Squabbling over scraps

So the Tories eventually managed to negotiate a confidence and supply deal with the DUP to keep Theresa May in power. The headline is that it will result in £1bn of additional spending over two years in the Six Counties. People in Wales have been kicking up a fuss about it.

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It doesn't surprise me at all that Carwyn Jones should do so. As Welsh Labour see things, the whole point of being in this political union is that, through it, Wales can be subsidized by countries that are richer than we are. Therefore the size of the handout we get, and how it compares to the handouts that other parts of the UK get, is important ... in fact it's probably the most important thing on their agenda.

For what it's worth, I wouldn't worry too much about it. There is almost certain to be legal challenge from the Welsh and Scottish governments, which might well result in Wales, Scotland and perhaps even England getting more public spending. But even if some legal process eventually determines that a few billion pounds more has be made available to be spent elsewhere, it is only small change in comparison with total UK public expenditure of more than £750bn a year. From the Tories' point of view, it's a very cheap way of giving them a comfort zone in terms of votes in the House of Commons. And even if there is some legal challenge, it will take years, so the Tories will have bought themselves time ... which in itself is a very precious commodity.

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What concerns me more is that many of those who want independence for Wales have been complaining in exactly the same way, and that some—for example in this post have said that if only we were a little more unruly, then we in Wales could get bigger handouts from Westminster. I find this disturbing, because the whole point of independence for us to stand on our own two feet as a nation, not relying on handouts from others at all, and certainly not arguing about whether we should now get £1.7bn more to spend in Wales just because the Six Counties are in line to get £1bn.

If we do this, we are missing the point entirely. Our mentality is completely wrong. I do not want a Wales on its knees squabbling over a few billion pounds, I want a Wales on its feet, producing that few billion—and much more—by our own efforts.

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Let's look more closely at Ireland. Before independence Ireland was poor. Since independence (and particularly since joining the EU) the Republic has become much, much richer. This wealth might be concentrated in the south east (just as it is in both Wales and England) but even the poorer Border, Midlands and Western region of Ireland is considerably more wealthy than the Six Counties.

Southern and Eastern Ireland ... €39,900 (£28,950) per head
Border, Midlands and Western Ireland ... €23,700 (£17,200) per head
Six Counties ... €21,000 (£15,200) per head

Source

Let's now put this additional £1bn into perspective. It equates to £500m per year, or £280 (€390) per head, since the Six Counties have a population of about 1.8m. At best, all this additional spending only scratches the surface of the underlying inequality of wealth between the Six and Twenty-six Counties. And in fact the current inequality is much bigger now than these figures show, because the pound has fallen so much in value since the Brexit vote.

Of course, nobody can say for certain that if the whole of Ireland had become independent, without partition, the Six Counties would now be as rich as the Twenty-Six. But I would be astounded if they weren't.

To slightly modify the proverb: is it better to give someone an extra £280 of fish a year, or allow them to catch fish for themselves and become a few thousand pounds richer each year as a result?

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I have no doubt that the DUP will spin this deal as a victory, and will say at the next election, "Vote for us, because only we are able to deliver all this extra fish pork."

Fish-barrel politics is as grubby as pork-barrel politics, it's a reflection of our obsession with the small picture at the expense of the big picture. We need to be asking why Wales, Scotland or the Six Counties should live as beggars, squabbling with each other over how many billion pounds the UK government will give us on the rare occasions when one of our political parties is in a position to twist their arm. With independence, we can each arrange our economies to suit our own strengths and in time, like Ireland, become much richer than we will ever be as part of the UK.

The DUP save our bacon

The result of yesterday's election wasn't too far away from what I expected. I had put the Tories on 310 and Labour on 275. So I'm disappointed to some extent, but I can see a bright side.

In the Six Counties, two things coincided to produce a perfect storm. The first was that the DUP did well in the Unionist community, gaining two seats, but the second was that Sinn Féin did even better in the Republican community, gaining three seats and wiping out the SDLP. Because Sinn Féin do not take their seats in Westminster, the result is a solid block of MPs who are prepared to support the Tories, and who have just come to a deal to keep Theresa May in a weak and wobbly position of power. The SDLP would, of course, have opposed the Tories.

There is only one thing that the DUP really want from this deal, which is that the Six Counties are not treated in any way differently from the rest of the UK. If the DUP were not in such a pivotal position, I would have put money on the eventual solution to the problem of the border between the Six Counties and the Twenty-six being that the effective border between the EU and UK post-Brexit would be the Irish Sea, and that customs and immigration checks would have been carried out at the ports and airports rather than at the land border. Logistically, that is by far the best way of handling things because the tickets of any people or goods would have to be checked anyway when they boarded the ferries or planes to cross the Irish Sea, so discretely checking their customs/immigration documents at the same time as their tickets would result in no additional inconvenience.

However this arrangement is the one thing that the DUP will absolutely oppose, because in the event of a hard Brexit it will make the Six Counties—in practice if not in name—part of the EU single market and customs union and therefore economically, as opposed to politically, part of a united Ireland.

The only alternative to this is for the UK as a whole to remain part of the EU single market and customs union. And for me this now looks to be the most likely outcome. Essentially, the UK will have a similar relationship with the EU as Norway, and the border between the Six and Twenty-six counties will become as irrelevant for day-to-day purposes as the border between Norway and Sweden. Such an arrangement will also solve the problem of the border between Gibraltar and Spain, allowing Gibraltar to remain British without taking a massive financial hit from the loss of thousands of workers who make the daily commute from Spain.

Those who wanted a hard Brexit (UKIP and the Tory hardliners) were well and truly defeated in yesterday's election, so the UK having a Norway-style relationship with the EU can now be politically justified. And the Tories, if they have any sense, will grasp the fig leaf of spinning this compromise as the only practical way of ensuring that their precious UK stays together and that Gibraltar remains British.

The huge benefit for people in the UK is that we will remain part of the EU for economic purposes, and will only have opted out politically. It means that when Wales and Scotland become independent, we only need make the political decision whether we want to be part of the EU, because there will be hardly any economic consequences either way.

If I'm right in this analysis, the DUP have saved our bacon.

Now for those of you who will argue that this means that the UK will have to continue paying money to the EU, my answer is that we would always have had to do this if we wanted seamless access to the EU single market. We were fooling ourselves if we thought the EU27 would allow us any other deal.