Responding to the Brexit Blog of Reigate’s MP (Part 3)

In the UK’s representative democracy, an MP is a representative, so they are not excepted to have any specific skills or education or knowledge.  They are selected by a political Party and then stand before the electorate in a defined constituency.  Thus, I should not be shocked or surprised when reviewing material published by Reigate’s current MP.  One thing is clear, The MP does not understand how industry and regulation work.

The term “regulation” is not used in the general description of the World Trade Organization (WTO).  Yes, it does have Member States, but it does not have a framework of directly applicable law.  WTO administers the trade agreements that are the foundation of rules.  It’s an international intergovernmental bureaucracy with a slow-moving Dispute Settlement Body (DSB).

Today, the 28 Member States of the EU are WTO members.  They work together since the EU has a single customs union with a single trade policy and tariffs.  That will not change if the UK leaves the EU on 29 March 2019.   The EU’s single trade policy and tariffs, as declared to the WTO, will apply to the UK as a “third country” in relation to the EU.

Unlike, ICAO[1] in the world of aviation the WTO is not a UN agency.  In fact, US President Trump says he will abandon the global trade body “if they don’t shape up”[2].

There are some Westminster MPs, who might be called “neo-imperialists” in the UK, who fail to recognise that the EU is the UK’s largest trading partner[3].  Post Brexit, the EU’s economy is about 7 times bigger than the UK’s.  If Brexit happens it’s imperative that detailed trade negotiations start early in 2019.

The threat of a “No Deal” outcome to the Brexit negotiations sets a dreadful precedent for future negotiations.  If the UK rejects the WA and PD that has been tabled, then there’s not much basis for improving the UKs position as a “third country” in existing EU legislation.  And a great deal of “good will” will have been expended.  Naturally, the option to remain as a powerful EU Member States is currently possible too.

Some Ministers are touting the notion of a “Managed No Deal”.  This is an entirely false prospectus since no ad-hoc last-minute fixes are offered by our partners.

The other, disruptive notion is to withhold funds during an agreed transition period.  This is extreme bad faith since the UK accepted the EU’s multiannual financial framework during its membership.  Why would anyone sign a generous Free Trade Agreement (FTA) with a former partner acting in such bad faith?  Other world States, looking on, may then take a similar view.  This strategy is foolhardy.

[1] International Civil Aviation Organisation

 

[2] https://www.bbc.co.uk/news/world-us-canada-45364150

 

[3] https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7851

 

Responding to the Brexit Blog of Reigate’s MP (Part 2)

One of the most disagreeable aspect of the arguments made by hard-core Brexiters is that when they are cornered they just revert to slogans and slurs.  There have been too many to count but include such nebulous stuff as; Take Back Control, Brexit means Brexit and references to the “establishment”.

One issue on which I do agree with Reigate’s current MP is that the Prime Minister’s deal is a bad one.  As an EU Member State, we (UK) had a vote and the means to influence and change European legislation.  The Withdrawal Agreement (WA) means applying EU law in the UK for at least two years after 29 March next year.  To an extent this is a given, as current EU law is being translated into UK law at this moment.  I believe the problem arises in automatically adopting changes that we (UK) had no means amend or reject.  This is hardly a return of the sovereignty we pooled as a Member State.

Accompanying the WA is a Political Declaration (PD).  This is problematic too.  Much as it is advantageous to have an indication of future intentions of the part of both EU and UK, the whole document is remarkably nebulous.  It might be said that the PD is better than nothing, but it doesn’t much help decision-makers or investors who must act in the transition period.

Put the WA and PD together and they become the starting point for another couple of years of difficult negotiations between the EU and UK.  Clearly, it would be in both sides strong interests to arrive at a new deal at the end of the transition period.  That new EU-UK deal could be a model for many others across the globe.

Reigate’s current MP anticipates failure in this endeavour even before it starts.  I’m often shocked how little confidence is shown in professional British civil servants.  You could say; if they can’t get a good win-win deal with our partners of 40 years what hope is there for the rest of the world?  None.

In the end, no deal can be as good as the deal we already have as an EU Member State.

Today, there are 28 EU Member States.  The membership of the World Trade Organisation (WTO) has 164 members.  Just do the maths.  Negotiating with a smaller number is undoubtably easier than with a larger number.  In the media there’re endless naive statements made about reverting to WTO rules.  Almost no one trades only on WTO rules and those rules don’t cover many vital sectors.

We (UK) would pay a heavy cost for a “No Deal” outcome between the EU and UK.  It is not a sane option.

 

Responding to the Brexit Blog of Reigate’s MP (Part 1)

The start of the arguments of the Reigate MP are built on sand[1].   One of the fundamentals of the European Union (EU) is that it’s a product of the will of its Member States.  To assume that “integration” is a foregone conclusion is to claim that you have a unique knowledge of the future.  The general trend is for those advocating greater integration to be declining in political influence.   The coming European elections will change the political landscape considerably.  In fact, we have a greater problem in the UK with our highly centralised institutions.

The EU has a powerful role on the international stage.  That role will grow.  As part of the EU this has given the UK increasing influence in the regions and global institutions.   Often other regions of the world look to the EU as a role model and a source of solutions to complex intergovernmental issues.

After years and years of turmoil in the UK a Conservative Party Prime Minister made the choice to hold an advisory referendum hoping that this move would resolve a divisive political issue.   It was a poor gamble.  Of the topics of most concern to the British people the EU was low down on the list until the referendum was announced.

A whole series of dreadful mistruths formed a campaign that traded on fantasy projections.   The legalities of the campaign are being questioned in the law courts.  Over all this a slim margin gave the “Leave” campaigners a win.  In most Countries constitutional changes require more than a simple majority but this did not happen in the UK.  Effectively the referendum result caused the biggest single division the UK has ever recorded.

The situation became so bad that a snap General Election was called in 2017.  Unfortunately, this ill-judged move created even more national problems.  To sum up recent events.  We have had, two General Elections, one referendum and two votes on the leadership of the Conservative Party.  However, despite these events we have a solid log jam in the UK Parliament.

Now, the arguments for a final Referendum on the deal, that is now in front of the UK Parliament, are strong.  Going back to the British people is essential when there’s no clear way forward coming from either the Government or the UK Parliament.  Democracy does not end in one day.  Many prominent Leave campaigners made exactly this point before June 2016.   The ballot is owned by the people not self-serving politicians.   Don’t let them tell you: you can’t have a People’s Vote.  The choice is clear: the deal on the table or to Remain in the EU.

The Prime Minister and her officials have succeeded in proposing an EU accepted Withdrawal Agreement (WA).  The remaining 27 EU Member States have agreed that WA.  Everyone can read this document and come to a point of view.  Unlike in June 2016, this detailed document is real.

As it stands, one of the greatest difficulties with the WA is that, at least for 2 years, it makes the UK a rule-taker rather than a rule-maker.  Across the board people are not willing to accept this deal.  Meantime the UK’s Prime Minister is stubborn and deaf to creative and constructive solutions to the impasse.   Parliament needs to assert control and advance a Peoples Vote.

[1] my statement …….. intends to give my constituents a clear overview of my position on this fraught and difficult issue for our country.

The British Crisis

Life is full of “if” this or “if” that but it’s the only way we can plan.  I’m convinced planning is not optional.  Even the simplest diary has one or two dates for things to do in the future.  At work, the saying: failure to plan is a plan to fail often rattled around in my head.

We are getting closer to 29 March 2019.  If no action is taken, no agreement, no revoking of Article 50, no new referendum then the UK leaves without a deal and all EU treaties will end on 29 March 2019.  There are some extremely foolish people who are looking forward to the hardship and suffering that this will cause but thankfully they are in the minority.   The real danger is interminable muddle, incompetence and inaction.  A great Country, such as ours, should not be entertaining any thought of “crashing out” of a relationship of 40 years.  The only triumph would be of failure.

It would be nice to switch off from the political twists and turns at Westminster, but this is a time for action.  Englishman Thomas Paine wrote these siring words in late 1776: These are the times that try men’s souls[1].  He was addressing the American crisis of that time.  Here, 242 years later we have the British crisis.  Now, similar stirring words are needed to overthrow the tyranny of the Brexiters and the hell they promise.

The British Crisis.

When it seems that we are overcome, and every door is closing, we must change.  Take a moment to ask the basic question.  Who do we want to be?

June 2016 was like an axe falling.  Division was the only result.  In times of crisis, as now, the ballot is the most powerful right all British citizens have too hand.  And the strength of British genius is creative imagination.  It’s not for us to be dull drones who blindly walk to the cliff edge.  We must take control from a cohort of failed politicians.

Unity is not easily forged.   But it’s a vote that can forge that unity.  A Peoples Vote can free us from this turmoil.  A Peoples Vote to conquer division.  A Peoples Vote so we can lead again in Europe.

[1] THESE are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph.

Brexit and Aviation 49

One of the challenges with stopping Brexit is the oil tanker effect.  The machinery of the UK Government has been pointed in one direction for a couple of years.  Grinding away, preparing the steps, being buffeted left and right but heading in one direction – towards 29 March 2019.

What this has meant has changed numerous times as the machinations of the Conservative Party have shaped policy.  The ludicrous snap General Election didn’t help one little bit.  It took a divided nation and made it a more divided nation.  So much for the Prime Minister’s judgement.  Here we are in December 2018, just about ready for another pivotal moment on the rocky road.

The latest UK Government Minister to resign is Sam Gyimah @SamGyimah.  He’s the MP for East Surrey and local to me.  He has declared he will vote against the Government’s EU Withdrawal Agreement.  Having resigned as the Universities, Science, Research and Innovation Minister it will be interesting to see what his next moves are.  His resignation statement is worth a read[1].

Gyimah’s reasoning starts with the negotiations over Galileo, the EU’s Global Navigation Satellite System (GNSS).  Back in May this year, the UK Government stated its unwavering commitment to European security meaning it should be able to continue to fully participate in #Galileo now and in the future.  The reality has become that the UK Government pulled out of negotiations on this key subject.  A failure.

Building a uniquely UK GNSS will be expensive.  It will take 20 years and have a big annual cost to keep it working.  All for what?

Back to the oil tanker that needs turning around, or at least stopping before it hits the rocks.  This analogy has a lot of millage in it given that the Brexit result could look much like a giant oil spill.  Damaging to all involved.  Costing a fortune to clean-up.  Living in the memory for a long time.

About UK Statutory Instruments (SIs), the draft Aviation Safety (Amendment etc.) (EU Exit) Regulations 2019 has been laid before the UK Parliament[2].  This SI uses powers in the European Union (Withdrawal) Act 2018 to correct “deficiencies” in derived aviation safety legislation coming from the act of withdrawal.   The intention is here to ensure that the UK legal framework on aviation safety continues to function after the March exit day in the event of a No-Deal[3].  This is a lot of work coming from the UK Department of Transport.  To nationalise legislation, in many places the legal text is changed by ignoring: “at both Union level and national level”.

Gyimah is saying that post-Brexit: the UK will end up worse off, transformed from rule makers into rule takers.  I think he’s right.  It’s time to turn the oil tanker around.

 

[1] https://www.facebook.com/204388219715107/posts/1170464863107433/

 

[2] http://www.legislation.gov.uk/ukdsi/2019/9780111175101/contents

 

[3] http://www.legislation.gov.uk/ukdsi/2019/9780111175101/pdfs/ukdsiem_9780111175101_en.pdf

 

Brexit and Aviation 47

The “Draft Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community,” dated 14 November 2018 is now published.

Aviation gets one mention in the draft agreement “International Civil Aviation Organisation standards related to biometric identification.”   In relation to Agencies, such as EASA the draft agreement says: “The institutions, bodies, offices and agencies of the Union shall continue to be competent for administrative procedures which were initiated before the end of the transition period …”.

So, it’s business as usual until the end of the proposed transition period.  Naturally, that depends upon the draft agreement being passed into law.  In fact, there are three options that are the most likely.  One: enact this withdrawal agreement, two: reject the agreement and abandon Brexit or three: reject the agreement and crash out.

The first two options are practical and viable but the third is an utter catastrophe for all parties.  There are just two ways to prevent disruption and to provide legal certainty to air transport and aerospace, at least for the short-term.

The hard fought, detailed, lengthy and binding Withdrawal Agreement only addresses the next few years.  To accompany the agreement there is a political declaration on future EU-UK relations.  In that document there is a high-level commitment to regulatory cooperation.  There is a wish for a: Comprehensive Air Transport Agreement, covering market access and investment, aviation safety and security, Air Traffic Management and provisions to ensure open and fair competition.

Unfortunately, of all the debate and amassed documentation there isn’t much more than that simple statement.  In other words, there’s some indication of the direction of travel but nothing on what that might that mean for the next decade.  Today, the best deal remains the one the UK has as an EU Member State.

It’s true, that the EU-UK political declaration may still be expanded in the next few days. The political declaration could grow to 20 pages but that hangs in the balance.  Contrast that with the over 500 pages of the Withdrawal Argreement.  It seems odd that it has taken well over 2-years to get to this point.

In parallel, the European Commission is working with its Agencies.  EASA is processing applications from UK organisations in preparation for the time when the UK will not be a Member State.  In addition, it’s doing preparations for the worst-case scenario – No Deal

Clearly, based on the domestic political reaction, there is no guarantee what-so-ever the UK will ratify the Withdrawal Agreement by 29 March 2019.  Parliament remains divided.   Only a committed gambler would predict which way events will turn next.

Brexit and Aviation 46

It’s reported that, International Airlines Group (IAG), the owner of British Airways (BA), has approached the Spanish Government for help over the possibility of a No-Deal Brexit.  They still seem confident that the EU and the UK will put an agreement in place that allows flights to continue even in a No Deal situation.   That said, current rules mean the company must be over half EU owned and controlled to be considered “European”.

Today, IAG is the parent company of Aer Lingus, BA, Iberia and Vueling.  It’s a Spanish registered company with shares traded on the London Stock Exchange and Spanish Stock Exchanges.  Today, the corporate Head Quarters for IAG is in the UK.  In Brexit and Aviation 23, I raised these issues but considering the airlines operating certificates rather than the ownership issue.  If IAG are to comply with the EU ownership rules then, essentially it becomes a Spanish company.  Now, I wonder if the UK Brexiters had that in mind in 2016?

Ownership arrangements do get complicated.  For example, 25% of London Heathrow airport is owned by Ferrovial, S.A., a Spanish multinational company.  London Gatwick airport is owned and managed by Global Infrastructure Partners (GIP) and a consortium of its co-investors.  So, I’m guessing that Brexiters don’t concern themselves too much with ownership and control.  It’s just not on their radar.

This is not a subject to ignore because despite liberalisation there are precise rules on ownership and control within EU legislation.  These are important in the EU but not so much as a matter of regional protectionism as to ensure that there’s a level playing field for fair competition between companies.

Last week, the European Air Law Association (EALA) held their annual conference in Brussels.  The EALA was created 30 years ago when the supranational European institutions, including the European Commission and the European Parliament, started to take policy and legal action in the field of air transport.

This year, their guest speaker was Director-General for Mobility and Transport, DG MOVE, Mr Henrik Hololei.  He confirmed that in respect of Brexit, that no detailed negotiations had taken place between the EU and the UK on air services and they will not occur until there is an agreement on the Withdrawal Arrangements.   Hololei noted that in the most extreme No Deal scenario, on the first day of Brexit there would be no flights between EU and UK.  This is a possibility depending on how the negotiations proceed.

In the No Deal circumstances, the UK Government maybe confident that it would be able to negotiate new, or reinstate old bilateral agreements with EU Member States.  The first of these might be possible, with good will on all sides but the second is just not possible.

The critical date of 29 March 2019 is approaching fast.  Jo Johnson has resigned as a Transport Minister, saying the country is: “barrelling towards an incoherent Brexit” and calling for another referendum.  Crunch time is here.

Brexit and Aviation 45

Ah the persistent and unpredictable ups and downs of Brexit.  One political lesson to be learned from this dreadful mess is that a powerful slogan pitched at an opportune moment on fertile ground can have a big impact.  “Take back control” means a hundred and one things to millions of people nevertheless those three words resonated on 23rd June 2016.  In Europe, we have spent 40 years taking down barriers.  This move has dramatically increased opportunity and prosperity for the majority but created an insecurity amongst some groups.  Control to them ment putting barriers back up.

In aviation, we recently celebrated 25 years of European liberalisation.  It’s only because of open markets that we now have one billion passengers flying.  We have high growth in a mature market which is globally unusual.  If we return to nationalism dominating ownership and control of organisations it’s inevitable prices will rise, and growth will be impaired.  Protectionism is a false God.

There’s no doubt that Europe has major infrastructure challenges.  The capacity and quality of our transport systems is inadequate.  In European aviation there’s strong common interests.  Lines on the map may work on the ground but in the air the current arrangements make little sense.  To solve these problems closer ties are needed not looser ones.  Closer ties are needed if we are to continue to prosper from international tourism.  In 2017, Europe remained the top visited region with more than 671 million tourist arrivals.

Close cooperation in safety and security essential.  Facing these critical challenges alone is not viable.  The only way to take control and have a real influence on the future is to cooperate.  One of the elements of European cooperation that is assumed to continue regardless of Brexit is the European Union’s Single European Sky (SES) programme.  Functional Airspace Blocks (FABs)[1] are a key tool of the EU’s SES programme, aiming to help reduce the fragmentation of air navigation services.  The UK/Ireland FAB aims to contribute to meeting key performance targets on safety, cost efficiency, capacity/delay and the environment.  Surely that stays?

The noisy voices that say the UK Government should sever all ties with the EU maybe don’t realise how that suggestion is extremely foolish.  Let’s hope the instability caused but the Brexit will be viewed in 25 years’ time as a temporary phenomenon.

[1] https://www.ukirelandfab.eu/about/

 

Brexit and Aviation 42

The roller-coaster that is Brexit continues to roll.  One day positive news and the next negative.  This week, British MPs were told that a Brexit deal would be done by the end of November.  A few hours later the Minister’s department was forced to correct the record and say there was no set end date for UK-EU negotiations.  With less than 150 days to go to the Article 50 end date, it’s like an aircraft on approach without any idea if there’s a runway ahead.  Government would do well to remember the rule about flying – Every take-off is optional. Every landing is mandatory.

There are several rules of the air that could apply to the current situation:

Flying isn’t dangerous. Crashing is what’s dangerous.

Never let an aircraft take you somewhere your brain didn’t get to five minutes earlier.

Remember, gravity is not just a good idea. It’s the law. And it’s not subject to repeal.

I’ve written often this year.  Now, 42 there’s a number to get to grips with as we reach November.  If you are not familiar with THHGTTG then you have missed out big-time.  Author Douglas Adams made that number the answer to the meaning of life, the universe, and everything.  Nothing I write here can ever match that answer.

Of note in the recent news is the European Parliament vote confirming relocation of European Medicines Agency and European Banking Authority after Brexit.  UK loses out on influence as these two Agencies move to ensure minimal disruption to the EU’s Single Market beyond March 2019.

Views of the foreign Press don’t make nice reading.  The German media have had quite a bit to say about how Brexit will affect everyone[1].  In Canada, they see the UK as being gripped by a self-destructive madness[2].  In the US, CNN says; Brexit is like a screaming child[3].  It’s clear that Brexit news won’t be slowing down any time soon.

The Treaty of European Union, known as The Maastricht Treaty, came into effect on 1 November 1993.  Today is the 25th anniversary of the Maastricht Treaty.  It was signed by Ministers from the then 12 Member States.  This Treaty is the one that avid Brexit supporters dislike so much.  I remember the political climate that year as being one of change and turmoil.  Change to the extent that I was elected as a County Councillor in Surrey along with 28 colleagues.

One innovation the Treaty brought to flying was that airport queues, solely for UK travellers were abolished in 1997.   The Treaty introduced free movement for EU citizens.  Now, the intention seems to be to dismantle that innovation, at least for British subjects.  Maybe that’s one reason the Chancellor put and extra £500 million in the budget for preparations for leaving the EU.

[1] https://www.bbc.co.uk/news/av/world-europe-45564684/brexit-what-does-germany-s-media-think

 

[2] https://www.theglobeandmail.com/business/commentary/article-a-self-destructive-madness-grips-the-uk-as-a-no-deal-brexit-looms/

 

[3] https://edition.cnn.com/2018/09/14/opinions/brexit-is-a-screaming-child-opinion-intl/index.html

 

Brexit and Aviation 41

There’s a distinct possibility that I will repeat myself in these articles.  This should not be a problem.

Most of what happens in life is a matter of probability.   There’s a high probability that I’ll have dinner this evening but there’s a low probability my local MP will dine with me.  When dealing with risks the best anyone can do is to make both qualitative and quantitative assessments of the likelihood of the occurrence of an event.  How good these turn out to be rather depends on the quality of the information upon which these assessments are made.

At this moment, there is a growing likelihood of a “No Deal” outcome to the Brexit negotiations.

Reasons being the continuing lack of a Parliamentary majority for the possible offer, stubborn pride of those involved and delayed planning.  It’s utterly pointless to even think about the blame game – yet.  Whatever happens, big changes will have to be made to cope with the new situation.

Early in the year, prudently the EU published a series of notices concerning the “No Deal” outcome.  These were stark and based upon the UK becoming a “Third Country” with a blank sheet of paper in front of it.  That’s a Country with no special arrangements with the EU.  The basic reality of that case is that companies, organisations and individuals wishing to continue business with the EU post-Brexit may need to establish a presence in the EU 27.  They may need to seek new approvals or new recognition of their qualifications and/or licences in an EU Member State[1].

UK technical notices offer the intention to unilaterally recognise EU certificates, licences and standards in the wish to minimise disruption, at least for a short time.

Recently in the UK Parliament, the Director General at the UK Department for Transport DfT[2], told the Public Accounts Committee that agreements on air services between Britain and the EU comprise “an area of growing concern to us”.  Naturally, it would be sensible and mutually beneficial for both sides of the EU-UK negotiations to provide certainty and stability to people and businesses as soon as possible. Whilst significant efforts are being made to ensure the conclusion of an agreement on an orderly withdrawal, there’s a lot of remaining ground to cover.  With around 5 months before the planned leaving date of 29 March 2019, detailed negotiations over air services have yet to get going.

As an aside, it’s strange how the truth of this precarious situation is often not evident from any viewing of the questions and debates in the House of Commons.  I don’t say, UK Parliament because the House of Lords often seems to be more up to speed with EU matters than the Commons.

Last evening, I had the opportunity to stroll around both the Lords and the Commons[3].  I can see how its quite possible to become detached from everyday reality in a place so steeped in history.  It looks more suited to page boys running around with handwritten notes than the high-speed interconnected world outside the building.  100 years ago, great reforms changed the shape of our society.  To me, there’s need for another dramatic round of reforms to at least try to be in the 21st Century.

[1] https://www.flightglobal.com/news/articles/uk-confirms-no-deal-brexit-would-limit-caa-certifica-452144/

 

[2] https://www.gov.uk/government/organisations/department-for-transport

 

[3] https://www.parliament.uk/visiting/visiting-parliament-news/museums-at-night-october-2018/