has ever left the EU, Greenland did.  Now that's not anything remotely on the scale of the UK.  Of course, neither did the NZ Herald point out that Switzerland, Norway and Iceland all have thrived outside the EU.  The EU is not Europe as much as it likes to think that it is.  

It's true that Brexit could encourage a break up of the EU, but is that necessarily a bad thing? An unwieldy arrogant technocratic organisation that failed miserably to deal with the refugee crisis, was paralysed by the breakup of Yugoslavia, unable to agree on acting until the US intervened to stop Serbia deporting Kosovan Albanians.  The spectre that European countries will wage war on each other when they have functioning liberal democracies with extensive trade and travel with each other. 

Yet the Herald editorial paints the picture that Brexit somehow increases the chance of Russia invading the EU? Why?  NATO provides the security guarantee for its members, it isn't weakened by the UK leaving the EU - at all.  Why would it matter?

The claim that Scotland will leave the UK after a Brexit vote is also rather fatuous.  Polls on Scottish independence still say 55% would vote to stay in the UK, and there is little reason why the UK Government would hold another referendum on Scottish independence.  It's highly presumptive to think Brexit means Scottish independence.

Finally, yes it is immigration that is motivating many voters to want to leave the EU, but not immigration from outside the EU, it is concern that free movement will overcrowd the country, keep down wages and overwhelm government provided services. 

However, for me, it is because the EU is a sclerotic unaccountable project that keeps the UK in chains, it also subsidises unfair competition to New Zealand producers in world markets and restricts sales of many NZ products into the EU.