Friday 31 January 2020

Brexit leaving Britain undone



Introduction

I recall watching the Prime Minister of the UK, Harold Wilson, appearing on television in May 1974 to denounce the Loyalist Workers strike and his use of the word “spongers.”   
The strike crippled daily life and brought down the fledgling power-sharing Government established under the Sunningdale Agreement.   
The collapse took place the year after the UK joined the European Economic Community.

Move forward to January 2020.  Will Northern Ireland experience a year of perfect vision and will there be another new beginning?  
The initial relief felt by the hard-pressed public when Northern Ireland politicians returned to Stormont after a 3-year paid absence was soon interrupted.  It only took a few days before MLAs, Members of the newly reconvened Legislative Assembly, began complaining about insufficient money from Westminster to govern.

At times one wonders what the citizens of Great Britain must think of us across the Irish Sea.

December 2019

Step back to the previous month.  
People throughout the UK were thinking not about divisive topics like politics or politicians but about joyful activities such as Christmas and family togetherness.  The prospect of a General Election slap bang in the middle of the festive month, however, couldn’t easily be ignored even if it ranked as an unseasonal inconvenience.  
Devolution was looking unviable, a hopeless case of incompatible differences, where paralysis had produced hardship and deterioration in public services.

When I wrote to my Westminster MP[i] five days before the 12 December General Election, I asked about her party’s campaign boast to have delivered £1.5b of extra funding for Northern Ireland.  
Was it, for instance, additional funding over and above the Barnett formula used for allocation across the UK.  
Where had it been spent, if indeed it had ever transpired?  
Had Economic Appraisals been carried out on projects funded as required by HM Treasury etc?

At the time of writing to her,15,000 nurses had begun a strike for the first time ever, there being no prospect of their pay being aligned to Great Britain’s nurses. What about her party’s trumpeted imperative for regulatory alignment with the UK?

I also asked about the party’s campaign pledge “to protect Northern Ireland’s place in the union.”  
How would Brexit protect the union since it has been shown by reputable bodies (the NIESR, the Office for Budget Responsibility, the Bank of England, the Treasury, the ESRI and others) that it will diminish UK GDP; and what sort of advertisement for “strong unionism” was her support for the illegal prorogation of Parliament that inflicts reputational damage on the Monarch of a divided kingdom?

Three days before polling day, I was delighted to receive a considered reply. 
To my surprise it had been sent just before half six in the morning, even using first names.   
It provided detail of some allocations of the £1.5b to health projects.  
The list shows a total of £116 million allocated to five health areas (none of which were nurses’ pay). On my calculations, helpful as this detail is, the figures account for 7.73% of the £1.5 billion.

Questions arising include: what about the other £1.384 billion; and given the parlous state of the health service in Northern Ireland, what difference, if any, has the £116m made?
Regardless of that and in retrospect, I am glad I put the case at the time, not least because the electorate voted to return a different party and candidate to represent Belfast South.

M.P’s reply

Michael, 

There was a UK wide people’s vote, the people of the UK voted to leave the EU.  Implementing the decision of the people is about honouring democracy.  However, the DUP have made clear that we wanted a sensible Brexit deal that respects East, West and North, South relationships.  

The extra money is verified by FactCheckNI, it is worth checking this out.  It was allocated to the Northern Ireland departments as additional to the block grant and the Barnett Formula did not apply to the funds so a proportionate amount did not go to other UK regions.  This was an additional amount just for NI.  

The money went with the high level condition (so much for heath, so much for broadband etc) however, within some of those high level areas, the Northern Ireland civil service and departments could spend against priorities and pressures.  All departmental expenditure is (should be) spent in accordance with HMT guidelines and procedures.  I assume these have all been followed.

The adjustment to the tariffs on RHI will now mean there will be no overspend, in fact, Northern Ireland is projected to only draw down part of the NI allocation directly from HMT.  There will therefore be no ongoing cost to the NI block grant. 

The DUP Team at Westminster has been strong as we have delivered extra funding, succeeded in lifting the 1% pay cap for the entire UK, protected the pensions triple lock for the entire UK, protected the Winter Fuel Allowance for the entire UK, secured the City Deals for NI and more.  

I attach some information about the expenditure of the additional DUP C and S funds in Health.[ii]  

Kind Regards,

Emma 


The New Year

Since the General Election and a big victory for the Conservative Party, Westminster has passed the Withdrawal Bill (dubbed the "Betrayal Act" by the DUP) with Royal Assent granted on 23 January.   
Northern Ireland’s restored Assembly got down to work prioritising the case of the valiant nurses with a popular decision to award them a pay rise.  

Polemic ensued, however, over Westminster’s funding support for devolution.  Whereas MLAs are keen neither to fall out with each other (yet) nor to bite too hard on the hand that feeds them, especially after three years off, there is debate and disagreement about the regional Government raising funds locally to pay for essentials.

British voices

Is the British public again tiring of the price of bolstering its loyal Northern Irish territory?  
If so, perhaps it may be explicable in the face of major needs in the NHS (remembering the Brexit red bus pledge of Boris Johnson) and from the Government’s new support base in the north of England, the former “red wall,” where delivery is sacrosanct.

Coming just as the UK exits from the EU with its potential ramifications for the continued existence of a Kingdom United, the spats at Stormont critical of Westminster’s lack of funding largesse have provoked reactions from important voices in Britain.  
One, for example, comes from the former PM Gordon Brown, another comes from the experienced Times columnist and former Conservative MP Matthew Parris.

Gordon Brown argues that the UK needs a “Constitutional revolution” to rescue the union.[iii]  “The risk,” he contends, is that “getting Brexit done is leaving Britain undone and, by destabilising the careful balance between the Irish and British identities in Northern Ireland, threatening the very existence of the United Kingdom.”  

Jonathan Powell, the UK Government’s chief negotiator on the Good Friday Agreement has made a similar point.  He also argues[iv] that there is a good chance of a border poll and a united Ireland within ten years.

This is emphatic stuff.  Brown’s case carries an implicit reminder that it is going to take a year of transition (possibly more) to agree a new trade deal with the EU and to achieve the objective of completing Brexit in an orderly and satisfactory manner.

On hearing that Conservative Party Election mantra “Getting Brexit done,” I was reminded of the rather more subtle line by the metaphysical English poet and Anglican cleric John Donne.  Punning his own surname, he wrote:-

            “When thou hast done, Thou hast not done, For I have more.” 

Thinking about transition and the negotiation of complex trade deals, might Donne’s lines be an epitaph for the UK post-Brexit?

Matthew Parris writes that “faster than many realise, the time is coming to think dispassionately about the unification of Ireland.”[v]
Parris’s evidential base includes Lord Ashcroft’s poll in October 2019. As he says it was “taken before we knew a border was to be established in the Irish Sea” showing a slender majority for unification.  
For good measure he quotes Dominic Rabb, now the Foreign Secretary, who says that non-divergence from the EU is good news for Northern Ireland. 

Parris adds that goods will travel freely across the land border; that polls show a change of mood in Ireland in favour of unification; and that Northern Ireland “has failed spectacularly with regional subsidy” and has been “a bottomless pit.”   
He concludes that at £12b net annually, “Northern Ireland costs the taxpayer slightly more than our net payments to the EU.”  Britain, he writes, pays more to keep NI in the Union than it will get back by leaving the EU. 

Wasn’t it a similar line of thinking that persuaded 52% of British voters to divorce the EU?

What adds authority to comments like these is that they are articulated, not by politicians or commentators in Ireland north or south, but by Britons with close connections to and experience of the UK’s economy and governance.


©Michael McSorley 2019

References

[i] https://michaelmcsorleyeconomy.blogspot.com/2019/12/election-communication.html
[ii] Emma Little Pengelly 9 December 2019, Examples of DUP allocations to Health from Confidence and Supply fund (See table below)
[iii] Observer 19 January 2020 p 10 Michael Savage “Constitutional revolution needed to rescue the union, warns Brown”
[iv] BBC Newsnight 13 December 2019 J Powell interviewed by Emily Maitless
[v] The Times 18 January 2020 p 31 Matthew Parris “A united Ireland would be good for everyone.”