Mike Vickers' Blog

A seminar given by Lord Gus O’Donnell to the David Hume institute on Tuesday 8^th November and chaired by Charlie Wood.

Just in case you didn’t know Gus O’Donnell was Cabinet Secretary to the Westminster Parliament from 2005 t0 2011 covering three Prime Ministers, Blair, Brown and Cameron.

O’Donnell spoke at a rate of knots and assumed we all know Westminstereese; which I for one don’t!

That said the points I did capture were:

1. David Hume’s much quoted ‘Reason is the slave of the Passions’
2. Cameron made a big mistake on launching the Referendum
3. Take Hard Brexit with a pinch of salt
4. Migration problems are all over Europe – it is / will be a massive matter
5. The UK will not adapt the Norwegian Solution to interfacing with the EU: it will be bespoke and will cost.
6. Very little progress will be made during 2017; There will be Transitional Arrangements to cover the negotiation gap
7. The funding gap left by the absence of UK revenue contribution will need to be made good by the remaining 27 members; they are not happy
8. It will be difficulty for Teresa May to ensure Cabinet Collective Responsibility; it has already failed with Heathrow
9. Effects of Brexit
   1. The Paris Climate Change agreement is in danger
10. Limiting Migration into UK
    1. There is a Global shortage of skilled labour
    2. Canada is already enticing Finance Professionals from London
11. The Single Market is essential
    1. Accommodation to maintain
12. Productive in UK stopped in 2008
    1. Scotland is 2% to 5% lower than rUK
    2. 5% down on Assets
13. Scotland will have 40% more control over the levers
    1. ½ Scottish revenue to be raised locally
14. Sturgeon’s 5 tests
    1. O’D has a good opinion of Sturgeon
15. Independent Scotland: O’D stated that in his experience from Canada and Quebec, independence is going away as older people die
16. The terms of trade will not change for the UK after Brexit. They will be the same with the WTO – GATT rules will prevail
    1. The UK will not be able to pick and choose eg no separate agreement for Cars eg Nissan or for Finance
17. The EU rules of the Single Market go way beyond CETA
18. To trade in the EU after Brexit the UK will still have to follow the EU acquis
    1. The Great Repeal Bill will be no more that the UK importing the EU acquis into UK Law
    2. Regulation will not disappear; merely EU Regulation repatriated
19. The UK government will be fully involved in the Brexit follow up to the detriment of Health, Education, and Public Services.
20. The UK financial position distorted by Quantitative Easing: Deficit still too large, Rich people favoured. Need for special taxation
21. Fundamental Alternatives are required. The Treasury has a host of plans but they will be ignored by the Westminster Government
22. Article 50 is not neutral, it favours the rest of the EU
    1. It will be like 27 people playing one person in a game of chess
    2. The rEU very upset with the UK
    3. The trade-offs will be difficult to achieve
23. It would have been better to trigger Article 50 this Autumn
24. Vote Leave correlated with Inequality
25. Brexit very different for Ireland and for Scotland. There must be Public Debate
    1. Agriculture is a nightmare
    2. Finances not easy
    3. Fisheries
    4. Energy easier and should be targeted
26. Devolution while grudgingly given proved a useful experiment
    1. Westminster incredibly centralised
27. Sturgeon is right on migration
28. In response to Jeremy Peat, O’D agreed that Social Media could be the death o0f Rational Decision making. Democracy is in peril
29. The Westminster Parliament has accepted Robots for manufacturing but has failed so far to considered for office working
30. Gus O’Donnell’s family moved from Ireland in 1852 and he is going back for a visit.
    1. He cares enormously as to what happens in Ireland
    2. He praises the work done by Blair
    3. A disaster if border reintroduced following Brexit
    4. But believes a solution will be found.