No satisfactory rationale emerges from the Government on 7 billion loan to Ireland

So Britain is making a loan to Ireland of €7 billion, just like that. 

We are told that it is in the National interest for Britain to do this.  George Osborne has said that Ireland is a “friend in need.”  It has been emphasised that Ireland is the only nation with a land Border with the UK, that Ireland’s own banks have 40% of the banking in Northern Ireland, that Ireland is Britain’s largest export market and that British Banks are owed a very large amount of money by Ireland. Yes, but….

…was that money not available from European or IMF sources in any event?

None of this properly explains why Britain loaned the money. What would have been the position if Britain had not loaned the money?

What “bad happening” to the UK has been prevented by lending the money?

What good has the Government achieved which could not have been achieved without lending the money?

When you consider all that Mr. Osborne and Mr. Cameron have said, we have not actually been told anything.

The political problem for the Government is that, whatever the answers to these questions, they can not be kept a secret for very long.   Even if they could keep it a secret, the media will fill the gaps in their knowledge with accusations.  Already, Simon Heffer of the Daily Telegraph has written a very provocative piece, accusing the Government of indulgence.

“…we must help the Irish because of the Coalition’s commitment to the European dream,” accuses Heffer.

So please, Messrs. Osborne and Cameron, let us have the full facts. Let’s have it out now.

David Cameron offered merger with UUP during party conference

Northern Ireland Conservatives have been wondering, throughout the summer, why there has been no proper direction from the Party leadership about the direction in which they want to take the party.

In this week’s Impartial Reporter, it has been revealed that David Cameron offered to Tom Elliot that the Conservative Party merge with the UUP.   According to the Impartial, Elliott “angrily” rejected the offer.

I do not believe that David Cameron thought there was any chance that Elliott would agree.  Nearly 2 years ago, the Conservative Party tried to negotiate a merger with the UUP.  The proposal was rejected back then.  I believe that there was a large element of jest in the offer made by Cameron.  Had it not been anything other than an offer of jest, it would have represented a clear belief by Cameron that he regarded the UUP as having no other option, except to face political oblivion.

So where does this leave the Northern Ireland Conservatives?  Are they now free to fight the UUP full opponents and contest elections in the Assembly?

There has to be a reason why David Cameron made a jestful offer.  Apart from the likelihood that it indicates an element of contempt for the UUP, I am not yet fully reading the game being played by David Cameron.   Any insightful comments or information on this interesting subject would be welcome.

Working together

What a speech! Well, I would say that wouldn’t I? There is no way that a neutral would not have been moved by it. It had a powerful theme running through it. It had vibrancy. It was passionate. It was patriotic. It was inspiring. It was Churchillian.

We were reminded, as we have been throughout the conference, that the Liberal Democrats are playing their part. It is an example to everybody that there are times when we have to put adversarial politics to one side to build alliances in the National Interest. That alliance is, in itself, a source of inspiration.

I could say a lot of more specific things about the speech. I will leave the newspapers with the detail. What I would like to get across is the power of the theme.  It was a call to everybody in the Country to take their share of strain and pain.  In a nutshell, we are all being told that we have a contribution to make to a better, more cohesive, more prosperous society.  We have to work hard but there is a reward to look forward to and we will have prevented an even bigger mess for the next generation.

We should be working together.   Contrast Martin McGuiness.  Observe his attitude towards spending cuts and his dismissive attitude towards Owen Paterson’s invitation to consider the costs of segregation.

There is no sense in McGuinness’s mind that the economic pain should be shared, even though the Nation which he covets we should join is suffering much greater pain. There is no willingness to contribute any alternative thinking. There does not seem to be any desire, whatsoever, to engender a cross-community spirit into the Northern Irish people. No, he wants to retain their selfish “ourselves alone” detachment.  His country doesn’t need him!

We know that Sinn Fein is an ultra socialist party. If they had been in control of raising taxes and borrowing money, we know that we would be Greece.  Still, they do bear much of the responsibility for our present economic ills in Northern Ireland.   A public sector which represents 77% of Northern Ireland’s GDP is their legacy.  You would think they would want to do something useful to expunge the memory of it.

They now have elected politicians. They are there to do a job. People expect that of them. If they are not prepared to rise to the plate and take some responsibility, there is only one justified way forward for Sinn Fein politicians.  Resign.

Cameron’s Wizardry set to produce a long spell which banishes the dark Lord forever

As I watched TV yesterday, one scene hit me between the eyes.  It was the look on Peter Mandelson’s face as he got into the car after leaving 10 Downing Street.  That look spoke more than everything that he said in broadcast interviews during the day.  What was it that he was so upset about?

Was it the fact that Gordon Brown was resigning as Prime Minister?  I don’t think so.    Mandelson is not a friend of Gordon Brown, whatever he may say in front of the TV cameras.  No, he was upset that Labour lost a big round in the political power game. 

Last night, when Gordon Brown resigned as Party leader, all was set for negotiations with the Lib Dems.  By Mandelson’s estimation, Labour would push through a new AV referendum which would yield a “yes.”   October 2010 would then see in the much more appealing face of David Milliband as Labour Party Leader.   Milliband then goes to the Country within a 6 months (before the nasty effect of the spending cuts kick in) but whilst the recovery continues to make us all feel artificially better.  With a combination of a much more electable leader and a new voting system which amplifies tactical voting, ‘hey presto’, Labour gain enough seats from the Conservatives to propel them back into power.

The trouble is, the plan did not work.  The Conservatives played their negotiating hand too well. 

Now the Conservatives and Lib Dems have power, control and time.  New political reforms will be brought in which will see new constituencies with boundaries that reflect, as near as possible, population size.  Worse still for Labour, a full term of office gives the Conservatives and Lib Dems more than an even chance being popular by the time of the next election in 2015. 

The coalition will have led to a new electoral dynamic in British Politics with the result that there could be masses of Lib Dem voters voting No. 2 for the Conservatives in Labour/Con marginals and masses of Conservatives voting No. 2 for the Lib Dems in Labour/Lib Dem marginals.  In fact, the next election could be so catastrophic for Labour that they could end up becoming supplanted by the Lib Dems as the mainstream centre-left party.

Was that what Mandelson was thinking of?  It would not surprise me.  Maybe Cameron’s wizardry is set to produce a long spell in office and banish the Dark Lord from mainstream politics for ever.

PRIME MINISTER

David Cameron is our new Prime Minister.   

There will be a lot of writing about his prospects and those of the parties that make up the new Government.  There will be many difficult decisions to take and they will not be popular.  Much ink will be spilt on all these matters in the near future.

The man of the moment is David Cameron.  He is the 12th Prime Minister of Queen Elizabeth’s reign going back to Winston Churchill.  We have our first Conservative Prime Minister for the first time in 13 years.  Whatever his future prospects in politics, Mr. Cameron richly deserves all the acclaim which will greet him on taking office. 

Congratulations Mr. Cameron.

Conservatives on the verge of long term coalition with Lib Dems

Yesterday, following Gordon Brown’s resignation as Labour leader, the Conservatives took a calculated risk with their future by offering the Liberal Democrats a referendum on Alternative Voting (“AV”).  It was a move which was designed to prevent giving Labour anything concrete to offer the Liberal Democrats.  In a post written by me before the General Election, I indicated that the Conservatives should be prepared to make that offer.

Mathematically, it is possible for Labour to obtain a working majority with the Liberal Democrats by adding the Scottish and Welsh Nationalists.    That would take them to 324 MPs.  Bearing in mind that Sinn Fein do not take up their seats, that would be enough.  Certainly, there has been talk of Labour offering the Liberal Democrats a referendum on full proportional representation.  However, that would be a very different offer.  AV was in Labour’s manifesto.  PR was not.  The two voting systems are entirely different and there are many Labour MPs who will never accept PR.   The Conservative offer has effectively killed any chance that Labour had of remaining in power. 

The Liberal Democrats will know there are risks with entering into a coalition with the Conservatives.  Then again, there are political risks for them whatever they do.   A coalition with Labour would be without the legitimacy of an elected Prime Minister.   It would also be highly unstable and very unlikely to survive long.  That is why I am now confident that the Liberal Democrats will decide that their best position is in Government with the Conservatives.

There are those in the Conservative Party who believe that David Cameron has offered the Liberal Democrats too much.  I don’t think he has, not just for the reasons outlined above.  The Conservative objective remains to provide stable government for a minimum fixed term.  I now fully expect that term to be four years.  I also expect to see the Liberals in coalition.  That is what the majority of the Nation wants.  That is also what the Nation needs.

The future for Northern Ireland Conservatives

Jeffrey Peel has said that UCUNF is dead.  He may well be right.  In his last post before the General Election, Chekov suggested that it could not survive a bad result.

The General Election has left the United Kingdom with a hung parliament.  This could mean that instead of waiting for four years before the next general election, we may only be waiting for less than a year.  In addition, we have Assembly elections to think about next year.  If we are going to offer something attractive to the Northern Ireland electorate before these elections, important decisions need to be made now.

The UCUNF project offered something new to the Northern Ireland electorate.  It offered a chance for voters to participate in National Politics and select the next Government of the United Kingdom.  It was a worthy and noble project.  It was not the fault of the Northern Irish electorate that they did not take up that opportunity.  The handling of the project was a shambles.  Furthermore, once a deal was made for a single unionist candidate in Fermanagh and South Tyrone, the project became compromised. 

The Alliance Party and the Liberal Democrats achieved something that should have been an achievement of UCUNF.  Just before polling day, Nick Clegg of the Liberal Democrats publicly took ownership of the Alliance Party’s election campaign.  The appeal by Nick Clegg to support Naomi Long, amplified by the report in the Belfast Telegraph, will go down in Northern Ireland’s political history as the first successful piece of campaigning in living memory by a National political party for a candidate contesting a Northern Ireland Parliamentary seat.   

The Ulster Unionist Party looks set to tear itself apart.  In one camp, there are those that want to draw the party towards a shared Unionist home with the DUP.  They will seek to influence uncertain members by telling them that the DUP has moved away from its “no compromise” days.  In another camp, there are those who would like to lead the party in the direction of a more progressive type of unionism.  There are people in first camp who will blame the UCUNF project for the party’s present position.  The reality is that those same people – some of them very senior UUP members – sabotaged the UCUNF project. 

I would like to think that the progressive camp would gain enough influence on the rank and file membership to seize control of the party.  Sadly, that is unlikely to happen.   However, even if, hypothetically, the progressive camp did seize control, there are so many senior figures in the other camp that the result would be extreme instability. A highly unstable UUP is not fit for a project like UCUNF.  This election has borne that out very clearly.  In conclusion, I can see no future for the UCUNF project on the basis of an alliance between the two parties.

Had there been some measure of success for UCUNF, I believe that eventually, it would have merged with the Northern Ireland Conservatives as part of a federal structure where the new party enjoyed autonomy over its local policies and candidate selection but still remained affiliated to the main Conservative Party.    

Northern Ireland Conservatives will appreciate that since David Cameron became our leader, our branch of the party has ceased to be neglected, as we previously were, like a forgotten outpost at the edge of the frontier.  At grass roots level, the party has benefited and membership has grown considerably in the last four years.  That is appreciated and it is hoped and expected that this support will continue.  Last year, I was very encouraged to hear that David Cameron’s commitment to bringing conservativism in Northern Ireland was a long-term one and would not be coming to an end if there were significant disappointments along the way.  I am confident that commitment will continue.

The deal over Fermanagh and South Tyrone has altered our position as a cross-community party.  The road to achieving normal politics in Northern Ireland now looks longer and harder.  If the decision to field a compromise candidate in that constituency had been left to Northern Ireland Conservatives, it would not have happened.  The fact that it did is in no small part due to the pressure on the main Conservative Party to win as many seats as possible when a hung parliament became likely.  It was a classic conflict of interest situation and it underpins a powerful argument for changing the constitution of the Northern Ireland Conservative Party.

Today, we find ourselves damaged by the UCUNF project to the extent that Conservatives are now tainted, by association, with sectarianism.   We need something radical to change very quickly, if we are to get back on course towards our long term political aims in Northern Ireland.

The conflict of interest point, which I have outlined above and the need to build up our credibility with Catholics, in particular, both form part of a case for more power and control to be given to Northern Ireland Conservatives over matters which include regional policy, candidate selection and the development of a new brand.  Effectively, I am advocating independence for Northern Ireland Conservatives on all crucial decisions except in relation to National policymaking and funding. 

Underpinning that proposal, a more autonomously independent Northern Ireland Conservative Party would have a much greater chance of recognition as a cross-community party by entrenching certain rules within its constitution.  One such rule should be that there are no sectarian deals on seats or candidates with other unionist parties. 

I believe this is the right model for Northern Ireland Conservatives going forward.  I also believe it is right for the main Conservative Party too.

David Cameron has played a blinder to get to this position

At the General Election, the Conservatives registered a count of 307 seats.   Throughout 2009, it looked as though we would win an overall majority.   Having noted the performance of UKIP, I am now convinced that what cost the Conservatives that overall majority was in large part connected with the withdrawal of the proposal to hold a referendum on the Lisbon Treaty.  UKIP had always said that they would have supported the Conservatives at the General Election if they had maintained the policy.

There are some Conservatives (Lord Tebbit was one of them) who wanted the Conservatives to continue with the policy on holding a referendum.  They may have won an election outright but they would have been taking a much bigger risk with the National Interest and the party’s interest further down the line.  A referendum on the Lisbon treaty post ratification would have been a referendum on membership of the Euro.  The ultimate scenario could have spelt disaster.   Britain might have voted itself out of Europe and the Conservative Party might have fatally torn itself apart.

Looking at Conservative Policy and politics over the last four years, it is quite obvious that in appreciating the scale of the task for getting back to power, the Conservatives were planning the scenario of a hung parliament, just as they were looking at every alternative to avoid it.  Competing aggressively for the centre ground of politics was one part of the strategy.  Their green policy was not just an ethical consideration of the Environment.  Their libertarian approach to politics was not merely shaped by philosophy.  Much of the drive behind these policies was a determination to fight the ground of the Liberal Democrats.  In large part, this strategy succeeded.  There was little opportunity for the Lib Dems to advance until the TV debate during the election campaign. 

Consider also the Conservative strategy for Scotland.  The Conservatives did not win any new seats in Scotland.  However, they did buy political kudos from the Scottish Nationalists by agreeing to allow them to govern at the Scottish Assembly.  The Scottish Nationalists have six MPs.  They could, passively or actively, play a crucial part in the negotiations for a new Government in the next few days. 

Consider also the Conservative approach to Northern Ireland.  The Conservatives had hoped that the link up with the UUP would have delivered them extra seats.  Alas, by the beginning of the year, once it became obvious that the link up with the UUP was not going to deliver, the Conservatives got their hands dirty with the DUP, hence the Hatfield House talks and the Fermanagh South Tyrone deal.  The latter gamble did not pay off.  Whilst I did not agree with the deal, it was understandable.  We can at least say that it was out of Character for our leadership to agree that.  The hung parliament spectre was the driving force behind it.  In a future post, I will be setting out my proposal as to how the Conservatives in Northern Ireland should respond to the problem left behind by that deal.

Recently, it was reported that the Conservatives were promising an extra £200 million following further talks with the DUP.  That is entirely consistent with a stratagem to deal with the hung Parliament problem.  Unlike deals on representation and candidates, I do not consider that kind of deal to be pernicious.  The Government has to do what is best for the Country as a whole.  However, there are others who will criticise such a deal as pandering to sectarianism.  Indeed, Lord Ashdown yesterday was asking the question as to whether David Cameron was going to do a deal with “the Orangemen.”  

Lord Ashdown’s comments betray a fear within the Liberal Democrat camp that their hand might not quite be strong enough to push for for an unconditional committment to their holy grail of proportional representation in Parliamentary Elections. 

With the option of governing on the basis of a minority government, the Conservatives, just as they threw away the referendum policy on Europe, have to consider the National interest in their approach to forming a Government.  The Country has a debt mountain to deal with.  We have a war in Afghanistan.  The Country needs the strongest possible Government.  It is absolutely right that the Conservatives should give priority to trying to make a deal with the Liberal Democrats.  

Yesterday, David Cameron set out the Conservative position.  He made a momentous speech setting out bullet point terms for the Lib Dems joining in partnership.  He outlined the issues on which there would not be negotiation, such as the policy on immigration.  In proposing an all party committee on electoral reform, with a promise to implement legislation on the basis of its recommendations, David Cameron has effectively made it almost impossible for the Lib Dems to become involved in a grand coalition with Gordon Brown.  Indeed, I proposed in one of my recent posts that David Cameron should make some sort of offer on elections for precisely that reason.  David Cameron has now shot Gordon Brown’s Fox. 

Taking together everything that has happened, David Cameron has played a blinder for the Conservatives since the moment he became our leader.  Yes, he makes mistakes but he always manages to adjust very quickly.  It is hard not to look at his performance with a certain amount of awe.  He may yet turn out to be one of Britain’s greatest ever politicians.

The future will be brighter in Northern Ireland under a Conservative Government

As we reach the final stages of the election campaign, the polls suggest that the Conservatives are going to gain the largest number of seats but will be just short of an overall majority.  The situation is still, of course, highly volatile but with the likelihood of a hung parliament, the importance of how Northern Irish voters make their decision in a General Election has never been greater. 

The backdrop for Northern Ireland voters is that with the UK in so much debt and the Republic of Ireland economy in so much trouble, there are very tough times ahead, whatever the outcome of the election.  However, I maintain that the outcome of the election, whatever your tradition, will be as important to you as it will be to any citizen in Britain.  What I say here is directed to anybody who is a voter in a Northern Ireland constituency, with the exception of Fermanagh and South Tyrone.  I have expressed my view on the circumstances of that constituency here and here.

All of the political parties that are represented in Northern Ireland have now produced their manifestoes. 

Sinn Fein was the last party to produce their manifesto.  Their policies are as vacuous as ever.  They do not take up their seats in Parliament.  Taken together, they have absolutely nothing to offer the electorate.  All that a Sinn Fein MP achieves by election is the title “MP” and a salary with expenses.  When the Conservatives are elected, they will pass legislation so that neither Sinn Fein MPs, nor any other MPs that do not take up their seats, will be able to draw upon expenses.

The SDLP, by identity, is an Irish Nationalist party but for the purpose of the General Election, I am not interested in their Nationalism. Historically, they line up with the Labour Party in the Westminster Parliament on matters which don’t specifically concern Northern Ireland.  What is most important, for the purposes of this election, is that SDLP MPs support the Labour Government.  If you watched the Northern Ireland leader’s debate last week, you would have heard Margaret Ritchie explaining that. 

If you habitually vote for the SDLP or you are thinking of voting for them, I ask you to think of them as the Labour Party.  If your constituency is North Down, it is also reasonable to treat Lady Sylvia Hermon, who is now supported by the SDLP, as a representative of Labour. 

NI voters need not concern themselves with Labour’s policies for Education or the Health service.  Those are matters for the Assembly.  However, I would urge NI voters to think in terms of which party is best suited to run the Economy and deal with other non-devolved matters such as Immigration.  If you have decided on the answer to that question, then I respect your voting choice if the Labour Party is still your preferred party of Government.

If you feel that Britain and Northern Ireland need a change of Government and you are broadly in agreement with Conservative economic policy, I urge you to put aside any notion of what has gone on before and vote for one of the 17 Parliamentary Conservative and Unionist candidates who are campaigning on behalf of the Conservative Party.

The Democratic Unionist Party currently has 9 MPs.  Their core policy for the UK Parliament is simple and clear.  They are telling unionists that they will use a hung Parliament in order to extract or defend funding for Northern Ireland.  If you are a Unionist and you are taking that prospect seriously, then I urge you further to take into account the following points.

It has been suggested that during the Labour administration, the DUP extracted concessions from the Government.  Peter Robinson has alluded to concessions given when they supported them over the 42 bill.  Do not be fooled by that or by anything else the DUP tell you.  There was, in reality, no funding for Northern Ireland as a result of that vote. 

The DUP may also point to Policing and Justice, where extra funding was obtained to support devolution.  There are two things to say about that.  Firstly, it was the last piece of the Devolution jigsaw puzzle.  The supportive funding was a one-off.  Secondly, the Government made those funding concessions to support devolution, not the DUP specifically. 

The reality is that Gordon Brown has not bribed Peter Robinson at all.  If Brown was into that game, the outcome of the Presbyterian Mutual Society problem might have been different.  Incidentally, savers with the PMS have every reason to hope for a different result when the Conservatives take office.  When in office, they will look at the affair afresh and consider taking a different approach.

If DUP MPs start looking for special favours from the Conservatives to keep them in power, the Conservatives will, firstly, appeal to Northern Ireland MPs to put the nation’s interests first, particularly in these difficult times.  However, they will not be making any concessions to the DUP.  Memories still linger of the “bribe” negotiations between Labour and Ulster Unionist MPs in 1978 and 1979.  Promises made by the Callaghan Government on the eve of no confidence motions erupted into national scandal.  The Conservatives would be taking a very bad gamble if they went down that route.

Voting for the DUP on the basis of potential leverage will not benefit Northern Ireland because it will not benefit the UK as a whole.  A strong Government with a working majority represents the best prospect for the UK during these difficult times.  

The broad way to differentiate between the Conservatives and Labour is in terms of their attitude towards state and economy.  The conservative approach is economy-centred.  Labour’s is state-centred.  Labour has never been able to break free from its “Robin Hood” approach to the economy.  Another description which sums up Labour’s approach is the “Nanny State.”  Whenever Labour has finished a spell in power, it has left the State sector larger, as a proportion of the overall economy, making it much harder for it to thrive in the future.

For people in Northern Ireland, the benefit of the Conservatives being interested in this region is that the Conservatives are committed to enabling Northern Ireland to break away from its dependance on the State.   The Conservative leadership has made its overtures on this subject.   This election represents an opportunity for voters in Northern Ireland to take ownership of that commitment by showing solidarity with the Conservatives and giving them the power that we all need them to have.

Unfortunately, because of the present state of the UK economy, Northern Ireland, like everywhere in Britain, is going to suffer from spending cuts during the first part of a Conservative administration.  That cannot be avoided.   In the medium and longer term, the Conservative Party is committed to reducing the dependency of the state sector and regenerating Northern Ireland’s private sector economy.  One measure for Northern Ireland, already promised to be implemented, is the is the reduction in the rate of Corporation tax so that it is consistent with the low levels of equivalent tax in the Republic of Ireland.  Further fiscal measures will be unveiled after the Conservatives have taken office while others, such as a review of Business rates, will be discussed with Northern Ireland politicians.  In conclusion, there is some short term economic pain ahead for Northern Ireland.  Further along, the future will be much brighter under the Conservatives.

David Cameron’s TV debate victory gives his troops the boost they needed

Last night, Conservative supporters were willing and wishing David Cameron to come out on top of the party leader’s TV debate.  David Cameron did not disappoint. 

Gordon Brown, having yesterday badly handled his “bigot” gaffe looked like a man whose confidence had been shot to pieces.  Indeed, he referred to it again. 

“There is a lot to this job and, as you saw yesterday, I don’t get all of it right.”

David Cameron managed to put clear blue water between the Conservatives and Labour on policy by highlighting the socialist tendancy to rely on the State to solve the nation’s problems. 

Cameron made two notable low blows against Gordon Brown.  He told the audience that Gordon Brown was unable to distinguish between the State and the Economy.  The nastiest punch of all came near the end when he accused Labour of regarding anybody earning more than £20,000 a year as being rich.

David Cameron needed to do more than just beat Gordon Brown.  He needed to come out on top of Nick Clegg.  He did not disappoint here either.  He shot two massive torpedoes into Nick Clegg’s cruiser on the Euro and Immigration. 

Commenting on the Lib Dem’s unstinting support for joining the Euro, David Cameron said this: 

“If we were in the euro now, your taxes and your National Insurance wouldn’t be going to schools and hospitals and police officers, they would be going to bail out Greece”, said David Cameron

Mr. Cameron also landed another blow on Nick Clegg over an amnesty proposal for some existing illegal immigrants.  The offending part of the Lib Dem manifesto says this

“We will allow people in Britain who have been in Britain without the correct papers for 10 years, but speak English, have a clean record and want to live long term to earn their citizenship”         [Lib-Dem Manifesto p.76]

Nick Clegg was caught in denial.  “I’m not advocating an amnesty,” he said.

It appears that Conservative prospects have gone up a couple of notches after last night but I would still not bet on a winning lead emerging in the opinion polls.  One thing is for sure. The outcome of the debate will sap Labour morale just as it will energise Conservative activists will go into the final week of the campaign.