Stadium: Hundreds protest against stadium plans

As I set out in an article for the Bucks Free Press in February, I am determined to create the right environment for a flourishing local democracy and a radical decentralisation of power.  Today, via The Bucks Free Press, we see local democracy in action:

HUNDREDS of protesters marched through High Wycombe today with a clear message for council bosses – “say no to the stadium”.

Campaigners turned out in their droves to make their voices heard ahead of Monday’s key decision on the scheme by Wycombe District Council chiefs.

As I have said to councillors, protesters and advocates of the proposals, I believe entrepreneurial projects should be brought forward by entrepreneurs, not government at any level, and judged democratically under the planning system. With the Coalition’s plans for a decentralisation of power and the intended public service reforms in progress, it is absolutely vital that we have high levels of participation in local democracy: there will be greater freedom, greater transparency and greater local power.

Local communities will be able to use that power in a variety of ways. Some may wish to stop development; others may wish to deliver particular projects. In any event, MPs will have no authority to overturn local, democratic decisions. I was therefore delighted that, as Conservative activist Dr Marcus Wood put it on Twitter, “it was certainly the Big Society out in force!”

Good – now could not be a better time for Wycombe people to take a close interest in the deployment of local power. Wycombe District Council will hold a full Cabinet debate in public on Monday night, leading to a decision on the proposed sports village.

Another £10bn to the IMF?

Yesterday, a statutory instrument committee was asked to decide to agree another £10bn for the IMF. With others, I crashed the committee and spoke. You can find the debate here. In addition to rejecting bailouts, I attacked the IMF before questioning our fundamental monetary arrangements.

Here’s the section on the IMF (I insert a minor correction I have requested from Hansard):

[T]he IMF was created as part of the Bretton Woods system of currencies. We tend to talk as though our current monetary arrangements were a fixed point and had always been the same, but the present monetary orthodoxy has evolved over the years and centuries. Bretton Woods was constructed after the catastrophe of the second world war; the dollar was redeemable in gold, and all other currencies were pegged to the dollar. The job of the IMF was to stabilise exchange rates by bridging temporary gaps in nations’ balance of payments, but the IMF now seems to serve the purpose of ensuring the repayment of reckless financial institutions.

Above all, at all stages of its history the IMF has existed to bring financial stability, which I believe it has singularly failed to do. Turning to the monetary system and stability, I encourage Members to google a chart that I can make available, which shows the price of oil—[indexed to 1945, about] the origin of Bretton Woods—brought forward to today. It prices oil in dollars and in gold. I do not like to use the G-word, but I feel that since my hon. Friend the Member for Wellingborough has mentioned it already, I can continue. The price of oil has been high and volatile since 1971, but only when priced in dollars. If we price oil in gold, the price has been low and stable ever since the end of the second world war.

I simply make the point that our monetary arrangements are not fixed, that the IMF has not brought stability and that in fact many of our most important commodities are far more susceptible to the effects of our present, inflationary monetary arrangements than is generally considered. I would like to finish my point about the IMF with Hayek’s words. He said:

“monetary policy all over the world has followed the advice of the stabilisers. It is high time that their influence, which has already done harm enough, should be overthrown.”

I finished:

To conclude, we are in danger of simply kicking a can down the road and, as my hon. Friend the Member for Clacton said, ladling water into the boat. We are looking at further credit expansion, further monetisation of debts and further socialisation of risk. Throughout the western world, we are in danger of appearing as King Canute, trying to use politics to hold back the realities of social co-operation, which we usually describe as economics. The IMF is an institutional legacy from a monetary system that failed 40 years ago, and the successor to which is even now failing as well. 

I looked at IFRS and how it boosts bank capital, and we found that RBS is possibly overstating its capital by £25 billion. That must meant that RBS at least is far more susceptible to financial shocks than is generally thought. It is my view, because of the weaknesses of IFRS, that all banks are substantially more susceptible to financial shocks than is generally understood. I therefore offer three points. First, the Government should please look at cross-cancellation of debt held by sovereign nations—I refer the Government to work by ESCP Europe and Dr Anthony Evans. Secondly, let us face the reality—not optional—and look at how we restructure outstanding debt. Thirdly, at this time of all times, rather than merely increasing our liability to the IMF, let us seriously rethink the foundations of the international financial system and, in particular, start planning for how to protect the payments system. 

Apart from my remarks, its astonishing that a statutory instrument committee should approve, under a whip, £10 billion of additional commitments. Since the committee divided, I look forward to the vote in the Commons…

An unlikely alliance on directors’ remuneration

Via Hansard, my unlikely alliance with Labour’s John McDonnell over the need for shareholders to be able to control directors’ remuneration:

Steve Baker (Wycombe) (Con): As I listened to the hon. Member for Hayes and Harlington (John McDonnell) speak to amendment 15, I thought that my ears were deceiving me because I felt so much sympathy for what he was saying. Indeed, he put me in mind of a book by a reformed Trotskyite, James Burnham, who predicted in “The Managerial Revolution” the system of capitalism—the set of structures—that we now recognise in publicly listed companies. My discomfort evaporated, however, when I realised that the hon. Gentleman was defending the interests of the owners of capital.

John McDonnell: Some of us are not completely reformed.

Steve Baker: In that case, I am delighted that we are on opposite sides of the Chamber.

It is strange that capitalism has come to this: that, nowadays, the owners of capital need to be defended by the House from their own directors. If I have understood the amendment correctly, it would mean that the change in the main rate for 2011 would not come into force until legislation had provided arrangements for shareholders to approve their directors’ remuneration. It is almost incredible that such an arrangement does not already exist.

We must reunite ownership control and the risk taken with capital, and I believe that the amendment goes to the heart of one of the problems of our capitalist system. I am not sure that it would achieve the aim that the hon. Gentleman has set out because it might not affect the rate for 2011, and I therefore cannot support it. Nevertheless, I think it is an extremely good idea, and I urge the Government to consider it.

Roadmap to a Single EuropeanTransport Area

I spoke yesterday on the Roadmap to a Single EuropeanTransport Area (04 July 2011):

Setting those issues [of planning] aside, I want to make two points about sovereignty. First, on the technical side, there are questions about pricing, taxation and how the Government will work within the framework of the EU, which I touched on in my questions. Secondly, there is an issue of principle. I do not think that anyone reading the document earnestly, and with an open mind, could infer anything other than the fact that it sets out a transport plan for a single nation state—by “nation state”, I mean an organisation with a territorial monopoly on the use of coercion. Getting some of these things through will require legislation—that is the intention—and I do not doubt that the EU will legislate and legislate, and expand and expand, until it gets its way. I sincerely believe that if we wish to live in a country that is legitimate and governed legitimately, we have to look carefully at these grand planned dreams for the whole of Europe and ask whether they are valid and whether they have been democratically endorsed by our populations.

Eurozone Financial Assistance – so much for Parliament asserting itself?

As you can see on today’s order paper, Mark Reckless MP has courageously brought forward the following motion, which I have signed (emphasis mine):

EUROZONE FINANCIAL ASSISTANCE

That this House notes with concern that UK taxpayers are potentially being made liable for bail-outs of Eurozone countries when the UK opted to remain outside the Euro and, despite agreement in May 2010 that the EU-wide European Financial Stability Mechanism (EFSM) of €60 billion would represent only 12 per cent. of the non-IMF contribution with the remaining €440 billion being borne by the Eurozone through the European Financial Stability Facility (EFSF), that the EFSM for which the UK may be held liable is in fact being drawn upon to the same or a greater extent than the EFSF; further notes that the European Scrutiny Committee has stated its view that the EFSM is legally unsound; and requires the Government to place the EFSM on the agenda of the next meeting of the Council of Ministers or the European Council and to vote against continued use of the EFSM unless a Eurozone-only arrangement which relieves the UK of liability under the EFSM has by then been agreed.

In my view, this is quite right. Parliament exists to restrain the tendency of the Crown to expropriate the wealth of the British people.  The people long since asserted their sovereignty in this country: it is by consent that we have a monarch and a Parliament. We are here to require the Crown to act in certain ways.

Nevertheless, the following amendment has been brought forward to give the Government masses of wriggle room:

Line 9, leave out from ‘unsound’ to end and add ‘urges the Government to raise the issue of the EFSM at the next meeting of the Council of Ministers or the European Council; and supports any measures which would lead to an agreement for a Eurozone-only arrangement.’.

A larger number of colleagues have signed the amendment than the original motion which it spoils. So much for Parliament asserting itself.

Why HS2 doesn’t arouse the nation’s anger

Via the Adam Smith Institute, Why government doesn’t cut spending (even though it should) — a brief introduction to Public Choice Theory:

Cutting tax and spending has concentrated costs and dispersed benefits but state spending has concentrated benefits and dispersed costs. That promotes growing state spending. It means that projects like High Speed Rail or wind farms (for example) do not generally arouse anger beyond those people who will have to put up with the downside.

The situation is even worse than presented in the video. Politicians can’t raise enough tax to cover the cost of their spending pledges, so they run deficits, impose debt on future taxpayers and debase the currency, or allow it to be debased by the banking system. All that caused the banking crisis. In as far as we have a “broken society”, “a broken economy” and a “broken politics”, this is a prime contributing factor. It’s why politics is awash with lobbyists. It may substantially explain the distortion in the economy towards the South East, housing and the financial sector.

For more, please see this presentation and my article today at The Cobden Centre.

Meantime, I think I hear another demonstration outside…

We should take the politics out of health

This morning, I had one of my regular informal meetings with local senior NHS management. As you would expect, the present top-level political manoeuvring leaves senior NHS staff in a difficult position: how can they plan when policy is again up in the air?

Right now, the NHS is scarcely under democratic control. Whether it should be is another subject but the fact is that health is primarily state provided in the UK. You would expect the state to have a grip.

However, not only is the NHS out of democratic control, it is scarcely under Departmental control either. Before my election, I had cause to meet a number of the most senior Department of Health officials and the overwhelming majority began the conversation with, “This is not NHS HQ.” In then discussing how the NHS is organised, I quickly found that the structures are astonishingly complex and that senior staff get things done through informal channels.

So, here we have the world’s second largest employer, funded by taxation, and not in any meaningful sense answerable to the people who pay for it. Even Tesco answers to the people: we could choose not to shop there.

If that seems far-fetched, so is the notion that the NHS is under meaningful public control. That is what the Government’s reforms were about: getting healthcare under control by pulling the one available lever – structural reform.

And yet here we are: the Lib Dems seem to be threatening to veto changes which are, as John Redwood explained on the Today programme this morning, very much in line with the Lib Dem manifesto. We know why the conversation has taken this turn: their party and their leader just took a pounding. But Clegg signed the health whitepaper. He was fully behind these reforms but now there’s turmoil.

Why should the public or NHS staff tolerate these shenanigans? Health care is too important to be subject to politics like this. Whatever emerges from the present pantomime, reform should shift the balance of power from politicians and unaccountable officials to the public.

Only the public have the capacity and the will to ensure health services meet their needs and expectations. We should take the politics out of health.

Wycombe District Council results

Via Wycombe District Council, a good result for Conservatives:

Congratulations to our new District Council!

Today, keep British voting – vote No to AV

No2AV in High Wycombe

We Conservatives were out  in High Wycombe town centre today asking people to vote no to AV on May 5. Alongside us were local yes campaigners.

I think we were all struck that members of the public have either made their minds up or are totally uninterested. Who can blame them. AV is simply the wrong question, of which more later in the week.

In the meantime: