The Initiative for a Free and Prospering Europe

The Prime Minister today made a spirited defence of the Government’s position following the European Council meeting, in the face of ridiculous pantomime behaviour by Labour. I was glad to be called to ask a question, in which I brought to the Prime Minister’s attention the Initiative for a Free and Prospering Europe, launched yesterday:

The Initiative for a Free and Prospering Europe (IFPE) is an informal and non-political group of European think tanks and other non-governmental organizations, personalities from economic and other sectors, and citizens, whose main aims are reflected below:

1.to raise awareness about the real threats and negative consequences of a deepening political and economic centralization in the European Union (EU), at the expense of individual liberty and responsibility, and the prosperity of people;

2.to call on main political leaders of the EU member states, representatives of the European Commission, ECB, and other key players to stop trying to solve all European economic problems through centralization, including of the creation of a European fiscal union and a European economic government;

3.to propose alternative solutions to the European debt crisis that include the elimination of the causes (not just symptoms) of the debt crisis, based on sources of freedom, responsibility and prosperity (e.g. free markets, property rights, competition, hard backed honest money, and small and responsible administrative governments);

4.to initiate a discussion about alternative solutions to the European debt crisis and the political and economic conditions necessary to transform the EU in a community of free citizens living in prosperous countries.

The IFPE works to draw attention to the risks and devastating consequences of the current and scheduled attempts to solve the debt crisis by increasing the political and economic centralization of the Europe’s decision-making processes in Brussels: the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM), the purchase of government bonds by the ECB, the attempts to introduce common European bonds or taxes, and other centralizing experiments. Among the consequences of such interventions are a deepening of the debt crisis without it being solved in any way, a decline in the purchasing power of the euro (an inflationary euro), a growing financial burden on the citizens of the European member states, concentration of power, and finally the limitation of liberty and prosperity for the people of Europe.

The Initiative urges responsible actors to put an end to such counterproductive measures and to stop the inexorable march towards the political and economic centralization of Europe. It is in this context that the Initiative proposes alternative solutions for the debt crisis. They are reflected in the proposal for the financing of sovereign debts through massive programmes of privatization and an administered process of state bankruptcy for those countries with the most severe financial problems. As part of a set of alternative debt crisis solutions, public finances should be reformed for the purpose of maintaining balanced budgets or budgets in surplus (without increasing taxes). There should also be monetary and banking reform (in order to have free and sound money), marked by the introduction of a commodity-backed currency.

The representatives of the IFPE believe in starting a constructive debate about such practicable debt crisis solutions. For they are convinced that a more open debate will help to create the conditions in which a positive agenda for European freedom and prosperity will thrive.

I’m a signatory to the Initiative, which originated in Eastern Europe where they remember only too well the dangers of political and economic centralisation. As I said in the Commons today, I hope Europe’s leaders abandon their outdated ideology and follow the path of our PM.

Localism Bill becomes law

Last week, the Localism Bill was passed into law. I was glad to support its passage.  Through 13 years of New Labour, we witnessed continual moves towards centralised planning and micro-managing of our everyday lives. This new law will see central government interference cut and give power back to citizens, community groups and local councils.

To accompany the Act, the Government have helpfully updated the ‘plain English guide’ that was produced to accompany the Bill. You can read it here.

For councils this will mean: 

  • Clarification of the rules on predetermination in order to free up councillors to express their opinions on issues of local importance without the fear of legal challenge;
  • Abolition of Labour’s discredited Standards Board regime;
  • Greater control over business rates.  Councils will have the power to offer local business rate discounts, which could help attract firms, investment and jobs;
  • Cancellation of Labour’s unfair ‘ports tax’, which threatened to cripple key businesses, it simplifies the process for claiming small business rate relief to help small shops and small firms; and
  • New planning enforcement rules, giving councils the ability to take action against people who deliberately conceal unauthorised development.

For local communities it will grant:

  • The Right to Bid to run local services;
  • The Right to Challenge by putting forward ideas to help their community;
  • The Right to Veto excess council tax rises;
  • The opportunity to draw up Neighbourhood plans;

However, there are caveats. I am an advocate of local referenda so I was disappointed to see that the Lords removed the flagship ‘local referendum’ provision from the Bill. That would have allowed voters to launch local referenda on local issues. Referenda do remain for council tax, right-to-build and neighborhood planning, but I know this will be a disappointment to some people in Wycombe.

Neighbourhood plans must, understandably, work inside some limits. If major infrastructure is decided upon at a national level, such as this benighted high-speed rail line, or if a strategic local plan calls for a certain number of homes to be built, then the Localism Act has safeguards to ensure neighbourhood plans do not override these wider ranging policies. Again, this will be a disappointment.

Nevertheless, I hope that the Localism Act will live up to its initial goal of radically decentralising power and fostering an environment where communities will have a greater say in their local area. We will see…

Via ZeroHedge: BBC Speechless As Trader Tells Truth: “The Collapse Is Coming…And Goldman Rules The World”

Via ZeroHedge, an interview which astonishes me only in as much as this has appeared on the BBC:

As I have indicated again and again and again and again, our present economic system is in profound trouble and it will not be fixed by bailouts. We need money which holds its value: money which has meaning, not money which can be systematically debased to secretly cover politicians’ promises. As I said on the Vine Show recently, generations of politicians have failed us.

This is why we set up The Cobden Centre: to argue for social progress through honest money, free trade and peace. You can find our vision, which I wrote, here.

Bad ideas that never die: a Parliament of special interests

The Times is running two letters under the heading, Should the Upper House be a Senate? (£). The first letter calls for a federal senate with equal representation for each nation of the UK. (Quite why the smaller nations should be disproportionately powerful, I do not know.)  The second calls for a chamber of representatives from “leading professional and other expert bodies such as the Law Society, the British Medical Association, the Institute of Chartered Accountants, the Royal Institution of Chartered Surveyors, and so on.”

In either case, the call is for representatives with special interests, whether regional or professional. This is an old and wrong-headed idea.

Mises’ 1927 book Liberalism: The Classical Tradition deals with this in chapter 4, section 3.  (Ah – recess reading!)  Amongst other things, he writes:

A parliament composed of the supporters of the antiliberal parties of special interests is not capable of carrying on its business and must, in the long run, disappoint everyone. This is what people mean today and have meant for many years now when they speak of the crisis of parliamentarism.

As the solution for this crisis, some demand the abolition of democracy and the parliamentary system and the institution of a dictatorship. We do not propose to discuss once again the objections to dictatorship. This we have already done in sufficient detail.

A second suggestion is directed toward remedying the alleged deficiencies of a general assembly composed of members elected directly by all the citizens, by either supplementing or replacing it altogether with a diet composed of delegates chosen by autonomous corporative bodies or guilds formed by the different branches of trade, industry, and the professions. The members of a general popular assembly, it is said, lack the requisite objectivity and the knowledge of economic affairs. What is needed is not so much a general policy as an economic policy. The representatives of industrial and professional guilds would be able to come to an agreement on questions whose solution either eludes entirely the delegates of constituencies formed on a merely geographical basis or becomes apparent to them only after long delay.

In regard to an assembly composed of delegates representing different occupational associations, the crucial question about which one must be clear is how a vote is to be taken, or, if each member is to have one vote, how many representatives are to be granted to each guild. This is a problem that must be resolved before the diet convenes; but once this question is settled, one can spare oneself the trouble of calling the assembly into session, for the outcome of the voting is thereby already determined. To be sure, it is quite another question whether the distribution of power among the guilds, once established, can be maintained. It will always be–let us not cherish any delusions on this score–unacceptable to the majority of the people. In order to create a parliament acceptable to the majority, there is no need of an assembly divided along occupational lines. Everything will depend on whether the discontent aroused by the policies adopted by the deputies of the guilds is great enough to lead to the violent overthrow of the whole system. In contrast to the democratic system, this one offers no guarantee that a change in policy desired by the overwhelming majority of the population will take place. In saying this, we have said everything that needs to be said against the idea of an assembly constituted on the basis of occupational divisions. For the liberal, any system which does not exclude every violent interruption of peaceful development is, from the very outset, out of the question.

If there was a “crisis of parliamentarism” in 1927, how much more so today.  Our slow abandonment of the classical British doctrine of liberty has indeed created a Parliament which disappoints everyone.  Moreover, we have mostly abandoned policy making by elected representatives in favour of rubber-stamping the work of officials, whether national or international.

What is required is a Parliament which works in the general interest, not one through which particular groups try to advantage themselves by force of law. That means a Parliament committed to the ideals of liberty under the law, which in turn implies a public persuaded that we cannot all live at everyone else’s expense.

However we proceed, special interests will continue to have their opportunities to lobby: they do not need to be elected. It would be crass to make this old error.

Bailouts are a dead end but bilateral debt cancellation could transform the European crisis

Over on ConservativeHome, I introduce an interesting piece of work by Anthony J Evans and Terence Tse of ESCP Europe:

Many will argue that Eurozone financial stability is in Britain’s interests and they are right. That’s why the Government should look carefully at a new report by two Associate Professors at ESCP Europe Business School: Anthony J. Evans (Economics) and Terence Tse (Finance).

On their website, The great EU debt write off, Anthony and Terence explain a simulation conducted by their masters students:

The aim was to uncover the amount of interlinked debt between Portugal, Ireland, Italy, Greece, Spain, Britain, France, and Germany; and then see what would happen if they attempted to cross cancel obligations.

The results were astounding:

  • The countries can reduce their total debt by 64% through cross cancellation of interlinked debt, taking total debt from 40.47% of GDP to 14.58%
  • Six countries – Ireland, Italy, Spain, Britain, France and Germany – can write off more than 50% of their outstanding debt
  • Three countries – Ireland, Italy, and Germany – can reduce their obligations such that they owe more than €1bn to only 2 other countries
  • Ireland can reduce its debt from almost 130% of GDP to under 20% of GDP
  • France can virtually eliminate its debt – reducing it to just 0.06% of GDP

The idea is simple: nations which are both creditors and debtors can enter into bilateral agreements to cancel debt. Naturally, the reality is complex and the authors explain how so in their paper, which can be downloaded here.

Here’s Europe’s web of debt before and after their simulation:

Before

Before

After

After

You can read the rest of the article and comment on ConservativeHome.

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.

Are Carswell and Baker Really So Wrong? » The Cobden Centre

Over at the Cobden Centre, one of our friends in a central bank reflects on the Banking Commission’s interim report and asks, Are Carswell and Baker Really So Wrong?

As reported by Gordon Kerr, the Independent Commission on Banking issued its Interim Reportlast Monday. The Commission’s mission is to propose structural and other reforms of the UK banking sector. The objective being that big bank failures (rescued with taxpayers’ money) and the near collapse of the UK financial system we saw in late 2008 (eventually prevented with taxpayers backing) will not happen again. However, the Commission’s Interim Report in fact seems oriented towards ensuring that everything in the banking sector will basically remain the same.

An intern’s perspective

N.B. This post comes from my first intern, Yana, whom I asked to reflect on her Parliamentary internship.

Having spent the past few months as an intern in the House of Commons, I would say I have experienced a fair share. Of course there were some good bits, some not so good, but I can definitely say that it has provided me with a great grasp of the ins and outs of Parliament and taught me a few lessons along the way.

Firstly, I would say there is a dramatic difference between what MPs are perceived to be doing and what they are actually doing. Part of me was expecting to come into the office and see them scheming about just how they can spend more of the taxpayer’s hard earned cash…

The reality, however, was far from that. I was taken to the office, 3m x 5m, which consisted of two desks and two filing cabinets. Unfortunately, we weren’t one of the lucky ones to get a window and had to console ourselves with a skylight. Steve spends barely any time in his office, due to his hectic schedule, and anyone who has ever tried to get a meeting with him will understand that it is extremely difficult: he is in meetings morning ‘til night.

In a few short weeks, the office had to help Steve prepare for a Ten Minute Rule Bill; an Adjournment Debate for a constituent; an Education debate in Buckinghamshire; a welfare reform speech; running an All-Party Parliamentary Group; helping to organise the 1922 Sub-committee on Defence, Foreign Affairs and International Development; scrutinising the Freedom Bill in Committee; and serving on the Transport Committee. And that does not even scratch the surface of the all the constituent case work, constituency correspondence, his weekly surgeries in Wycombe and all the local events he attends.

Anyone who thinks MPs are not value for money should read Steve’s recent blog post.

One of the most significant discoveries I have made has been the public’s general political apathy. I can’t help but feel that many have given up on politics because they are somewhat disenchanted with the whole political process.

Instead of genuine participation, what we mostly see is pro-forma national campaign emails, which I am inclined to believe do more harm than good to democracy. To receive dozens upon dozens of letters that all say exactly the same thing is not only monotonous, but also disheartening. This isn’t what the British founders of democracy conceived centuries ago. I know many people are extremely busy and may feel a standard letter from a national campaign is enough. However, a personal letter would express their concern in a much more significant way.

On a lighter note, whilst the obvious highlight of my internship has been passing Zac Goldsmith in the corridor, twice, I would say it was sobering to see all the work that goes on behind the scenes with the countless researchers, case workers, assistants, office managers and interns that dedicate all their time to you, the constituent.

Most of all I enjoyed being part of the political process, which I strongly believe people in this country take for granted especially when we work against the backdrop of the North African crisis.
Steve comments: I’m really grateful to Yana, not just for all her hard work supporting my Parliamentary Assistant, Tim, but for taking time to think about how Parliament and democracy works.

As I complete my first year as an MP, I’ll be reflecting on my own experience and Paul Goodman’s Policy Exchange paper, What do we want our MPs to be? There’s much to do and I am increasingly convinced Hannan and Carswell’s The Plan: Twelve Months to Renew Britain has much to offer, notwithstanding all the elements of it which have appeared in the Coalition programme…

Wycombe Youth Action awarded £93,000

I am delighted that Wycombe Youth Action was successful in its application to the Transition Fund, which acts as a Big Society funding mechanism. The project received £93,000 to help young people from the ages of 13 to 25 in more positive activities that they may not otherwise have the opportunity to do.

The Transition Fund was announced last year as part of the Spending Review. So far it has committed £17 million for 201 charities; however there is £90million still available which will be announced from April 2011 onwards.

I would urge other civil society organisations in Wycombe who need additional funding to visit the website www.fundingcentral.org.uk for further information.

As Paul Burstow, Care Services Minister, has said:

Central Government can’t do everything people want in their communities – local people are better placed than officials or Ministers in Whitehall to know what their communities need. This is about a new relationship between the state and citizens, where citizens hold more power than ever before.

The Government is also setting up a Big Society Bank which will provide capital for the voluntary sector.

These are just the first steps to rekindle that mutual co-operation between individuals which typified British society. After the continued encroachment of the State over the past 100 years, we have seen a steady erosion of civil society. This is why we must reclaim local provisions and decision making.  In the long term, we need to de-politicise charitable funding but, in the meantime, the Government is seeking to drive a transition towards social responsibility, not state control. We should make the most of it.

I congratulate Wycombe Youth Action on their achievements and I wish them well with their extra funding.

A day’s work

I spent two three-hour sessions in the Protection of Freedoms Bill committee today, preventing me from attending Transport Committee, where Cadence Driver Development gave evidence at my suggestion. Between Bill Committee meetings, I agreed amendments to be tabled and then took back-to-back meetings on Kashmir, banking and economic reform until returning to the committee, where I spoke on the retention of DNA from those arrested, but neither charged nor convicted.

Next, I chaired a dinner with a major bank to discuss reform before finishing the day by voting on the budget, discussing a range of constituent issues with ministers and colleagues in the voting lobbies. My day ran from 09:00 to now, 23:15. This is all quite typical for a Tuesday, and I look forward to making time for my correspondence tomorrow.

And I find the Yes2AV campaign think MPs need to be made to work harder. Hmmm. Differently certainly…