Month: June 2020

European-Union, UK-Current-Affairs, UK-Politics

Brexit-Watch: Monday 29 June 2020

Brussels still hankers after British fish

Note: this article was originally published at The Conservative Woman on Saturday 27 June 2020

Choosing four recent Brexit-relevant media articles which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

NB: (£) denotes article behind paywall

 

Frost outlines the areas he won’t sacrifice as he faces Barnier – Daily Express

It’s reassuring that our chief Brexit negotiator David Frost is again insisting that, on three specific policy areas which can be grouped under the generic heading of sovereignty – the law, the courts, and fishing – there can and will be no concessions to Brussels.  As always, however, the devil is in the details.

In the context of the article, ‘the law’ means the ‘level playing field’ issue under which Brussels, for its own self-serving protectionist reasons, wants Britain to guarantee to maintain a business-regulatory regime equivalent to the EU’s.  Needless to say, the UK’s Continuity-Remainer big-business lobby has latched on to this and is pushing it, although thankfully with apparently limited success.

An independent legal regime and judicial system is a key manifestation of sovereignty.  Yet the EU has continued to try and bind the post-Brexit UK as closely as possible within the pan-EU corpus juris and thus keep domestic business-regulation germane to our EU exports under the jurisdiction of the integration-biased European Court of Justice.  Again, Frost’s repeated refusal to give ground on this is welcome.

The fishing issue is dealt with below, but the potential fly in the ointment in all this is Johnson’s increasing personal participation in the talks. His making disadvantageous concessions just for the sake of a deal, either out of his habitual distaste for fine detail or a desire to appease opponents of No-Deal purely for domestic political reasons, can’t be ruled out.  Hopefully, though, even he realises his stock has fallen so low because of his Government’s mis-handling of the COVID19 outbreak that he can’t afford to be seen to botch Brexit by fudge as well.

 

Britain still top dog in Europe for financial services investment – City A.M.

Well, that wasn’t in the anti-Brexit fanatics’ Project Fear script, was it?  Britain remaining the European country most attractive for foreign direct investment (FDI), suffering the least decline in inward FDI of all European countries in 2019, and beating the rest of Europe as the most attractive destination for financial services FDI post-COVID19 by a margin of 40% to a mere 8%. 

It isn’t hard to see why. Firstly, there’s the EU’s inherent ideological commitment to imposing regulatory harmonisation rather than accepting regulatory equivalence, and the fact that London is already pre-eminent in financial services, which tends to create a clustering effect.  Secondly, as I’ve previously pointed out, there’s the EU’s intention to introduce a disastrous pan-EU Financial Transactions Tax, already tried by Sweden but abandoned because of its innate flaws, distortions and disincentives. Why would any financial services business pick Europe over London?  

 

Recovery: we must embrace this opportunity for systemic trade renewal – Global Vision

Major exporter Alastair MacMillan is undoubtedly in saying that the urgent need for recovery from the self-inflicted damage caused by the Johnson Government’s panicked shutdown of the economy requires trading flexibility and innovation, not an extension of the Brexit transition period.

In fact, extending the transition period would not merely be unproductive but counter-productive. As our own economy struggles to recover, we would continue to be liable, both for current EU contributions and any additional ones the EU demanded as part of its own COVID19 recovery package, without any input into determining either their scale or qualification criteria.

That the EU much dislikes Britain now negotiating its own trade deals as an independent country, and is institutionally incapable of thinking innovatively on matters such as tariff definitions, is glaringly evident. We should be actively resisting any such obstructionism, and pushing for maximum flexibility at every stage.

 

The EU is attempting to capsize post-Brexit fishing – Get Britain Out

There appears to be an attempt by Brussels to effectively retain control over access to UK territorial waters, under the spurious guise of conservation of a species whose rising numbers no longer merit it to anything like its previous extent.  Considering the degree to which the EU’s fishing industry is dependent on such access, this looks like a blatant subterfuge, and should be dismissed out of hand.

The scale of leverage Britain enjoys over that dependence is such that it’s being suggested it should be partly traded away in return for major EU concessions on ‘rules of origin’ trade rules. Given that the EU has a history of either accepting concessions while offering non-equivalent ones in return, or of demanding even more, that too should be approached warily.  Time and time again Brussels has shown that it is neither honest broker nor reliable interlocutor.

Rightly or wrongly, fishing and the sovereignty of its national territorial waters are symbolic issues, by which Johnson will be judged whether he has either succeeded in extricating Britain from the authoritarian, rapacious maw of the EU or capitulated to it, however disingenuously the surrender would be spun.  We would be unwise to bet against the latter outcome.

 

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Economics, European-Union, UK-Current-Affairs, UK-Politics

Brexit-Watch: Friday 19 June 2020

Barmier from Barnier with a jibe at London

Note: this article was originally published at The Conservative Woman on Wednesday 17 June 2020

Choosing four recent Brexit-relevant media articles which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

NB: (£) denotes article behind paywall

 

London should not be a European financial hub after Brexit, says Michel Barnier – Telegraph (£)

This smacks more of either petulant obstructionism or even desperation from Barnier, rather than a credible threat.  However, it’s rather disturbing to see some UK commentators appearing to fall for it, by suggesting we should sacrifice both what’s left of our EU-decimated fishing industry and autonomy over our sovereign territorial waters in return for financial services.

I believe that this is both a false dichotomy, and an empty threat.  Compare the amount of EU-related financial business going through London with that going through, say, Frankfurt, which is the only even possible alternative. There’s no comparison.  And in any event, the EU’s intention to introduce a disastrous pan-EU Financial Transactions Tax would act as a massive disincentive for business to move from London to Frankfurt.

On this, Bottler Boris needs to hold his nerve and hold the line. 

 

Any more Brexit delays would be an affront to democracy – Daily Express

In focusing on the nuts and bolts details of the negotiation process, it’s easy to overlook the underlying electoral politics.  Arguably, they mattered less while the Tories were continuing to post polling-leads in double digits, despite misgivings about their mishandling of the COVID19 crisis.  Now, however, with Keir Starmer providing more effective opposition to a visibly struggling Johnson, and with widespread reservations over the Tories’ timidity over exiting lockdown, they start to matter more.

Against this background, the Centre for Brexit Policy has released its new paper entitled Do Not Delay Brexit – The View from the Red Wall, which backs up its Chairman Owen Paterson’s Express article by showing the extent to which the Tories’ December 2019 election landslide was largely due to ex-Labour voters in the Midlands and the North trusting the Conservatives to deliver a genuine Brexit.

The significance of this, of course, is that, with the opinion polls now tighter, and the proponents of an extension to the Brexit transition period trying to leverage the Coronavirus outbreak as justification for it, a failure to complete the implementation of Brexit on time will rebound adversely on the Tories electorally.  They would do well not to rely on the next election being 4½ years away and think they can take their recently acquired new electorate for granted.   

 

The Economic Case Against Extending the Brexit Transition –  Briefings for Britain

The case against extending the Brexit transition period isn’t only political.  As economist Julian Jessop points out, any theoretical adverse impact from the completion of Brexit on time, even based on exiting on WTO terms if a Free Trade Agreement cannot be reached, is dwarfed by the economic impact of COVID19 and the tremendous costs Johnson’s government has incurred in trying to mitigate it.

As Jessop also points out, the global economic downturn from COVID19 has also slashed borrowing costs still further, to the point where some gilts yields are negative.  This means that any additional Government borrowing as a result of completing Brexit on time may actually have been made cheaper by the Coronavirus crisis, apart from becoming relatively less significant when set against the extent of COVID19 borrowing as a whole.  There is simply no convincing case for deferring completion of Brexit on economic grounds.

 

Free trade is the key to Britain’s success. We can’t let our farmers and fishermen hold us back – The Times (£) 

The fact that this article is far more about farming than it is about fishing, which gets a mention only in regard to a possible trade-off against financial services, made me wonder if the Times‘ sub-editors took a small liberty with the headline to garner more clicks, fishing being such a touchstone issue.

Whether the case or not, the premise for that trade-off is questionable; firstly because the EU’s ability to hold the UK and City of London to ransom over financial services is limited, as I explain in the first link commented on in this article, and secondly because Brussels is now reported to be backing down on access rights to British waters anyway.

The validity of an argument linking farming with fishing, as though they were but two sides of the same coin, looks suspect in any event. Even taking into account the self-sufficiency case for, and the anti-protectionism case against, giving farming and agriculture special treatment, the two aren’t the same.  Fishing isn’t just a trade issue; given that it involves the ‘ownership’ of national territorial waters, it’s far more a sovereignty issue that it is merely one of trade and commerce, and if Johnson has succeeded in forcing Brussels to accept that it is ‘off the table’, that can only be a good thing.

 

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Economics, European-Union, Public-Health, UK-Current-Affairs, UK-Politics

Brexit-Watch: Friday 12 June 2020

The EU has reason to fear the implications of Britain’s historic Hong Kong connections in negotiations over future UK-EU trade relations   

Note: this article was originally published at The Conservative Woman on Friday 05 June 2020

Choosing four recent Brexit-relevant media articles which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

NB: (£) denotes article behind paywall

 

EU: Trade with China Trumps Freedom for Hong Kong – Gatestone Institute

It should by now be clear that, having either deliberately released the COVID19 virus or negligently allowed to it escape (the jury is still out on that one, so take your pick), China intends to take advantage of the rest of the world being both distracted by it and intimidated by its dependency on China for PPE, to advance the Chinese Communist Party’s own agenda.

So far, the UK has reacted honourably to the Chinese threat to Hong Kong’s freedoms by suggesting the grant of a 12-month UK visa, as a ‘pathway to citizenship’, for the roughly 3 million Hong Kong residents who qualify for British National (Overseas) status.  The EU, on the other hand, shows no inclination to do anything which might jeopardise its trade links with China.

The UK must resist any moves by the EU in Brexit negotiations to capitalise on a potential future reduction in UK-China trade by being even more intransigent on future UK-EU trade relations.  The EU has more to lose.  Not only would the arrival in Britain of up to 3 million from one of the most dynamic and entrepreneurial economies on Earth be a welcome boost to Britain’s post-COVID19 recovery; the prospect of Hong Kong-style low tax, free market, small-state attitudes growing and thriving only 22 miles off the declining, sclerotic EU mainland would put the fear of God into it. 

 

History will judge Brexit on how the fisheries issue is settled – Global Vision

This Brexit-Watch series has mentioned on several previous occasions how British commercial fishing has a symbolic, almost talismanic, political status as a proxy for Britain’s surrender of economic and territorial sovereignty since joining the then EEC in 1973, even if that status is out of proportion to the industry’s economic significance.

So the article author Hjörtur Guðmundsson is right to warn that the UK must maintain its stance of refusing to lump fishing in with all other aspects of a UK-EU trade deal – assuming one can be reached at all, which looks increasingly doubtful, though not necessarily harmful – and instead continue to insist that it be treated separately.  UK chief negotiator David Frost has so far also been adamant that EU intransigence on access to UK fishing waters will heighten the risk of the UK walking away from a trade deal, and this pressure too should be maintained.  Playing hardball may be paying off.

The greatest danger here, paradoxically, may arise from Johnson’s reported intention to involve himself more closely in the minutiae of negotiation.  Never a details man at the best of times, the risk that, amid some typically Boris bluff’n’bluster, a disadvantageous trade-off or concession might be made purely to achieve a deal for political purposes but whose baleful effects could reverberate, couldn’t be discounted.  In that case, Brexit would indeed be judged on how the fisheries issue was settled, and Johnson would be in the dock. 

 

No-deal Brexit holds fewer fears for a Covid-ravaged economy – Financial Times (£)

Even the irreconcilably Continuity-Remainer FT tacitly, albeit reluctantly, acknowledges what many have been saying ever since COVID19 first appeared on the horizon.  Set against the costs to the UK economy of the pandemic, or more accurately, the costs of the Government –

  1. putting the economy into the deep freeze;
  2. placing millions on the State payroll;
  3. borrowing upwards of £300 billion; and
  4. restricting civil liberties to an extent unprecedented even in wartime,

all of which it was panicked into taking in response, the costs in comparison of a No-Deal Brexit pale into insignificance.

Not only would the likely scale of the inevitable-in-any-event decline in economic output ameliorate any adverse economic consequences of reverting to WTO terms on a No-Deal final exit, but COVID19-induced unemployment might even be lessened by the recruitment of personnel needed to operate new border controls.

The FT of course quotes the usual anti-Brexit Jeremiahs in abundance, but for it to admit it may not be all doom and gloom is quite something. It’s an ill wind. . . .

 

Free trade with America will see our farmers prosper – Centre for Brexit Policy

Considering how the iniquities of the EU’s Common Agricultural Policy, and the importance of the UK re-acquiring the ability as an independent sovereign nation to conclude trade deals, were among the significant issues aired during the 2016 EU Referendum campaign, it’s sometimes surprising how they appear to have receded in the public mind since then.

Yet, as this article by former Environment Secretary Owen Paterson makes clear, the calls to maintain EU-amenable levels of trade protectionism, particularly as regards agricultural products, have not gone away, merely re-surfaced under ‘animal hygiene’ or ‘animal welfare’ labels.

To end being told by countries, into whose legislatures we have no democratic input, what regulations we must apply domestically is one of the reasons we voted to leave the EU.  Paterson is undoubtedly correct to say that free trade, policed by reputable global organisations overseeing regulatory equivalence rather than imposing regulatory harmonisation, offers us a better chance of benefiting from our decision while improving animal welfare than does the alternative of continued trade-protectionism.

 

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European-Union, Media, Public-Health, UK-Current-Affairs, UK-Politics

If Not Now, Then When?

How many more instances of the out-of-control BBC’s blatant bias does the Johnson Government need to make it finally resolve to tackle it?

Note: longer and updated version of the article originally published at The Conservative Woman on Tuesday 02 June 2020   

In an excellent article on 21 May at The Conservative Woman, News-Watch’s David Keighley forensically demolished, point by point, the bias-driven inaccuracies and assumptions in the BBC’s now-infamous 27 April edition of Panorama.  He correctly located the programme firmly within the Coronavirus iteration of Project Fear which the Corporation had been running, and still was – or even still is. 

Anyone who watched it will remember how every failure by the NHS, and even by its semi-autonomous linked agencies, in dealing with the COVID19 pandemic was invariably deemed to be exclusively the fault of the Government – even where it had no direct control or even involvement – in what was in effect a Party Political Broadcast on behalf of the Labour Party. 

Which makes the Government’s over-timid response, understandably touched on only briefly in David Keighley’s article, all the more deserving of criticism.  It could manage little, if anything, more than a half-hearted squeak of protest delivered by Culture and Media Secretary Oliver Dowden, whom I’ve previously criticised as an ineffectual, paleo-Cameroon careerist, and who increasingly comes across as a twerp to rival even his (politically) late and unlamented namesake Oliver Letwin.

MoS headline Sun 03-May-2020 Dowden-BBC

In the light of subsequent events, it’s worth re-visiting and analysing Dowden’s weak, anodyne and platitudinous admonition to the BBC’s Director-General Tony Hall in more detail.

First, there’s the excessive “Dear Tony” familiarity; at the risk of being stuffy, I’d suggest this is singularly inappropriate in the current circumstances, and does nothing to dispel the impression of what ought to be a formal arm’s-length relationship in the public interest being conducted more like a friendly exchange between fellow-members of the same like-minded elite.

Dowden urges Hall to ‘uphold the highest standards in relation to integrity and impartiality‘.  At the risk, this time, of being pedantic, the use of ‘uphold‘’ here implies that those ‘highest standards of integrity and impartiality‘ are in fact the norm from which the Panorama programme was merely an isolated, uncharacteristic, aberration.  That might come as a surprise to the 69 per cent of respondents to the late December 2019 Savanta-ComRes poll who said they trusted the BBC less even than ITV News on impartiality and accuracy.

Dowden concludes by referring to the need to maintain ‘public confidence‘ in ‘the BBC’s long-standing reputation for fair and balanced reporting‘.  That, in turn, might come as a surprise to the 75 per cent of respondents to the (also late-December) Public First poll supporting abolition of the ‘licence fee’ outright, and the 60 per cent favouring the decriminalisation of non-payment.

As for the Mail‘s headline, Dowden’s pleadings represented, not so much a ‘blast’ as a half-hearted pretence at a gentle rap over the knuckles.  They virtually invited a contemptuous response from the BBC.  It has not been long in coming.

The Corporation remains unapologetic about its practice, especially noticeable in that edition of Panorama but by no means restricted to it, of habitually presenting as ‘impartial’ ‘experts’ people who turn out on closer investigation to be fiercely partisan, hard-Left, committed anti-conservatism activists with a distinct political agenda. Even Sky News has been shamed into improving itself a little on this score; but not the BBC. 

It participated enthusiastically in, almost to the extent of heading up, the media lynch-mob in its witch-hunt against Dominic Cummings.  Acres have already been written on this, to which I don’t propose to add; except to point TCW readers to former BBC staffer Robin Aitken’s excellent Daily Telegraph article. summarising the underlying background.  Two statements, in particular, stand out, and they explain a great deal:

‘he is the BBC’s single most dangerous opponent, because he is one of the very few people on the Right who clearly understands that the BBC presents an obstacle to everything that conservatives believe in‘

and

‘the BBC hold Cummings and the Prime Minister responsible for Brexit, which for an organisation that led the battle to prevent the referendum result ever taking effect (and very nearly succeeded), is a very bitter charge indeed.’

Which brings us to L’Affaire Maitlis. This has also not lacked for apposite comment.  Like David Sedgwick’s at Comment Central, Charles Moore’s analysis at the Daily Telegraph could leave even the most sceptical reader in no doubt that Maitlis’ partisan monologue at the start of Tuesday 26 May’s Newsnight was a gross breach of BBC impartiality, (and so presumably must also have been a gross breach of her contract of employment?)

As Moore suggested, there was a dual purpose to Maitlis’ diatribe, which incidentally can’t be explained away as spontaneous: it was read from a teleprompter, so must have been pre-scripted, which therefore also means it must have been subject to BBC editorial control.  The first aim was simply to hector the audience, but the second, ancillary aim was to virtue-signal to Maitlis’ like-minded professional and social milieux, to reassure them that she too holds the ‘correct’ metropolitan left-‘liberal’ opinions prevalent in their circle.  

Less remarked on, though, was the hint of deception, or at least complicity in deception, by Maitlis’ colleagues and therefore, by inference, the BBC itself.  Remember, Maitlis had signed off from the Tuesday edition with the promise ‘See you tomorrow‘; but, as speculation over the reason for her non-appearance on the following (Wednesday) evening’s edition grew, her Newsnight friend, colleague and Editor Katie Razzall tweeted thus:

But by 9.32.pm on that Wednesday evening, Razzall as Editor must surely have known what we the audience then didn’t, because it emerged publicly only on the Thursday morning: that the BBC, far from ‘suspending’ Maitlis, had in effect surrendered to her imperious demand to be given a night (in the end, two) off, because she was ‘furious’ at it for having the cheek actually to reprimand her, however gently (and inadequately), for her blatant breach of its impartiality requirement as her employer.  Razzall, therefore, looks to have taken the opportunity to appear supportive and principled, but in reality, was arguably just being disingenuous, if not two-faced.

As might have been predicted (and was probably inevitable), the ineffectiveness of the BBC’s excessively kid-gloves response was shown starkly only a few days later when Maitlis, far from being chastised, doubled-down and offered a repeat performance.       

Taking everything into account, the tweet below is hard to find fault with.

When Number Ten is reportedly ‘incandescent’ over Maitlis’ diatribes,  and 40,000 people went to the trouble of lodging a formal complaint about it with the BBC in a mere two days, it’s hard to imagine just how much more provocation Johnson’s Government actually needs before finally resolving to address the BBC question.  Yet, judging by Dowden’s limp reaction earlier in May, the answer seems to be: ‘quite a lot’.

At least on the timing of any action, a decision to keep the powder dry for the moment, looks sound.  It makes sense to keep the file labelled ‘BBC’ in the pending tray, albeit at the top, until COVID19 and Brexit are safely out of the way.  But then. . . .

Tactics, though, are all-important.  It was both misguided and inept of Dowden to restrict his remarks to the issue of lack of impartiality; the ‘bias’ allegation is by definition inherently subjective, and the Corporation has a range of strategies for deflecting and then smothering it, including enticing its critics into an endless ‘he said, but we said’ squabble, which ultimately gets nowhere.  For the Government to try and upbraid the BBC for its political bias is the non-military equivalent of fighting a battle on ground of the enemy’s choosing.

Had the hapless Dowden been more astute, and even remotely serious, he would have threatened ‘Dear Tony‘ with immediate decriminalisation of non-payment of the ‘licence-fee’, or even an urgent, unscheduled mid-period Charter Review to abolish it.  Instead, his entreaties were all smokescreen and displacement activity.

There is a much better route, and much stronger case, available based on the BBC’s iniquitous compulsory ‘licence-fee’.  It’s true that much of  the UK’s mainstream media, whether broadcast or print, is biased.  But the BBC is uniquely egregious on that score because we are forced on pain of fine or imprisonment to pay for it regardless of whether we want to consume its output or not: unlike, say, Sky News or The Times, where we can simply choose not to purchase their product, or cease subscribing to it.             

The Daily Telegraph‘s Madeleine Grant hit the nail on the head in linking the two, correctly saying that, unless the BBC rapidly both repudiates and eliminates the shamelessly partisan personal editorialising of the type epitomised by Maitlis on Newsnight, it cannot continue receiving any kind of coercive funding.  

Time, though, is running out.  On Monday 25 May, The Times reported the BBC’s proposal that the wealthy may in future be charged more for their TV licence.  This is outrageous, in the sense that no-one should be coercively charged anything for a product they don’t wish to consume, especially the deceitfully mis-labelled ‘TV-licence’ which is, in fact, a regressive poll-tax; but making ‘the wealthy’ pay more for it both reduces its regressivity and plays to class-envy, thus taking some of the sting out of the criticism of it as a concept.

The Maitlis episode as culmination of ever more flagrant BBC bias has given Johnson ample justification for pushing ahead with decriminalising non-payment of the BBC’s iniquitous ‘licence fee’, on the wholly legitimate grounds that people of whatever means should not be forced to pay for this. With trust in the media being significantly lower, rarely can the circumstances have been so propitious.

But so they were, almost as much, over the period of the General Election and then formal exit from the EU in December and January.  Despite all the anti-BBC Boris-bluster then, nothing has actually been done, the ball has been dropped, and it needs to be picked up again. Don’t hold your breath, though. The danger has to be that, once again, the faux-‘Conservatives’ will back down.

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