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Voting system overshadows Labour elections

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Carolyn Harris MP: New Deputy Leader

A ROW has erupted following the election of Carolyn Harris MP as the new deputy leader of the Labour Party in Wales.

And the row could have an impact on the election of Carwyn Jones’s successor to the post of leader and First Minister.

In an eerie echo of the way in which the late Rhodri Morgan was defeated for leadership of Labour in Wales ​18 years ago, the membership of the party overwhelmingly backed his widow, Julie Morgan AM, but the votes of the union machine and Labour representatives went Carolyn Harris’ way.

The MP for Swansea East gained 51.5 per cent of the vote, narrowly beating Julie Morgan, Cardiff AM and former MP, to become the Welsh party’s first deputy leader.

Although Julie Morgan won a majority of party members’ votes, Carolyn Harris won amongst affiliated groups and elected representatives.

In the UK Labour Party, the leader and deputy leader are elected under one member one vote (OMOV); however, Labour in Wales has retained the Electoral College, which was widely criticised following the 2010 election for Labour leader that saw Ed Milliband returned as party leader.

There has been disquiet within the Labour Party over the system it uses for elections for some time, and the Welsh Labour Party is part of the way through a review of its Electoral College.

The vote was​ -​

Affiliated groups including trade unions:
Harris – 20.14 per cent
Morgan – 13.19 per cent

Party members:
Harris – 11.6 per cent
Morgan – 21.73 per cent

MPs and AMs:
Harris – 19.75 per cent
Morgan – 13.58 per cent

Overall:
Harris – 51.5 per cent
Morgan – 48.5 per cent

Campaigning in the deputy leadership election centred upon the system used to elect the candidates. Carolyn Harris – backed by the unions –​ ​supported the existing system, while Julie Morgan supporting a change to one-member-one-vote.

The result is likely to strengthen calls for OMOV in Welsh Labour internal elections.

There was no sign of the fight being over after the election, when Julie Morgan tweeted: “The campaign for one member one vote continues.”

Jon Lansman, founder of Momentum and a member of Labour’s National Executive Committee tweeted: ‘The process was a travesty of democracy & insults the people of Wales. The Welsh Exec deliberately chose to limit members say to ⅓, they knew what they were doing. It’s called gerrymandering’.

The timing of Carwyn Jones’ announcement is also thought to be significant, as it would now require a rule change to switch the Electoral College system – perceived as a way of stitching up elections – to a wider vote of party members.

Following Carwyn Jones’ surprise decision to stand down in the autumn, battle lines have been drawn along the method chosen to elect the new leader, with potential candidates with strong links to unions – for example, the former President of the Wales TUC and transparently ambitious Vaughan Gething – altruistically supporting the status quo; while others have called for Labour in Wales to follow the UK party system, widely thought to favour more left wing candidates – for example, Mark Drakeford, who is more popular with rank and file members.

Indeed, as the week has progressed since Carwyn Jones’s announcement, Mark Drakeford has easily racked up more than enough AM nominations to succeed him as leader. The extent of the concern that some AMs have has been the coded call for ‘a more diverse field’, hoping to throw up a ‘Stop Drakeford’ candidate.

Mid and West Regional AM Eluned Morgan is thought to be the favourite of those seeking to prevent a coronation.

Eluned Morgan is a formidable political operator and is likely to have a far wider appeal than the other alternatives to Mark Drakeford, who seem so politically similar that they could have been designed by the same committee. Whether Ms Morgan is willing to place her name forward is open to question. While a further complication is that, as a regional AM, she is not in control of her own destiny and would likely need a safe constituency base for the next Assembly elections.

Signs of support for Ms Morgan are already evident.

An online petition has been launched calling for her name to be included on the ballot for leadership candidates. The petition’s supporters say that ‘For too long women have been overlooked in Welsh politics. Despite the many movements and campaigns to bring about equality, Wales of all the UK nations is unique in that it has never elected a woman leader’.

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Welsh tax plans for 2019 revealed by Finance Minister Rebecca Evans

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FINANCE MINISTER Rebecca Evans has announced the Welsh Government’s Tax Policy Work Plan for 2019.
This year’s plan focuses on developing the government’s approach to taxation in Wales – exploring the scope for continued improvement to tax administration, while further strengthening the links between tax and policy areas, and ensuring taxes remain fair throughout this process.
The plan aims to develop government proposals to build the Welsh tax base, while continuing to make the case for devolution of air passenger duty to Wales, taking forward consideration of land and property taxation, and continuing to work with the UK Government on disposable taxes and other environmental taxes. The Welsh Government will also explore further the funding options for social care in the future, progress plans to devolve powers for a vacant land tax to Wales, and develop thinking on a tourism tax.
Ensuring Welsh taxes are working effectively is a key priority in 2019. Following the successful introduction of land transaction tax and landfill disposals tax last year, and with Welsh rates of income tax going live on April 6, the government will continue to work closely with the Welsh Revenue Authority and HMRC. As part of this coordinated approach the government will also consider options for developing information resources, including data sharing and analysis to strengthen the evidence base for tax policy decisions and improved tax administration in Wales.
Continuing to build on the government’s open and transparent tax policy making process also remains a key priority. A long-term plan to build capacity on tax policy and administration will be developed, and work with the UK and other devolved governments to share best practice and address common challenges will continue. The aim is for Welsh taxpayers to understand the government approach to taxation and be clear how their taxes are supporting public services in Wales.
The Minister for Finance and Trefnydd said: “Our annual tax policy work plan is an important part of the communication process, building on what we have achieved and learned so far and identifying areas we want to explore further.
“I am committed to ensuring our tax policy is developed in an open and transparent manner and this plan is an invitation to anyone who wishes to contribute to our thinking, and help shape Welsh tax policy.”
The Welsh Government’s tax policy is being developed in line with the principles set out in the Tax Policy Framework. A report summarising the main findings will be published alongside the draft Budget in the autumn.
The full tax policy work plan for 2019 is available at: https://beta.gov.wales/tax-policy-work-plan-2019

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Lib Dems slam ‘botched’ scheme

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THE WELSH Liberal Democrats have slammed the Conservative Government for their “hapless treatment” of EU citizens after the Home Office released guidance on the new EU Settlement Scheme.

The Home Office has confirmed that for the duration of the trial period, until 30 March, EU citizens applying to stay in the UK must either use an Android phone or travel to one of 13 ‘document scanning’ centres instead.

For Holyhead, the closest ‘document scanning’ centre is Trafford.

According to an analysis by the Welsh Liberal Democrats, EU citizens travelling from Holyhead would face costs of £55 on the train for at least a six and a half hour round trip. The drive would be a 224-mile round trip costing around £56 in fuel.

The only document scanning centre in Wales is in Caerphilly. Travelling from Pembroke to Caerphilly and returning the same day by rail would cost £32.10 (the cheapest available fare at the time of enquiry), the cheapest off-peak fare from Aberystwyth would be £77.10 return. By car at an average of 40mpg, the cost of travel would be at least £27 to and from Pembroke, while from Aberystwyth the cost would be at least £25. Both car journeys represent round trips of over 180 miles.

Welsh Liberal Democrat Leader Jane Dodds said: “Too many people in Wales are deeply anxious about their right to stay. Many of them fill vital roles in the health service, our schools and the tourism sector. They want to register as soon as possible, but Theresa May’s hapless treatment of EU citizens could result in a new Windrush scandal.

“For anyone who doesn’t have an android phone, this botched scheme means they will have to travel. For people in Holyhead, that means facing a 224-mile round trip and paying over £50 for the privilege. This postcode lottery is simply unacceptable.”

Liberal Democrat Home Affairs Spokesperson Ed Davey MP said: “Following significant pressure, the Prime Minister said there will be no financial barrier for any EU nationals who wish to stay. How long did that commitment last?

“It is Conservative Ministers who have made a mess of Brexit. They should either pay the cost for EU citizens or change the application system and ensure EU citizens are made to feel welcome in the UK.

“Ultimately, the best way to avoid all of this mess is by giving the people the option to remain in the EU with a final say on Brexit.”

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Retailers’ no deal reality check

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THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

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