December 21, 2016

The UK must stop negotiating with itself

The UK must stop negotiating with itself

Some people in the UK need to wake up and stop compromising our negotiating position with the EU, warns John Redwood MP.

If I went to an auction with a business partner we would not spend our time at the auction bidding against each other.  We would agree the best course of action for buying the item at the lowest price, and stick to that. Only one of us would bid. We would not advertise in advance how much we wanted the item or what our bidding strategy would be.

Many in the UK think we do need to negotiate a settlement over trade and residual financial matters with the EU when we leave. Yet there are businesses, senior officials past and present, many Opposition MPs and others who ought to know better, trying to tell the other side in advance how generous our offers might be, and trying to bid us up all the time to make better and better offers!

There is no point in making any offer until the negotiations begin. Nor should we offer to pay for things that are properly ours without paying. We have every right to leave the EU, under our own laws and under the Treaty we signed. We have every right to take back control of our laws, our money and our borders without having to pay for the privilege, and without having to dilute that control.

The only thing we need to discuss with our former partners is what new relationship we will have on departure. The main part of that is trade. I see no need to offer money or EU control of our borders in order to carry on importing from the continent. I think they will be all too relieved to be able to carry on exporting to us after Brexit. Some people in the UK need to wake up to the reality of how you do well in an auction or a negotiation. They also need to understand that no deal is better than a bad deal, as there is little we want from the EU. Our trade is not at risk, and can be pursued successfully one way or another as soon as the rest of the EU decides whether they want to pay tariffs on their exports to us or not.

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John Redwood MP
John Redwood is the Member of Parliament for Wokingham in Berkshire. He was formerly Secretary of State for Wales in Prime Minister John Major's Cabinet. He is currently Co-Chairman of the Conservative Party's Policy Review Group on Economic Competitiveness.
  • Nockian

    No article ? Maybe it’s spread to comment central ?

    Central banks don’t work any better than any other kind of soviet style producer. They produce too many tractors when we need more ploughs. This is because banking isn’t independent, it isn’t laissez faire capitalism that is being practised, but the soviet style economics of central planning. It is not, per se, the fault of the central banks, anymore than it was the fault of the Russian tractor factories for under/ over producing as a result of state diktat. Unfortunately we have a mixed economy, which is 50% socialistic and has been expanding for several decades-most of us now give over 60% of our earnings to government directly (it’s probably a bit more depending on inflation and inflexible tax bands).

    The answer is to get the state out of commerce, then the central banks will either survive or collapse within a laissez faire banking system, but first we must begin to accept the truth, that we cannot continue to sustain such a gargantuan welfare system and its associated government. If we want to produce more, we need to be taxed less, we must save not spend.

  • ratcatcher11

    If everyone saved and did not spend there would be a massive worldwide slump, so it is obvious there has to be spending. Making things for sale is thus important, services alone cannot sustain an economy. One of the biggest problems is Keynsian economics that are basically tax, print and spend socialist policies. We do not need the government to build a railway we need a private company to build the railway which will compete with air travel fairly, not by taxing air travel to make it it less profitable. Thus the governments air taxes should be scrapped and private companies encouraged to re open rail lines closed by Beeching. This is the development we need not government spending 90 billion of money on an HS2 line built from somewhere to nowhere and never stops to pick up passengers.

  • Debs

    Expansion of economies cannot go on forever no matter what so called monetary policy is. You dont need to be an economics expert to realise it.

    All I know is governments and banks seem to be constantly coming up with schemes to leave we the lowly tax payer with less of our money.Forget about the trumpeted tax cuts ,everything else is going up accordingly except real wages of course. Dont even mention the Green scam or the cheap labour scam.

    Bail ins and cashless society are two more scams I have seen trailed in various media outlets over the past few years. Gradually our hard earned money is being prised away from us to fritter away on who knows what.

    They wonder why Trump got elected.

  • Nockian

    The market will raise rates eventually, regardless of wether the central bank wishes it or not. The problem is that we have all become mesmerised at central bank control, when, in reality, at this stage they have little at all. They cannot raise rates to normal, because, firstly, we don’t know what normal looks like (it could already be normal) and secondly any increases will create an avalanche effect-let’s face it, no one but the wealthiest wants to bring down countries governments through a collapse in public spending leading to actual anarchy on our streets.

    The bogey man of fractional reserve is a myth that has permeated libertarian consciousness, in a free market banks would have to take risk or they would, by any definition, not be free market. Banks are not currently lending to private individuals because capital requirements are already so high-they have become zombified businesses that look like they function, but are like the shops we set up as kids with funny money and plastic fruit. The market is broken as far as banks are concerned, they are no longer part of it.

    Fixing the problem cannot begin by looking at the central bank, nor the main banks. It’s far too late to consider than anything can be done at this stage, we are so far beyond normal that we aren’t looking at a functioning banking system at all. It would be like bleeding the radiators to solve a broken boiler.

    The problem we have is at its heart a simple one. It’s the problem that labour refused to accept when the banks blew up. We have an unsustainable welfare system and an over sized government. We have to tackle our public spending first of all and I see little sign that any current, nor perspective government is prepared to give the public the awful news about the reality.

    Even the great Tory saviours have flunked out of the monetary boiler rooms. The situation is dire, there is no fuel left, we have been ripping up the ships timbers to maintain the illusion of tranquil sailing progress, but eventually the ship will sink for lack of substance. There is no monetary policy that can save us, all we are going to get is an ever growing war on cash, savers and anyone who tries to make a profit. We are going to end up in the late stages of a soviet style melt down whilst spinning mirrors to pretend it isn’t happening.

    We all know what’s going on, we can offer solutions, make sympathetic noises and talk up any temporary progress, but the reality of the situation is now apparent. We have to do what every debtor must eventually conclude; that our spending has unfortunaly exceeded our earning capacity and all those red letters mean some drastic rethinking is required. We are going to reach the end of the road, not by a sudden explosion, but the drift into monetary authoritarianism which will result in ever greater protectionism and falling living standards. We are in great danger of losing the West to the East and ending up as country cousins of a world of declining freedoms and the rise mysticism.

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