Tag Archives: John Redwood

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President Trump pushes on

Some commentators are surprised. The new President is doing exactly what he said he would do. The worldly wise well educated pontificators  who confidently predicted Mr Trump would metamorphose in office to someone more like the various well honed expert politicians he defeated are having to change their minds.

Mr Trump told us he did not accept the idea that the US has to place climate change at the centre of its industrial and economic policies. References to that set of policies and beliefs have been taken down from the White House website. Instead Mr Trump has taken executive actions to make it easier to exploit US hydrocarbons and transport oil to market by pipeline. He understands cheap energy is an essential underpinning of an industrial strategy.

He told us he would get US corporations to invest much more in the USA. There has been a procession of business leaders in to see him to be asked to step up their domestic investment. Doubtless they have been told they will get tax cuts and regulatory changes to make the US more competitive. They will also have seen the reputational damage if they do not make suitable statements about their commitment to US manufacture. The car makers are now planning more capacity in the USA.

He has said he wishes to control inward migration, and to tackle the problem of foreign criminals operating in the USA. He has made some executive orders and is investigating his further options over the Mexican frontier.

He expressed hostility to multilateral trading agreements that he thought were not fair on the USA. He has pulled the USA out of the Trans Pacific Partnership, a complex large agreement which was not ratified by Mr Obama. He has begun the process of renegotiating NAFTA where he thinks Mexico has un unfair advantage. As this is ratified he will need to deal with the Congress on how to proceed.

The critical commentators will probably shift their ground from proposing he will change, to arguing the realities of government  and the limits on Presidential power will now prevent him doing much of what he promised. It is true his tax cuts require action and goodwill by Republican Congressmen and women. Repeal of Obamacare and changes to existing trade treaties will need the approval of the legislature. Mr Trump is at his most powerful in his early days as President, and all the time there is a Republican majority in the Senate and Congress. He may again surprise his critics by being able to cut deals with the legislators to secure tax cuts, Obamacare change and other important items in his manifesto.

Mr Obama came to office promising to shut Guantanamo, pull out of Afghanistan and press for peace in the Middle East. He got wobbled off all of those and defined his Presidency by securing a deeply unpopular healthcare reform. Mr Trump needs to make sure when he spends his political capital with the legislators he buys something worth having which makes them and him more popular.  Tax cuts might well do just that. The replacement for Obamacare may prove more divisive and difficult.

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CBI business optimism

Surveys of opinion can be unreliable. In July 2016 the CBI survey showed a dreadful minus 47, compared to a minus 4 in January 2016. At the time I thought it an odd reading predicting a downturn we would not experience, as time proved to be the case.   Today’s survey shows a surge to plus 15 for this January, implying good growth to come. It’s a great turn round in sentiment from ultra pessimism last summer.

More reliable order book figures show plus 15 this January, compared to plus 5 last January. This is a better indicator of more growth to come. Why are some forecasters still expecting a big slowdown?

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The will of Parliament

Yesterday Opposition MPs shed crocodile tears about the need for a sovereign Parliament. They were under the misapprehension that Parliament has no proper role in the Brexit process. They seemed to think only unelected Judges could uphold the sovereignty of Parliament against a government determined to implement the wishes of the electors as expressed in the referendum.

Let me explain a few home truths to them. The first is we do not currently have a sovereign Parliament. That was the main point at issue in the referendum. All too many MPs in recent decades have voted away the powers of Westminster, passing authority on issue after issue to the EU. The public voted to reverse that. I have spoken out against the puppet Parliament we currently suffer from. All too many laws, budgets and policies are determined in Brussels in ways the UK Parliament cannot gainsay.

Any opposition there is  to implementing the wishes of the people should properly concentrate on the Parliamentary process. It should not need to go to the courts, and the courts themselves need to be careful not to think it is their job to set the Parliamentary agenda. If there was a big body of MPs who wanted to reverse the decision of the  referendum and thwart the will of the people, there are ways they can seek to do so. The opposition parties have days allocated to their choice of business. They could use any one of those to hold a debate and a vote to prevent Brexit. They can use government debates on the EU which are available in abundance to make their case. They can make it during the various Statements the government issues. They can seek Urgent Questions on matters they rank as important. They can use their seats on the Brexit and European Affairs Committees to put their case. They can oppose the repeal of the 1972 European Communities Act when we get to it, when there will be government led votes where they can vote against.

The fact that they have chosen to do none of these things tells you that they rightly judge they must not been seen to deliberately seek to countermand the decision of the voters in the referendum. The Commons voted 6 to 1 in favour of a referendum, described as transferring the decision to the people by the government introducing the Bill. How can MPs who voted for the referendum go back on its central promise to let the people choose? If only more of these Opposition MPs would grasp that we do not currently have a sovereign Parliament. What a cruel irony that some Members of Parliament prey in aid the idea of a sovereign Parliament, whilst doing all they can to stop one being recreated. At least the Supreme Court was right to tell the Scottish Parliament that our membership of the EU is a matter for the whole UK and for the UK Parliament. They do not have veto on this national decision.

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